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Brindabella Christian College is having cash flow problems. Photo: Michelle Kroll
The embattled Brindabella Christian College has not been able to pay some of its staff this pay period as it deals with court action by the Australian Taxation Office to recover an $8 million debt by applying to wind up the school’s proprietor.
Executive principal Brindabella Christian College Suzanne Power wrote to staff on Sunday (23 February) saying some staff have not been able to receive their salary on time for this pay period.
The letter, sighted by Region, said the reason for the pay delay was due to “timing challenges in the receipt of parent fee payments, which are essential for meeting our payroll obligations”.
But board chair Greg Zwajgenberg also told parents in a letter on Friday that the school had only received a $900,000 payment from the Commonwealth in February instead of $5 million, but didn’t say why, apart from a campaign against BCC.
He also urged parents to pay their fees to keep the school viable and so staff could be paid.
The 2025 fee schedule ranges from about $10,000 to $15,000 a year, with sibling discounts available.
Ms Power said the school was actively managing the payroll situation, and outstanding payments would be made daily as income was received.
“I understand that this has not happened before in the history of BCC,” she said.
“Please be assured that we are working diligently to ensure that this situation is resolved as quickly as possible.”
It is believed some staff’s mortgage repayments will be affected by the delay.
Ms Power said the school was committed to implementing a long-term financial solution that would provide stability and continuity for students, families, and staff.
She said a few different options were being considered and the board was poised to make a final decision.
“I humbly ask for your understanding and patience as we navigate this season together,” Ms Power said.
“We remain focused on finding a solution that serves the best interests of the entire school community. It is anticipated that this will unfold over the coming weeks.”
Ms Power urged staff to reach out if they had concerns and offered the school’s Employee Assistance Program (EAP) provider, Catholic Care, for confidential support and counselling.
“Thank you for your unwavering dedication and grace during this time,” she said.
“Your faithfulness and commitment to the mission of our College are deeply valued, and I remain hopeful that together, we will overcome these challenges and emerge stronger.”
ReformBCC said in a statement that this level of cashflow distress underpins the ATO’s position on the school’s insolvency, noting a windup was a last resort option.
“Knowing that hard-working and dedicated staff are not being paid by the school is shocking, and we imagine deeply distressing for them,” it said.
“They need to put food on the table for their families. We’re not quite sure how the executive principal expects they’ll do that if they don’t pay them their wages?”
It urged staff and families to fully inform themselves of the facts and review supporting documents provided on the ReformBCC website.
“If community members need further support or information, we encourage them to call the hotline announced by Minister Berry or contact the Fair Work Ombudsman or their union,” the statement said.
The government hotline number is 6205 5429 and is open from 9 am to 5 pm on weekdays.
The school proprietor, Brindabella Christian Education Ltd, faces a Federal Court hearing on 26 March over the tax debt.
It also must respond to a show cause notice issued by ACT Education Minister Yvette Berry by Thursday week.
Brindabella Christian College has been under investigation by the federal Education Department for more than four years over governance and financial issues.
A change in legislation last year gave the ACT Education Directorate and Minister more power to intervene, with Ms Berry demanding in September that the school provide proof of its compliance and financial viability.
The school responded late last year but that has not satisfied Ms Berry, who nonetheless has ruled out closing BCC by cancelling its registration.