Category: Tertiary Education Commission

Source: Tertiary Education Commission

Last updated 7 November 2024
Last updated 7 November 2024

Print

Share

The third consultation phase for the University Advisory Group (UAG) is now open and closes on Wednesday 18 December at 5pm.
The third consultation phase for the University Advisory Group (UAG) is now open and closes on Wednesday 18 December at 5pm.

Phase three of the consultation focuses on efficiencies and prioritisation, as well as funding for teaching, learning and research, and capital expenditure.
Submissions will inform the UAG’s advice to government on New Zealand’s university system. For more information, including consultation questions and how to make a submission, visit the University Advisory Group website.

Source: Tertiary Education Commission

What are performance element incentive payments? When will they be implemented?
The learner component has an incentive payment element which will be paid to each TEO on achieving the performance expectations set by TEC. This will be part of TEOs’ annual investment plan process within TEOs’ learner success plan, where appropriate.
TEC is taking a phased approach to implementing these incentive payments. In 2023, this payment will be required of a small number of TEOs (but those with significant levels of learner component funding), then rolling out to cover all TEOs in 2024.  
For more information, please see the Learner Component section of our website.
How do TEOs apply for learner component funding?
TEOs will not need to apply for learner component funding. It will be allocated as part of TEOs’ overall funding for VET.
Can PTEs apply for more transitions funding?  How do they do this?
No. TEC will allocate transition funding to eligible TEOs based on the published criteria and allocation methodology.
There are no additional reporting requirements.
What is the definition of ‘low prior achievement’ (LPA)?
In 2022, this is a learner under the age of 25 as at the date of enrolment who has not previously achieved a qualification on the NZQF at level 3 or above.
From 2023, it will apply to all learners as at the date of enrolment who has not previously achieved a qualification on the NZQF at level 3 or above, not just those under 25.
How are learners with LPA identified by the TEC?
SDR, ITR and NZQA data are used to determine LPA.  If prior education records are not available for a learner, they are deemed to be LPA.
Does the LPA include equivalent qualifications achieved overseas?
Where overseas qualifications are recorded in the data, they are taken into account in the LPA analysis.
Will a student out of high school into tertiary education be considered someone with LPA?
Students that have not achieved NCEA level 3 are considered having LPA.
Will a PTE lose their learner component funding if an LPA learner achieves at level 3 and transitions to a level 4 course, unless the student qualifies under a different component?
The learner attributes are proxies for distributing funding. The learner component is not intended to be targeted at specific learners with these characteristics – the funding is a contribution for the support of all learners.  It is expected that each TEO will determine the actual support each learner requires, whether or not the learner has any of the characteristics used for the funding proxy.
Can learner component funding be recovered through the wash-up process?
No, there are no recoveries of the learner component.
Can a TEO update the Disability Status and Disability Support Needs fields after enrolment?
Yes, if a learner’s disability status has changed since their enrolment, and the TEO has also obtained the learner’s answers to the Disability Support Needs questions, TEOs can amend the record in the next learner file submission.
How were the four learner groups that are linked to the learner component chosen?
We undertook extensive analysis of data on the performance of the Vocational Education and Training (VET)  system to understand more about those learners who, on average, have been not well served by the education system in the past. This analysis showed that there were four groups of learners most at risk of not completing VET qualifications and/or face a range of disadvantages in the VET system: learners with low prior achievement, disabled learners, Māori learners and Pacific learners.
Why are only four learner groups linked to funding?
Accurately identifying each individual learner’s needs is challenging. We needed a way to approximate the level of need among each TEO’s learner population. We did this by using relatively large learner groups that are more likely to face disadvantages in the VET system. Our analysis shows that these four groups of learners are good proxies of need among each TEO’s learner population, that is, they approximate the level of need in a straightforward way.
What about learners who don’t fall into the four groups linked to funding? How will they get support?
TEOs should use learner component funding for all learners who need additional support, not just for learners in the four identified groups. The four groups serve as a proxy for learners who need additional support to be successful in VET. Providers are expected to identify the unique needs of all their learners (including through engagement with learners and their communities), decide how best to support them, and allocate funding accordingly. All learners should therefore receive the support they need to be successful in VET.
Why is there a difference in rates for Māori and Pacific learners compared to learners with low prior achievement and disabled learners?
Data is mixed on how the system performs for Māori and Pacific learners. For example, while Māori learners are more likely than New Zealand European learners to participate in VET, they experience poorer employment outcomes from their study. This means that tying funding to a participation measure alone is unlikely to have the results we want to see. We have therefore developed a performance incentive payment that can more directly incentivise the outcomes we want. Māori will be involved in developing the indicators for this.
Importantly, for Māori and Pacific learners who also have low prior achievement and/or are disabled, providers will receive both funding rates. Māori and Pacific learners who have low prior achievement and/or are disabled will attract the highest level of funding. It recognises that these learners have compounding levels of disadvantage.
Will the incentive payments be the same as the previous performance-linked funding?
No. We are still developing the details of how they will work but they are not intended to be the same as performance-linked funding. Further information will be available in 2022.
How will performance expectations for each TEO be set?
We are still developing the details of how these will be set along with related incentive payments. We will work with stakeholders to finalise the details of the performance part of the learner component. Further information will be available in 2022.
What happens to existing equity funding for VET?
The learner component replaces equity funding for VET. From 2023, equity funding will not apply to VET but will continue for non-UFS provision.
Why doesn’t the learner component apply to the assessment and verification mode?
The assessment and verification mode will support learners who are employed and receive support for their learning and wellbeing directly from their employer. Providers will have a limited role focused on quality assurance of the assessment that underpins learners’ qualifications. This means providers will have little direct contact with learners and limited scope to engage with and support learners.
How will the funding be calculated with learners with more than one eligible characteristic?
We will calculate funding by allocating:

