Brindabella Christian College, a private school in Canberra, is at risk of insolvency as the Australian Tax Office (ATO) initiates court proceedings to recover an $8 million debt. This financial turmoil has prompted the ACT government to consider its own regulatory actions against the school.
In response to numerous inquiries from concerned community members, staff, and families, ACT Education Minister Yvette Berry issued a show cause notice to the school late yesterday. While she confirmed that the proposed action will not involve canceling the school’s registration, she refrained from providing further details.
“I’ve said that all along … the last thing we wanted to do was close the school and disrupt the education of young people in that area,” Ms. Berry stated. The school has 14 days to respond to the notice, which has also been shared with the Registration Standards Advisory Board.
Acknowledging the distress this news may cause families, Berry encouraged them to reach out to her office for support if needed.
Meanwhile, Federal Court documents reveal that the ATO served the school with the substantial tax bill on January 6, 2025, which remains unpaid. According to the documents, “The defendant failed to pay the amount of the debt demanded or secure or compound for that amount to the plaintiff’s reasonable satisfaction within 21 days after the demand was served.”
In light of the school’s failure to settle the debt, the ATO is now seeking court orders to wind up the college in insolvency under the Corporations Act, appoint a liquidator, and have the college cover the ATO’s legal costs from its assets. A hearing is scheduled for next month.
While Ms. Berry acknowledged awareness of the Federal Court action, she stated that she could not provide additional comments at this time. Brindabella Christian College has been contacted for further statements regarding the situation.
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