Programme eligibility – DQ3-7

Programme eligibility – DQ3-7

Last updated 4 February 2025
Last updated 4 February 2025

This page sets out the programme eligibility criteria to receive funding from the Delivery at Levels 3 to 7 (non-degree) on the New Zealand Qualifications and Credentials Framework and all industry training (DQ3-7) Fund.

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A tertiary education organisation (TEO) can only use DQ3-7 funding for:

  • programmes or micro-credentials that lead to an award on the New Zealand Qualifications and Credentials Framework (NZQCF) at Levels 3 to 7 (non-degree), or
  • part of a programme or micro-credential that led to an award at Levels 3 to 7 (non-degree) on the NZQCF.

Before the Tertiary Education Commission (TEC) can consider funding any of the above, the TEO must first get approval and accreditation for the programme(s) from the relevant quality assurance body:

Once you have Universities NZ or NZQA approval you may seek TEC funding approval.

If you intend to deliver two programmes concurrently, or to have one programme lead to two qualifications, you need to obtain quality assurance approval before seeking funding from us.

Approval of programmes and qualifications for delivery component

You must only use DQ3-7 funding to deliver programmes or credentials that we have approved. To receive approval for a programme or credential, submit the relevant documents to us in accordance with the information on our website.

Submitting a programme for access to DQ3-7 funding 

Funding approval for programmes is managed through DXP Ngā Kete

Through DXP Ngā Kete each TEO:

  • registers and maintains qualifications and courses for funding
  • updates qualification, course and delivery site details
  • submits its provider-based learning data via APIs or the Single Data Return (SDR)
  • submits its work-based learner data via APIs from July 2025 (uses ITR up to 30 June 2025).

For technical information on getting programmes approved so you can access funding, see the DXP Ngā Kete User Guide (for SDR reported qualifications). 

When submitting a new programme for access to funding, consider whether it:

Once you send us the necessary information, we will decide whether the programme meets the eligibility criteria to access DQ3-7 funding, and how well it aligns to our investment priorities.

If we approve the qualification as eligible for funding, and you submit your Mix of Provision (MoP) at the qualification level, we will release your MoP so you can revise and submit it to us for approval.

How to submit a programme for DQ3-7 provider-based funding

Programmes that lead to qualifications listed on the NZQCF at Levels 3 to 7 (non-degree) are eligible to be considered for funding under this Fund.

Note: Some information in this section is also relevant to micro-credentials and to provider-based aspects of work-based training (off-job training). 

More information:

Determining eligibility

So we can determine whether to approve a programme as eligible for DQ3-7 funding, please give us the following information through DXP Ngā Kete:

  • your provider code  
  • the NZQCF qualification code
  • the qualification title 
  • duration:
    • the number of learning hours per week
    • the number of full-time teaching weeks per year
  • the equivalent full-time students (EFTS) value of the programme, calculated using:
    • credits
    • learning hours 
    • full-time weeks, and
  • the approval documents from the relevant assurance body.

When approving a programme as eligible to access DQ7-10 funding, we will:

  • check that the details of the programme leading to an award of a qualification are consistent with your quality assurance approval
  • consider whether the EFTS value of the qualification is correct
  • check the programme is eligible in accordance with the funding mechanism and/or funding conditions
  • consider whether eligible learners enrolled in the programme will be able to access a student allowance and/or student loans, and
  • consider:
    • whether delivery of the programme aligns with our investment priorities
    • the stakeholder needs, and
    • the extent of existing similar provision.

You will need to submit the following information:

TEO/provider code

Your code assigned by the Ministry of Education.

Qualification code

You must supply the qualification code. This is alphanumeric usually two letters followed by four numbers. The letters are a standard code, e.g., NZ (New Zealand Certificate or New Zealand Diploma) or PC (Local programme code).

If you intend to offer a New Zealand Certificate or Diploma listed on the NZQCF, use its NZQCF code for all references to it. 

Programme title 

You must give us the title of the programme you are seeking funding approval for.

Note: This does not mean the title of the programme that NZQA approved unless the programme title and qualification title are the same.

Duration

You must give us information about the duration of the programme, i.e., the learning hours and full-time teaching weeks. 

Learning hours

NZQA defines “learning hours” as all planned learning activities leading toward the achievement of programme or qualification learning outcomes.

