Industry Training Fund

Eligibility

Trainees

Eligible trainees are employees, volunteers, self-employed or members of the NZ Defence Force meeting the conditions specified under Rule ITO001[1], Rule ITO002[2] and Rule ITO004[3].

Trainees must be over 16, or have a school exemption certificate (see Rule ENR016[4]). ITOs must verify the trainee's identity (see Rule ENR029 and Rule ENR032[5]).

To remain eligible for funding, trainees must achieve a minimum number of credits, under Rule ITO017[6].

Modern Apprentices, as defined in Rule ITO022[7], are eligible for funding on the same basis as industry trainees. Verification of age documents must be sighted, under Rule ENR102[8].

Organisations

In general, only ITOs[9] are eligible for industry training funding. The only exception is an organisation funded to undertake an industry training-related project or activity under a designated portion of the Industry Training Fund.

Rule ITO005[10] designates that an ITO must not deliver training or have an ownership stake in an organisation with which it wishes to organise training delivery.

Rule ITO006[11] describes a range of criteria that ITOs must meet to receive Industry Training Funding. ITOs are expected to promptly raise with their Investment Manager any arrangements that are outside standard practice.

Qualification funding eligibility and approval

Rule ITO014[12] requires training to be linked to national qualifications, predominately at Levels 1-4 on the NZQF[13].

Qualifications at levels 5 and above may also be funded, with volume restrictions as specified in Rule ITO015[14].

Qualifications delivered to Modern Apprentices must meet the requirements described in Rule ITO021[15].

ITOs must seek qualification funding approval from the TEC to satisfy the requirements of the Industry Training Act 1992 using this form.

Applications for qualification approval must be submitted to industrytrainingprogrammes@tec.govt.nz, and will be processed on a monthly basis (the relevant processing deadline is the 25th of each month).

ITOs may subcontract some of their functions, provided the subcontracting is covered by a written agreement meeting the requirements of Condition ITO020[16].

From 2011

From 2011 applications for approval of qualifications for funding will be an automated process through the Industry Training Register.

Limited Credit Programmes and Supplementary Credit Programmes

Limited Credit Programmes (LCPs) and Supplementary Credit Programmes (SCPs) are also eligible for funding. LCPs and SCPs must comprise a minimum of 20 credits and a maximum of 70 credits. LCPs and SCPs must comprise Unit Standards drawn from the qualification to which they are related.

LCPs are designed to encourage subsequent uptake of full qualifications through industry training (see Rule ITO012[17]).

SCPs are designed to further develop industry skills post initial qualification achievement (see Rule Rule ITO013[18]).

 

• [1]

  Rule ITO001: Industry training - trainee eligibility

  To be an eligible trainee a person must be one of the following:

  • An employee, employed in New Zealand
  • A member of the New Zealand Defence Force
  • A volunteer who is in an arrangement with an organisation in New Zealand that is in the nature of employment and forms part of a command and control structure where the following apply:
    • clear contractual obligations between the parties
    • regular or rostered hours of duty
    • commitments to attend work on a regular or when required basis
    • the volunteer is subject to termination for unsatisfactory performance
  • A self employed contractor who has primary contractual relationships in New Zealand with an organisation, with clear contractual obligations between the parties for the provision of goods and services and payment, and in which the services of the contractor is fully committed to the organisation.
• [2]

  Rule ITO002: Industry training - trainee requirements

  To be eligible for industry training funding, a trainee must meet the following:

  • Have a valid training agreement, on the last day of the month for which funding is sought, as defined in Rule ITO004
  • Not be enrolled in a programme that they have already completed
  • Be in an industry that is one of the following:
    • Under the Industry Training Organisation's (ITO's) recognised industry coverage
    • Outside the ITO's recognised industry coverage where the industry training has been approved by the Tertiary Education Commission (TEC) under section 10A of the Industry Training Act 1992
  • Be employed and work in New Zealand.
  • Have a New Zealand Qualifications Authority Record of Achievement Number and National Student Number.
  • An employee meeting the above requirements may have any training received overseas supported by industry training funding if the skills learned are characteristic of, or likely to be valuable to, the New Zealand industry in which the trainee is employed. The trainee must be employed in New Zealand.

  If a trainee is under the age of 16, the ITO must retain a copy of the documents which exempt the student from school.

