Auckland's prestigious Corelli International Academic School of the Arts has gone into liquidation.

ACT Party leader David Seymour, who is the Education Ministry Under-Secretary, has announced the private school is being threatened with closure, due to its financial difficulties.

The private school – which charges up to $16,320 a year for senior pupils – caters to visual and performing arts, and music students.

Seymour is putting the blame on unfair funding policies between state and private schools.

The average private school student receives five thousand dollars less funding per year.

Seymour says private school funding was capped 15 years ago, while state school funding has increased year-on-year.

He claims there needs to be a level playing ground between different types of schools.