SAC3+022: TEO not to exceed Annual Maximum Fee Movement

Type:
Condition

Applicability of this condition

This condition applies to fees and course costs (together referred to as “fees”) charged by the TEO for the following courses:

a)   a SAC-funded course that is part of a programme that leads to a qualification at level 3 or above on the NZQF (that is, part of a short award, certificate, diploma, degree, or postgraduate qualification, including professional masters programmes); or

b)   any new SAC-funded courses established by the TEO in substitution for an existing course dealing with the same or similar subject matter, at the same or similar level on the NZQF, provided that, in relation to the fees associated with a particular course:

a)   the TEO is the sole source of the item to which the fee relates; and

b)   all domestic students validly enrolled in the course are required to pay the fees.

Annual Maximum Fee Movement

The annual maximum fee movement (AMFM) for 2016 is a 3% increase on the fees (GST exclusive) that a TEO charged in 2015, for a course at level 3 and above on the NZQF, for which the TEO receives SAC funding, and which is part of a programme leading to qualifications listed on the NZQF.

The applicable fee for the purposes of this condition is the fee applying to the course in the calendar year in which the course started.

If the fees applicable to a course are subsequently discounted, the applicable fee for the purposes of this condition is the highest fee actually charged to an intake of students.

Exceptions to the AMFM

The TEO may apply for an exception to the AMFM on the basis of exceptional circumstances (listed below).

The TEC may grant an exception to the AMFM for one or more of the TEO’s courses.  However, any exception granted will not exceed an additional 3% increase over and above the permitted 3% increase.

In considering whether or not there are exceptional circumstances, the TEC will only have regard to the following criteria:

a)   the TEO is unable to support each course while remaining financial viable; and

b)   for a course that is part of a programme that leads to a qualification at levels 3 to 8 on the NZQF, the completion rate for the qualification met or exceeded the median performance benchmark for that level in the previous year; and

c)   the TEO can demonstrate that the course is in some way unique or special (for example, there are no local alternatives to the course); and

d)   not allowing the exception will prevent the TEO from making a significant contribution to the achievement of one or more of the Government's priorities, as set out in the Tertiary Education Strategy 2014-19.

The TEC will only grant an exception if it is satisfied that the TEO meets all of the above criteria.

Applications for exceptions are available on the TEC website.

Zero fee or low fee courses

If the fees for a SAC-funded course that is part of a programme that leads to a qualification at level 3 or above on the NZQF were less than $511.11 (GST inclusive) or $444.44 (GST exclusive) per EFTS in the previous year, then the TEO may increase the fee by the greater of:

a)   up to $511.11 (GST inclusive) or $444.44 (GST exclusive) per EFTS; or

b)   3%.

TEO to reimburse student for overcharged fees

If the TEO breaches the AMFM, the TEO must refund the student the part of the fee that was overcharged.  The refund must be paid to:

a)   StudyLink, if the student paid for the course using the Student Loan Scheme; or

b)   the student.

Definitions

For the purposes of this condition, the following terms have the following meaning:
Domestic student has the same meaning as set out in section 159 of the Education Act 1989;

Fees includes the following items: tuition fees, compulsory course costs, examination fees, material charges, costs of field trips, costs associated with the compulsory purchase of equipment or books through the TEO, and other charges associated with a course but excludes the cost of returning exam scripts or exam recounts; international handling charges for domestic students living overseas and studying extramurally; equipment or books that it is compulsory for a student to purchase but which can be  purchased from either the TEO or another source; student service levies approved by the TEO's governing body; student accommodation charges other than fees payable for a field trip; or bond payments.

New SAC-funded courses established by the TEO in substitution for an existing course dealing with the same or similar subject matter, at the same or similar level on the NZQF means that the SAC-funded course is:

a) replacing an active course, meaning:

(i) it has been delivered by the TEO within the past two calendar years; and

(ii) fee increases have been entered into Services for Tertiary Education Organisations (STEO) within that period; and

b) has not changed the percentage of credits in the course that it is substituting, or has changed by fewer than 5 credits or less than 15 percent, whichever is fewer; and

c) has not changed the NZQF level of the course that it is substituting; and

d) has not changed the funding category of the course that it is substituting.

  • Last changed: 8 March 2016
  • Last verified: 8 March 2016