Updating the TEC on fee increases, 'active' courses and changes of ownership

17 March 2015

Private training establishments (PTEs) need to ensure their course fee information is accurate and updated in the system annually in line with the Annual Maximum Fee Movement policy. PTEs also need to ensure they remove old courses from the STEO system; and inform the TEC of any changes in ownership arrangements.

Updating the TEC on fee increases (within the Annual Maximum Fee Movement policy)

The TEC has become aware that a number of private training establishments (PTEs) do not have accurate fee information loaded into the TEC STEO system for Student Achievement Component (SAC) funded provision at levels three and above. This means the fees being charged to learners are not accurately reflected in the information held by TEC.  

All PTEs are reminded they must enter any fee increases into the STEO system each year. Please ensure, as soon as possible, that your fees are up to date in STEO.

Fee increases must comply with the Annual Maximum Fee Movement (AMFM) policy. This states that the maximum (GST exclusive) increase for courses per year is four per cent. If you wish to increase fees beyond four per cent, you must apply to the TEC for an exception to the AMFM. The process for 2015 fee exceptions concluded in December 2014.

We will publish more information on the AMFM exceptions process for 2016 on this website later this year.  

If you have not entered fee increases for several years, meaning that your current course fees are more than four per cent higher than your last recorded fees, you will be required to supply evidence (such as old prospectuses or brochures) to the TEC that the increases entered accurately reflect fees actually charged to learners in previous years. The TEC may then allow a one-off increase to be entered into the system, provided that your annual fee increases have not exceeded the AMFM.

If you have any queries about entering fee increases into the STEO system, please contact the Sector Helpdesk on 0800 601 301.

Removing old courses from the STEO system

The TEC has also identified that a number of expired courses are still marked as ‘active’ in the STEO system, despite being courses that are no longer delivered and that will not be delivered again in the future.

Please review your ‘active’ courses in STEO to ensure that ‘active’ courses are only those you are currently delivering or that you intend to deliver again in the future. 

Change of Ownership applications

PTEs are also reminded that they are required to advise the TEC of changes in ownership arrangements, including:

  • the merger of a PTE
  • transfer or sale to a trust
  • sale of the business (assets) to a new owner
  • partial sale of the business (assets) to a new owner
  • changes to the control of a PTE (private company), or
  • changes in a director of the PTE (private company). 

PTEs should provide this information to the TEC 28 days in advance of any planned changes. It is suggested that PTEs notify the TEC at the same time that they lodge an application for a Change of Ownership with the New Zealand Qualifications Authority (NZQA). 

Notification of a Change of Ownership must be provided in writing, and can be sent to the Sector Helpdesk at sectorhelpdesk@tec.govt.nz.

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  • Last changed: 17 March 2015
  • Last verified: 17 March 2015