Struggling independent schools would have to open their books for greater scrutiny under new legislation introduced by the state government prompted by a series of school closures.
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The new rules will give the schools watchdog expanded powers to conduct periodic financial “health” assessments and reviews targeted at schools that are not complying with regulations.
The legislation, introduced on Wednesday, is yet to pass through both houses of State Parliament.
Education Minister Martin Dixon said the new rules would give the Victorian Registration and Qualifications Authority (VRQA) more power to protect students.
“If there are any red flags raised, the VRQA will be able to conduct a targeted and streamlined review of a non-government school and respond to issues more quickly,” he said.
“This legislation gives certainty to students, parents and school communities that financial problems will be dealt with swiftly, in order to minimise impacts on student learning.”
The new legislation comes after a series of independent school collapses in recent years.
In 2012, Mowbray College closed suddenly with estimated debts of $28 million. The school had three campuses in Melbourne’s outer west.
And later that year, the Uniting Church decided to close Acacia College in Mernda after it was also swamped with debt.
Schools will also have to meet new conditions that prove they have a system for managing the risk of child abuse under the proposed new laws.
The legislation will require schools to introduce a policy for responding to allegations and the risk of child abuse as a condition of registration.
Mr Dixon said the legislation meant schools would have to show they met minimum child safety standards.
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