Fees following changes of TEO ownership

When qualifications and courses are transferred to a new TEO during a change of ownership situation and the new TEO delivers similar education, anomalies in fees charged may occur. The following rules then apply:

Condition SAC098[1]	Fees following incorporation through merger or sale
Condition SAC099[2]	Fees on existing courses following incorporation

 

 

• [1]

  Condition SAC098: Fees following incorporation through merger or sale

  This condition applies if a tertiary education organisation's (TEO’s) (the "exiting TEO") courses are incorporated into either of the following (the "continuing TEO") through merger or sale:

  • Another existing TEO
  • A new TEO created to merge the delivery of two or more exiting TEOs.

  If the continuing TEO has similar courses to those delivered by the exiting TEO, the incorporated (transferring) courses will be classified as ‘new’ for Annual Maximum Fee Movement purposes. Fees can be set as for new courses, with all the following conditions applying:

  • A cap of the higher fee level of the two TEOs
  • If the fees at the exiting TEO are lower than that of the continuing TEO, existing learners paying the lower fees are ‘grandparented’, with fee increases limited to 8% per year
  • If the lower fees at the exiting TEO are below $444.44 (excl. GST) per Equivalent Full-Time Student (EFTS), fees can be increased to $444.44 (excl. GST) per EFTS, or 8%, whichever is greater.
• [2]

  Condition SAC099: AMFM on existing courses following incorporation through merger or sale

  This Condition applies if the Tertiary Education Commission does either of the following in the case of a sale or merger between tertiary education organisations (TEOs):

  • Continues a funding relationship with a TEO that continues to exist and deliver funded courses
  • Establishes a funding relationship with a new TEO created specifically for delivering those courses, and for that delivery.

   In this situation both the following apply:

  • Courses will be considered existing courses in relation to the relevant TEO
  • The Annual Maximum Fee Movement will apply to the pre-purchase fees.