22 July 2025
North Sydney mayor Zoë Baker will ask councillors to formally support two initiatives aimed at securing contributions from private schools and educational institutions that are currently exempt from paying council rates—potentially worth more than $1 million annually.
The Mayoral Minute, to be considered at next week’s council meeting, calls on the NSW Government to act on the recommendations of a recent Upper House inquiry into local government funding, including a full review of rate exemptions under the Local Government Act 1993. Baker is also seeking amendments to the Education Act 1990 to explicitly permit rate-exempt educational institutions to make voluntary cash or in-kind payments to councils without risking the loss of state or federal funding.
The proposal follows a 2024 council resolution that endorsed an outreach campaign inviting private schools and the Australian Catholic University to voluntarily contribute to the upkeep of local infrastructure. At the time, Baker highlighted that such institutions own some 152,566m² of land in the local government area, which—if rated at business rates—could yield more than $1 million in additional annual revenue.
Council also resolved to publish a “Roll of Honour” recognising institutions that made voluntary contributions. However, in correspondence since received, six schools—including Redlands, SHORE, St Aloysius’ College and Wenona—cited legal restrictions under s83C of the NSW Education Act and the Australian Education Regulations as preventing them from making any such contributions.
The schools argue that any payment not strictly tied to school operations could result in the loss of government financial assistance. Section 83C prohibits funding to schools that “operate for profit,” and lists a range of scenarios—such as overpaying for goods or services, or diverting assets—that could be interpreted as a breach.
While Baker acknowledged the schools’ legal concerns, she suggested the interpretation may be overly cautious and argued that legislative reform is required. “It would appear that clarity is required and possible amendments to the Education Act 1990 or to the Local Government Act 1993 [are needed] to exempt the operation of s83C in respect of any voluntary payment, in cash or in kind, to a council from a rate-exempt educational institution,” she stated in the minute.
In parallel, Baker is also seeking council endorsement to refresh the Memorandum of Understanding with the Australian Catholic University, which had cited previous contributions to conservation works at Don Bank Museum as evidence of its support for the community.
The mayor has also raised the issue with local government minister Ron Hoenig, highlighting North Sydney’s “extraordinary” concentration of rate-exempt institutions and calling for implementation of Upper House Inquiry Recommendation 1—namely, a comprehensive review of all exemptions and concessions under the Local Government Act.
If endorsed, the Mayoral Minute would commit Council to pressuring the state government for legislative changes and reaffirm its intent to secure alternative contributions from large, non-rateable landholders in the local area.