Notice Type
Departmental
Notice Title

The Tertiary Education (2016 Annual Maximum Fee Movement) Notice 2015

Under sections 159L(3)(d) and 159M(b) of the Education Act 1989, the Minister for Tertiary Education, Skills and Employment gives notice of the proposed conditions setting limits on the annual increases that tertiary education organisations may make to fees charged to domestic students in 2016.

N o t i c e

1. Title—This notice may be cited as the Tertiary Education (2016 Annual Maximum Fee Movement) Notice 2015.

2. Commencement—The proposed conditions outlined in this notice apply for the 2016 academic year only.

3. Proposal—I propose to specify conditions under section 159L(3)(d) that the Tertiary Education Commission (TEC) must attach to funding provided under the relevant funding mechanisms, in particular to specify:

(a) the annual limits by which Tertiary Education Organisations (TEOs) can increase fees charged to domestic students enrolled in courses that are leading to short awards, certificate, diploma, degree, and postgraduate qualifications that receive Level 3+ Student Achievement Component (SAC) funding in 2016; and

(b) the other conditions in relation to fees that the TEC must attach to SAC funding.

4. Application—The conditions set out in this notice refer to:

(a) Fees as including the following items: tuition fees, compulsory course costs, examination fees, other charges associated with a programme of study, material charges, cost of field trips and any compulsory purchase of equipment or books through the organisation.

(b) TEOs as organisations as defined in section 159B, includes tertiary education institutions (TEIs), private training establishments (PTEs) and rural education activities programme providers (REAPs).

5. Call for submissions—Any TEO and any other person, body or organisation having an interest in the matter is invited to make a submission on the proposed Annual Maximum Fee Movement (AMFM) and other proposed conditions set out in this notice.

All submissions should be sent to:

Annual Maximum Fee Movement Submissions
Tertiary Education Policy
Ministry of Education
PO Box 1666
Wellington 6140
Email: tertiary.strategy@education.govt.nz

6. Date for submissions—All submissions must be received by 17 June 2015.

Dated at Wellington this 28th day of May 2015.

Hon STEVEN JOYCE, Minister for Tertiary Education, Skills and Employment.

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Proposed conditions to be attached to Student Achievement Component Funding (SAC) allocated and paid for by the Tertiary Education Commission (TEC) to Tertiary Education Organisations (TEOs)

General

1. These conditions apply to fees charged for SAC funded provision in all TEOs.

2. The fees associated with a particular course are subject to these conditions if:

(a) the TEO is the sole source of the item to which the fee relates; and

(b) all domestic students validly enrolled in the course are required to pay the fees.

Annual Maximum Fee Movement (AMFM)

3. For 2016, the AMFM is a 3% increase on the fees (GST exclusive) charged in 2015 for a course at Level 3 and above on the New Zealand Qualifications Framework (NZQF) for which a TEO receives SAC funding.

4. The AMFM applies to any new courses at Level 3 and above on the NZQF established by a TEO in substitution for an existing course dealing with the same or similar subject matter, at a same or similar level on the NZQF, for which SAC funding can be used.

Exceptions to the AMFM

5. A TEO may apply for an exception from the 2016 AMFM for a SAC-funded course that is part of a programme that leads to a qualification at Level 3 or above on the NZQF on the basis of exceptional circumstances. Any exception granted will not exceed an additional 3% increase over and above the permitted 3% increase.

6. In considering exceptional circumstances, the TEC must only have regard to the following criteria:

(a) the TEO is unable to support the course(s) while remaining financially viable;

(b) for courses at Levels 3–8 on the NZQF, the completion rate for the qualification met or exceeded the median performance benchmark for that level in the previous year;

(c) the TEO can demonstrate that the course is in some way unique or special, for example, that there are no available local alternatives to the course; and

(d) not allowing an exception will prevent the TEO from making a significant contribution to the achievement of one or more of the Government’s priorities, as set out in the Tertiary Education Strategy 2014–2019.

7. An application must satisfy all criteria to gain an exception.

Low or Zero Fee Courses

8. If the fees for a SAC-funded course that is part of a programme that leads to a qualification at Level 3 or above on the NZQF are less than $511.11 (GST inclusive) ($444.44 (GST exclusive)) per Equivalent Full-Time Student (EFTS) in 2015, then for 2016, the TEO may increase the fee to up to $511.11 (GST inclusive) ($444.44 (GST exclusive)) per EFTS, or can increase the fee for the course by 3%, whichever is the greater.

Fees for SAC Funded Level 1 and 2 Provision

9. Conditions on fees for courses that are at Levels 1 or 2 on the NZQF and funded under the SAC Qualifications at Levels 1 and 2 of the NZQF (competitive allocation) funding mechanism, are detailed in the Tertiary Education Fees-Free Conditions Notice 2015.

10. Conditions on fees for students aged under 25 years old enrolled in courses that are at Levels 1 or 2 on the NZQF funded through the SAC Provision at Levels 1 and 2 on the NZQF (non-competitive allocation) funding mechanism, are detailed in the Tertiary Education Fees-Free Conditions Notice 2015.

11. For all other SAC funded provision at NZQF Levels 1 and 2 that is delivered under the non-competitive allocation process, a TEO may not charge a higher fee for any course in 2016 than it charged for the same course the last time that course was offered.

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Note: Effect of this Notice

These notes do not form part of this notice, but are intended to indicate its general effect.

A. Section 159L(3)(d) of the Education Act 1989 (“the Act”) provides that the Minister, when determining the design of a funding mechanism, may specify the conditions that the TEC must attach to funding provided under the mechanism, including conditions that limit the fees that an organisation may charge domestic students.

B. Under section 159M(b) of the Act, the Minister may not specify conditions setting limits on fees until two months after the date of publication of a notice in the New Zealand Gazette that:

(i) states that the Minister proposes to specify such conditions; and

(ii) sets out the proposed conditions; and

(iii) invites submissions on the proposed conditions; and

(iv) specifies the date by which submissions must be received, which must be a date no more than 21 days after the date of the New Zealand Gazette notice.

C. The conditions setting limits on fees subsequently specified by the Minister in accordance with section 159L(3)(d) of the Act must be imposed as conditions on funding payable by the TEC to an organisation under section 159YA and 159ZC of the Act.

D. Under sections 227(1A) and 234A of the Act, TEIs and PTEs respectively must not charge domestic students a fee that exceeds the maximum specified as a condition on funding approved by the TEC under section 159YA and section 159ZC of the Act.