Catholic educators have rounded on the Greens over their backing of an unpopular payroll tax

Catholic schools have urged voters to consider voting against the Greens at the weekend’s crucial Victorian Prahran by-election over support for Labor’s controversial payroll tax.

Former Victorian Labor MP Tony Lupton.

Catholic educators have urged people to consider voting against the Greens at the weekend’s Prahran by-election in Victoria over support for the Allan government’s controversial payroll tax school impost.

Catholic schools in the inner southeast and the Victorian Catholic Education Authority have raised the contentious tax, which is costing mid to high-fee schools across Victoria millions of dollars.

In carefully worded statements to parents, the Catholic sector has highlighted the state Coalition’s opposition to the tax and the fact it would repeal it.

Non-government schools in Victoria with an income per student of more than $15,000 are now subject to payroll tax, following changes to legislation announced 18 months ago.

The tax is wildly unpopular at the higher-fee paying schools as costs post-Covid soar and are passed on to consumers.

Victorian Catholic Education Authority chief executive Elizabeth Labone said Labor’s tax was hurting families and that no other state taxed people in this way.

“It is an unprecedented and unfair tax driving up fees in some Catholic schools and is supported by the Greens …’’ she said.

“It is not just about the schools that are currently impacted by payroll tax. There is nothing to stop the Allan government imposing the tax on more and more schools. We think it is important that voters in the seat of Prahran know that the Liberal-National opposition will repeal this unfair tax on schools.’’

Educators are concerned that the rising cost of fees will lead to more schools tripping over the $15,000 threshold, undermining low-fee non-government schools.

The assessment of income takes into account fees, charges, compulsory levies and other income, as well as fee cuts for scholarships and relief to families in financial difficulty.

Some elite non-government schools are now charging in the order of $45,000 per student, making the aspiration of private education more difficult.

Six Catholic secondary schools are required to pay the tax, which is indexed and expected to affect more schools over time.

While Labor is not contesting the seat on Saturday, former Labor MP Tony Lupton is running as an independent. Preference flows have given the Liberal Party a stronger chance of victory.

The by-election was triggered when Greens MP Sam Hibbins quit parliament following an affair with a staff member.

The Greens held the seat with a primary vote of 36.4 per cent compared with the Liberals’ 31 per cent and Labor’s 26 per cent. This was calculated as a two party-preferred 11 per cent versus the Liberal Party.

One of the letters sent to parents says the payroll tax is hurting some schools. “It amounts to a new, multimillion-dollar expense that is requiring impacted schools to cut programs, scale back capital works and/or increase school fees,” parents are told.

A by-election will also be held on Saturday in the outer western seat of Werribee, which Labor holds with a margin of more than 10 per cent. If the Liberals were to perform strongly in both seats it is likely to have a strong impact on the political debate in Victoria.

Crime is understood to be a key issue for Werribee voters and this week Victorian Premier Jacinta Allan announced a review of the state’s bail legislation, just six months after her government reformed the laws.

However, Ms Allan was on the back foot with her law and order agenda only days later following revelations that a private bail monitoring company, BailSafe, had collapsed without notifying authorities, leaving eight accused criminals unaccounted for.