the relevant rate where a learner is identified in the data as disabled and/or having low prior achievement
the relevant rate where a learner is identified in the data as Māori and/or Pacific
both relevant rates where a learner is identified in the data as disabled and/or having low prior achievement and as Māori and/or Pacific (both rates apply).

How are learners with low prior achievement identified?
Learners with low prior achievement are those who have not achieved a prior qualification at level 3 or above on the New Zealand Qualifications Framework (NZQF) as at the learner’s enrolment start date.
How will support for learners change?
Over time, all VET learners can expect learning and wellbeing support that is tailored to their specific needs. This will take time but we expect providers to more proactively identify learners who may need support and for providers to be more focused on meeting learners’ needs.
Who receives the funding? And who decides how it is spent?
Learner component funding will be allocated to TEOs. They will decide how to spend this funding in a way that supports all of their learners’ needs.
How will this improve the way the VET system performs for Māori learners?
Māori learners can expect to have increased opportunities to enrol in and complete VET qualifications that have strong employment outcomes including apprenticeships. Providers and employers will be encouraged to work together to increase hiring, training and support for Māori learners. Labour market underutilisation rates could drop, and median salaries could rise. Māori learners will be able to consistently expect culturally affirming learning environments.
How will this improve the way the VET system performs for Pacific learners?
As for Māori, Pacific learners can expect to have increased opportunities to enrol in and complete VET qualifications that have strong employment outcomes, including apprenticeships. Providers and employers will be encouraged to work together to increase hiring, training and support for Pacific learners. Labour market underutilisation rates could drop, and median salaries could rise. Pacific learners will be able to consistently expect culturally affirming learning environments
How will this improve the way the VET system performs for disabled learners?
Providers will have increased capability and capacity to understand, identify and support disabled learners’ needs. Providers and employers will be encouraged to work together to improve hiring and training rates and support for disabled employees. Disabled learners could increasingly enrol in, and complete, VET qualifications that have strong employment outcomes, including work-based training. The very high labour market underutilisation rates for disabled people could drop.
How will this improve the way the VET system performs for learners with low prior achievement?
Learners with low prior educational achievement can expect more support to complete their qualifications. We are seeking a significant improvement in qualification completion rates for these learners compared to other learner groups.
How are disabled learners identified?
Disabled learners are learners who identify as disabled on enrolment forms and learners who access disability support from providers. TEC is working with providers and the wider sector to improve data collection on disabled learners.

Source: Tertiary Education Commission

This update includes information about:

Fees Free from 2025
Final-year Fees Free online content updated
The final-year Fees Free eligibility criteria and settings are now available on the TEC and Fees Free websites.  

