Wednesday, 18 October 2023

Schools payroll tax

Jess WILSON (Kew) (14:30): My question is to the Minister for Education. Analysis released today by the independent Parliamentary Budget Officer reveals that a further 18 Victorian non-government schools will be liable to pay millions of dollars in the Victorian government’s schools tax over the coming years. Why is the minister intent on increasing the cost of schooling for more Victorian families during a cost-of-living crisis?

Members interjecting.

The SPEAKER: Order! Leader of the Opposition, I would hope you would have some respect for the member for Kew and her question and want to hear the answer. Members on my right will also show the same respect.

Ben CARROLL (Niddrie – Minister for Education, Minister for Medical Research) (14:31): I do have respect for the member for Kew. She is moving up in the world, and I wish her all the very best for her success in this chamber. I know she is moving up. They need more of them who also supported the Voice, and I think the member for Kew should be congratulated for that.

On to the substantive question, the member for Kew did say she asked the independent budget office to provide some important advice. I have had the pleasure of reading this advice, and I have got to say there are lot of hypotheticals in it. But let us just leave that.

Let us be very clear: private school fees are a matter for private schools. Every Victorian government school pays this tax. What we have instituted and what the Treasurer has done has been targeted, proportionate and fair. There are 60 schools that are liable for the tax. Some 667 are not. We are getting on with doing what we promised, as I said just a moment ago: $15 billion invested in every corner of this state in education. We are making sure that what we do transforms communities and transforms young people’s lives.

To the other part of the question about the future, the budget office talks a lot about the future, and they themselves say setting school fees for private schools is a matter for the private schools. The member for Kew would be aware of that because they talk about hypotheticals and they talk about the limitations of their advice. So let us be very clear: the threshold has been set at $15,000. It will remain in place until 1 January 2029, and it will be reviewed a year ahead of that for the 2029 school year. That is what we are doing. It is proportionate, it is fair and it is responsible.

Jess WILSON (Kew) (14:33): Will the minister now recognise the unfair impact of the government’s schools tax on Victorian families and immediately reverse the decision to tax non-government schools?

Members interjecting.

The SPEAKER: Order! Member for Kew, you have asked your question. The Minister for Education to answer the question that was asked, without support from those at the table.

Ben CARROLL (Niddrie – Minister for Education, Minister for Medical Research) (14:34): What we are doing is we are making sure every child in this state, from the day they are born to the day they retire, for the first five years of their life get everything they need to go on and have a brilliant career whether they are in a Catholic school, a state school or an independent school. We are making sure the exemptions that we put in place flow to those schools that genuinely need it, and we are making sure that no matter what your background, no matter what your postcode, you get the education you deserve and you want. We know the vast majority of non-government schools have retained their payroll tax exemption. As I said at the very beginning though, private school fees are a matter for private schools.