Collection of Export Education Levy from non-funded Private Training Establishments (PTEs)
Information and operating guidelines for the collection and administration of the Export Education Levy (EEL) for Private Training Establishments (PTEs) that do not receive funding from the government.
Any private training establishment (PTE) that wants to enrol international students must be a signatory to the Code of Practice for the Pastoral Care of International Students.
As a signatory to the Code of Practice your institution is required under 238H of the Education Act, 1989 to pay a levy to the "Export Education Industry Development Fund".
What is the Export Education Levy?
The Export Education Levy is an industry levy that is used to support a broad range of activities and projects related to strengthening the industry. The fund is used to pay for marketing of the industry, promotion of New Zealand as an educational destination, capability development of staff involved in the industry, research and also to run the Code of Practice office which supports and monitors the pastoral care of international students. In addition the fund can be used to support students affected by the collapse of private providers.
The levy consists of:
- a variable component based on the tuition fees paid by the students. The variable component of the levy is set at 0.45 percent of tuition fees (excl GST) collected from international-fee paying students studying in New Zealand.
GST is payable on the levy.
Reporting and payment periods
Providers must supply levy information and make payment on a trimester basis (i.e. every four months). The levy information can be submitted via either a secure web page or via an RS17 excel spreadsheet. On entering data into either the web page or the RS17 spreadsheet, the levy amount is automatically calculated. The web page will print out a copy of your tax invoice whereas the RS17 spreadsheet acts as a self-generated Tax Invoice.
Covers the period 1 January to 30 April.
The levy data must be submitted to the Administrator by 15 May.
Payment must be made on or before 30 May.
Covers the period 1 May to 31 August.
The levy data must be submitted to the Administrator by 15 September.
Payment must be made on or before 30 September.
Covers the period 1 September to 31 December.
The levy data must be submitted to the Administrator by 31 January of the following year.
Payment must be made by 15 February.
Calculation and submission of levy
In order to successfully submit the levy, providers must enter data into 6 questions.
Question 1: "Number of International students who ATTENDED a course in this period was"
In Trimester 1 you will be asked to enter the number of “CONTINUING” students and also the number of students who “COMMENCED” a course in the Trimester period.
Continuing students are students who have come back in the new year to continue a course that they had started in the previous year.
Commencing students are students who are new to you and have started a course of study with you sometime during the Trimester period.
In Trimester 2 and 3 you will only be asked about “COMMENCING” students.
Question 2: "In this period we received Tuition Fees from ALL International Students (Excl GST) Totalling"
This question should reflect the amount of tuition fee income from international fee-paying students that was either:
(A) transferred from the Trust account into your Operating account during the Trimester period, plus any tuition fees received from students enrolled in short courses; OR
(B) for each of the students commencing in the Trimester, the total sum of their full tuition fees received from the students when they first enrol.
Question 3: "Number of full-time equivalent tuition weeks that relate to the tuition fees received in this period was"
This question records the number of tuition weeks that relate to the tuition fees that are declared in Question 2. If you enrol part-time students then use 20 hours of teacher contact per week as the equivalent of 1 full-time equivalent student.
Example: If a student is studying General English for 10 hours per week for 12 weeks, then the number of full-time equivalnet tuition weeks = 10÷20X12=6.
Question 4: Country of citizenship
Question 5: Field of study
Question 6: Region of study in New Zealand
The tuition fees recorded in Question 2 are the tuition fees paid by the international students excluding GST.
The tuition fee must include all costs of sale including agents' fees, marketing costs as well as the cost of the Export Education Levy.
The summary results from the collection of the levy data is published in reports titled “Export Education Levy Key Indicators Report” which are available at the end of each Trimester on the Education Counts website.
Accredited Student Fee Protection Suppliers
The Ministry of Education has worked with PUBLIC TRUST to develop an Export Education Levy Report which will provide the data required to complete the web page or the RS17 spreadsheet at the end of each Trimester. Providers who use Public trust as their Trustee can get a report emailed to them by logging on to the secure Public Trust webpage and selecting from the Reports Menu, “MOE Export Levy”. The report that is emailed to you contains most of the information you need to complete the levy submission.
Payment of the levy can be by Direct Debit, cheque or by Direct Credit. The Ministry of Education encourages all providers to use the Direct Debit method of payment in order to reduce compliance costs to all concerned.
Non-payment of levy
Paying the levy is a statutory obligation. Providers who do not pay by the due date or providers who default on a Direct Debit will be given 30 days in which to pay any outstanding levy amounts. Failure to comply within the 30 days will result in debt recovery action being taken using Baycorp Advantage and then through the Court if Baycorp Advantage is unsuccessful.
Use of information collected
Information collected from providers for the purposes of the export education levy will only be used in the administration, calculation, collection and audit of the levy and associated reporting, accountability processes and obligations to be carried out by the Ministry of Education. Information will not be available publicly in a form that could disclose commercially sensitive material about a provider
Audit of Levy
NZQA will audit the levy payments made by providers. Their audit process will require access to the Trustee bank statements.
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