Fees Free website – the home page of the Fees Free website directs learners to either the final-year or first-year information depending on when they are starting their study or training.
TEC website –information on first-year Fees Free and final-year Fees Free is now available on the following pages:

Updating your website
Please review and update the Fees Free copy on your website, using the following information. This clarifies to learners starting study or training for the first time in 2025 that Fees Free will cover final-year fees, for eligible learners.
Content for TEO websites – final-year Fees Free
We will keep you informed as this important mahi progresses. In the meantime, if you have any questions, please email customerservice@tec.govt.nz with the subject line [EDUMIS #] – final-year Fees Free policy or call 0800 601 301.
Student services fees: 2024 reports due
Since 1 January 2023, student services fees (SSFs) are regulated through funding conditions determined by the Minister for Tertiary Education and Skills and administered by the TEC. Funding conditions outline the rules that TEOs must follow when receiving TEC funding, including that TEOs that charge an SSF must report on it annually.

Tertiary education institutions (TEIs) must report on their SSF in their annual reports.
Registered private training establishments (PTEs) must provide a written report to their learners. They must then forward this report to the TEC.

Thank you to those who have already submitted their 2024 report. For TEOs that charge an SSF but have not yet submitted their report, please send your current SSF report to ssf@tec.govt.nz. 
For more information about how to report on SSFs, including what to include in your report, see the guidance:
Student services fees: Guidance for tertiary education providers (PDF 1.1 MB).
If you have any questions, please contact ssf@tec.govt.nz.
Annual Maximum Fee Movement (AMFM)
The Government regulates how much tertiary providers can increase their fees for domestic students each year through the AMFM. This caps the percentage increase on fees for existing courses at level 3 and above on the New Zealand Qualifications and Credentials Framework (NZQCF).
Following consultation, the Minister has confirmed that the AMFM rate will be set at 6.0% for the 2025 calendar year. This permits an increase of up to a 6.0% on the fees (GST exclusive) charged to domestic students in 2024. The increase aims to strike a balance between supporting providers to manage cost pressures and supporting affordable tertiary education for students and their whānau.
The micro-credential fee cap
The micro-credential fee cap sets a per-credit cap on the fees that providers can charge domestic students enrolled in micro-credentials. Following consultation, the Minister has confirmed a $64 (GST inclusive) per credit fee cap will be maintained for the 2025 calendar year.
2025 AMFM exceptions
TEOs may apply for an AMFM exception to increase your fee by up to an additional 6% above the permitted AMFM.
We may only grant an exception to the AMFM policy under exceptional circumstances. The exception criteria are published in the funding mechanisms.
How to apply for an exception to the AMFM
The application process for 2025 is now open. TEOs must submit applications for any courses that start between 1 January 2025 and 31 December 2025 by 5.00pm on 29 November 2024.
Please read the exceptions information:
AMFM exceptions – Application guidelines and assessment information (PDF 501 KB).
Submit applications and all supporting information with the subject line [EDUMIS] – Exception to the AMFM to our Customer Contact Group at customerservice@tec.govt.nz.
For more information, see Annual Maximum Fee Movement (AMFM).
Monitoring the AMFM
During TEC audits we monitor compliance with the AMFM and associated conditions. Recent audits have identified some issues, including:

TEOs increasing fees for some courses above the AMFM rate. Audits will look at increases in fees in each course to ensure they stay within the cap.
Discrepancies between the fees being charged to learners and the fees that are recorded in Services for Tertiary Education Organisations (STEO). It is a condition of your funding that you must report in STEO accurate information regarding the fee you are charging learners.

If you have any questions about fees, including how to update fees in STEO or how to calculate your fee increases, please contact your relationship manager or customerservice@tec.govt.nz.  
Correctly reporting course results and end dates
We have recently identified a number of inconsistencies in some TEOs’ reporting of courses where a result has not yet been determined. Please continue reporting courses in the Single Data Return (SDR) until a result is available, after the course end date has elapsed. This may mean manually adding a course enrolment record to the SDR if the course end date was in a previous calendar year.
Note that you should not change the end date of extended or un-resulted courses. Although this may be a workaround to keep the record active in your student management system (SMS), it will result in funding anomalies (including over-funding) when you change end dates from one December SDR to subsequent SDR.

For courses at Levels 1–8, you must report a result within 11 months of the course end date. A result means a completion code that is not code 0, 6 or 7.
Courses at Levels 9 or 10 can continue to be reported in the SDR with a non-completion code of 6 or 7 indefinitely. You can do this until a completion result is available (code 1, 2, 3, 4 or 5).

