The Industry Training Fund (ITF) is allocated to tertiary education organisations (TEOs) that are either an industry training organisation (ITO) or an eligible organisation accessing the ITF through the direct funding scheme.
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An ITO must be recognised by the Minister for Tertiary Education, Skills and Employment under section 5 of the Industry Training and Apprenticeships Act 1992 in order to receive government funding. The Minister recognises the ITO for industries for which it will develop skill standards and arrange training for.
- can arrange training, but must not seek funding from the ITF for the delivery of the training
- cannot have any ownership stake in, or be a beneficiary of, an organisation with which the ITO arranges to deliver the training
- cannot subcontract any of its funded functions without permission. See Conditions ITF002, ITF003 and ITF004 for more information.
Direct funding scheme organisation
To be eligible for the ITF through the direct funding scheme, an organisation must be:
- an employer
- a group of employers or industry associations that are part of a consortium arrangement or
- a group training scheme (schemes that employ apprentices and place them with host employers who are qualified tradespeople)
- a Modern Apprenticeship Coordinator (who is not employed by an ITO).
In addition, direct funding scheme organisations must have at least 40 trainees or apprentices each year who are actively training towards one or more of the eligible qualifications and programmes. See Condition ITF019.
Industry trainees, New Zealand Apprentices or Modern Apprentices should also continue to meet the criteria as defined in Condition ITF006 and Condition ITF007.
Funding is allocated to TEOs to arrange training for:
- a National or New Zealand Certificate
- a National or New Zealand Diploma
- a Limited Credit Programme
- a Supplementary Credit Programme
- a New Zealand Apprenticeship
- a Modern Apprenticeship (enrolled prior to 1 January 2014).
A majority of the programmes of learning that are funded must be at levels 1, 2, 3, or 4 on the New Zealand Qualifications Framework (NZQF). Each TEO must not spend more than 10% of funding for training at level 5 or above on the NZQF unless the TEO has received approval from the TEC. See Conditions ITF009 and ITF011 for more information.
Note that different funding rates apply. See Funding and payments for information.
Health and safety and regulatory compliance learning
Funding cannot be used for a qualification or programme designed primarily to comply with health and safety or regulatory compliance requirements. This includes a qualification containing health and safety or regulatory compliance learning if it is likely that most enrolments will lead only to completion of the health and safety or regulatory compliance components. Trainees are required to complete the whole qualification. See Condition ITF009 for more information.
Embedded literacy and numeracy
All programmes at levels 1, 2, or 3 on the NZQF must contain embedded literacy and numeracy.
A TEO that receives funding must identify the literacy and/or numeracy needs of each trainee enrolled in a programme at levels 1 or 2 on the NZQF. TEOs must use the Literacy and Numeracy for Adults Assessment Tool to identify the needs, and measure the progress of each trainee.
It is expected each TEO will use the Literacy and Numeracy for Adults Assessment Tool for trainees and apprentices enrolled in programmes at level 3 on the NZQF where appropriate. See Condition ITF009 and Condition ITF012.
New Zealand Apprenticeships
All New Zealand Apprenticeships must be approved by the TEC. See the NZ Apprenticeships Register (XLS, 704 Kb) for a list of approved apprenticeships.
A New Zealand Apprenticeship must meet any regulatory requirements and provide an entry point into an occupation. New Zealand Apprenticeships should include a practical component, along with a strong theoretical component to support further learning.
A New Zealand Apprenticeship must consist of:
- a qualification at level 4 on the NZQF that has a minimum of 120 credits; or
- multiple qualifications that together have at least 120 credits, provided those qualifications are at level 3 and level 4 on the NZQF, and at least 60 credits are at level 4 on the NZQF. See Condition ITF009 for more information.
See Funding and payments for information about New Zealand Apprenticeship funding rates.
On 1 January 2014, the Modern Apprenticeship scheme was replaced by the New Zealand Apprenticeship scheme.
The TEC will continue to provide funding for those Modern Apprentices who were enrolled before 1 January 2014 until 31 December 2017.
See Funding and Payments for information about Modern Apprenticeship funding rates.
Trainee and apprentice eligibility
For a trainee to be eligible to be enrolled in a programme they must be:
- an employee who is employed and working in New Zealand and has a training agreement with their employer; or
- a self-employed contractor working in New Zealand under an arrangement with an organisation in the nature of employment, who has a training agreement with that organisation; or
- a person volunteering in New Zealand under an arrangement with an organisation in the nature of employment, who has a training agreement with that organisation.
A trainee must be 16 years of age or over, unless the trainee has a letter from their school confirming that the trainee is exempt from attending school. See Condition ITF006 for more information.
New Zealand Apprentices
In addition to the eligibility requirements for a trainee, a New Zealand Apprentice must be:
- supported by a training plan agreed to by the apprentice, the employer (or organisation with which the apprentice has an arrangement in the nature of employment), and the organisation arranging the training throughout the programme of training.
- enrolled in a TEC-approved programme of training that meets the conditions set out in Condition ITF007.
In addition to the eligibility requirements for a trainee, a Modern Apprentice must have been enrolled in a Modern Apprenticeship programme prior to 1 January 2014, and must be continuing his or her training.
A Modern Apprentice can remain training as a Modern Apprentice until they have completed the training, or until 31 December 2017. See Condition ITF008.