Several top schools have deserted Independent Schools Victoria in the past year

Multiple private schools including Haileybury, Caulfield Grammar and Ivanhoe Grammar have walked away from a lobby group over concerns of management style and lack of engagement.

Some of Victoria’s largest and most powerful private schools have deserted their peak lobby group amid concern about its management style and failure to stop the payroll tax.

Haileybury, Caulfield Grammar, Ivanhoe Grammar and Brighton Grammar are among the schools that have left Independent Schools Victoria in the last year.

Haileybury will pay $9m a year to the state government under the new tax, Caulfield Grammar will pay more than $5m and Brighton Grammar will pay nearly $2m.

The payroll tax, which will be levied on schools from July 1, is already being passed onto parents through additional annual fees of up to $1000.

Haileybury College left Independent Schools Victoria in the last year.

Parents at a number of schools will feel the impact of higher fees for the first time next semester including Xavier College ($885 per student) and St Michael’s ($729 per student).

Independent Schools Victoria (ISV), which represents 231 of the state’s non-Catholic independent schools, was blindsided by the state government’s decision to levy the tax on more than 50 schools for the first time.

Despite spirited lobbying, it has been unable to wind the tax back.

It comes as ISV is without a permanent head after its former CEO Michelle Green left last year.

Ivanhoe Grammar was another school that left the peak lobby group. Picture: Eugene Hyland

A source close to the ISV told the Herald Sun it was feared more schools would revoke their memberships with the institute.

“The ISV is not doing the right thing by its schools as there has been a clear lack of support especially around issues involving payroll tax,” the source said.

“The culture within the ISV has been toxic for a while now, there are still so many unanswered questions involving Michelle’s departure.

“There is still an acting chief executive in the role since Michelle left.”

Caulfield Grammar also left ISV. Picture: Luis Enrique Ascui

Another source from a school directly involved said there were concerns about educators “being talked down to” by ISV leaders, escalating fees and a “lack of engagement with member schools”.

ISV was subject to an additional independent audit over its 2022 accounts, with significant adjustments made to its 2023 financial report.

The organisation has 61 full time staff and five senior executives are paid annual average salaries of $348,000. It receives $18m from government grants to distribute to schools and has total assets of $76m.

In response to Herald Sun questioning, Melbourne Grammar School principal Philip Grutzner, who is on the ISV board, said his school greatly appreciates the range of excellent professional services offered by the organisation.

“We are not considering leaving ISV and fully support the work of ISV including their efforts

to remove the imposition of the payroll tax on those schools selected by the Government.”

Yarra Valley Grammar principal Dr Mark Merry said ISV provided services that weren’t provided in-house at the school.

“They assist with advice on government-funding and they’ve been assisting us with the EBA and they have been lobbying the government over payroll tax,” Dr Merry said.

“I think it’s a very odd decision for the government to start levying payroll tax and we get $2 million worth of grants from the state government every year to help us educate the kids.

“Payroll tax is about $2 million, so they give us the money and then we give it straight back.”

Meg Hansen, acting ISV chief executive, said her organisation’s membership “includes almost every independent school in the state”.

“At times there have been slight fluctuations in membership, based on individual school’s circumstances and needs.

“In 2023 a handful of schools indicated they would not renew their membership for the coming year. This was prior to the state government’s surprise announcement it was imposing payroll tax on non-government schools,” she said.

“We’re confident they will rejoin the organisation.”

Parents paying more for the payroll tax

Huntingtower School in Mount Waverley is charging an additional $545 per student this year due to “payroll tax surcharge”. The school’s fees, which will reach $29,290 by year 12, will go up by an additional $1000 per student next year due to the new surcharge.

Xavier College in Kew is also charging parents an $885 fee per student, including those with children attending kinder. This is due to commence on July 1.

Kilvington Grammar School is also charging $240 in the early learning centre to $600 per student for year 12 as a result of the tax.

At Kingswood College, from term 3 this year a levy of $380 per local student and $760 per international students will be applied.

Loreto Mandeville Hall will charge parents an extra $700 per child across all year levels due to the payroll tax from July 1 this year.

Wesley College will also introduce a 6.75 per cent increase in semester two, bringing senior fees to over $40,000 for the first time.

Toorak College Mount Eliza will charge a one per cent fee on student’s annual tuition and boarding fees from the start of the 2024-25 financial year, while The Knox School will bill families a $550 payroll tax levy per student.

A $490 fee per student will be added to term three and four billing at The King David School and St Michael’s Grammar parents will be asked to pay a $720 surcharge from semester two.

Parents at St Margaret’s Berwick Grammar will be charged a $750 fee per student with a maximum of $1500 per family, but this figure could possibly increase next year to “reflect a full year of payroll tax”.

St Kevin’s families will pay a payroll tax of $635 from July 1, bringing the total fees for a year 12 student to $25,625.

Sacre Coeur will charge parents a levy of $350 per term from July 1, while Presbyterian Ladies College will bill a consolidated levy of $1900 annually, including the payroll tax levy.

Mount Scopus Memorial College will charge parents $630 for the period from July to December.