Catholic Schools NSW Donations Probe Raises Taxpayer Fund Concern 2026

The alleged illegal donations by Catholic Schools NSW to Liberal party operatives have raised serious questions about how taxpayer funds are used, with an education funding expert calling for a joint audit. The Independent Commission Against Corruption (Icac) is investigating claims that political donations exceeded legal caps and were not declared, potentially involving branch stacking.

Icac Investigation into Catholic Schools NSW Donations

Icac is probing allegations that Catholic Schools NSW chief executive Dallas McInerney arranged donations to recruit or renew Liberal party members. The governing body for nearly 600 schools faces scrutiny over its use of public money, as nearly 80% of its funding—around $3.8bn in 2024—comes from federal and state sources.

Expert Calls for Government Action

Trevor Cobbold, convenor of Save our Schools and a former Productivity Commission economist, urged the commonwealth and NSW governments to jointly audit Catholic Schools NSW. “They have specific responsibilities to ensure public money is spent according to its purposes,” Cobbold said, emphasizing that the charity risks losing its tax-exempt status if found to have a disqualifying political purpose.

Key Takeaways from the Investigation

• Alleged illegal donations by Catholic Schools NSW to Liberal operatives are under Icac investigation.
• Taxpayer funds make up the bulk of Catholic school funding, raising accountability concerns.
• Experts demand a joint audit to ensure public money is not funneled into political activities.
• The charity could lose its status if found to have a disqualifying political purpose.

FAQ

This case underscores the need for transparency in how taxpayer funds are used by educational organizations. As the investigation unfolds, governments must act to protect public money.

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