A Melbourne-based school is currently under investigation and faces a potential $23 million repayment demand from government authorities. The dispute centers on the school's internal classification of its student body, where 90% of pupils were labeled as having 'extensive' learning needs. This classification is significant because it triggers higher levels of government funding intended to support students who require significant adjustments to participate in education.

Government auditors have raised serious questions about the validity of these claims, suggesting that the school may have significantly overstated the number of students requiring intensive support. The $23 million figure represents the total amount of funding the school received based on these classifications, which officials now argue was improperly claimed. The school is currently navigating the legal and financial fallout of this audit, as the government seeks to recover the funds. While the school has not yet issued a detailed public defense regarding the specific criteria used for their classifications, the situation highlights broader concerns regarding the oversight of disability funding in the education sector. The case remains ongoing, with the school potentially facing significant financial instability if the repayment is enforced in full.