6 December 2018

New Export Education Levy rates released

From 1 January 2019, there will be an increased levy rate for PTEs, universities, ITPs and private schools enrolling international students.

The levy rate for PTEs will increase from 0.45% to 0.89% of international student tuition fees, and from 0.45% to 0.50% for universities, ITPs and private schools (the levy paid by state- and state-integrated schools remains unchanged for 2019).

The new rates take effect from 1 January 2019. Payments for trimester one 2019 will be at the new rates while payments made in January or February 2019 for trimester three 2018 will be at the old rate.

The levy is collected from providers to fund a broad range of activities including marketing and promotion. It also funds reimbursements for international students caught out by Private Training Establishment (PTE) programme and provider closures.

The levy fund almost ran out this year due to pay-outs resulting from closures at PTEs.

Consultation on proposed changes to raise the EEL rate took place from 18 September to 15 October 2018.

“We have listened to feedback from the sector and have decided on a balanced approach to address some of the key concerns raised during consultation, including the financial impacts on the sector, while continuing to address the immediate financial pressures on the EELs,” said Education Minister Chris Hipkins.

“This is the first increase to the EEL in its 15 years. The Ministry of Education is doing its bit by reducing annual expenditure commitments against the levy by $300,000.”

Further work is being done to investigate ways to address other sector concerns, including recognising quality in the PTE sector. Any changes would be the subject of consultation with the sector.

For further information, see Mr Hipkins’ announcement on the Beehive website.

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