Education Act 1990 NSW Section 83C compliance lawyer schools

Section 83C

Only not-for-profit schools are eligible for ongoing government funding from the Australian and NSW governments.

The Non-Government Schools Unit of the NSW Department of Education administers state government funding to non-government schools in NSW and ensures they comply with section 83C of the Education Act 1990 (NSW).

Section 83C of the Education Act 1990 outlines the criteria for non-government schools in NSW regarding for-profit operations.

According to section 83C, a school is considered to operate for profit if the Minister determines that:

  1. Any part of the school proprietor’s assets or income, related to the school's operation, is used for purposes other than the school's operation, or

  2. The school makes any payment to a related entity or other person or body:

  • For property, goods, or services at a price exceeding the reasonable market value;

  • For property, goods, or services not necessary for the school's operation; or

  • For property, goods, or services that are otherwise unreasonable under the circumstances, especially considering the financial aid the Minister provides to the school; or

  1. The school makes any payment to a person related to their role on the school’s governing body, unless it is a reimbursement for expenses incurred in the operation of the school.

Wilding & Co Lawyers offers schools audits and advice on section 83C.

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