The funding framework requires disability payments to be tied to documented disability-related adjustments, while the department aims to save hundreds of millions through stricter compliance.

While other specialist schools have high per-student funding, there is no implication that Saints College or Berry Street over-claimed; Berry Street reports per-student funding exceeding $76,000 due to extra loading.

In response to the funding crackdown, the academy has laid off more than 20 staff as it reduces expected disability funding by about $10 million.

A Melbourne independent school, Hester Hornbrook Academy, faces a federal demand to repay about $23 million in disability funding after auditors found it claimed more than 90 percent of students were in the highest disability bracket under the NCCD, well above the national average.

Auditors flagged that the academy categorized over 90 percent of its students in the extensive disability support bracket, triggering scrutiny of funding allocations and contributing to the dispute over claims accuracy.

The school disputes the department’s assessment and plans to challenge the draft determination, while acknowledging that heightened evidence scrutiny will likely reduce future funding.

Hester Hornbrook denies pressuring staff to inflate classifications, asserting staff were instructed to properly document and evidencing already-provided adjustments.

Melbourne City Mission defends the academy as acting in good faith and compliant with NCCD guidelines, and says it is reviewing options to continue supporting students during the dispute.

Parents and supporters emphasize the school’s role in offering opportunities for neurodivergent or disadvantaged students, with concerns about how repayment could affect ongoing education.

Education authorities intend to reclaim about $22.9 million and signal broader accountability measures that could curb future funding, aligning with a national effort to curb improper allocations.

Internal documents allegedly show staff were urged to push students over the threshold into the extensive category to maximize funding, with managers prompting identification of near-line cases for additional adjustments.

The department’s crackdown includes a plan to reclaim funds and tighten scrutiny, signaling reduced future funding for Hester Hornbrook as part of the national effort.