Funding and payments

Funding and payments

Last updated 17 February 2020
Last updated 17 February 2020

This page provides information about how Māori and Pasifika Trades Training (MPTT) funding is set, funding allocation, funding calculation, and funding recovery. 

Funding

The MPTT 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 off-Plan via a funding confirmation letter.

A tertiary education organisation (TEO) that receives MPTT funding is required to:

  • comply with the requirements of the Education Act 1989, and
  • comply with the conditions for MPTT for consortia and/or TEOs specified in its funding confirmation letter.

MPTT funding is set through the Government’s annual budget process. It supports and enables positive outcomes to be achieved by Māori and Pasifika learners who are enrolled in Student Achievement Component (SAC) funded vocational training.

Payment

We pay funding for MPTT in accordance with the organisation’s funding confirmation documentation, which specifies the amount of funding payable for consortium activities and/or fees top-ups, and/or brokerage services (as applicable).

Consortium activities funding

Consortium activities funding is paid in 12 instalments, as set out under Payment Schedule in Appendix 1 of the funding confirmation letter for consortium activities funding.

MPTT funding confirmation letter for consortia (PDF, 606 Kb)

Fees top-ups and brokerage services (first 50%)

We pay MPTT fees top-ups and brokerage services in equal monthly instalments from January to June, and in equal monthly instalments from July to December, except for the brokerage incentive payment (second 50%).

Brokerage incentive (second 50%) and tools grants

We pay brokerage incentive (second 50%), and tools grants each month if we have received a correct MPTT Tools Grant and Brokerage Performance Summary report.

MPTT Tools Grant and Brokerage Performance Summary report (PDF, 64 Kb)

Funding allocation

Our approach to calculating your 2019 indicative allocation for MPTT

The purpose of MPTT funding

The purpose of MPTT funding is to increase access for Māori and Pasifika learners to vocational and pre-employment training. This enables these learners to develop skills for sustainable employment and achieve better employment outcomes.

MPTT funding is paid to organisations that are part of an approved consortium.

How we calculated your 2019 allocation for MPTT

Your prior performance information was used to calculate your 2019 allocation.

We have combined the fees top-up, brokerage services, consortium activities, learner support and transitional tools grant funding methodologies into one MPTT allocation methodology for 2019.

We used your 2019 application for funding as the starting point for calculating your 2019 indicative allocation.

We then applied the funding rates for 2019 to this indicative allocation (see table below for funding rates).

Category Measure Funding rate
MPTT Fees Top-Up EFTS $4,000
MPTT Brokerage Learner number $575
MPTT Consortium Per place (average) $1,100
MPTT Learner Support Funding Per learner (average) $730
Transitional Tools Grant Per learner (progressing to apprenticeship or industry training) $1,000

We then considered your 2019 application for funding, previous consortia and TEO performance, and funding available for investment.

Funding recoveries

Brokerage Recovery

How we calculate any recoveries for 2019 MPTT Brokerage funding

We recover funding if you deliver less than 100% of your allocated MPTT Brokerage funding. We recover the difference between the actual number of eligible learners as reported in the Single Data Return (SDR) source of funding code 28 and 29 and 100% of the allocated MPTT Brokerage funding. We only pay MPTT Brokerage in relation to a learner once.

When determining the actual number of eligible learners, we start from the number of learners reported by your most recent delivery volume data in the 2019 December SDR. 

Condition offset

The following learners are not eligible learners:

Early Withdrawal of enrolments

We exclude any learners who have not completed 10% or one month of the MPTT course for which they have enrolled, whichever is the earlier.

Prior year

We exclude any learners for whom MPTT Brokerage funding has been paid in a prior year to any provider.

Multiple Tertiary Education Organisation (TEO) enrolments

We will only pay MPTT Brokerage once per learner. Where we identify that a learner is enrolled with more than one TEO, we will only pay once for the learner to the TEO with the earliest start date.  Funding will be recovered from the TEO that has not reported the earliest course start date for the learner.

If there is a National Student Number (NSN) with the same course start date but reported in multiple providers, we attempt to verify the learner’s first provider enrolment based on the actual reporting in the first instance. If this does not resolve the issue, we hold payment from both providers, and contact the consortium to confirm which provider the NSN is enrolled with. The providers are asked to resubmit the report and we will pay the correct provider.

Learner Support Recovery

How we calculate any recoveries for 2019 MPTT Consortium - Learner Support funding

We recover funding if you spend less than 100% of your allocated MPTT Consortium Learner Support funding. We recover the difference between the actual spend and 100% of the allocated MPTT Consortium Learner Support funding.

Recoveries are based on:

  • Your most recent actual delivery data (dollars delivered) as submitted through your Progress Report through Workspace2.

Transitional Tools Grant Recovery

How we calculate any recoveries for 2019 MPTT Consortium – Transitional Tools Grant
We recover funding if you deliver less than 100% of your allocated MPTT Consortium – Transitional Tools Grant. We recover the difference between the actual delivery, and 100% of the allocated MPTT Consortium – Transitional Tools Grant.

Recoveries are calculated from:

your most recent actual delivery data (dollars delivered) as submitted through your year-end Progress Report through Workspace2;

  • your most recent actual eligible learners (number of learners and entitlements paid) as submitted through your year-end Progress Report through Workspace2;
  • the date when learners cease their pre-trades training;
  • exclude any learners who previously received a Tools Grant or Apprenticeship Reboot payment; and
  • learners will not be paid if they previously received a Tools Grant or Apprenticeship Reboot payment.

