Benchmark fees

Some TEOs charge different fees for the same course, for example:

• when a course is delivered at different sites
• when a course can be taken as part of a number of different qualifications
• where learners get a fee discount for early enrolment.

The highest fee charged is to be reported as the benchmark fee in accordance with Condition SAC097[1]. The value of bonds is excluded from the reported fee, and we reserve the right to question these arrangements, as outlined in Condition SAC091[2].

The AMFM is not an entitlement that can be accrued: it can only be applied to the immediately previous fees charged. Condition SAC095[3] applies.

Discounted fees for all learners must be reported in accordance with Condition SAC097[4] and will generally become the benchmark used in future calculations.

• [1]

  Condition SAC097: AMFM benchmark fees for courses with fee discounts

  Where different fees are charged, the highest fee/course costs that any group of learners may be required to pay to the tertiary education organisation is to be reported as the benchmark fee.

  A tertiary education organisation (TEO) cannot set a benchmark fee that is higher than the highest fee ever charged to an intake of learners.

  Fee discounts

  If a tertiary education organisation discounts the fee/course costs for all learners in a course for a calendar year (whether or not they increase their listed or undiscounted fee/course costs), the discounted fee/course costs must be reported for Annual Maximum Fee Movement reporting and monitoring purposes.

  Subject to the rules below a TEO’s 2011 course fee must be, as a maximum, based on the course’s 2010 fee/course costs that have actually been charged to learners if it has done one of the following:

  • Increased its fees actually charged to learners under the AFML in 2010
  • Not increased its fees actually charged to learners in 2010
  • Reduced its fees in 2010 and has not advertised a normal fee or a discount to that fee

  A TEO charging a discounted fee (including a zero fee) to counter competition from low or zero-fee setting by another TEO must obtain permission from the TEC to set its 2010 benchmark higher than specified above. This will be limited to the fee charged immediately before the competitive situation arose.

   

• [2]

  Condition SAC091: AMFM policy - types of costs not included

  The following items are not subject to the Annual Maximum Fee Movement policy:

  • The cost of returning exam scripts or exam recounts
  • International handling charges for domestic students living overseas and studying extramurally
  • Compulsory books or equipment that learners can purchase from either the tertiary education organisation or another source
  • Student association fees
  • Learner service levies[1] approved by a tertiary education organisation’s governing body
  • Accommodation charges other than those incurred as an integral part of a field trip
  • Non-compulsory purchases using the course-related costs component of the Student Loan Scheme
  • Bonds payments. The value of any bond, and consequently bond returns, are not included within the scope of fees policy.

   

  Note: To ensure the integrity of the policy, the Tertiary Education Commission reserves the right to question a bond arrangement if it suspects that it is a compulsory charge to learners.

  • [1]

    Note: Learner services levies relate to levies for services provided to learners, such as career, accommodation, health, and counselling services.

• [3]

  Condition SAC095: Benchmark fees if full AMFM not applied to fees

  If a tertiary education organisation (TEO) does not increase a fee by the full percentage of the Annual Maximum Fee Movement, the unused portion cannot be accrued for use in a following year.

  TEOs cannot apply a notional discount to a fee never actually charged to learners, for notional removal in a following year.

• [4]

  Condition SAC097: AMFM benchmark fees for courses with fee discounts

  Where different fees are charged, the highest fee/course costs that any group of learners may be required to pay to the tertiary education organisation is to be reported as the benchmark fee.

  A tertiary education organisation (TEO) cannot set a benchmark fee that is higher than the highest fee ever charged to an intake of learners.

  Fee discounts

  If a tertiary education organisation discounts the fee/course costs for all learners in a course for a calendar year (whether or not they increase their listed or undiscounted fee/course costs), the discounted fee/course costs must be reported for Annual Maximum Fee Movement reporting and monitoring purposes.

  Subject to the rules below a TEO’s 2011 course fee must be, as a maximum, based on the course’s 2010 fee/course costs that have actually been charged to learners if it has done one of the following:

  • Increased its fees actually charged to learners under the AFML in 2010
  • Not increased its fees actually charged to learners in 2010
  • Reduced its fees in 2010 and has not advertised a normal fee or a discount to that fee

  A TEO charging a discounted fee (including a zero fee) to counter competition from low or zero-fee setting by another TEO must obtain permission from the TEC to set its 2010 benchmark higher than specified above. This will be limited to the fee charged immediately before the competitive situation arose.