The Ministry of Education, Education New Zealand, and the New Zealand Qualifications Authority are seeking input from the international education sector peak bodies and individual providers on lifting the percentage rate of the Export Education Levy (EEL). The Minister of Education is required by the Education Act 1989 to consult with providers before changing the EEL Regulations which set the amount of the levy.
Due to high reimbursement costs related to programme and provider closures ($3.2 million in 2017/18), the EEL account, used in some cases to reimburse international students, is almost empty. We need to raise EEL revenue in order to safeguard educational quality and New Zealand’s reputation as a study destination.
This document presents two options to raise the Export Education Levy:
- Option 1: Differential increase – a percentage increase for all providers, but at different rates, with non-PTEs (universities, ITPs and schools) increasing from 0.45% of tuition fees to 0.55%, and PTEs increasing from 0.45% of tuition fees to 0.83%
- Option 2: PTE increase only – a percentage increase for PTEs only to 1.24% of international student tuition fees (non-PTE levy rate remains at 0.45%).
Both options apply a higher EEL percentage rate to PTEs than other provider sub-sectors, as they are the only part of the sector where closures generate EEL expenditure on student reimbursements. We are seeking your preferences on these two options.