Industry Training Fund

Industry Training Fund

Last updated 20 May 2021
Last updated 20 May 2021

The Industry Training Fund (ITF) Fund has been revoked from 2023, as part of the implementation of the Unified Funding System. It has been replaced by Non-degree Delivery at levels 3 – 7 on the New Zealand Qualifications and Credentials Framework and all industry training (DQ3-7).

The Industry Training Fund (ITF) subsidises formal, structured, employment-based training linked to qualifications primarily at levels 1–4 on the New Zealand Qualifications Framework (NZQF), covering New Zealand Apprenticeships, industry training and industry-training related projects.

Industry training is a partnership between government and industry, and is provided to people in employment. It helps support the development of skills that meet industry needs. Industry training provides formal, structured employment-based training leading to qualifications, predominantly at levels 1 to 4 on the NZQF. 

Industry training is primarily governed by two Acts:

The ITF was established to support industry training. It enables industry training organisations (ITOs) to:

  • develop and maintain skill standards (unit standards and qualifications), and
  • develop and maintain arrangements for delivering training.

The ITF is the Government’s contribution to the cost of training. The balance of the cost is met through contributions from employers, trainees and apprentices.

The ITF also supports industry training-related projects:

  • to help organise vocational skills competitions, such as WorldSkills, and
  • to assist ITOs to undertake joint ventures or mergers, support best practice or enhance their efficiency and effectiveness.

All industry training funding rates are increasing by 5 percent in 2022 (in addition to the 1.2 percent cost adjustment)

This is to support work-based learning throughout the transition to the new unified funding system (UFS) from 2023. This funding will:

  • initially be provided to transitional ITOs; and
  • move from transitional ITOs to providers as transition plans are finalised and followed through.

The aims of this increased funding are:

  • For transitional ITOs, to improve support for learners and employers under the current arrangements, and as they transition across to providers.
  • For providers who take on arranging training, to encourage them to:
  • develop a strong pathway for learners into the workplace;
  • integrate themselves into transitional ITOs’ relationships with employers;
  • improve support for learners while they are in relevant workplace-based training, with seamless transitions to and from provider-based education and training; and
  • improve support for employers in the delivery, assessment and monitoring of training. 
  • For employer-led training, to encourage transitional ITOs and providers to work with the employer to support the learner.