Types of learning activities include but are not limited to:

  • lecturer and tutor contact hours, including workshops and tutorials
  • tests and assignments
  • supervised practical placements
  • study time
  • self-learning activities that you expect the learner to engage with/participate in, and
  • examination periods.

There are three fields for types of learning activities:

  • teaching hours each week – eg, face-to-face classroom/online/field trip/simulation time, tutorials, on-site assignments, assessments and examinations
  • work experience hours each week – eg, time the learner spends practising or learning skills relevant to their study programme in a workplace, including a teaching workplace, which may be on-site, so long as it operates as a commercial enterprise, and
  • self-learning hours each week – TEO-directed study carried out by the learner, eg, time they spend on off-site assignments (such as homework assignments), and TEO-directed reading and study hours that they must complete in their own time. 

Note: Self-learning does not include self-directed activities that the learner initiates.

These three fields don’t fully cover all possible learning activities. However, please break down your learning activities, and weekly hours fields as accurately as possible.

A consistent rationale is required to determine which activities relate to each of the three fields above.

What to tell us about learning hours 

In relation to the learning hours in the programme, you must tell us the: 

  • number of teaching hours each week (see above)
  • number of work experience hours each week (see above)
  • number of self-learning hours each week (see above)
  • total number of learning hours each week
  • total number of learning hours in each year
  • number of years it will take to complete the qualification
  • total number of learning hours in the qualification (number of learning hours in each year multiplied by the number of years).

The total learning hours in DXP Ngā Kete must be the same as the total programme learning hours approved by NZQA. We expect actual delivery to align with the total learning hours and the learning activities approved by NZQA.

This means we expect you to regularly review the delivery of your programme(s) to ensure they are “right sized” for most learners (recognising that some learners take more or fewer learning hours to achieve a qualification than others).

Note: During audits and investigations, we may check whether your delivery reflects ours and NZQA’s approvals. To do this we use NZQA approval documentation, DXP Ngā Kete data, your information for learners and compare the information to actual delivery.

Full-time teaching week

A full-time teaching week includes the types of learning hours outlined above.

In relation to the number of teaching weeks in each year of the programme, you must give us the:

  • number of full-time equivalent (FTE) teaching weeks
  • number of recess weeks in each year
  • total number of full-time teaching weeks and recess weeks in each year – FTE gross
  • number of credits on the NZQCF contained in the qualification 
  • number of credits that a learner must achieve each year to complete the qualification.

We generally will not approve a qualification for funding that is longer than 34 weeks in a year, although we may fund an individual learner’s enrolment for more than 1.0 EFTS in a year. 

EFTS value of a programme

We require the EFTS value of each programme to determine if it is eligible to access DQ3-7 funding.

The EFTS value of each qualification must be specified to no more than four decimal places. The EFTS value determines the workload involved in each programme and is required so that we can appropriately fund you to deliver the programme.

Determine the EFTS value using these methods:

  • credits
  • learning hours 
  • full-time weeks.

Each method should produce the same result. If they do, we can be confident that a learner who is studying for a qualification is undertaking a reasonable workload.

Each method is set out in more detail below.

Credits

A credit measures the average amount of learning that is required to complete the qualification or part of the qualification.

To calculate the EFTS value using the credits method: Divide the number of credits for the qualification by 120 (the standard number of credits that equate to one full-time year of study).

Example: If a qualification has 60 credits: 60/120 = 0.5 EFTS.

Learning hours

To calculate the EFTS value using the learning hours method: Divide the programme’s total learning hours by 1,200 (the standard number of learning hours that equates to a full-time year of study).

Example: If the total learning hours for one semester in a qualification is 600 hours: 600/1,200 = 0.5 EFTS.

Full-time weeks

To calculate the EFTS value using the full-time weeks method: Divide the length of tuition for the qualification in weeks by 34 (the standard number of weeks that equate to one full-time equivalent teaching or tuition year).

Example: If the qualification has a length of 17 weeks: 17/ 34 = 0.5 EFTS.

EFTS value for programme with strands

A programme may have a range of options or electives with variable credit combinations. These are called strands and may have separate programme approval. Each strand is likely to have a different total EFTS value.

If a programme has two or more strands, you should determine the EFTS value for each strand. We require the EFTS value of the strand with the highest EFTS value for our calculations.

