Preshil, Kew selling off land to pay for sexual abuse payouts

Preshil is battling for survival amid declining enrolments and multi-million dollar historical sexual abuse payments, with parents saying the progressive school is full of students who “don’t fit in other private schools”.

Preshil Secondary School in Kew. Picture: Mark Stewart

Preshil parents have greeted the news of their school’s financial struggles with “shock”.

It comes after the Herald Sun on Saturday revealed that the state’s oldest progressive school was battling for survival amid declining enrolments and the pressure of multi-million dollar sexual abuse payouts.

One insider said the revelations were “100 per cent true” but that the school leaders were surprised the low enrolment numbers and true financial position of the historic college had been made public.

“Preshil is no longer the first pick of arty parents who want an alternative school, it’s just mopping up all the other students who don’t fit in the other private schools,” one parent said on Sunday.

“It’s quite chaotic with students coming and going,” she said.

Preshil, which has a prestigious history as an artistic, alternate school, is in the process of selling some of its prime land.

On social media, alumni expressed concern about the legacy of the moves, with one saying the sale of a 594sq m block at 1 The Pines, Kew, which was donated to the school, was “so, so sad”.

Another said the sale of the vacant block, which is expected to raise up to $2.4m was a “great shame”.

One of the parcels of that that is listed for sale.

The Pines site is set to be auctioned next weekend.

The second property, the Kalimna mansion at 12 Sackville St Kew, is understood to be the subject of discusions with Carey Grammar, whose campus is next door.

Financial records show Preshil, a once thriving school, made a loss in 2022 of $2.3m, only attracting $8.9m in income and posting $11.3m in expenses.

The expenses include a Supreme Court payment of $2.1m to a sexual abuse survivor in 2022, forcing the school to take out a new bank loan in the same year for $2.2m.

At the end of 2022, the school noted it had one more “unresolved court proceeding” involving a further claim which had not been quantified.

It’s understood the $2.1 payment was to a victim of former teacher John McMillan, who was convicted in the Supreme Court of child sexual abuse.

In 2016 the former teacher was given a jail term for his sexual offences, which included sexually assaulting an 11-year-old on a school trip in 1975 while working at Wesley. He went on to sexually assault a 12-year-old in the gym showers while working at Preshil in 1991.

A source close to Preshil said the historic school had “lost its way”.

“It used to have all the students who were creative and arty and now it’s just got kids who don’t fit into other mainstream schools. Teachers are not managing classes and I don’t know how it’s still operating.”

“There is no cohesion and students are coming and going all the time and alumni are going off,” they said.

One of the other properties listed for sale.

The school has a settlement deed ordering a former staffer – believed to be John McMillan – to transfer the title of a Queensland property just outside Bundaberg worth $400,000 to the school as compensation.

The school also needs to raise funds for the refurbishment of its Blackhall mansion at 26 Sackville St, a grand thirteen- roomed Italianate mansion dating back to 1890.

With annual fees for year 12 of more than $32,000 a year, the school will also be hit by payroll tax from July 1.

The controversies come amid a decline in enrolments, from 256 in 2019 to 236 in 2023. Student numbers for this year are understood to be as low as 220, with around six pupils in prep.

Preshil, founded in 1930, counts artist Polly Borland, musician Clare Bowditch, doctor Brendan Murphy, architect Zahava Elenberg and Olympian Lauren Burns as alumni.

The school’s principal has addressed the situation in a letter to parents.

He said the school’s priority was the wellbeing of students and its integrity.

The school receives around $2m each year in federal and state government grants.

In 2021 it posted a $269,000 surplus.

The school has also had a high number of principals in recent years, with recent US import Josh Brody, who took over in April 2022, returning to the United States a few weeks ago.

New principal Aaron MacKinnon told the school community on Friday that the school “is in a solid financial position and we are working to achieve an important realignment for the School’s future that is responsible and aligned with our current contextual and financial needs”.

“We understand that there may be questions and the need for clarification regarding the School’s financial situation, potential property sales and response to historical abuse matters,” he wrote.

“Preshil commends the bravery of victim survivors for coming forward and apologises to all whose lives were affected by abuse suffered during their time at the school.

“Our priority is the wellbeing of our students and the integrity of our community. We will continue to face these challenges together, with the resilience and unity that defines our school,” he wrote.