Labor Votes To Proceed With Unfair Schools Tax

Liberal Party Victoria

Parents and school communities will pay the price for Labor's financial mismanagement as the Allan Labor Government votes to proceed with its unfair Schools Tax and continues to levy government schools with payroll tax.

From 1 July 2024, Labor's Schools Tax will add in some cases more than $1,000 per year, per student to school fees by stripping the long-standing payroll tax exemption from at least 58 Victorian non-government schools.

Today in the Victorian Parliament, the Liberals and Nationals introduced a bill to exempt both government and non-government schools from payroll tax - but the Allan Labor Government voted against this proposed legislation.

Labor's decision to press ahead with this unfair tax comes after a decade of financial mismanagement, with net debt set to reach a record $187.8 billion by 2027-28 and daily interest repayments alone to hit almost $26 million over the same period.

Shadow Minister for Early Childhood and Education, Jess Wilson, said: "It's deeply disappointing Labor is pressing ahead with its unfair Schools Tax which will add thousands of dollars to the cost of educating a child and limit choice for families.

"Under Labor, non-government schools will pay millions of dollars a year - in the majority of cases, these schools will pay more in tax then they receive from the state government - for the privilege of educating children, offering choice to families and taking pressure off the public system.

"Labor's Schools Tax is an unfair tax on educational choice and aspiration. The Victorian Liberals and Nationals do not believe in taxing education and will scrap payroll tax on all Victorian schools, both government and non-government.

"Labor cannot manage money and is forcing students, parents and school communities to pay the price."

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