 You must calculate the EFTS value of a strand, first calculate the EFTS factor of each course in the strand:

  • For a programme that has up to 120 credits: Divide the course credits by 120.
  • For a programme that has more than 120 credits and we have agreed to fund more than 1 EFTS per learner per year: Divide the course credits by the credit value of the programme.
  • For a programme that has more than 120 credits, and we have not agreed to fund more than 1 EFTS per learner per year: Divide the course credits by 120.

Example 1: Programme with two strands up to 120 credits

Strand 1

Credits

Course EFTS factor
(credits/120)

Strand 2

Credits

Course EFTS factor
(credits/120)

Course 1

15

0.1250

Course 1

15

0.1250

Course 2

15

0.1250

Course 2

15

0.1250

Course 3

26

0.2167

Course 3

26

0.2167

Course 4

10

0.0833

Course 6

10

0.0833

Course 5

6

0.0500

Course 7

5

0.0417

 

 

 

Course 8

4

0.0333

Totals

72

0.6000

 

75

0.6250

In the example above, if we approve a programme for, it will be approved as 75 credits, as this is the credit value of the longest strand. The EFTS value of the qualification is therefore 0.625 (75 credits/120 = 0.625 EFTS).

If an approved programme in DXP Ngā Kete has a value of 1.0 EFTS but more than 120 credits, the credit value of the longest strand is used to determine the course EFTS factor for each strand. This ensures that courses common to both strands have the same EFTS factor.

Example 2: Stranded programmes with more than 120 credits

Strand 1

Credits

Course EFTS factor

Strand 2

Credits

Course EFTS factor

Course 1

30

0.2000

Course 1

30

0.2000

Course 2

30

0.2000

Course 2

30

0.2000

Course 3

52

0.3467

Course 3

52

0.3467

Course 4

20

0.1333

Course 6

20

0.1333

Course 5

12

0.0800

Course 7

10

0.0667

 

 

 

Course 8

8

0.0533

Totals

144

0.9600

 

150

1.0000

In the example above, the credit value of 150 is used to divide the credits, not 120:

  • 150 credits / 150 = 1.0 EFTS

More information

If you need guidance on concurrent qualifications, please discuss this with the Customer Contact Group on 0800 601 301, or email customerservice@tec.govt.nz.

If two qualifications are being included in a single programme, please contact NZQA for approval and accreditation.

Extra courses within a programme leading to a qualification

If a course within a programme leading to a qualification is optional, it will usually be eligible for DQ3-7 funding. In these circumstances, a learner’s enrolment may generate more than 1 EFTS in a 12-month period. For example, a learner may take:

  • an additional course in an academic year towards a qualification that requires more than one year of study; or
  • an optional summer-school course towards the qualification.

If an extra course becomes the norm for all learners undertaking a qualification, we will consider the change to be a significant change to a qualification, which requires approval from the relevant quality assurance body and the TEC.

Defining a qualification

You must give us the following information that defines the qualification:

  • outcome of completing the qualification (eg, whether the qualification is designed to lead the learner directly into the labour market)
  • qualification award category (recognised qualifications have an award category code – see DXP Data Classifications Appendices to the Data Specifications for the Single Data Return)
  • level of the qualification on the NZQCF (see DXP Data Classifications Appendices)
  • International Standard Classification of Education (ISCED) level of the qualification (see DXP Data Classifications Appendices).
  • New Zealand Standard Classification of Education (NZSCED) field of study of the qualification (see DXP Data Classifications Appendices).

DXP Data Classifications Appendices to the Data Specifications for the Single Data Return

Making a change to a programme leading to a qualification

To make a change to a programme leading to a qualification, you must first check with the relevant quality assurance body whether you need its approval for the change. 

Once you have the required approval, you need to reflect the changes in DXP Ngā Kete.

In doing that, you must meet the requirements of any conditions on making changes to programmes.

Course component disaggregation

When seeking TEC funding for a new programme leading to a qualification, you must disaggregate the qualification into component courses.

You must give us all the following information about each component course in the qualification:

  • provider code
  • course code
  • course title
  • qualification code
  • course classification
  • NZSCED field of study
  • level of the course on the NZQCF
  • number of credits of the course
  • funding category of the course
  • EFTS factor of the course
  • if the course is part of a pre-service teacher education qualification, the stage of the course
  • course tuition fee (if any), including compulsory course costs
  • whether the course has an internet-based learning component
  • tuition fee that will be paid by international fee-paying learners who are enrolled in the course
  • whether the course has embedded literacy and numeracy skill development in the provision.

