Alphington Grammar among schools to be hit by Victoria’s controversial payroll tax

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Alphington Grammar will be among the next group of Melbourne private schools forced to pay the state government’s controversial payroll tax, with a new annual bill of $966,000 from the upcoming financial year.

The independent school, established by the Greek Community of Melbourne, will pay more in payroll tax than it receives in government education funding.

Principal Vivianne Nikou said the charge unfairly targets working-class, multicultural families “buying an independent school education for the first time.”

“This kind of tax will break them,” she warned, describing Alphington as a “low to middle-cost” school that supports aspirational families, many from mixed or migrant backgrounds.

To ease the burden, the school has partnered with Edstart to offer families deferred payment plans, with all students’ families now signed up.

Parents have also begun paying levies on top of tuition fees to cover the unexpected cost.

Alphington Grammar is one of three schools added to the tax list this year, alongside Deutsche Schule Melbourne and Luther College, joining 58 already paying.

The threshold – $15,000 in school income per student – is not indexed to inflation, meaning more mid-market schools will be captured each year until at least 2029, when a review is due.

Independent Schools Victoria and Opposition figures have condemned the tax, warning it places strain on students and families, and risks harming even specialist and lower-fee schools.

Source: Sydney Morning Herald.

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