  A trainee remains valid for funding after the end of a training agreement if, within six weeks, the trainee signs a new training agreement for the same programme, with a new employer or relevant organisation as specified in Rule ITO004. The trainee is then deemed to have an "active" training agreement during the six week period.

  Trainees who are employed, and receive industry training, outside of New Zealand are not eligible for Industry Training funding. 

• [3]

  Rule ITO004: Industry Training Fund valid training agreements

  To claim funding, each trainee must have a valid training agreement that complies with the following requirements:

  • In the case of an eligible trainee who is:
    
    • employed, the training agreement is part of, or linked to, an employment agreement entered into by the trainee and their employer pursuant to the Employment Relations Act 2000
    • a member of the New Zealand Defence Force, the training agreement is between the member and the New Zealand Defence Force
    • a volunteer, the training agreement is between the volunteer and the host organisation of the volunteer
    • a self-employed contractor, the training agreement is between the self-employed contractor and the organisation with which they have the principal contract for services
  • The training is intended to lead or relate to the achievement of at least 20 New Zealand Qualification Framework credits per year
  • The training programme must not require the completion of more than 70 credits per year
  • The agreement provides for one of the following:
    
    • industry training that has been approved by the Tertiary Education Commission (TEC)
    • an equivalent programme of industry training that has been recognised by the TEC under section 18(a) of the Industry Training Act 1992
  • The agreement is registered with the industry training organisation
  • The agreement is classified "active" on the last day of the month for which funding is sought.

  Note: If a trainee changes employer, or association with the relevant organisation identified above, any existing training agreement becomes invalid and must be replaced by a new agreement with the relevant organisation.

• [4]

  Rule ENR016: Domestic student status - aged under 16 years

  Tertiary education organisation (TEOs) must not accept learners younger than 16 years of age unless both of the following are satisfied:

  • The learner has one of the following:
  • A school exemption certificate from the Ministry of Education if the learner is full time with the TEO
  • A letter from their secondary school principal (whether the learner wishes to enrol with a TEO within school hours or out of school hours) if the learner is part time with the TEO
  • The TEO is satisfied the learner is capable of completing the academic requirements of the courses or programme of study.

   

  Note: this applies to industry trainees as well as instititution-based students.

  Note: in the case of home-schooled learners, the parent primarily responsible for the home schooling signs the letter instead of the school principal.
• [5]

  Rule ENR032: Verifying learner identity - identification documents

  Tertiary education organisations must use the identification documents described in the following table to verify learner identity:

   

  Learner status	Evidence of identity
  New Zealand citizens (domestic students)	New Zealand citizens must supply one of the following: Passport. If a learner is recorded as a child on their parent's passport, they may use their parent's passport as evidence of identity and citizenship   Birth certificate Certificate of citizenship for New Zealand Whakapapa (if certain conditions are met) - see Rule ENR035. [Note: New Zealand citizens may supply other evidence of their legal name, for example marriage certificate or a letter from a bank, but they must still provide evidence of their date of birth, citizenship and residency.  Cook Islands, Niue, and Tokelau citizens who are studying there or in New Zealand must supply one of the same identification documents that New Zealand citizens supply.]
  New Zealand permanent residents (domestic students)	New Zealand permanent residents must supply one of the following original documents: Passport with a current resident's permit Letter of confirmation from the New Zealand Immigration Service (NZIS) Certificate of identity from NZIS if the learner was a refugee. [Note: If a permanent resident leaves New Zealand they need a valid Returning Resident's Visa to return and study in New Zealand.]
  Australian learners (domestic students)	Australian learners who are living in New Zealand must supply one of the following documents: Birth certificate Original or verified copy of their Australian passport Current Returning Resident's Visa if they are an Australian permanent resident.
  Exchange students (domestic students)	Exchange students must be enrolled with a TEO through an exchange scheme approved by the NZ Government or the TEO.
  Dependants of diplomatic personnel (domestic students)	Dependants of foreign diplomatic personnel must provide a completed and authorised form MFA 605 from the Ministry of Foreign Affairs and Trade.
  Refugees (domestic students)	Refugees must supply a certificate of identity from NZIS.
  Foreign students studying in New Zealand	Foreign students must supply one of the following original documents if they are studying in New Zealand: Passport with a current student visa or permit to study with a specific TEO Work Visa or Permit with a variation to allow for study in the case of foreign students who have a practical component in their programme of study Visitor's Permit for foreign students enrolling in courses of fewer than 12 weeks.
  Foreign students resident overseas (studying by distance learning)	Foreign students resident overseas and studying by distance learning must supply a verified copy of one of the following: Passport Birth Certificate Certificate of Residence Residence Permit.

