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2027 Funding Conditions changes

Ngā huringa Here Pūtea 2026

Changes to the 2027 Funding Conditions Catalogue are grouped into the following sections.

Changes to the 2027 Funding Conditions Catalogue are grouped into the following sections.

On this page:

Most funds

These changes are not repeated under the individual fund changes.

Topic	Description	Rationale
Clarification	Minor editorial changes.	To improve accuracy and clarity.
Consistency	Re-ordered paragraphs.	To improve structure and flow.
Funding rates	Updated funding rates.	Amendment to the funding mechanisms.
Subcontracting	Clarified wording about requirements for subcontracting programmes quality assured by the New Zealand Qualifications Authority (NZQA).	Amendment to the funding mechanism to reflect NZQA subcontracting requirements, which have different approval requirements depending on if the subcontracting arrangement is with accredited or non-accredited providers.
Verification of learner eligibility and identity	Removed reference to ‘dependant of diplomatic personnel’ under ‘Type of learner’ because these learners meet the definition of a domestic student under the Education (Domestic Student: Tertiary Education and Vocational Education and Training) Notice 2025.	The reference is not needed as these learners fall within the definition of ‘Other types of valid domestic enrolments’, for whom the verification methods are specified on our website.
Verification of learner eligibility and identity	Removed references to the Gazette in relation to the Tertiary Education (Domestic Students) Notice 2024.	Education (Domestic Student: Tertiary Education and Vocational Education and Training) Notice is now published at www.legislation.govt.nz.
Verification of learner eligibility and identity	Added ‘refugee travel document issued by the Department of Internal Affairs’ (DIA) as a verification and identity method for NZ residents if they are a refugee.	The refugee travel document (issued by DIA) is a new, valid method that can be used to verify a learner’s identity and/or eligibility if they are a refugee.
Verification of learner eligibility and identity	Updated to allow organisations to verify learner eligibility and identity through a DIA-approved intermediary organisation.	To enable greater flexibility in verification methods.

Base Funding Information

Topic	Description	Rationale
Clarification	Added ‘performance expectations’ as part of TEC’s expectations and activities for communication, performance, and monitoring.	Supports transparency and reflects current practice.

Base Funding Conditions

Topic	Description	Rationale
Conflict of interest	Added a condition to the Base Funding Conditions that requires TEOs to notify us of, and manage, actual or perceived conflicts of interest.	Supports transparency and consistent management of conflicts of interest in relation to TEC funding.
EER	Added a footnote stating we will update references to External Evaluation and Review (EER) once NZQA finalises the integrated Quality Assurance Framework (iQAF) quality criteria and descriptors or equivalent rating.	To reflect NZQA’s transition from EER to iQAF.

Foundation and Youth Transition Funds

Adult and Community Education (ACE) in Communities and ACE in Schools

Refer also to the list of changes in most funds.

Topic	Description	Rationale
Subcontracting and TEC approval	Amended to reflect that not all subcontracting requires TEC approval – we will publish criteria for when approval is required.	Amendment to the funding mechanism to introduce proportionate compliance requirements.

Delivery at Levels 1 and 2 on the New Zealand Qualifications and Credentials Framework Fund

Refer also to the list of changes in most funds.

Topic	Description	Rationale
Health and safety and regulatory compliance content	Added a condition that allows TEC to fund micro-credentials and programmes with majority health and safety and regulatory compliance content where TEC is satisfied that the health and safety or regulatory compliance content is embedded in occupational or technical learning that supports the development of transferable or industry-wide skills. TEC will publish guidance on how this will be determined.	Amendment to the funding mechanism.
Reporting	Amended requirement for submitting a report relating to the use of Special Supplementary Grant (SSG) funding.	Reduced reporting requirements.
Valid domestic enrolment/Learner eligibility	Extended temporary settings to allow previously funded delivery in Realm countries to be funded in 2027.	Amendment to the funding mechanism to extend temporary settings for 2027.
Withdrawal	Changed ‘one month’ to ‘30 calendar days’ when referencing withdrawal dates and/or claiming funding respectively.	Removes ambiguity about the length of ‘one month’ and improve guidance on withdrawal dates.

Employer-led Workplace Literacy and Numeracy Fund (EWLN) and TEO-led Workplace Literacy and Numeracy Fund (TEO-led WLN)

Refer also to the list of changes in most funds.

Topic	Description	Rationale
Learner eligibility	Added an exception to the learner eligibility requirements for EWLN and TEO-led WLN that allows learners, if they have a disability that represents exceptional circumstances that prevents assessment using the LNAAT, to be funded.	Amendment to the funding mechanism and alignment to Intensive Literacy and Numeracy Fund requirements.

