No changes to the 1.0 EFTL/EFTS (equivalent full-time student) limit for provider-based learners.

There is a soft credit limit of 1.0 EFTL/STM (standard training measure) for work-based learning, in that TEOs cannot exceed these limits unless they:

• have an agreement in place with the learner’s employer to ensure the learner can adjust their work schedule, when needed, to enable them to continue their study; and
• have confidence in the learner’s ability to achieve their responsibilities under their employment agreement and training agreement, per observations of the learner’s competence and discussions with the learner; or
• have prior written approval from us.

The following IDs have been added to the methods of verification for:

• NZ citizens
  • An expired NZ passport that hasn’t been cancelled*
  • Current NZ driver licence or NZ firearms licence (for work-based learners only)
• NZ residents
  
  • Current NZ driver licence or NZ firearms licence (for work-based learners only).

* Expired is when the passport has not been replaced with a new passport. Cancelled passports are noted as such with a stamp.

Operational policy decision to allow existing verification methods used under the Industry Training Fund (ITF).

The inducement policy generally remains the same but was updated to specify that the following are not considered inducements:

• free tools for apprenticeships
• job placement under the work-based: pathway to work mode.

Updated to provide better clarity of the existing requirements.

Literacy and Numeracy for Adults Assessment Tool (LNAAT) for industry training

To give the ability to adjust guidance more quickly in response to feedback and any shifting understanding of best practice.

Generally, the same programmes covered under ITF and SAC3+ will be funded under UFS, except for the following:

• Certificates of Proficiency (CoPs)
• Certificates of Personal Interest (CPIs)
• community education programmes of study at tertiary education institutions (TEIs).

Policy decision as part of UFS that all Certificates of Proficiency (CoPs) will be funded under DQ7+ regardless of level. Reflective of most CoPs being provided by universities linked to degree-level programmes.

TEO eligibility

When determining if a provider is eligible for flexible funding based on a course and/or credit completion rate of 70% or higher, the completion rate will be calculated separately by provider-based modes and work-based modes.

Grandparenting arrangements

EFTL = equivalent full-time learner, used when referring to learners generally (includes learners reported in both the Single Data Return [SDR] and Industry Training Register [ITR]). This is the naming convention of the unified fundable unit.

EFTS = equivalent full-time student, used when referring to learners in provider-based modes (and reported in the SDR only).

STM = standard training measure, used when referring to learners in work-based modes (and reported in ITR only).

Delivery component

On-Plan, volume-based funding based on funding allocation and paid out monthly.

Learner component

On-Plan, funding based on the funding allocation. The allocation is determined by the number of valid domestic enrolments in the prior year that represent the following learner groups:

• learners with low prior achievement* and/or disabled learners
• Māori/Pacific learners at levels 3-6
• Māori/Pacific learners at level 7 (non-degree)

80% of the learner component funding allocation (by learner group) is included in the monthly payments made to TEOs.

20% of the learner component funding allocation (by learner group) is paid either monthly or upon meeting agreed performance expectations.**

* Low prior achievement is someone who at the date of enrolment has not previously achieved a qualification on the NZQCF at Level 3 or above or equivalent.

Programme refers to a programme of study and includes industry training programmes.

Credential refers to micro-credentials.

The below offsets have been removed from DQ3-7; instead recovery of delivery component funding will be volume-based, as done previously under SAC3+, or in line with the new recovery condition (referred to above):

• actual average duration
• over enrolment
• under achievement.

Te Pūkenga and private training establishments (PTEs) are eligible for funding under elements 1 and 2.

The funding for each element is pre-allocated to the eligible sub-sectors as broken down below:

Element 1

• Up to 70% to Te Pūkenga
• Up to 30% to PTEs*

Element 2

• Up to 60% to Te Pūkenga
• Up to 10% to wānanga
• Up to 30% to PTEs*

Whether the entire amount of funding is allocated to each sub-sector will be determined as part of the investment plan decisions. There are no guarantees that a sub-sector will receive their full allocation.

* Funding decisions for PTEs will be based on the outcomes of a contestable application process.

More information about the 2023 contestable application process can be found at 2023 PTE Strategic Fund.

These processes are predominately unchanged with the following exceptions.

Repayment of funding

TEC will use the final expenditure report to identify whether a TEO needs to repay funding.

Suspension, revocation, or withdrawal

These processes are predominately unchanged with the following exceptions.

Suspension, revocation, or withdrawal

TEOs that receive on-Plan funding are required to submit the following reports:

• Expenditure reports in a template supplied by TEC for:
  • 1 January–30 June
  • 1 July–31 December.