Frances Abbott at centre of design school legal battle

Prime Minister Tony Abbott's daughter’s controversial scholarship is at the centre of a legal battle between the Whitehouse Design School and a former employee.

A former employee of Whitehouse Institute of Design has filed an ‘adverse action’ complaint to the Fair Work Commission after being personally investigated over Frances Abbott's rare scholarship, Fairfax reports.

The employee reportedly underwent an internal investigation following media reports Frances Abbott received a ‘chairman’s scholarship’ amounting to $60,636.

The prime minister's office said Mr Abbott has known chairman of the Whitehouse Institute Les Taylor for many years and when in opposition he received clothing from him as a gift.


“The Whitehouse Institute is "confident that the adverse action case is without merit and has no prospect of success,” chief executive Ian Tudor said in a statement.

“The former employee concerned was subject to an internal disciplinary review and resigned before that review was complete.”

Fairfax reports a source from the school confirmed the former employee was being investigated after Frances Abbott’s student confidentiality was breached.

Frances Abbott with father Tony Abbott during his campaign tour in 2013. Photo: Getty
Frances Abbott with father Tony Abbott during his campaign tour in 2013. Photo: Getty

The Prime Minister is aware of the claim, a spokeswoman said, but declined to comment during legal proceedings.

The Whitehouse Institute’s website says "Whitehouse does not currently offer scholarships to gain a place into the Bachelor of Design."

However, it says that "at the discretion of Whitehouse, a scholarship for further study may be offered during the academic year to students who have formally commenced their studies and show exceptional ability and dedication".

Whitehouse Institute chief executive Ian Tudor said the chairman's scholarship was occasionally awarded and Frances Abbott was its second recipient.


"I understand that the selection of Frances was done at arm's length from the chairman by the owner, founder and managing director of the Institute, Leanne Whitehouse," he told AAP.

The institute is likely to benefit from the federal government's changes to subsidies, which previously did not cover private colleges.

Mr Abbott attended last year's graduation ceremony at the institute in support of Frances and gave a speech praising its work.

A check of the NSW Electoral Funding Authority register shows Les Taylor has donated more than $20,000 to the NSW Liberal Party in the past six years.