Catholic Schools NSW: ICAC Investigates Alleged Illegal Donations to Liberal Party

Herz — World Desk · 15 July 2026 at 06:13 · 30s summary · 3 min read

What we know

The ICAC (Independent Commission Against Corruption) is investigating Catholic Schools NSW for political donations made to the Australian Liberal Party, according to The Guardian. These donations allegedly exceeded applicable legal donation limits and were not disclosed in accordance with the law.

The donations were allegedly arranged and approved by Dallas McInerney, chief executive of Catholic Schools NSW. The alleged purpose was 'branch stacking' — a practice of recruiting or renewing members within the Liberal Party to strengthen its membership.

Catholic Schools NSW: who is affected?

Catholic Schools NSW is the governing body for approximately 600 Catholic schools in New South Wales. Approximately 80% of its funding comes from federal and state government funds, totalling around A$3.8 billion in 2024.

Political responses

NSW Premier Chris Minns ruled out any immediate audit of Catholic Schools NSW on July 15, 2026, stating he preferred to wait for the ICAC's investigation findings before making any decision.

Liberal opposition leader in NSW, Kellie Sloane, declined to comment on July 15, 2026. She had previously indicated her confidence in the ICAC to conduct its investigation.

The NSW Greens, through their education spokesperson Tamara Smith, called for a separate audit of Catholic Schools NSW and the suspension of public funding if allegations of corruption are substantiated. They reiterated their call for an end to public funding of private schools.

Calls for public funds audit

Trevor Cobbold, coordinator of Save our Schools and former economist at the Productivity Commission, called on federal and NSW governments to conduct a joint audit of Catholic Schools NSW. He argued they have a responsibility to verify how the organisation uses public funds.

Regulatory risks for Catholic Schools NSW

The ACNC (Australian Charities and Not-for-profits Commission) is monitoring the ICAC investigation. As a registered charity with the ACNC, Catholic Schools NSW could lose its charitable status — and associated tax exemptions — if a disqualifying political purpose is established.