Circular 2024/01 - Private School Subsidy Funding 2025

Date 10 September 2024| Circular 2024/01 | Category Resourcing

This circular is about Private School Subsidy Funding for 2025

This circular replaces Private School Subsidy Funding 2023/09

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 Channels team on 04 463 8383(external link) or email us at resourcing@education.govt.nz

Introduction

This circular provides schools with information about private school subsidy funding for 2025.

School financial year and payment schedule

The 2025 funding year commences on 1 January 2025 and concludes on 31 December 2025. Quarterly instalments will be paid in advance, at the beginning of each funding period, as shown below:

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. Please email your completed form to both:

Accountspayable.Suppliermaintenance@education.govt.nz

Or post it to:

The Finance Division, PO Box 1666, Wellington.

Forms are available at Operational funding payments

GST queries

Operational funding entitlements and instalments in Pourato display the entitlement for each component as a GST exclusive amount.

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 Department.

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 $41.57 million GST exclusive – and dividing it by the likely demand. 

Per-student subsidy rates for 2025

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 2025 year:

Rolls used for funding

Funding roll

Boards are funded on what is considered to be their peak roll.

• July roll - primary schools
• March roll - intermediate, area, composite and secondary schools

Funding is initially calculated using your provisional roll and is adjusted throughout the year once your actual rolls are received.

Pourato calculates your provisional roll using your school’s previous roll returns. This is the same process used for state and state-integrated schools. For primary level students, Pourato uses the current and previous year’s July rolls, and the current and previous 2 years’ March rolls. For secondary students, Pourato uses the current and previous 2 years’ March rolls.  

New entrant adjustment

A new entrant adjustment is added to the actual roll for primary and composite schools. This estimates the number of new entrants likely to enrol between the date of the roll being used and 10 October.

• 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

Ongoing Resourcing Scheme – cashed up updates

Boards receive funding for ākonga 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.

ORS Cashed Up student and funding information will display in Pourato for the 2025 year. Your current student details are in the ‘Students’ > ‘ORS Cashed Up’ tab.

The 2025 indicative operational funding will include an ‘ORS Cashed up’ component for eligible students and will display in Pourato from 13 September 2024.

Go to the Funding > Operational Funding tab and display the 2025 year.

Your quarterly payment for ORS Cashed up will be paid with your term 1, 2025 Operational Funding instalment.

The Ministry of Education webpage Resources for students in Ongoing Resourcing Scheme (ORS) has some useful information. Please contact your local Ministry of Education Office if you have any questions.

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.

Further information

Please refer any queries to:

Administrator International Levies

Phone: 04 463 8073(external link)

Email: eel.administrator@education.govt.nz

Issued by

Bridgette Hickey, Manager Operational Resourcing and Funding, Te Pae Aronui

Ministry of Education, 1 The Terrace, Wellington, P O Box 1666, Wellington 6140, New Zealand, Phone: 04 463 8383

Email: resourcing@education.govt.nz

Last reviewed: 10 September 2024 Has this been useful? Give us your feedback