Funding and payments

Funding and payments

Last updated 17 February 2020
Last updated 17 February 2020

This page provides information about how Intensive Literacy and Numeracy (ILN) funding is set, funding allocation, funding rate, funding calculation, payment and funding recovery.


The Literacy and Numeracy funding mechanism is issued by the Minister responsible for tertiary education. The funding mechanism outlines the general form and essential components of the fund. It provides the mandate for us to allocate the funding and what the funding can be used for, and details how we administer the fund. 

Funding is agreed through a tertiary education organisation’s (TEO’s) Investment Plan (Plan).

A TEO that receives ILN funding is required to:

Funding for ILN is set through the Government’s annual budget process. We determine the appropriate amount of ILN funding for a TEO.

Through each TEO’s Plan, we agree the mix of provision (MoP). This includes the:

  • programmes that the funding can be used for
  • allocation of funding towards each programme, and
  • volume of delivery expected from each programme.


ILN funding is paid in monthly instalments. The payment amounts are in equal instalments from January to June, and in equal instalments from July to December.

Funding allocation

Our approach to calculating your 2020 indicative allocation for ILN

The purpose of ILN funding

The Intensive Literacy and Numeracy (ILN) Fund supports the intensive provision of high quality, fees-free literacy and numeracy learning opportunities for learners with low-level literacy and numeracy skills.

We fund intensive literacy and numeracy provision to:

  • raise adults’ literacy and numeracy skills
  • increase opportunities for adults to engage in literacy and numeracy learning, particularly for those in low-skilled employment, and
  • improve the quality and relevance of provision, including the ability to identify learner need and learning gain.

How we calculated your 2020 indicative allocation for ILN

Your prior performance information was used to calculate your 2020 indicative allocation.

To determine the starting point for calculating your 2020 indicative allocation we compared your 2018 actual ILN delivery with your 2019 allocation.

If your 2018 actual delivery was below 100%, we used the lesser of either your:

  • 2018 actual delivery, or
  • 2019 allocation.

If your 2018 actual delivery was 100% or above, we used your:

  • 2019 allocation.

If you delivered ILN for the first time in either 2018 or 2019, we used your:

  • 2019 allocation.

Note: Your 2018 actual delivery has been adjusted for any additional funding provided, funding rate increases, and significant policy changes.  Your reviewed 2019 allocation includes plan changes and excludes one off adjustments.

Once we established your starting point we included any 2020 funding rate increases.

Your performance against hours delivered was considered when determining your 2020 allocation

The total hours of literacy, numeracy, or literacy and numeracy tuition you deliver per learner is expected to be between 80 and 300 hours. Therefore, we have applied the following measure:

  • if 40% or more of your enrolled learners received less than 80 hours of literacy, numeracy, or literacy and numeracy tuition, we applied a 5% reduction to your 2020 indicative allocation.

Determining your final 2020 funding allocation

To determine your final 2020 allocation, we will also consider the following information in our assessment and/or engagements with you:

  • your delivery volumes reported in both the August 2019 and December 2019 Single Data Return,
  • your intensity of previous delivery
  • your Education Performance Indicator data, and
  • your Literacy and Numeracy Adult Assessment Tool (LNAAT) information.

Funding recoveries

How we will calculate any recoveries for 2019 ILN funding

We will recover funding if you under-deliver in 2019

We will recover funding if you deliver less than 100% of your allocated ILN funding. We will recover the difference between the value of actual delivery and 100% of allocated ILN funding.

Recoveries are based on:

  • your most recent delivery volume data (total hours of delivery), as submitted through Workspace2. 

Funding rate

ILN provision is funded at a fixed rate of $25 per hour of face-to-face literacy, numeracy, or literacy and numeracy, tuition.

From 1 January 2020, the fixed rate increases by 1.8% to $25.45 per learner hour.

Each hour of provision not attended by the learner is not to be reported and is not funded.

Note: Delivery to learners receiving less than 80, and more than 300, hours (if eligible) is also funded, not just delivery to learners receiving 80 to 300 hours. See Eligibility (Programme eligibility).