Please do not change course start or end dates once returned in a previous December SDR. The preferred approach is to continue reporting extended Level 9 and 10 courses with a completion code of 6 or 7. You can do this each year without changing the course end date, until a result of code 1,2,3,4 or 5 is available and reported in the SDR.
More information can be found on page 135 of the SDR Manual:
SDR Manual (PDF 1.73 MB).
If you have any questions, please contact your relationship manager or customerservice@tec.govt.nz.

Source: Tertiary Education Commission

Last updated 22 October 2024
Last updated 22 October 2024

Print

Share

The learner component is one of two funding components in DQ3-7.
The learner component is one of two funding components in DQ3-7.

For information on the other component, see: Delivery component – Unified Funding System.
About the learner component
The learner component substantially increases funding for providers to support all learners, particularly those who traditionally have not been well served by the education system. It recognises that there are higher costs involved in adapting education delivery and support to meet learners’ unique needs. The learner component supports providers to put learners at the centre of their organisations and to improve outcomes for learners.
Providers decide how to spend the funding in a way that supports their learners’ needs while making progress towards the Minister’s priorities.
Minister’s priorities for the learner component
The Minister of Tertiary Education and Skills’ priorities for learner component funding are for TEOs to build capability and demonstrate how they will deliver results for all learners (including, where relevant, in supporting employers who deliver work-based learning) by committing to the priorities of the Tertiary Education Strategy.
Over time, the Minister expects TEOs will develop capability and capacity so that learners:

are well supported by TEOs and employers to enrol in VET qualifications, and
have increased completion rates across all VET qualifications.

Source: Tertiary Education Commission

For the full requirements, see the MPTT funding conditions for the relevant year.
Funding mechanism
The Minister responsible for tertiary education issues the MPTT funding mechanism. The funding mechanism outlines the general form and essential components of the fund. It provides the mandate for the Tertiary Education Commission (TEC) to allocate the funding and what the funding can be used for, and details how we administer the fund.
Funding is agreed off-Plan via a funding confirmation letter.
A TEO that receives MPTT funding is required to:

The overall amount of MPTT funding available is set through the Government’s annual budget process. We determine the appropriate amount of MPTT funding for a TEO through an off-Plan assessment process.
Funding allocation and payments
Funding allocations, including any amendments, are available through the My Allocations and Payments app on Ngā Kete.
MPTT funding is paid in accordance with your funding confirmation documentation, which specifies the amount of funding payable for consortium activities and/or fees top-ups, and/or brokerage services (as applicable).
For the calculation of indicative allocations see the methodology from the relevant year. The most recent information is at the top.
For more details regarding your specific allocation, please contact customerservice@tec.govt.nz or your Relationship Manager.
Fees top-ups and brokerage services (first 50%)
MPTT fees top-ups and brokerage services is paid in equal monthly instalments, except for the brokerage incentive success payment (second 50%).
Brokerage success (second 50%)
Brokerage success payments (second 50%) are made three times per year, based on the MPTT Actuals reports provisioned on Workspace 2.
For the TEO to receive the success payment:

the learner must achieve the successful outcome within 18 months of leaving the MPTT programme, and
the TEO must report the successful outcome through Workspace 2 using the provisioned MPTT Actuals template.

Both brokerage payments are made to the TEO that the learner first enrolled with.
Consortium activities funding
MPTT consortium activities funding is paid in equal monthly instalments.
Learner Support Funding
As of 30 June 2020, Learner Support Funding has replaced the MPTT Transitional Tools Grant. Learner Support Funding is allocated to each consortium. 
Learners have access to the support funding when they need it, as assessed by the consortium.
Consortia will receive the learner support funding via monthly instalments as part of their consortium funding.
We determine the amount of funding that each consortium receives by using the number of learners the consortium is funded for. Any unspent funding will be recovered.
Funding rates
This page provides information on the MPTT funding rates.
Interactions with Fees Free
MPTT interaction with Fees Free
If a learner enrolled in MPTT on or after 1 July 2020, their MPTT training does not count towards the use of a learner’s fees-free entitlement, or count as prior study. This means learners will not be disadvantaged by enrolling in MPTT initiatives.
Learners must meet all other Fees Free eligibility criteria to qualify to receive Fees Free.
See the Fees Free website for more information on eligibility requirements.
Fees free for learners who completed an MPTT course that started after 1 July 2020
If a learner completed an MPTT course that started on or after 1 July 2020, this study will not impact their eligibility for Fees Free tertiary education. If the learner has previously accessed Fees Free, and has remaining entitlement, they may be able to use this at a later date (should they meet the criteria applicable at the time of enrolment in further study).
Credits obtained from MPTT courses that started on or after 1 July 2020 are not included as part of the prior study criteria 60 credits limit. 
Fees Free for learners who completed an MPTT course prior to 1 July 2020
Any MPTT study that started before 1 July 2020 will continue to be included in prior study calculations for fees-free eligibility.
This table shows entitlement based on when a learner started MPTT

MPTT course start/end date

Outcome

Starts on, or after, 1 January 2018, and ends prior to 30 June 2020

This study will count towards the use of a learner’s fees-free entitlement.

