Education Policy | Post Primary | Preschool | Primary | Tertiary | Search


New Tax on PTEs is Second-Best Option

New Tax on PTEs is Second-Best Option
Media Release 3 December 2003

“The Government’s decision to charge private training establishment (PTEs) if another PTE fails is a second-best option. It sets a very strange precedent where an industry is held accountable for the failing of a competitor, when it has no control over market entry. The Government controls entry to this industry and it must take joint responsibility for any PTE failures”, said Dave Guerin, ITI executive director.

The Government tabled the Education (Export Education Levy) Amendment Bill today, which includes a special export education tax on private training establishments. If the Government refunds international students when a PTE may not complete its contracted provision, then all other PTEs may be levied for the refund and any associated administration costs incurred by the Government.

“It is a real pity that decisions like this are made without real consultation. The Government put out a letter a couple of months back saying that they planned to charge PTEs for Modern Age students’ accommodation costs. ITI and other groups replied with some useful suggestions and some concerns, but we have heard nothing back. Now the Government has moved much further by putting a special tax into legislation. Surely someone could pick up a phone or set up a meeting to discuss these issues?”

“The proposed new tax creates some serious risks that have not been addressed in the legislation or in the various papers released by the Minister. The biggest risk is moral hazard – that PTEs on the financial edge will now simply close because they know that the Government will cover their liabilities to students. Since the Government has no standing as a creditor, it will not be able to claim the money back but other PTEs will be left to pick up the pieces.”

“This policy area is complex and any new policies need to be carried out in conjunction with the industry and suppliers of student fee protection products. Hopefully, we can get some real discussion in the select committee and with the Minister over the next few months.”

- Independent Tertiary Institutions (ITI) is a group of 15 high quality private tertiary education providers enrolling over 6,000 students pa.

© Scoop Media

Culture Headlines | Health Headlines | Education Headlines


Howard Davis: Off The Hidden Path - Five Los Angeles Treasures (Part I)

The immense cultural diversity of LA provides an extraordinary variety of lifestyles and arhcitecture. Here are five 'hidden' destinations where the discerning traveller can appreciate and enjoy this unique and constantly evolving metropolis. More>>

City Of 100 Lovers: Multi-Million Dollar NZ Theatre Production To Launch

Produced in New Zealand with an $8 million budget, this musical comedy has been created with both locals and tourists in mind. More>>

Howard Davis Review: The Outsider Art of Tony Fomison

Among such gifted contemporaries as Bill Hammond, Tony de la Tour, and printmaker Jason Grieg, Fomison distinguished himself as highly idiosyncratic, and could have become wealthy, had not his demons prevented him from investing his income wisely. In his near monochrome oil painting on black hessian, he staked out a territory of morbid originality. More>>

Scoop Review Of Books: Immortal Love

The series has a wild-west tone with a steampunk vibe, so if you’re a fan of Joss Whedon’s Firefly or Joe Abercrombie’s Shattered Sea, then chances are you’ll enjoy this book. More>>

Howard Davis Review: The Trappings of Success - McQueen

This troubling documentary about the extraordinary life and untimely death of British fashion designer Alexander McQueen is a cautionary tale of an extremely gifted, but self-destructive soul caught up in a business that chews up and spits out its creative talent. More>>

Indycars: Dixon Wins Fifth US Championship

The New Zealand motor racing driver Scott Dixon has won the US Indycar championship for the fifth time, finishing second in the final race of the season in Sonoma, California. More>>




  • Wellington
  • Christchurch
  • Auckland