Key facts
- The Independent Commission Against Corruption (Icac) is investigating allegations of undeclared political donations exceeding caps by Catholic Schools NSW.
- Catholic Schools NSW chief executive Dallas McInerney is alleged to have arranged these donations for 'branch stacking'.
- Nearly 80% of Catholic school funding comes from federal and state government sources.
- Experts are calling for government audits to ensure taxpayer funds are not being funnelled into political donations.
- NSW Premier Chris Minns stated the government will wait for the Icac investigation to conclude before considering an audit.
- The NSW Greens have called for a halt to public funding for Catholic Schools NSW until the investigation is complete.
The Independent Commission Against Corruption (Icac) is investigating allegations that Catholic Schools NSW made undeclared political donations exceeding applicable caps, a practice allegedly arranged by its chief executive, Dallas McInerney, for 'branch stacking'. This has led to calls for government audits to ensure taxpayer funds are not being misused.
Trevor Cobbold, an education funding expert, argued that federal and state governments must act alongside the Icac investigation to audit Catholic Schools NSW, given that approximately 80% of its funding, around $3.8 billion in 2024, comes from public sources. He stressed that education departments have a responsibility to ensure public money is spent according to its intended purposes.
Chris Bonnor, a former president of the NSW Secondary Principals Council, echoed these concerns, calling for more stringent monitoring of private schools' compliance with regulations. He noted unequal obligations and accountabilities between the public and private sectors.
NSW Premier Chris Minns stated that his government would await the outcome of the Icac investigation before considering an audit. Meanwhile, the NSW Greens have demanded a separate audit and the immediate cessation of public funding to Catholic Schools NSW until the investigation is concluded.
The federal education department and the NSW Education Standards Authority (NESA) declined to comment, citing the active Icac investigation. The ACNC confirmed it is monitoring the situation.
Dallas McInerney has reportedly offered to stand aside from his role at Catholic Schools NSW. The Icac probe is part of a broader investigation into allegations against individuals connected to the Liberal party.