Victoria waters down plan to impose payroll tax on ‘high-fee’ private schools amid anger over budget measure

Victorian premier Daniel Andrews tells a budget estimates hearing on Friday that the number of private schools that will be stripped of their payroll tax exemption will be lower than forecast. Photograph: Diego Fedele/AAP

The Victorian government has watered down its plan strip 110 private schools of their longstanding payroll tax exemption, with Daniel Andrews conceding the measure will not raise as much money as forecast in last week’s state budget as a result.

According to the budget, about 110 “high-fee” schools, or “around the top 15% by fee level” were to lose their payroll tax exemptions from mid-2024, raising more than $420m over three years. That estimate was based on an annual fee threshold of about $7,500 per student