Circular 2020/05 - Private School Subsidy Funding 2021
Date 23 September 2020| Circular 2020/05 | Category Resourcing
This circular is about Private School Subsidy Funding for 2021
This circular replaces Private School Subsidy Funding 2020
The action needed is Please note the information
It is intended for Proprietors and principals of private schools
For more information Enquiries about the private school subsidy should be directed to the Ministry of Education's contact centre:
Ministry of Education
PO Box 1666
Phone 04 463 8383
Fax 04 463 8374
This circular provides schools with information about private school subsidy funding for 2021.
School financial year and payment schedule
The 2021 funding year commences on 1 January 2021 and concludes on 31 December 2021. Quarterly instalments will be paid in advance, at the beginning of each funding period, as shown below:
|Date paid (2021)||Period covered||Number of months funded||Percentage paid of remaining grant|
|4 January||January - March||3 months||25.0%|
|1 April||April - June||3 months||33.3%|
|1 July||July - September||3 months||50.0%|
|1 October||October - December||3 months||100.0%|
This payment method ensures that when an entitlement is adjusted, either up or down, the board of trustees will receive 100% of the school’s entitlement in the current year.
Change of bank account number
If a school’s bank account number changes, a Change of Bank Account form must be completed and sent directly to:
The Finance Division, PO Box 1666, Wellington.
Forms are available at Operational funding payments
Operational funding entitlement and instalment notices display the entitlement for each component as a GST exclusive amount. This change was implemented in 2012 to support schools in their financial planning.
Boards are required to account for GST on the full amount received. If you have questions about GST or other tax obligations, please consult:
Education Centres: A Tax Guide for Organisations that Provide Education (IR253), available from the Inland Revenue Departments.
Per-student subsidy rate calculation
Calculation of rate
Subsidy funding is provided at a set rate per student.
The per-student rate is set by taking the fixed government appropriation – currently set at approximately $47.8 million – and dividing it by the likely demand.
The likely demand is the mid-point between the actual roll and schools’ predicted roll for the following year. For 2021, this is the 2020 actual roll and schools’ predicted for 2021.
Per-student subsidy rates for 2021
The per-student rates are set at four levels to recognise the cost of curriculum delivery at each year level.
This table shows the per-student subsidy rates for the 2021 year:
|Year level||2021 funding rate GST exclusive||2021 funding rate GST inclusive|
|Year 1 - 6||$952.95||$1,095.89|
|Year 7 - 8||$1043.53||$1,200.06|
|Year 9 - 10||$1,335.47||$1,535.80|
|Year 11 - 15||$2,028.27||$2,332.51|
Rolls used for funding provision
Boards are funded on what is considered to be their peak roll.
- July roll - primary schools
- March roll - intermediate, area, composite and secondary schools
Predicted funding roll
Until the appropriate roll is available, boards receive a provisional funding allocation using their predicted roll. The predicted roll is a school’s estimate of student numbers. This roll is submitted with the July roll return in the previous year.
Funding is reallocated once the peak roll is available.
New entrant adjustment
A new entrant adjustment is added to the actual roll for primary and composite schools. This adjustment is used to estimate the number of new entrants likely to enrol between the date of the roll being used and 10 October. A factor is applied to the year 1 roll with the result rounded up to the nearest whole number.
- Where a March roll is used, a new entrant factor of eleven-twelfths is applied to the year 1 roll. The result is rounded up to the nearest whole number.
- Where a July roll is used, a new entrant factor of five-eighteenths is applied to the year 1 roll. The result is rounded up to the nearest whole number.
Rolls used to calculate funding payment
|School type||January instalment||April instalment||July instalment||October instalment|
|Primary||predicted roll submitted in July roll return||predicted roll submitted in July roll return||actual roll submitted in March 1 roll return||actual roll submitted in July 1 roll return|
|Intermediate, area/composite, secondary||predicted roll submitted in July roll return||predicted roll submitted in July roll return||actual roll submitted in March 1 roll return||actual roll submitted in March 1 roll return|
Boards receive funding for students verified as having high or very high ongoing learning support needs through the Ongoing Resourcing Scheme (ORS). This is equivalent to the ORS staffing entitlement for state and state integrated schools.
Contact your local Ministry of Education Office for further information.
Export Education Levy
The Export Education Levy is payable by any education provider that enrols international fee-paying students. This includes private schools. For private schools the levy is calculated as 0.5% (including GST). State and state-integrated schools pay the Export Education Levy as a component of their International Student Levy.
The Export Education Levy is used to fund promotion, capability development, pastoral care services, research, and quality assurance for the international education sector.
The Export Education Levy has been cancelled for 2020 and 2021.
Please refer any queries to:
Administrator International Levies,
Phone 04 463 8073
Natasha Barnett, Group Manager Resourcing Division, Te Wāhanga Whakarato Rawa
Ministry of Education, Mātauranga House, 33 Bowen Street, Wellington, P O Box 1666, Wellington 6140, New Zealand, Phone 04 463 8383, Fax 04 463 8374, Email firstname.lastname@example.org
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