Resources

EFTS factor of courses (FACTOR)

The EFTS factor of a course equates to the course size that is a portion of the total EFTS value of the programme leading to award of the qualification of which the course is part. In DXP Ngā Kete, the field name is “Qualification”, which means programme leading to award of the qualification.

We recommend that the size of the smallest course should not have an EFTS factor of less than 0.1.

Although you may choose to deliver a smaller course, if the course is based on a single unit standard and has a course EFTS factor of less than 0.1 you do not need to further disaggregate the course in DXP Ngā Kete.

You may report delivery for one qualification as one course. However, that means that a learner can only enrol in the one course (i.e., the whole programme) leading to award of the qualification.

After a programme has been disaggregated into courses and we have approved these as eligible for access to DQ3-7 funding, you cannot retrospectively disaggregate the programme further.

Calculation

To calculate the EFTS factor of a course:

  • divide the number of credits in the course by the total number of credits in the programme/qualification, then multiply that number by the EFTS value of the qualification. 
  • the EFTS factor must be expressed to four decimal places.

EFTS factor = course credits/qualification credits x EFTS value of the qualification

Note: if you propose to deliver a programme leading to a qualification in a single year, and the credits exceed 120, you must calculate the EFTS factor for that course using the total number of credits, not 120.

Example: If a qualification has a total of 60 credits and an EFTS value of 0.5, the EFTS factors of the courses in the qualification are calculated as follows.

Courses

Credits

Qualification EFTS value

Course EFTS factor

1

24

0.5

24 / 60 x 0.5 = 0.2000

2

20

0.5

20 / 60 x 0.5 = 0.1667

3

16

0.5

16 / 60 x 0.5 = 0.1333

 

Credits = 60

 

EFTS value = 0.5

Course tuition fees

For conditions on setting course fees and costs, see: 

The course tuition fee (inclusive of GST) is the standard fee that domestic learners normally pay for tuition and costs associated with enrolment in the course. Importantly, the course tuition fee does not include the following:

  • compulsory course costs (eg, administration charges, examination fees, material charges)
  • fees exempt from the Annual Maximum Fees Movement (AMFM) (eg, learner services levies, learner association fees, health fees, and recognition of prior learning fees).

No fee can be charged to a learner apart from compulsory course costs, the course tuition fee, and/or the student services fee.

Approvals relating to work-based programmes

Submitted through the ITR / work-based data collection

These work-based programme types do not require our approval:

  • Supplementary Credit Programme (SCP)
  • Limited Credit Programme (LCP)
  • Industry Training (IT)

Note:

Restrictions on the use of DQ3-7 funding

There are some restrictions on the use of DQ3-7 funding. For more information see the funding conditions for the relevant year.

Any additional restrictions will be in your Funding Confirmation Letter as an organisation-specific condition.

Programme-specific restrictions

Aviation

Note: This applies to provider-based programmes only (not work-based programmes reported through the ITR / work-based data collection).

If you receive DQ3-7 funding for aviation provision that includes an in-flight training component (pilot training), you must supply StudyLink with correct learner enrolment information through the Verification of Study (VoS) system.

You must also ensure that:

  • annual Student Loan Scheme borrowing for course fees by any pilot-training learner studying full-time does not exceed:
    • $35,000 per EFTS, if the learner is not eligible for Fees Free tertiary education,
    • $35,000 per EFTS, less up to the maximum payment of $12,000 paid by us on behalf of the learner for fees, and
  • where a pilot-training learner is studying part-time, their annual Student Loan Scheme borrowing for course fees does not exceed the proportion of $35,000 represented by the EFTS course load that the learner is enrolled in. For example, if the learner is studying a 0.4 EFTS course load in the year, their student loan borrowing limit for the year is $14,000.

Micro-credentials

Quality assured micro-credentials at Level 3 to 7 (non-degree) are eligible for DQ3-7 funding if they meet our funding criteria.

For more information on how to apply for micro-credentials funding, see Micro-credentials funding and fees.

Removing a qualification

You can remove a qualification that you no longer offer from your MoP (if applicable) and from DXP Ngā Kete.

This removes the qualification from your list of active qualifications.