SAC levels 1 and 2 (competitive)

Who applies? ITPs, PTEs, Universities, Wānanga Fund focus: Domestic students
Status: Ongoing Agreed through? Investment Plan (on Plan)

The information on the following pages relates to SAC funding for provision at levels 1 and 2, competitive allocation only, as indicated by the initials SAC(C). Please see the pages specific to each SAC-funding type for the relevant information.

Student Achievement Component (SAC) funding is the government’s contribution to the cost of teaching and learning. The Government determines the total amount of SAC funding available through its Budget process.

The SAC fund includes:

SAC funding for provision at levels 3 and above is allocated through the Investment Plan process. Funding for provision at levels 1 and 2 is allocated either through the Investment Plan process, or through a competitive allocation process.

The information on the following pages relates to SAC funding for provision at levels 1 and 2, competitive allocation only, as indicated by the initials SAC(C).

The aims of funding for foundation education, including SAC(C) funding are to:

  • provide people who do not already have essential foundation skills with access to a low cost way to gain those skills
  • provide progression to higher level study and skilled employment
  • build the literacy and numeracy skills of eligible students
  • enable beginning students to learn English or Te Reo Māori
  • encourage those tertiary education organisations (TEOs) that are best able to meet the needs of foundation education students. 

The TEC agrees the amount of each TEO’s SAC funding for provision at levels 1 and 2, competitive allocation through a competitive process.  The provision forms part of the TEO’s Investment Plan. The funding is calculated as equivalent full-time student (EFTS) units.   

Funding

The funding mechanism for SAC provision at levels 1 and 2 on the NZQF (competitive allocation) (PDF, 526 Kb) is issued by the Minister for Tertiary Education, Skills and Employment. The funding mechanism outlines the general form and essential components of the fund. It provides the mandate for the TEC to allocate the funding, and details how we administer the funding.  Allocating this fund helps support the achievement of government policy and the Tertiary Education Strategy.

A TEO that receives SAC(C) funding is required to:

  • comply with the requirements of the Education Act 1989 (including achieving outcomes specified in its Investment Plan); and
  • comply with the funding conditions specified in the TEO's Investment Plan funding approval letter.

Competitive process

In 2012, to improve the quality and value for money of provision and to ensure the best possible responsiveness to student needs, the government introduced a competitive pricing process for a portion of the SAC-funded foundation level provision (levels 1 and 2 on the NZQF). 

Overall, the competitive process resulted in more fees-free places for students, and investment in high-quality provision.  It also provided an opportunity for TEOs not previously funded for delivery at these levels to meet the needs of foundation learners. 

In 2014, we held a further competitive process to allocate up to $70 million of SAC funding for provision at levels 1 and 2 for 2015 and 2016.

2016 competitive process

In February, we announced a third competitive process to allocate up to 100% of funding for SAC-funded foundation-level provision. We expect to have application information available by the end of April 2016. 

More information about the 2016 competitive process is available on the Competitive Process page.

 

 

 

 

 

 

  • Last changed: 29 March 2016
  • Last verified: 29 March 2016