Powered by MOMENTUM MEDIA
lawyers weekly logo
Powered by MOMENTUMMEDIA
Subscribe to our Newsletter
Advertisement

Political donations and a robot dog: how a private school went bust

Profession
29 July 2025

A creditors’ report for the beleaguered Brindabella Christian College revealed a raft of questionable financial decisions, from political donations to a robot dog.

The Canberra-based school spent $460,000 on a robot dog and a trip to the US while it was financially distressed and behind on staff payments, the creditors’ report revealed.

Deloitte, the appointed administrator, estimated the total cost of the robot dog, associated training, and the trip to the US, which included three days at the Kentucky Derby, amounted to $460,000.

It added that the trip happened "at a point when the Company was subject to significant financial distress.”

 
 

"These costs were incurred at a time when the Company was clearly insolvent and had accrued $2.1 million in unpaid SGC [Super Guarantee payments]," Deloitte said.

Administrators found that the company behind the school, Brindabella Christian Education Limited, had been insolvent from at least January 2021.

“Members will be disappointed but not surprised to see the extent of mismanagement and poor
governance outlined in the report,” Carol Matthews, NSW/ACT branch secretary of the Independent Education Union of Australia, said.

In March, Deloitte was called in to oversee the administration of the college. Its creditors’ report made numerous damning findings, including $30,000 in political donations to the Liberal Party made from the company’s corporate credit card.

Court documents indicated that as of March 2025, the college owed approximately $23.8 million to creditors. This included $1.4 million to employees, $9.5 million to secured creditors, $4.1 million to parents for tuition fees paid upfront, $6.1 million to the ATO and $2.7 million to suppliers.

The administrators raised concerns that certain staff members had been underpaid and that the financial records of the company were unreliable. This brought considerable uncertainties regarding the ongoing liabilities faced by the company concerning staff payment, as court documents noted.

In April, Deloitte announced that the school would be taken over by Christian Community Ministries following a $30 million purchase.

The IEU noted that despite the deep financial mismanagement, it was anticipated that creditors would be repaid in full.

Matthews said the union hoped that the transfer of the school’s ownership would enable staff to focus on educating students without worrying about the timely and full payment of their wages and entitlements.

“The union acknowledges the loyalty of members to the school during this difficult period,” she said.

“The union is sure that members will be very relieved that the school is now on a more stable footing under the ownership of CCM.”