Youth Guarantee Fund

Refer also to the list of changes in most funds.

Topic	Description	Rationale
Flexible funding and EER	Added a footnote stating we will update references to External Evaluation and Review (EER) once NZQA finalises the integrated Quality Assurance Framework (iQAF) quality criteria and descriptors or equivalent rating.	To reflect NZQA’s transition from the EER to the iQAF.
Withdrawal	Changed ‘one month’ to ‘30 calendar days’ when referencing withdrawal dates and/or claiming funding respectively.	To remove ambiguity about the length of ‘one month’ and improve guidance on withdrawal dates.

Vocational and Non-degree Funds

Delivery at Levels 3 to 7 (non-degree) on the New Zealand Qualifications and Credentials Framework and all industry training Fund

Refer also to the list of changes in most funds.

Topic	Description	Rationale
Commitments for placements and practicums	Added a condition that a TEO must be able to secure the necessary placements for all the learners that it enrols in qualifications that require a clinical placement or practicum, and must demonstrate this if requested by the TEC.	Amendment to the funding mechanism.
Fee limits	Changed fee regulation conditions to allow a course that is not offered in one or more years to benefit from Annual Maximum Fee Movement increases that would have applied in those years.	Amendment to the funding mechanism.
Fee limits	Allowed fees for courses that previously had low or no fees to be set at the 75th percentile of fees for similar courses.	Amendment to the funding mechanism.
Flexible funding	Clarified that flexible funding does not apply to capped high-cost provision.	Amendment to the funding mechanism.
Flexible funding and EER	Added a footnote stating we will update references to External Evaluation and Review (EER) once NZQA finalises the integrated Quality Assurance Framework (iQAF) quality criteria and descriptors or equivalent rating.	To reflect NZQA’s transition from the EER to the iQAF.
Health and safety and regulatory compliance content	Added a condition that allows TEC to fund micro-credentials and programmes with majority health and safety and regulatory compliance content where TEC is satisfied that the health and safety or regulatory compliance content is embedded in occupational or technical learning that supports the development of transferable or industry-wide skills. TEC will publish guidance on how this will be determined.	Amendment to the funding mechanism.
Valid domestic enrolment/Learner eligibility	Extended temporary settings to allow previously funded delivery in Realm countries to be funded in 2027.	Amendment to the funding mechanism to extend temporary settings for 2027.
Withdrawal	Changed ‘one month’ to ‘30 calendar days’ when referencing withdrawal dates and/or claiming funding respectively.	To remove ambiguity about the length of ‘one month’ and improve guidance on withdrawal dates.

Degree and Research Funds

Delivery at Levels 7 (degree) to 10 on the New Zealand Qualifications and Credentials Framework Fund

Refer also to the list of changes in most funds.

Topic	Description	Rationale
Commitments for placements and practicums	Added a condition that a TEO must be able to secure the necessary placements for all the learners that it enrols in qualifications that require a clinical placement or practicum, and must demonstrate this if requested by the TEC.	Amendment to the funding mechanism.
Fee limits	Changed fee regulation conditions to allow a course that is not offered in one or more years to benefit from Annual Maximum Fee Movement increases that would have applied in those years.	Amendment to the funding mechanism.
Fee limits	Allowed fees for courses that previously had low or no fees to be set at the 75th percentile of fees for similar courses.	Amendment to the funding mechanism.
Flexible funding	Clarified that flexible funding does not apply to capped high-cost provision.	Amendment to the funding mechanism.
Flexible funding and EER	Added a footnote stating we will update references to External Evaluation and Review (EER) once NZQA finalises the integrated Quality Assurance Framework (iQAF) quality criteria and descriptors or equivalent rating.	To reflect NZQA’s transition from the EER to the iQAF.
Health and safety and regulatory compliance content	Added a condition that allows TEC to fund micro-credentials and programmes with majority health and safety and regulatory compliance content where TEC is satisfied that the health and safety or regulatory compliance content is embedded in occupational or technical learning that supports the development of transferable or industry-wide skills. TEC will publish guidance how this will be determined.	Amendment to the funding mechanism.
Valid domestic enrolment/Learner eligibility	Extended temporary settings to allow previously funded delivery in Realm countries to be funded in 2027.	Amendment to the funding mechanism to extend temporary settings for 2027.
Withdrawal	Changed ‘one month’ to ‘30 calendar days’ when referencing withdrawal dates and/or claiming funding respectively.	To remove ambiguity about the length of ‘one month’ and improve guidance on withdrawal dates.