The funding mechanism for Equity funding is issued by the Minister of Education. It outlines the essential components of the Equity Fund. It provides the mandate for us to allocate the funding, states what the funding can be used for, and details how we administer the fund.

Funding is agreed through a TEO’s Investment Plan. A TEO that receives Equity funding must:

• comply with the requirements of the Education and Training Act 2020, and
• comply with the funding conditions.

For the full Equity Fund requirements, see the Equity funding conditions

To read the Equity Fund’s funding mechanism, see Funding mechanisms and delegations.

Indicative allocation

The indicative allocation is our early estimate of the “On-Plan” funding that each tertiary education organisation (TEO) could receive in the following delivery year if its Investment Plan is approved for funding.

We calculate the indicative allocation using a set of allocation methodologies. These methodologies are specific to each fund. We review and revise them every year to ensure they’re aligned to funding determinations and the current tertiary environment.

Indicative allocations are made available through the My Allocations and Payments app on Ngā Kete from 1 June.

For more information, see Indicative allocations by year.

For more details regarding your specific allocation, please contact customerservice@tec.govt.nz or your Relationship Manager.

If you receive Equity funding that is greater than it should have been, or that you were not entitled to receive, we will recover the extra funding.

For recovery requirements, see the Equity funding conditions.

Equity funding is paid in equal monthly instalments from January to December.

Under Schedule 18 Clause 16 of the Education and Training Act 2020 (the Act), we may suspend or revoke some or all funding given under section 425 of the Act, if we are satisfied on reasonable grounds that:

• the TEO has not complied, or is not complying, with a condition on which funding has been given under section 425 of the Act, or
• the TEO has not provided, or is not providing, adequate and timely information required by the TEC or Ministry of Education under section 425 of the Act. 

If a TEO has its funding approval revoked in accordance with Schedule 18 Clause 16 of the Act, the unspent portion of funding is repayable to us.

For more information, see the Equity funding conditions.