Catholic School Funding Scrutiny Demanded After NSW Icac Inquiry 2026

The Catholic school funding scrutiny has intensified as teachers demand greater oversight after allegations of a 'sham arrangement' with a NSW Liberal group emerged from an Icac inquiry. The Independent Education Union (IEU) has called for closer examination of how public money is allocated to Catholic Schools NSW, following testimony that payments to a lobbying firm may have funded factional political work.

Icac Inquiry Reveals Payments to Lobbying Firm

The NSW Independent Commission Against Corruption (Icac) is investigating whether Catholic Schools NSW chief executive Dallas McInerney approved illegal donations to support the Christian factional group the Reformers. The inquiry heard that Catholic Schools NSW paid Beckington, a lobbying company run by Reformers Christian Ellis and Jeremy Greenwood, $130,900 through invoices for consulting services between August 2019 and August 2021. Additionally, Greenwood's company JPG Advisory received $135,000 between December 2021 and December 2023.

McInerney insisted on Friday that the payments were not a 'sham arrangement' to fund Liberal party factional work, but the IEU remains deeply concerned. The union's NSW branch secretary, Carol Matthews, stated that public funding for Catholic schools may have been wrongfully spent on political matters, emphasizing the need for greater scrutiny of bodies that receive public funds on behalf of non-government schools.

Allegations of Branch Stacking and Political Influence

The Reformers sought more conservative policies on issues such as abortion, euthanasia, and same-sex marriage. The commission heard that Reformers Robert Assaf and Dylan Whitelaw spent work hours on factional efforts while employed at Catholic Schools NSW. This has raised questions about the separation of educational funding and political activities.

About 80% of the funding for Catholic schools in NSW comes from the government, making accountability crucial. The IEU's call for greater scrutiny reflects a broader concern about transparency in how public funds are utilized, especially when political affiliations are involved.

Comparison of Payments and Scrutiny Levels

To illustrate the disparity in oversight, the following table compares the scrutiny applied to public schools versus Catholic schools in NSW:

Key Takeaways from the Inquiry

• Public funding for Catholic schools must be subject to the same scrutiny as public schools.
• Political activities should not be funded by educational grants.
• Icac's investigation highlights potential loopholes in non-government school funding oversight.
• Teachers and unions are calling for immediate reforms to prevent misuse.

Implications for Education Funding Policy

This case underscores the need for stronger accountability mechanisms for all publicly funded educational institutions. The IEU argues that regardless of Icac's findings, greater scrutiny is essential to ensure that taxpayer money is used solely for educational purposes.

The inquiry continues, and its outcomes could lead to significant policy changes in how Catholic schools and similar bodies manage their finances. For now, the focus remains on protecting the integrity of public funding in education.

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