Icac investigates Catholic Schools NSW over alleged illegal donations
The Independent Commission Against Corruption (Icac) is investigating allegations that Catholic Schools NSW made illegal political donations to the Liberal party, potentially involving the misuse of taxpayer funds. The probe focuses on claims that donations were made in amounts that were not declared and exceeded applicable caps, with the purpose of recruiting or renewing party members—a practice known as branch stacking.
Expert calls for joint audit of Catholic Schools NSW
Trevor Cobbold, convenor of the advocacy group Save Our Schools and a former Productivity Commission economist, said the commonwealth and state governments should conduct a joint audit of Catholic Schools NSW alongside the Icac investigation. He noted that nearly 80% of funding for Catholic schools comes from federal and state sources, totaling around $3.8 billion in 2024. As a registered charity with the Australian Charities and Not-for-profits Commission (ACNC), the organization risks losing its charitable status and tax exemptions if found to have a disqualifying political purpose.
“The commonwealth department of education, the federal minister for education, and the New South Wales minister for education can’t stand aside as if they are uninterested observers,” Cobbold said. “They have specific responsibilities … to ensure that public money is being spent according to its purposes and in order to do that they need to have a joint audit of the books of Catholic Schools NSW.”
Allegations involve branch stacking and public funds
It is alleged that the donations were arranged and approved by Catholic Schools NSW chief executive Dallas McInerney, a former member of the Liberal state executive and factional ally of federal Liberal leader Angus Taylor. McInerney has offered to stand aside during the investigation. The Icac probe is part of a wider investigation into allegations against individuals connected to the Liberal party, including property developer Jean Nassif and two brothers of former premier Dominic Perrottet, who all deny wrongdoing.
NSW Premier rules out immediate audit
NSW Premier Chris Minns said on Tuesday that his government would wait for the Icac investigation to begin before taking action, ruling out an immediate audit of Catholic Schools NSW. “We don’t have any plans to do it … I think we should wait for that to at least begin,” Minns said.
A spokesperson for NSW Liberal leader Kellie Sloane declined to comment, but Sloane earlier stated that “no stone should be left unturned” and that she trusts Icac to do its work.
Greens call for separate audit and funding freeze
The NSW Greens have called for a separate audit of Catholic Schools NSW and renewed their push to stop public funding of private schools. “The idea that public funds going to Catholic schools and being misused and misappropriated is outrageous,” said Tamara Smith, the NSW Greens education spokesperson. “Any school that is alleged to have engaged in corrupt conduct should have all public funds denied until the investigation is conducted.”
Authorities decline comment amid active investigation
The federal education department and the NSW Education Standards Authority (NESA) declined to comment, with a NESA spokesperson stating, “as these matters are the subject of an active Icac investigation we are unable to comment.” The ACNC said it is aware of the investigation and will monitor its progress.
Cobbold argued that two inquiries could run concurrently, citing the royal commission into antisemitism and social cohesion taking place alongside the criminal investigation of the Bondi terror attack. “Inquiries in the past … can overlap,” he said. “One organisation is meeting its legal responsibilities and the other organisation should be meeting theirs.”
