Funding and payments

Funding and payments

Last updated 17 November 2016
Last updated 11/17/2016

This page provides information about funding and payments for the Industry Training Fund.

It outlines the allocation of funding, funding rates, payments, the funding that is available for New Zealand apprentices, funding recoveries and information about industry cash contributions.

Allocation of funding

Funding from the Industry Training Fund (ITF) is allocated during the Investment Planning process. An industry training organisation (ITO) or eligible organisation is allocated a number of standard training measures (STMs) multiplied by the applicable rate. Allocations are for calendar years. Funding may be amended during the year, if required.

An STM is defined as the amount of training that is required for a trainee to achieve 120 credits (or equivalent) on the New Zealand Qualifications Framework (NZQF) in an approved structured training programme. There is no annual Consumer Price Index adjustment to this rate.

Funding rate

The funding rate (GST exclusive) for a single STM for each type of New Zealand Apprenticeship and training is noted in the table below:

Industry training $3,200.00 for training arranged by an ITO; or $2,880.00 for training arranged by a direct funding scheme organisation.
New Zealand Apprenticeship $5,200.00 for a New Zealand Apprenticeship arranged by an ITO; or $4,680.00 for a New Zealand Apprenticeship training arranged by a direct funding scheme organisation.
Modern Apprenticeship $5,200.00 where the ITO is the Modern Apprenticeship Coordinator (MAC); or $2,919.00 where the ITO is not the MAC, plus a Brokerage payment to the non-ITO MAC. Non-ITO MACs will continue to be funded as required until the end of 2017.

Funding from the Industry Training Fund (ITF) is limited for each trainee and apprentice up to a maximum of 10 credits per month and 70 credits per year.

A trainee or apprentice may enrol in more than 70 credits of training in one year, but the additional credits will not be funded. See Condition ITF018 for more information.


The TEC pays funding in monthly instalments. Each ITO will be provided with a Schedule of Payment which outlines how funding will be spread throughout the year.

Funding available for additional New Zealand apprentices

From 2016 the TEC will fund the arrangement of training for apprenticeships above the amount the ITO has been approved to deliver. This will provide eligible organisations with the flexibility to meet additional apprenticeship demand.

Funding for additional arrangement of apprenticeship training:

  • is limited to 2% of an eligible organisation’s approved funding allocation or 10 STMs (whichever is greater)
  • is payable for the arrangement of apprenticeship training of the type that the TEC has already agreed to fund
  • does not mean the TEC has changed the organisation’s 2016 approved funding allocation, and
  • is subject to the conditions that we have imposed on the eligible organisation’s funding.

To be eligible for additional funding, eligible organisations must:

  • have a NZQA External Evaluation and Review (EER) rating of Category 1 or 2
  • have an average credit completion rate of 70% or higher. The average credit completion rate measures the number of credits that were achieved by New Zealand Apprentices in a given year, as a proportion of the credits they were expected to achieve in that year.

Additional funding for 2016 will be calculated using information reported to the Industry Training Register. Payments will be made after funding recoveries are finalised.

These changes are included in a supplementary funding mechanism for 2016 for the major teaching and learning funds. 

Funding recoveries

The TEC must recover funding if a TEO has used less funding than the amount agreed in the Investment Plan funding approval letter (or funding letter in relation to off-Plan funding).

The TEC calculates the amount of funding that a TEO may receive based on:

  • the number of enrolled trainees and apprentices, measured in STMs and recorded in the Industry Training Register
  • the programme(s) that the trainee or apprentice is enrolled in, subject to the limits for ‘under-achievement’, ‘over-enrolment’, and ‘over-duration’.

Industry cash contribution

A requirement of the Industry Training Fund is that TEOs ensure employers of trainees or apprentices who are enrolled with the TEO make a financial contribution towards the cost of training.