Starts on, or after, 1 January 2020 and continues after July 2020

See table below.

Starts on, or after, 1 July 2020

The study will not count towards the use of a learner’s fees-free entitlement.

This table shows the proportion of a course that does count towards a learner’s fees-free entitlement use.

Course start date 

Percentage of course post 1 July 

Proportion of course that counts towards entitlement use

 1 January – 30 April 2020

 Less than 50%

 100%

 1 January – 30 April 2020

 50% to less than 75%

 50%

 1 January – 30 April 2020

 75% or more

 0%

 1 May – 30 June 2020

 33% or more

 0%

 1 May – 30 June 2020

 Less than 33%

 100%

Funding wash-ups
For the calculation of funding wash-ups see the methodology and technical specifications from the relevant year. The most recent information is at the top.

Source: Tertiary Education Commission

Last updated 7 October 2024
Last updated 7 October 2024

Print

Share

The Tertiary Education Commission (TEC) invites sector feedback on the refreshed Response Framework for Educational Delivery and Performance (formerly the Performance Consequences Framework) until 5pm on 1 November 2024.
The Tertiary Education Commission (TEC) invites sector feedback on the refreshed Response Framework for Educational Delivery and Performance (formerly the Performance Consequences Framework) until 5pm on 1 November 2024.

We have refreshed and renamed the Performance Consequences Framework to reflect current context and policies. The Response Framework contains no new information; it describes our existing approaches for managing educational delivery and performance where they need to improve. We set out expectations of delivery and performance in a range of documents including Plan Guidance, funding conditions and technical information. 
We work closely with funded providers to understand the drivers for performance, and support and guide them to improve outcomes. Our first response is engagement; we only use other responses if necessary. Most providers will not need responses beyond BAU engagement because they already have good outcomes.
The Response Framework describes our options for managing educational performance and delivery, in three parts:

a set of principles that underpin all our decisions about responses, to help make it clear why we make these decisions
a range of responses we can take in relation to performance that does not meet expectations
sets of indicators, mitigations and contextual factors we consider when making decisions about responses. 

View the refreshed Response Framework:
Response Framework for Educational Delivery and Performance (PDF 202 KB)  
Have your say by 5pm Friday 1 November
To help us finalise a framework that supports a shared understanding between tertiary providers and TEC, we are seeking your feedback on three questions:
1. Are the components of the framework clear (and how could we make them clearer)? That is, do you understand:
a. what could indicate that delivery or performance needs to improveb. what mitigations and contextual factors can be considered in making a response decisionc. the range of responses availabled. the principles underpinning TEC’s decision-making about consequencese. when the framework applies and how it is used in conjunction with other frameworks (ie, which framework covers what types of decisions)?
2. Is anything missing from the framework (eg, other potential mitigations)?
3. Are the actions the TEC will take in responding clear? If not, how can we make this clearer?
Please send your feedback to customerservice@tec.govt.nz with the subject line “Submission on Response Framework” by 5pm on 1 November.
We will publish a final Response Framework for Educational Delivery and Performance so our approaches are transparent.

Source: Tertiary Education Commission

Last updated 7 October 2024
Last updated 7 October 2024

Print

Share

The Tertiary Education Commission (TEC) invites feedback on the proposed criteria for significant plan amendments (SPAs) and replacement plans (RPs) until 5pm on 1 November 2024.
The Tertiary Education Commission (TEC) invites feedback on the proposed criteria for significant plan amendments (SPAs) and replacement plans (RPs) until 5pm on 1 November 2024.

TEC is required by the Education and Training Act 2020 to set criteria for significant plan amendments and replacement plans. 
It’s normal for there to be changes to Investment Plans during an approved funding period. 
The proposed criteria are intended to:

enable tertiary education organisations (TEOs) to make some changes without our approval
clarify when we need to approve more significant changes.

