The Age Schools Summit as it happened: Payroll tax cap to benefit private schools, education minister says

More of the state’s wealthiest schools could be shielded from the controversial payroll tax after Education Minister Ben Carroll said he was open to making further adjustments to the scheme if Labor wins the November election.

Speaking at The Age’s School Summit on Wednesday, Carroll said under current measures just the top tier private schools paid the payroll tax and indexation meant more schools were unlikely to be added to the list.

Under changes announced in May’s state budget, the point at which non-government schools become liable to pay the tax increased from $15,000 to $16,397 of annual fee income per child. The change takes place on July 1.

Asked at Wednesday’s summit whether Labor would consider scrapping the divisive tax, Carroll said the recent changes would protect more schools from paying in the future.

“Having said that, though, I am very aware that it is an issue for many schools,” he said.

Carroll acknowledged the contribution some of the wealthiest schools made by making their multimillion dollar facilities available to the public, leaving the door open for future amendments.

“Many schools do open up their facilities for community use, and it’s something I’m continuing to look at as well.”

Some of the largest private schools in the state, including Caulfield Grammar and Haileybury, have said the surcharge the school applied to cover the tax would be adjusted if the state government amended or repealed the tax.

The opposition has long opposed the tax claiming it unfairly penalises private schools.

As education spokesperson, Liberal leader Jess Wilson pledged the party would scrap the tax for government and non-government schools if elected in November.

The payroll tax was introduced by the Labor government in July 2024 when about 60 private schools were subject to the charge.

Collectively, these 60 schools paid the state an estimated $101.8 million last year.

All of the state’s almost 1600 government schools pay payroll tax.

The tax, which is hotly contested by the non-government school sector, will be reviewed in 2029.

Carroll also used his keynote speech to remind summit attendees of Labor’s education policies, including limiting screens in schools.

From next year, primary students will have their daily screen time at school limited in an attempt to boost engagement. Students in years 3 to 6 will be restricted to 90 minutes of screen time a day, while students in prep to year 2 will have minimal exposure to devices.

Carroll said the changes would help ensure children had face-to-face experiences and real friendships.

“We know how vulnerable the developing brains of young children are,” he said. “As a parent myself, I know this reform is close to my heart and my wife’s heart.”

Thank you for following our live coverage of the 2026 edition of The Age School Summit. The final panellists have left the stage, and this is where we’re going to close our blog.

We hope you’ve enjoyed the chance to hear from some of the leading educators, policymakers and voices within the state’s education landscape.

Make sure you keep up to date with this masthead’s education reporting – you can read more of our articles here.

We’ve made it to the final session of today, led by Age education reporter Jackson Graham.

Some of the experts on stage include Scotch College dean of students David Brown and Ringwood Secondary College principal Rosina Fotia. This panel of four will tackle a big question: what is the purpose of education?

To answer this – the group is addressing what it means to establish a student’s character, and whether schools should be doing more than simply teaching skills.

“I think a lot of character is the things that you don’t see … it’s how people behave when nobody’s looking. That’s a real test of their character,” Brown says.

Fotia adds that establishing a clear set of school values has been a key focus within her school community to encourage a sense of belonging and inclusivity. “If you don’t own [the values], you won’t live them. And you won’t model them.”

Andrew Smith, chief executive of the Victorian Curriculum and Assessment Authority, is talking about how curriculum design works to encourage and include diverse students within the state’s schooling system.

He has touched on the importance of equity within the VCAA system, and how the organisation is introducing new options to make learning more accessible for everyone.

“Students are not expected to fit the system. The system is expected to recognise, acknowledge and cater to them,” he says.

“[They] build the skills, knowledge, values and capabilities to make informed choices about their pathways … Our curriculum, the architecture of what is taught in our schools, does play a central role.”

Following that panel discussion, we are now taking a quick break for afternoon tea.

A short while ago, opposition education spokesman Brad Rowswell spoke to journalists in the foyer about his recent $156 million pledge of support for neurodiverse students in their first year of schooling.

The member for Sandringham faced questions about the costing of the plan, how it would be implemented, and whether it would be rolled out for all students within his proposed timeframe.

“It’s a gap in the system, and there’s an opportunity to do good in politics. And to help kids that need help,” Rowswell said.

“If I have the privilege of being the state’s education minister, I guarantee this will be rolled out into classrooms in the first term of 2028.”

Rowswell criticised a state government package which earmarked $75 million for extra programs for high-achieving students. Although he said the funding would be welcomed, he called it a “Band-Aid on a much larger problem”.

The panel is now discussing the use of AI in the Victorian education system, and whether there needs to be a more concerted effort to manage it within schools.

Tim Wilson, executive director at the state’s department of education says the “cautious and deliberate” approach towards AI that is widely being adopted in Victoria is the best route to follow.

He compares this approach to that of the English education system, where AI has been controversially used to generate school reports which are misleading or lacking context.

“The use of AI must have a place … but also it must know its purpose,” Wilson says.

Dr Catherine Smith, from The University of Melbourne, says that she has been encouraging her students to actively consider their own use of AI, and question what might happen to their cognitive processes when it is used.

“Because we are surrendering our cognition … we get more and more time pressed, and it’s a dangerous slope,” she says.

On stage right now we have Professor Miriam Tanti, deputy dean of commercial growth at La Trobe University. She’s discussing the impacts of generative AI in the classroom, and how it can be effectively harnessed as an educational tool.

In particular, she’s discussing how the majority of children are self-taught AI users, and that educators need to become actively involved in the learning processes.

“I think that places a really extraordinary responsibility on us as education providers,” Tanti says. “If students are already using the tools and AI can help them complete those academic tasks, the question is whether students are still getting opportunities to practice that thinking.”

“Using an AI chatbot for genuine learning is a new skill. And like any new skill, it needs to be taught explicitly,” she says.

If you’re interested in the topic of AI in the classroom, take a look at this recent article by Bridie Smith and Caroline Schelle.

We’ve returned from the lunch break – which you’ll be pleased to know was an enjoyable affair. Attendees are back in the conference room enjoying a cup of tea and a chocolate tart.

Now the room is hearing from Haileybury College’s Anna Server and Joanna Baker, who are discussing the school’s online campus.

There is still plenty more action ahead of us this afternoon, including two more panel discussion led by The Age’s education team and an address from the chief executive of the Victorian Curriculum and Assessment Authority Andrew Smith.