   

• [6]

  Rule ITO017: Trainee eligibility and achievement

  Industry training funding is only provided for active trainees achieving credits, in a programme approved for funding by the Tertiary Education Commission (TEC), in the year for which funding is claimed by the relevant industry training organisation (ITO). Trainees not achieving credits are not eligible for funding unless either of the following applies:

  • Eighty percent or more of trainees enrolled with the ITO in the year for which funding is sought and the previous year (combined) have evidence of credit achievement
  • The TEC has allowed an exception.

  Funding paid for ineligible trainees is recoverable by the TEC.

• [7]

  Rule ITO022: Modern Apprenticeship eligibility

  For a trainee to be eligible for industry training funding as a Modern Apprentice, a co-ordination fee must be paid in relation to the trainee to a Modern Apprentice Co-ordinator via a funding agreement paid under the Modern Apprenticeship Training Act 2000.

  Modern Apprentices must be between 16 and 21 years of age (on entry to the programme) with some exceptions. Modern Apprentices must also:

  • be employees
  • have a signed Industry Training Agreement with their employer which:
    
    • leads to the achievement of a unit standards based National Certificate (or Certificates) at level 3 or 4 of the New Zealand Qualifications Framework
    • is registered with the relevant Modern Apprenticeship Coordinator (MAC).
  • have an assigned New Zealand Qualifications Authority Record of Achievement Number and National Student Number
  • be enrolled with the MAC
  • have an Individual Training Plan signed by the employer, the Modern Apprentice and the MAC
  • have not been signed into another Industry Training Agreement for the National Certificate in the previous six months prior to signing this Training Agreement
  • have not completed 50 percent or more of the National Certificate prior to signing the Industry Training Agreement.
• [8]

  Rule ENR102: sighting of age documents - ITOs

  When enrolling Modern Apprentices, a document verifying the trainee's age must be sighted and a copy retained. The person sighting the document must sign the trainee's Training Agreement record as having verified the trainee's age.
  

• [9]

  Industry training organisations (ITOs)

• [10]

  Rule ITO005: Restrictions on ITO training delivery or ownership

  Industry training organisations (ITOs) must not deliver training themselves.

  ITOs must not have any ownership stake in an organisation with which the ITO wishes to arrange training delivery.

• [11]

  Rule ITO006: Industry Training Fund ITO eligibility

  To be eligible for industry training funding industry training organisations (ITOs) must be fully or provisionally recognised under the Industry Training Act 1992.

  Industry training must be within the ITO's Gazetted industry or industries or outside the ITO's recognised industry coverage where the industry training has been approved by the Tertiary Education Commission under section 10A of the Industry Training Act 1992.

  ITOs must ensure that their governance and business arrangements are appropriate to the requirements of the Industry Training Act, the Education Act, and the Government's policies for Industry Training.

  Organisations other than ITOs may be funded to undertake an industry training-related project or activity under a designated portion of the Industry Training Fund.

• [12]

  Rule ITO014: Programme funding eligibility

  Industry Training Funding is provided for training toward achievement of the following:

  • National certificates
  • National diplomas
  • Limited Credit Programmes and Supplementary Credit Programmes derived from these.

  National qualifications must cover a skill within the industry training organisation's (ITO's) Gazetted coverage.

  The criteria for national certificate funding approval are as follows

  • The ITO must have accreditation from the New Zealand Qualifications Authority (NZQA) to register workplace assessors for the qualification, and/or must use providers accredited by NZQA to assess the unit standards
  • The certificate must be unit standard based and registered on the New Zealand Qualifications Framework (NZQF)
  • The certificate must be for a minimum of 40 credits.

  The criteria for national diploma funding approval are as follows:

  • The diploma must be registered at level 5, 6 or 7 on the NZQF
  • It must consist of at least 120 credits at level 4 or above
  • It must meet the NZQA quality assurance requirements for diplomas.

