After 11 years at the Catholic primary school and a combined total of 25 years as principal, Mr Atley informed parents of his decision to step down in a letter on Wednesday night.
“I find myself needing to look at what is next for me,” he said.
“The position of principal demands much of you and I know I cannot continue to give it the energy and effort it requires.
“I have much to celebrate and to be grateful for and know that the relationships I have had with priests, staff, students and parents will always be most treasured.”
In 2011, Mr Atley took over the position from the retiring Carmel Edwards, moving back to the region from Corryong where he was the principal of Sacred Heart School.
The St Mary’s principal position will be advertised from Saturday, July 31.
“I will officially be on leave next year for a period and the advertised position may acknowledge that,” Mr Atley said.
“However, the appointed principal will be aware of my intention not to return from leave.
“We will prepare for next year as we do, and I know that with such a high-functioning staff, the school community can look forward with great confidence.”
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