Private schools are stepping up surveillance of parents and turning to the bankruptcy courts

Private schools have had a rush of bankruptcy cases over outstanding bills as data reveals Victorian parents pay the highest fees in Australia.

Private schools have increased their fees more than 40 per cent in a decade while government schools have lifted theirs just 3 per cent.

Victorian parents in both sectors pay the highest fees in the nation – $570 for each state school student and $9275 for private school students in 2022 – the latest Australian Curriculum, Assessment and Reporting Authority data show.

More parents than ever are struggling to pay private fees, with schools stepping up surveillance of parents to assess their assets, calling in debt collectors and turning to the bankruptcy courts.

Some schools have had a rush of bankruptcy cases over outstanding bills of as little as $6000.

These include Caulfield Grammar, which has had three bankruptcy cases in the past year over payments of less than $9000, and Trinity Grammar, which has had six cases in four years.

Caulfield Grammar has had three bankruptcy cases in the past year. Picture: Luis Enrique Ascui

Loreto Mandeville Hall has had four cases against parents in five years, with one settlement of just over $6000.

Although less litigious, even Catholic schools are pursuing parents who fail to pay up, with De La Salle College launching two actions in 2022, according to court data.

Pressure is expected to mount in 2025 as schools recoup the cost of the state payroll tax to be levied from July on schools with incomes of more than $15,000 a year per child.

Loreto Mandeville Hall has had four cases against parents in five years.

Schools already directly passing on such costs include Huntingtower, which has slugged parents an extra $545 in 2024 for six months, rising to more than $1000 in 2025.

The Victorian situation mirrors the national picture in which fees in private schools from 2012 to 2022 went up 40 per cent, whereas state school fees went down 7 per cent.

The national Debt Helpline supports a growing number of parents. It says if a school obtains a court order, it can force the sale of property, take wages from bank accounts and force people to declare bankruptcy.

Futurity Investment Group chief executive Sam Sondhi said most private schools would increase fees 3 to 5 and even as much as 10 per cent.

“School fee increases, some of which exceed the current inflation rate, will add to the cost of living for Australian families, many of which are already at breaking point,” he said.

“The most common challenge parents face for the cost of their child’s education is having to go without buying things for themselves and to sacrifice family holidays. Almost one in four struggle to pay bills, with 21 per cent of parents working more than they want to fund their child’s education.”

Private school costs for 13 years from 2024 are projected to be $195,000 at Catholic schools and $316,000 at independent schools.

Trevor Cobbold from Save Our Schools, a state school lobby group, said that as well as increasing fees, private schools also benefited from more generous government funding, contributing to the growing gulf between the sectors.