   

• [13]

  New Zealand Qualifications Framework (NZQF)

• [14]

  Rule ITO015: Restriction on delivery above Level 4

  An industry training organisation (ITO) may arrange delivery of training at New Zealand Qualifications Framework (NZQF) level 5 and above provided both the following are met:

  • The volume of funding for training at level 5 and above does not exceed 10% of the ITO’s total volume of training funded by the Industry Training Fund (ITF), unless approved by the Tertiary Education Commission (TEC)
  • The total funding for training at level 5 and above does not exceed 10% of the ITF's total investment in industry training.

  ITOs can apply to the TEC for an exception, to increase the volume of training at level 5 and above beyond 10% of their total training volume. The proposed additional training volume must meet one of the following two criteria to be assessed for an exception:

  1. The delivery increases participation of under-represented groups in industry training
  2. The delivery addresses industries or industry sub-groups where structured NZQF-based training is relatively new or is expanding into new areas.
     
• [15]

  Rule ITO021: Modern Apprenticeship training programmes

  Training programmes arranged by industry training organisations and undertaken by Modern Apprentices must meet all the following:

  • Comprise at least 100 credits on the New Zealand Qualifications Framework (NZQF)
  • Be at NZQF levels 3 or 4
  • Include the opportunity to learn generic skills relevant outside the specific industry to which they are linked.

  Programmes delivered to Modern Apprentices must comprise credits from national certificates at both level 3 and level 4 on the NZQF. A level 2 pre-requisite programme may be included and funded if pre-approved by the TEC.

• [16]

  Condition ITO020: ITO subcontracting

  An ITO may only subcontract its Industry Training Funded functions with the TEC's written consent.

  No subcontracted party may further subcontract those functions.

  Any subcontracting arrangement for which consent has been granted must comply with any conditions imposed by the TEC on that consent.

• [17]

  Rule ITO012: Limited Credit Programme

  Limited Credit Programmes (LCPs) are eligible for industry training funding only if they meet all the following:

  • Comprise Unit Standards drawn from a registered national certificate(s) within the industry training organisation's (ITO's) Gazetted coverage and for which the ITO has TEC funding approval
  • Provide a pathway toward the national certificate(s) from which they have been developed
  • Be no more than 50% of the credit value of the national certificate(s) to which the LCP leads
  • The national certificate must be at levels one to four on the New Zealand Qualifications Framework (NZQF), unless exempt
  • At least 70% of the credits for the LCP must be at levels 1 to 4 of the NZQF unless the LCP is approved at a higher level
  • The LCP must be a minimum of 20 credits and a maximum of 70 credits

  At least 50 percent of trainees previously enrolled in an LCP must have progressed to and completed a full national qualification within five years of enrolment in the LCP for that LCP to be funded. This applies on a year-by-year basis. The Tertiary Education Commission may grant an exception to this requirement.

  Trainees must not be enrolled concurrently on a National Certificate and an LCP that leads to that same National Certificate.

  An LCP that is at level 5 or above may be approved for funding if the ITO can show that there is an identifiable training need to be met within the relevant industry.

  LCPs at level 5 and above must not exceed 10% of the ITO’s total volume of LCPs.
  

   

• [18]

  Rule ITO013: Supplementary Credit Programme

  A Supplementary Credit Programme (SCP) may receive funding approval only if all the following are met:

  • The SCP is for use within the industry training organisation's (ITO’s) current Gazetted coverage
  • The SCP forms part of an existing and registered national certificate(s) or national diploma(s) (the qualification), for which the ITO has funding approval
  • The SCP is for a minimum of 20 credits and a maximum of 70 credits
  • The ITO can demonstrate that the SCP will allow training to keep pace with changes in the workplace by one of the following:
    • reflecting changes in the structure of the qualifications
      Example: when strands are added to the qualification
    • supporting change to an individual’s circumstances
      Example: when additional unit standards are required in relation to a qualification already achieved

  Trainees must have completed a qualification that would enable them to achieve at the level of the SCP in which they enrol. Such a qualification must be no more than one NZQF level below that of the SCP. The Tertiary Education Commission may grant an exception to this requirement.

  A qualification that includes some form of currency or renewable requirements, such as first aid or health and safety is not eligible for funding as an SCP.