SAC levels 1 and 2 (non-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, non-competitive allocation only, as indicated by the initials SAC(NC). 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 standard 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, non-competitive allocation only, as indicated by the initials SAC(NC).

The aims of funding for foundation education, including SAC NC 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 (other than competitively allocated) through the Investment Plan process, calculated as equivalent full-time student (EFTS) units. SAC(NC) funding reflects the volume and mix of provision agreed in a TEO’s Investment Plan.

SAC(NC) funding is calculated based on:

  • the courses within the qualification that a TEO has been approved to deliver
  • the number of valid domestic enrolments in each approved course that the TEO has delivered. 

Funding

The funding mechanism for SAC - provision at levels 1 and 2 on the NZQF (non-competitive allocation) (PDF, 832 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 fund. Allocating this fund helps support the achievement of government policy and the Tertiary Education Strategy

A TEO that receives SAC(NC) 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.

If a course is approved as eligible for SAC(NC) funding, students enrolled in the course may be eligible for student allowances and the Student Loan Scheme. 

See Approving a qualification for student allowances and the Student Loan Scheme on the Qualifications and courses page for more information.

  • Last changed: 30 March 2016
  • Last verified: 30 March 2016