Travel
In 2012, Youth Guarantee will bulk fund providers using either a trades or non-trades rate. These rates have been confirmed as $14,300 per trades place and $10,800 per non-trades place (both figures are GST exclusive). A travel assistance subsidy has been included as part of the overall funding rate. For both funding rates, this travel subsidy equates to $800 per place.
Providers will be expected to keep records of travel expenses in line with IRD requirements1. Travel support funding that is paid directly to learners must only be used to cover or reimburse costs associated with travel. Providers must also maintain records for all amounts paid to individual learners. These records are to be made available to the TEC upon request. The travel component will be subject to an end of year wash-up process and any un-spent funding will be subject to recovery.
Providers may use one student’s travel, where they do not require the full amount, to pay for another student’s travel where that student has higher needs.
Exceptional circumstances
We expect that the travel component funding provided will adequately meet the costs associated with learner travel needs. However, we acknowledge that exceptional circumstances may arise and we have up to $1 million in additional funding that will be available for learner travel in 2012.
In instances where there are substantial travel needs, which are in excess of travel funding paid, we will give providers the opportunity to apply for more funding. We expect providers to meet 20% of the cost of travel above the $800 subsidy provided per place before applying for any additional travel funding.
There will be two opportunities for organisations to apply for additional funds for travel in 2012. Applications will be accepted in May and September of 2012.
Applications for exceptional circumstances will be subject to providers meeting the following requirements:
We will expect providers to provide a summarised set of data showing that they have already funded travel in excess of the total amount allocated for travel, and also a sample (10% or a minimum of 5 learners for smaller providers) of individual learner payment data.
The following criteria must be met for providers to be eligible for additional travel funding:
- detailed information has been provided, listing travel amounts paid to at least 10% of learners (or a minimum of 5 learners for smaller providers) over the period in question
- summary information in the form of a simple income versus expenditure table has been supplied, and the information indicates a projected overspend by calendar year end
- the provider has demonstrated that it has taken an "actual and reasonable" approach to the reimbursement of learner travel costs
- evidence shows the provider has contributed 20% toward the cost of the travel expenses above the $800 per place subsidy before applying for additional funding (e.g. where a provider has spent $1000 per place); and
- the provider has not reimbursed individual learners by more than the $75 per learner per week maximum without prior TEC approval to do so.
All eligible applications will be considered to determine how available funding will be allocated. The amount of funding being allocated may differ between the May and September rounds.
We may not be able to fund each application in full. If eligible applications exceed the amount of funding available, we will pro-rata the amount of funding allocated.
Travel report and Execptional Travel Application form (XLS, 75 Kb)
1 Providers should be aware that there may be tax implications in the way that travel reimbursements are administered. Providers are advised to contact the Inland Revenue Department directly for further information. When reimbursing trainees for travel, in general providers will not be able to claim GST input tax on this cost. This is because the payments are made to individuals who are not registered for GST. GST input tax can only be claimed if providers have incurred the cost themselves and can produce a GST invoice in support of the claim.