Macedon Grammar School, a private Christian school in Victoria, has been shut down by the government.

According to its website, Macedon Grammar was established in 1979 by Dr and Mrs Rose. The school is owned by Macedon Grammar School Co-Op Ltd, a co-operative society registered in Victoria. Dr Rose is the Chairman of the school, and, according to Fairfax Media, its landlord. In 2014 The Age reported that the school's enrolments totalled approximately 150, catering for primary to year 12.

The school's registration was cancelled at midnight on 31 December 2014. As a result, it is no longer licenced to operate as a school.

In late 2014, following a 'show cause' notice issued by the Victorian Registration and Qualification Authority (the VRQA), external administrators were appointed to the school. Later reports indicated that a benefactor - allegedly a Chinese national - had donated $250,000 to keep the school open until the end of the year. The donation allowed the normal activities of the school, including its awards night, to go ahead. Mountain Properties, a group associated with the Chinese national and other investors, had applied to take over the school, but this was rejected.

Under the Education and Training Reform Act 2006 (Vic), the VRQA may issue a notice to a school stating that it intends to cancel its registration, and give it 28 days to show cause why this should not be done. It appears that this was the course of action taken in this case. The issues that have beset the school have reportedly included:

• declining enrolments;
• allegations of financial mismanagement;
• financial losses for two years (according to Fairfax Media reports); and
• potential corporations law offences (according to the report of the external administrator, Worrells).

The Age reports that 'the school's board, principal, business manager and International Baccalaureate program co-ordinator all tendered their resignations' during 2014.

Although there are reports that Mountain Properties is considering appealing the decision to reject it acquiring the school, given that the school's registration has already been cancelled, this option appears to be unviable. During the period of administration, the majority of students enrolled in other schools.

The Victorian government recently introduced reforms to allow better oversight of non-government schools. These reforms have not yet been made law. We wrote about these changes in a 2014 article. These reforms allow the VRQA to conduct 'financial health assessments' on schools, with a view to ensuring that schools remain viable, and that fees paid by parents are protected in the event that school runs into financial trouble. These reforms followed the collapse of Acacia College and Mowbray College, both in Victoria.