These funding determinations will come into effect from 1 January 2025. Changes arising from the determinations will be reflected in the 2025 Funding Conditions, which will be published in October.  

General changes across the funding determinations

• Removed sections on tertiary education organisation (TEO) quality assurance – Tertiary Education Institutions and registered Private Training Establishments (PTEs) are already subject to quality assurance requirements under the Education and Training Act 2020 and other regulations. The references in the funding determinations are duplication. In practice, there are no changes to quality assurance requirements.  
• Added a clause requiring TEOs to provide learners with specific information about the collection and use of their personal information, and its disclosure to government agencies. This requirement will be outlined in the 2025 Funding Conditions and will apply to learners commencing the enrolment process from 1 January 2025. TEOs are not required to apply it retrospectively to learners already enrolled prior to that date, even if they haven’t yet started their study or training. The Tertiary Education Commission (TEC) will produce specific wording that TEOs can use as a template in the coming months.

Funding determinations and changes

Adult and Community Education (ACE)      

• Increased funding rates by 2.5%. 
• Removed information about the Adult and Community Education coordination fund to reflect Budget 2024 decisions. 
• Clarified that eligible ACE programmes must be delivered face-to-face unless there are exceptional circumstances. TEC will provide more information on the exceptions process for this in the coming months.
• Clarified that eligible language courses are not limited to just the languages stated as examples

Delivery at Levels 1 and 2 on the NZQCF

• Increased funding rates by 2.5%.
• Updated delivery classification requirements to align with current practice.
• Specified that learners must be studying in New Zealand unless they meet criteria for exceptional circumstances determined by TEC (NB: The 2024 funding determination already allows TEC to set criteria for overseas enrolments of domestic learners, however the 2025 document clarifies that the criteria must be for exceptional circumstances). TEC will provide more information on the exceptions process for this in the coming months.
• Specified that PTEs’ Student Services Fees report to learners must also be sent to TEC within 14 days of it being provided to learners.

Delivery at Levels 3 to 7 (non-degree) on the NZQCF and all industry training

• Updated funding rates, including aligning funding rates for provider-based and provider-based: extramural modes of delivery and increasing provider-based rates by approximately 10% (in addition to the Budget 2024 2.5% cost adjustment).
• Removed reference to the purpose of the Unified Funding System.
• Updated the delivery classification and reporting requirements to align with current practice. 
• Clarified that an “overseas campus or delivery site” refers solely to an offshore delivery site approved under the Offshore Programme Delivery Rules 2022.
• Updated the priorities of the Learner Component funding to refer to the priorities of the Tertiary Education Strategy. 
• Streamlined the performance expectations of the Learner Component funding to reduce administrative burden on TEOs receiving less than $100,000 of learner component funding.
• Updated the section on Fees Free tertiary education and training to note that the TEC will work with the sector and other government agencies to support the implementation of the Fees Free schemes, and the TEC may impose conditions to give effect to the Fees Free Schemes. 
• Set Annual Maximum Fee Movement (AMFM) at 6%. 
• Specified that PTEs’ Student Services Fees report to learners must also be sent to TEC within 14 days of it being provided to learners. 
• Clarified descriptions of modes of delivery in Appendix 1. 

Strategic Component of the unified funding system for vocational education and training 

This mechanism has been revoked.

Delivery at Levels 7 (degree) to 10 on the NZQCF

• Updated fund name for technical accuracy.
• Increased funding rates by 2.5%.
• Clarified that an “overseas campus or delivery site” refers solely to an offshore delivery site approved under the Offshore Programme Delivery Rules 2022.
• Updated the delivery classification and reporting requirements to align with current practice. 
• Updated the section on Fees Free tertiary education and training to note that the TEC will work with the sector and other government agencies to support the implementation of the Fees Free schemes, and the TEC may impose conditions to give effect to the Fees Free Schemes. 
• Increased medical undergraduate year 1 intake to 614 EFTS.
• Set Annual Maximum Fee Movement (AMFM) at 6%. 
• Specified that PTEs’ Student Services Fees report to learners must also be sent to TEC within 14 days of it being given to learners. 
• Updated the Teaching Early Childhood Education funding category to recognise Kōhanga reo Kaiako. 
• Updated the funding category description for Midwifery so is no longer specific to undergraduate study.

English Language Teaching

• Updated fund names to English Language Teaching Intensive Literacy and Numeracy, and English Language Teaching – Refugee English. 
• Increased funding rates by 2.5%.
• Added clauses to clarify that a learner must not be enrolled as a full-time secondary student to be eligible for this funding. 
• Clarified that an eligible Refugee English programme must lead to an English language qualification at Levels 3–5 on the NZQCF. 
• Added a new subcontracting section for consistency with other determinations.

Equity Funding

• Increased funding rates by 2.5%.
• Updated the purpose statement for clarity.

Gateway

• Replaced the term “TEOs” with “schools” to better reflect the fund’s intent and use. 
• Updated school eligibility criteria to include “charter schools”.
• Incorporated the requirements set out in the Gateway Handbook to reflect current criteria and practice, as the Gateway funding determination had not been updated since 2016. 
• Added a clause to confirm that Gateway funding cannot be used to fund driver’s licence training, except where a student is required to obtain a specific class of driver’s licence to complete their workplace learning.  

Literacy and Numeracy Provision

• Increased funding rates by 2.5%.
• Removed references to the Adult Literacy Educator Fund to reflect Budget 2024 decisions. 
• Clarified that literacy and numeracy provision must be delivered face-to-face unless there are exceptional circumstances. TEC will provide more information on the exceptions process for this in the coming months.
• Changed references to the Literacy and Numeracy for Adults Assessment Tool (LNAAT) steps so that learners are eligible if they are assessed using the LNAAT and do not present at Step 4 or higher on the Learning Progressions for reading and/or Step 5 or higher on the Learning Progressions for numeracy.
• Added a clause to the Intensive Literacy and Numeracy fund to confirm that eligible learners cannot be enrolled as a full-time secondary school student. 
• Restructured sections on the definition of a TEO for the purposes of the WLN fund and TEO eligibility within the Workplace Literacy and Numeracy (WLN) fund for clarity.
• Added a clause to allow the TEC to consider factors that support a nationwide network of provision when allocating employer-led WLN funding.
• Updated the subcontracting section for consistency with other funding determinations.

Māori and Pasifika Trades Training (MPTT)

• Increased funding rates by 2.5%.
• Changed phrasing from “sustainable” employment to “relevant” employment in line with 2023 decisions.  
• Other minor amendments for clarity.

Performance-Based Research Fund

• Replaced references to the cancelled 2026 Quality Evaluation (QE) round with the “next” QE round. 
• Noted that any changes to Evidence Portfolio design will be considered after the University Advisory Group (UAG) process and any subsequent government decisions. 
• Noted that weightings given to portfolios considered by the Pacific Research or Māori Knowledge and Development panel for the next QE round will be considered after the UAG process and any subsequent government decisions. 
• Noted that additional funding weightings for Māori and Pacific staff members for the next QE round will be considered after the UAG process and any subsequent Government decisions.

Youth Guarantee

• Increased funding rates by 2.5%.
• Restructured the learner eligibility section for clarity. 
• Clarified that Youth Guarantee provision must be delivered face-to-face unless there are exceptional circumstances. TEC will provide more information on the exceptions process for this in the coming months.
• Added a clause clarifying that TEOs must verify a learner’s identity and confirm the learner’s eligibility, consistent with other funding determinations. 
• Updated delivery classification requirements to align with current practice.
• Added a new subcontracting section for consistency with other determinations.