If a proposed change: 

meets the criteria, a tertiary provider must ask us to approve the change.
does not meet the criteria, a tertiary provider can make that change without our approval.

The criteria will: 

create more certainty for providers
allow flexibility, and 
reduce compliance.

There are two ways an SPA or RP can progress using the draft criteria:

a provider satisfies the criteria for an SPA or RP and asks us to approve any changes, or
we are satisfied that a provider meets the criteria for an SPA or RP, and we require them to reassess their existing plan with a view to changing or replacing it.

We are interested in your feedback on the proposed SPA and RP criteria. We would like to know whether:

the proposed criteria for SPAs and RPs are reasonable
the equivalent full-time students (EFTS) and hours thresholds for private training establishments (PTEs) are reasonable
the assessment criteria are clear.

Supporting information for tertiary providers
The SPA and RP criteria are secondary legislation, so we need to use legal language when we draft them. We have published supporting information to help tertiary providers understand the proposed criteria.
The document contains:

Frequently Asked Questions about the consultation
the key questions we’d like to hear from you about
a plain-language version of each criterion.

Supporting information on the consultation of significant plan amendments and replacement plans (PDF 413 KB)
TEC-funded providers and their peak bodies can provide feedback on the SPA and RP criteria by 5pm on Friday 1 November. Your feedback will help develop the criteria that works best for providers and TEC. Please send your feedback to customerservice@tec.govt.nz with the subject line “Submission on Significant Plan Amendments and Replacement Plans”.
We know there are a lot of demands on your time, but we do hope you can provide feedback. Feel free to collaborate with others or provide feedback through your peak body. 
The finalised SPA and RP criteria will be published in the Gazette notice.

Source: Tertiary Education Commission

Last updated 2 October 2024
Last updated 2 October 2024

Print

Share

This page provides information about how fee regulations are defined and applied across the Delivery at Levels 1 to 2, Levels 3 to 7 (non-degree), and Levels 7(degree) to 10 on the New Zealand Qualifications and Credentials Framework (NZQCF) funds. 
This page provides information about how fee regulations are defined and applied across the Delivery at Levels 1 to 2, Levels 3 to 7 (non-degree), and Levels 7(degree) to 10 on the New Zealand Qualifications and Credentials Framework (NZQCF) funds. 

Fees are regulated in the tertiary education sector for courses funded through the following funds:

Delivery at Levels 3 to 7 (non-degree) (DQ3-7)
Delivery at Levels 7 (degree) to 10 NZQCF (DQ7-10).

Student Services Fees are also regulated for courses funded through Delivery at Levels 1 and 2 on the NZQCF (DQ1-2) fund, the DQ3-7 and DQ7 -10 funds.
For more information on fee regulations, see: 

Source: Tertiary Education Commission

Last updated 2 October 2024
Last updated 2 October 2024

Print

Share

The AMFM policy sets limits on fees that tertiary education organisations (TEOs) can charge learners. Its purpose is to promote affordable study for learners while allowing TEOs some flexibility in setting fees. 
The AMFM policy sets limits on fees that tertiary education organisations (TEOs) can charge learners. Its purpose is to promote affordable study for learners while allowing TEOs some flexibility in setting fees. 

The 2025 AMFM is set at 6.0%. 
The AMFM rate for each year is published in the funding mechanisms. The AMFM for 2024 was 2.8%.
Funding mechanisms and delegations
The AMFM policy applies to courses funded through the following funds: 

Delivery at Levels 3 to 7 (non-degree) on the NZQCF (DQ3-7) 
Delivery at Levels 7 (degree) to 10 on the NZQCF (DQ7-10).

Note: fees charged for industry training (i.e. programmes or micro credentials funded under DQ3-7 in the work-based modes of delivery) are exempt from AMFM regulations. 
It applies to fees that:

all domestic students are required to pay, and
have been funded in a previous year (or years).

The AMFM also applies to: 

courses established by a TEO that are a substitute for an existing course on the same or similar subject matter, at the same or a similar level on the NZQCF, and
micro-credentials approved by the New Zealand Qualifications Authority (NZQA) to be part of a programme leading to a qualification. 

