Investing government funding

Ā te kāwanatanga pūtea tautoko

Last updated 31 October 2016
Last updated 10/31/2016

At the Tertiary Education Commission (the TEC), we invest government funding, through Investment Plans and contracts with tertiary education organisations (TEOs).

We invest in all forms of post-secondary school education and training, including foundation education, adult and community education and research. We also fund some programmes that link schools with tertiary education, including Gateway and Trades Academies.

Tertiary education includes:

  • certificate, degree, diploma and postgraduate level study at universities, institutes of technology and polytechnics, wānanga and private training establishments
  • foundation learning, such as adult literacy and numeracy
  • industry training including apprenticeships
  • adult and community education.

Who we invest in

TEOs provide tertiary education and training to meet the needs of a wide range of people of different ages, backgrounds and learning stages. Over 700 TEC-funded TEOs across New Zealand deliver thousands of courses to hundreds of thousands of learners.

In 2015, we invested around $2.8 billion in TEOs to deliver tertiary education and training to 620,000 learners and trainees. These TEOs include:

  • eight universities
  • 18 institutes of technology and polytechnics
  • three wānanga
  • 241 TEC-funded private training establishments
  • 11 industry training organisations
  • over 400 other organisations, adult and community education providers, government training establishments and secondary schools. 

Diagram showing our investment of  2.8 billion in tertiary education

How we invest funding

We invest government funding through Investment Plans and contracts with tertiary education organisations, to achieve better outcomes for New Zealand and learners.

These funds support different activities and types of education and training in the tertiary sector. Our largest fund is the Student Achievement Component (SAC) Fund, which provides the Government’s contribution to the costs of teaching and learning and other costs related directly to learner participation.

Explore funding information

We hold investment planning rounds and publish our Plan Guidance, to let TEOs know about our current funds. TEOs apply to us for funding and need to complete an application or Investment Plan.

Resources for investment

Our Investment Managers work closely with TEOs to agree how and where to invest the relevant funds. Our Board of Commissioners gives final funding approval.

Investment Managers

Board of Commissioners

We’re working to improve the return on investment for the Government and New Zealand, for the $2.8 billion we invest into tertiary education each year. To do this, we’re changing the way we fund the system for tertiary education using an Investment Approach. We’re working with the sector, to introduce this approach gradually, over a number of years.

Our approach will ensure funding is invested in areas with the best outcomes, for learners, the tertiary education system and New Zealand.

The Investment Approach