The Independent Commission Against Corruption (Icac) is investigating allegations that Catholic Schools NSW made illegal political donations to the Liberal party, raising questions about the use of taxpayer funds. Education funding expert Trevor Cobbold said the commonwealth and state governments should jointly audit Catholic Schools NSW to ensure public money is spent for approved purposes and not funneled into political donations.
Allegations of Branch Stacking
Icac is probing claims that Catholic Schools NSW made donations in amounts that were not declared and exceeded caps, arranged by CEO Dallas McInerney to recruit or renew party members—a practice known as branch stacking. Catholic Schools NSW oversees nearly 600 schools in the state.
Expert Calls for Audit
Trevor Cobbold, convenor of Save our Schools and a former Productivity Commission economist, said nearly 80% of Catholic school funding—around $3.8 billion in 2024—comes from federal and state sources. As a registered charity, Catholic Schools NSW risks losing charitable status 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.”
Political Reactions
NSW Premier Chris Minns ruled out an immediate audit, saying the government would wait for the Icac investigation to begin. “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, though Sloane previously stated that “no stone should be left unturned” and trusted Icac to do its work.
The NSW Greens called for a separate audit 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, 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.”
Regulatory Silence
The federal education department and the NSW Education Standards Authority (NESA) declined to comment, citing the active Icac investigation. The Australian Charities and Not-for-profits Commission (ACNC) said it was aware of the probe and would monitor it.
Broader Context
The Icac probe is part of a wider investigation into allegations against individuals linked to the Liberal party, including McInerney, property developer Jean Nassif, and two brothers of former Liberal premier Dominic Perrottet—Jean-Claude and Charles—who have denied wrongdoing. Perrottet is not accused of any wrongdoing. McInerney, appointed as inaugural CEO of Catholic Schools NSW in 2017, offered to stand aside to allow the organisation to continue its mission, according to a statement reported by the Sydney Morning Herald on 2 July.
