Corruption Inquiry Examines Catholic Schools NSW Use of Public Funds

The state's anti-corruption watchdog is examining whether Catholic Schools NSW struck a secret agreement to hire Liberal Party operatives who then used their consulting fees to bankroll a major branch-stacking scheme. The Independent Commission Against Corruption has confirmed that the chief executive of Catholic Schools NSW was a focus of its investigation into links between hard-right Liberals and a fugitive Sydney property developer.

The chief executive has stood aside from the role pending the inquiry, which starts on July 27, and has resigned from a board position on the state government's NSW Education Standards Authority.

Education funding experts say state and federal governments must audit Catholic Schools NSW to ensure no taxpayer money has been funnelled into political donations. Data showed that in 2024, NSW Catholic schools received $3.8 billion from the Commonwealth and NSW governments, accounting for almost 80 per cent of the sector's income.

Catholic Schools NSW distributes state and federal funding each year for the diocesan school system. It also raises more than $550 million in school fees and $100 million from other sources, such as investments. A former Productivity Commission economist said the Australian Charities and Not-for-profits Commission should investigate whether Catholic Schools NSW had broken any of its guidelines.

The Commonwealth Department of

Education refused to answer if it had taken any action in relation to the allegations. A spokesperson said it would be inappropriate to comment on any matter currently subject to an inquiry. A spokesperson for the charities regulator said the commission is aware of the investigation and will monitor the ongoing inquiry.