Board chair of embattled Brindabella states case to parents, urging they pay their fees

Brindabella Christian College board chair Greg Zwajgenberg is insisting that the school’s superannuation and PAYG tax obligations are fully paid and up to date despite court action by the Australian Tax Office (ATO) over a debt that has grown to $8 million.

In a letter sent to parents on Friday to reassure them, calling for unity and continued payment of fees, Mr Zwajgenberg quarantines the tax debt as historical, saying the $8m figure is misleading.

It echoes a letter to the ACT Registrar, Non-government Schools, Sean Moysey from the school’s business manager John Clarke on 5 December claiming the school proprietor Brindabella Christian Education Ltd had paid its tax debts, without referring to the millions owed to the ATO.

“BCEL has resolved all current ATO liabilities, including GST, PAYG, and Superannuation Guarantee contributions, demonstrating sound financial stewardship and adherence to regulatory obligations,” Mr Clarke wrote.

This was shared to parents ahead of the school’s presentation night to reassure them the school’s financial position was sound.

Mr Zwajgenberg claimed in his letter that if not for disruptions to government funding due to the ”vexatious” campaign against the school, the historical tax debt could have been cleared this month.

He blamed the original PAYG debt on a previous chief financial officer who failed to disclose ”critical financial information” to the board, and left after being questioned about it in a board meeting.

He said the debt was actually $4.8m, as stated at a 2023 Administrative Appeals Tribunal (AAT) hearing, plus a $450,000 penalty and accumulated interest.

The penalty was imposed following a 2024 ATO audit of the college’s superannuation payments, as commissioned by Mr Moysey, Mr Zwajgenberg said.

This had drawn attention to the then CFO’s PAYG actions in 2022.

The AAT hearing had heard that a payment scheme had been set up in January 2022 when the debt was $3m but was only complied with until May of that year.

By the end of 2022, the debt had grown to $4.8m and the school had agreed to pay it back at $130,000 a month.

But on 18 February, the ATO applied to the Federal Court to wind up BCEL and appoint a liquidator after the school failed to pay the debt within 21 days. The ATO is also seeking costs. A hearing is set for 26 March.

The school’s last published financial statement was for the year ending 2022, submitted last September, but Mr Zwajgenberg told parents that the audited financial statements for 2023 and 2024 would be provided to the ACT Government by 30 June, 2025.

“This timeline has been agreed upon in light of the complexities surrounding the financial review process and the current situation,” he said.

“To ensure transparency and keep all parties informed, we have proactively provided both the Australian Taxation Office (ATO) and the ACT Government with confidential draft versions of these financials; keeping them updated and assured that we are committed to full compliance and disclosure.”

Mr Zwajgenberg told parents the financial strain on the school had been exacerbated by delayed payments from the Federal Government, which had disrupted cash flow and created unnecessary financial uncertainty.

“In particular, where we received $900k instead of $5+ million in February, destroying our ability to pay the ATO upfront and needlessly suffer their filing on Tuesday,” he said.

He also blamed actions by the school reform group set up by former parents, ReformBCC, for $2.6m in legal bills.

Lost revenue from reduced enrolments due to ACT Education Minister Yvette Berry’s “reckless legacy media press briefings” and ReformBCC’s ongoing media campaign against the college had compounded the financial situation, he said.

Mr Zwajgenberg said the 14-day turnaround to comply with Ms Berry’s ”flawed” show cause notice issued on Thursday was completely unreasonable.

Much of the letter rails against Ms Berry, ReformBCC and legacy media – a pejorative catch-all phrase for Region, The Canberra Times and the ABC, as well as now-familiar claims of an attack on Christian education and parents’ rights.

It ends with a plea for unity and warns of the enemy within, pointing to a ”small group of staff members undermining the board”.

The federal Education Department has been investigating Brindabella Christian College for more than four years.

Last September, Ms Berry demanded the BCEL show proof of governance compliance and financial viability. The school responded late last year and Ms Berry had been weighing what to do until she issued her unspecified show cause notice on Thursday.

Ms Berry has already ruled out closing the school, saying cancelling its registration was not being considered.