Private Christian school dodges bankruptcy by entering voluntary administration

An expensive Christian college now in voluntary administration is facing legal action for failing to pay staff on time.

A Canberra private Christian school charging $17,000 a year has failed to pay staff and gone into voluntary administration.

Brindabella Christian College owes the Australian Taxation Office office $8m and administrators Deloitte have been appointed.

The school has more than 1000 students at its two Canberra campuses, and Deloitte has written to parents saying classes will continue as normal.

The Independent Education Union of Australia took Brindabella to the Fair Work Commission on March 3, trying to compel the school to pay its staff in full and on time while also raising questions about leave balances and potentially incorrect pay slips.

More than 1000 students are enrolled at Brindabella. Picture: Facebook

The school’s executive principal blamed the timeliness of parents paying school fees for delays in staff wage payments. The college receives $10m of taxpayer money each year.

“Our priorities are to stabilise the college’s financial position and establish an appropriate go-forward governance framework that has the support of key stakeholders, including the ACT and federal governments,” Deloitte restructuring executive Sam Marsden said in a statement.

The government says it has assurances classes and staff wages payments will continue as normal.

“Deloitte has advised that while the administrator is in place, Brindabella Christian College will continue to operate on a business-as-usual basis,” federal Education Minister Jason Clare said.

“My department will work closely and constructively with the administrator, and Commonwealth recurrent funding payments will continue to be made at this time.”

School fees are more than $10,000, and the college receives almost $1m of taxpayer money each month. Picture: NewsWire / Martin Ollman

The beleaguered school is facing inquiries and challenges on multiple fronts. The ACT government issued the school a show cause notice on February 20. The Territory Education Minister confirmed on Wednesday the voluntary administration would not affect the show cause process or Thursday deadline.

Issues at the school have been going on for so long a collective of former staff and parents run a group called Reform BCC (Brindabella Christian College), posting regular news updates and conducting surveys.

“United by concerns over governance failures and lack of board accountability impacting the school community over many years, we have come together as a collective voice,” the group said.

The education union said as of Wednesday, staff had been waiting almost two weeks to be paid.

“To date, 53 staff at the K-12 school in Canberra had still not been paid 12 days after the last

scheduled pay period on 21 February, leaving them worried about bills, rent and mortgages,” the union said in a statement on Wednesday.

The college – a listed charity – has about 1050 students and 200 staff at two campuses in Canberra and had been in danger of becoming insolvent.

School fees for kindergarten to year 4 cost $10,575, escalating to $15,400 for years 9 to 12. Each family pays an $1800 capital levy too. A family with a second enrolled child gets 10 per cent discounted off tuition and fees, 25 per cent for a third kid, and with four or more children enrolled, the school fees are halved.

“We understand that an independent Christian school education is a big investment for families and we thank you for considering Brindabella Christian College for your child,” the school’s website reads.

“After 40 years, Brindabella Christian College continues to build upon its strengths to provide our students with a high-quality Christian education,” a blurb from the principal on the website says.

“One aspect that has remained unchanged is the College’s strong Biblical foundation and emphasis on Christian values as our students are taught to pursue W.I.S.E. values of Wisdom, Integrity, Service and Excellence in and through Christian Education.”

Brindabella Christian College is a listed “large” charity on the Australian Charities and Not-for-profits Commission charity register and has not submitted its 2023 financial report or annual information statement.

Originally published as Private Christian school dodges bankruptcy by entering voluntary administration