For more information about micro-credential fees, see Micro-credentials funding and fees. 
Additional changes from 2024
2024 changes to how the AMFM is regulated, which allow providers to set lower fees temporarily, take practical effect from 2025. 
From 2024, if you reduce fees for a course across one or more calendar years, you can return to the maximum fee you charged before the reduction and apply the AMFM rate increases for the period in which the fee was reduced. 
Note: This only applies from 2024. It does not apply to fee reductions that were in place before 2024. 
Exceptions to the AMFM
Applications are considered annually, in the year before the course will be delivered. 
2025 AMFM exceptions
You may apply for an AMFM exception to increase your fee by up to an additional 6% above the permitted AMFM. 
We may only grant an exception to the AMFM policy under exceptional circumstances. The exception criteria are published in the funding mechanisms. 
Funding mechanisms and delegations
We will only grant an exception if the following criteria are met:

the TEO can demonstrate that it is financially unsustainable to deliver the course, in terms of the cost of delivering the course and taking into account the total income that the course would generate (including Government funding and tuition fees), and that there are no satisfactory alternatives to limit cost
the existing fees for the course are no more than the 75th percentile of the range of fees charged for similar courses; and
any two of the following three criteria apply:

where the course is part of a programme at Levels 3–10 on the NZQCF that has been delivered previously, the programme has a cohort-based completion rate that meets or exceeds the median performance benchmark for the NZQCF level in the previous year
you can demonstrate that the course is in some way unique or special; for example, there are no available local alternatives; and
not allowing an exception will prevent you from making a significant contribution to the achievement of one or more of the Government’s priorities, as set out in the current Tertiary Education Strategy.

Note: There is a limit to the number of courses for which a TEO can request an exception each year. For details on this, see AMFM exceptions: Application and assessment information.
How to apply for an exception to the AMFM
The application process for 2025 is now open. You must submit applications for any course that starts between 1 January 2025 and 31 December 2025 by 5.00pm on 29 November 2024.
Please read the exceptions information in AMFM exceptions: Application and assessment information (below). 
Submit applications and all supporting information with the subject line [EDUMIS] – Exception to the AMFM to our Customer Contact Group at  customerservice@tec.govt.nz.
Use the following forms and templates to make your application:

Source: Tertiary Education Commission

Last updated 2 October 2024
Last updated 2 October 2024

Print

Share

This page explains fee limits for new courses funded through Delivery at Levels 3 to 7 (non-degree) and Levels 7 (degree) to 10 on the New Zealand Qualifications and Credentials Framework (NZQCF).
This page explains fee limits for new courses funded through Delivery at Levels 3 to 7 (non-degree) and Levels 7 (degree) to 10 on the New Zealand Qualifications and Credentials Framework (NZQCF).

Fee limits apply to new courses funded through the following funds: 

Delivery at Levels 3 to 7 (non-degree) on the NZQCF (DQ3-7) 
Delivery at Levels 7 (degree) to 10 on the NZQCF (DQ7-10).

Note: fees charged for industry training (i.e. programmes or micro credentials funded under DQ3-7 in the work-based modes of delivery) are exempt from fee-setting limits for new courses.
Fees must be no more than the 75th percentile of the range of fees charged for similar courses.
When identifying similar courses we consider the course:

funding category
classification under the New Zealand Standard Classification of Education (NZSCED), and
equivalent full-time students (EFTS) factor.

In exceptional circumstances you may apply for an exception to the limit on new course fees. The exception criteria are published in the funding mechanisms.
Funding mechanisms and delegations
In determining exceptions, we consider the following criteria:

The course would not be financially viable without a higher fee.
Where the course is part of a qualification at Levels 3–7 (non-degree) or 7+ on the NZCQF that has been delivered previously, the programme has a cohort-based completion rate that meets or exceeds the median performance benchmark for that NZQCF level in the previous year.
You can demonstrate that the course is in some way unique or special, for example, there are no or very few similar courses to compare fees with.
The course is aligned to Government priorities set out in the Tertiary Education Strategy.

Applying for an exception to the fee limit
For information about how to apply for an exception, please see the guidance below.

Email your application to our Customer Contact Group at customerservice@tec.govt.nz with the subject line [EDUMIS] – Exception to fee limits for new course fees application. 
The deadlines to submit an application are:

5.00pm on the last Friday of November
5.00pm on the first Friday of February
5.00pm on the first Friday of June
5.00pm on the first Friday of August.

We will advise you in writing of the outcome of your application.
If you have any questions about the application process, please email customerservice@tec.govt.nz or your relationship manager.