Geelong Grammar slashes tuition fees by up to 20 per cent for term 3
It’s the school of choice for Victoria’s elite but that doesn’t mean Geelong Grammar families don’t want a discount. After deliberations the school will now cut fees by up to 20 per cent as the pandemic lingers.
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Geelong Grammar, the state’s most expensive school, has slashed its fees for term three as principals at a number of private schools say they are bracing for challenging times.
Principal Rebecca Cody said the school was “fortunate” to be able to secure JobKeeper to support staff, but after deliberations with families the school council decided to offer a blanket 20 per cent fee reduction for all non-boarders at all campuses in years 7 to 12 for term 3.
Prep to Year 6 at Toorak and Bostock House will receive a 15 per cent discount, reflecting improvements in remote learning. Fees for full weeks in which boarders are not in attendance will be credited.
“It is clear the impact of Covid19 will be sustained and complex to manage,” Ms Cody told parents this week.
She said the school had to weigh up the short term implications with the school’s long term financial stability.
A year at the Timbertop Year 9 campus is upwards of $72,000 while years 10 to 12 are $42,000 for day scholars and $72,000 for boarders.
While private schools have been able to offer some discounts and rebates to reflect the shift to remote learning, principals say the reality is that many of the costs are fixed and it is fine balance to meet demands from some families for discounts.
Schools says 65 per cent to 75 per cent of their expenses are staff wages.
For many 70 per cent to 90 per cent of their revenue is derived from fees.
They also say flicking the switch to remote learning involves high IT expenditure for some schools which is largely unseen by families.
The question of what happens next for schools, as the lockdown continues, is one that many school boards are grappling with.
One principal said between 7 and 20 per cent of families may be impacted by the ongoing issues.
Fee discounts and rebates have varied. Haileybury, one Melbourne’s biggest schools, offered 10 per cent fee rebate on savings made in term two and has guaranteed no fee increase for parents next year.
The closure of the four early learning centres during the latest lockdown, with 320 children, meant there was almost no fee revenue from this part of the school, Principal Derek Scott said.
He said the impact on schools will vary. Those with big early learning centres and boarding houses will have lost significant income streams.
One principal said finding ways to cut expenditure wasn’t easy.
The demographics of the families will also come into play. One principal said many of their families were small business operators and were being hit by the pandemic.
Schools are increasing their provisions for bad debt at the end of the year as the expectation that families will leave increases.
Schools with high boarding enrolments such as Geelong Grammar and Wesley have not had income from boarders.
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