If you pay out more than 100% of your estimated MPTT Consortium – Transitional Tools Grant allocated funding we pay the difference between 100% of the allocated MPTT Consortium – Transitional Tools Grant and the amount actually delivered, for any a learners eligible to receive the Transitional Tools Grant.

Fees Top-up Recovery

How we calculate any recoveries for 2019 MPTT Fees Top-up funding

We will recover funding if you deliver less than 100% of your allocated MPTT fees top up funding. We will recover the difference between the value of actual delivery less conditional offsets and 100% of allocated MPTT fees top up funding at a provider-consortium level.

Recoveries are based on:

  • your most recent actual delivery volume data (measured in EFTS at provider-consortium level), as submitted through the December SDR. 

Condition offset

Early Withdrawal of enrolments

We will reduce the dollar value of actual delivery where students have not completed 10% or one month of the MPTT course for which they have enrolled.

 

Consortium activities

Consortium activities funding is paid to support activities that will complement SAC funded provision for Māori and Pasifika learners, and provide the opportunity for learners to gain entry level employment in their chosen trade.

The funded activities must support learner pathways into trades training and employment.

We allocate consortium activities funding based on intended learner numbers, and the capacity and performance of the consortium. Other factors, such as the stage of development of the consortium and the potential for economies of scale are also taken into account.

Consortium activities that we may agree to fund include:

  • governance and project management
  • coordinating the contributions of consortium members 
  • employability skills training and fees, such as:
    • driving licenses
    • site safe certificates, that complements SAC-funded programmes 
  • wānanga and fono meetings.

Brokerage services

Brokerage services funding supports connections between employers, consortia and partner/other TEOs in order to support MPTT learner progression.

We expect these activities to supplement existing brokerage and facilitation activities carried out by a consortium. A brokerage services funded TEO may pass on its funding to another organisation to carry out the services. 

The brokerage services specified in the TEO’s funding confirmation letter must be the brokerage services provided. These services may include:

  • providing recruitment support, identifying pre-employment needs of learners, and their employment, training and career pathways 
  • supporting learners and working with employers and key industry stakeholders, and
  • providing employment transition support.

Career guidance

We expect consortium partner organisations to, collectively and individually, support each learner to recognise and develop the skills and competencies they need to manage their career in a trade.

See Consortia, and Project Kamehameha and Project Lumana'i (research commissioned by Careers New Zealand about design and delivery of career resources for Māori and Pasifika respectively).

Funding rate

See Condition: Funding for Brokerage Services.

The brokerage services rate is currently $1,150 once per learner.

We pay 50% ($575 per learner) up front and 50% ($575 per learner) after the learner has progressed to a successful outcome. The second 50% payment is paid to the TEO that undertook the pre-trades training and is payable only once for each learner.

For the TEO to receive the incentive payment:

  • the learner must achieve the successful outcome within 18 months of leaving the MPTT programme, and
  • the TEO must report the successful outcome through Workspace 2 using the MPTT Tools Grant and Brokerage Performance Summary template (which we provision to Workspace 2 monthly). Please note, this process may change for 2019.

Tools grant

We pay $1,000 to each eligible learner to subsidise the cost of purchasing tools relevant to their training or employment.

Note: From 1 January 2019, Tools Grants will be transitioning to Learner Support Funding. See Learner Support Funding for more information.

Who is eligible for the tools grant?

To be eligible for the MPTT tools grant the apprentice/trainee must have:

  • participated in SAC funded provision approved by us for MPTT funding, and
  • not previously received any government funding for tools (for example, through the Apprentice Reboot).

The apprentice/trainee must also be one of the following:

  • A New Zealand Apprentice.
  • A trainee enrolled in an apprentice-equivalent qualification (such as a Managed Apprenticeship) at level 4 on the NZQF of at least 120 credits, where:
    • there is a signed training arrangement between the trainee, the TEO delivering the qualification and the employer, and
    • the trainee is employed in the industry for which they are training (for example, studying carpentry while employed in the building industry).
  • A trainee enrolled in a TEC-approved industry trades qualification at level 3 or 4 of the New Zealand Qualifications Framework (NZQF) of at least 40 credits where:
    • there is a signed training arrangement between the trainee, and the employer, and
    • the trainee is enrolled with an industry training organisation (ITO).

If I am a learner, how can I apply for the tools grant?

Read the MPTT Tools Grant Information for Applicants document, to see if you are eligible.

MPTT Tools Grant - Information for Applicants (PDF, 291 Kb) 

If you are eligible, complete and sign the MPTT Tools Grant application form. You also need to sign the declaration confirming that you will only use the Tools Grant to subsidise the cost of tools related to your training.

MPTT Tools Grant application form (PDF, 108 Kb)

Send your completed application form to the organisation where you undertook your MPTT pre-trades training. We will pay that organisation, which will, in turn, forward the payment to you.

Please note: We can only pay the grant if we receive your application (via the organisation where you undertook your MPTT pre-trades training) within 18 months from the date you completed or left your MPTT pre-trades training.

If you have any questions, please contact the organisation where you undertook you MPTT pre-trades training. 

If I am a TEO, how can I apply for the tools grant on behalf of a learner?

Only a TEO with a signed MPTT Tools Grant funding confirmation letter from us is able to apply for an MPTT tools grant on behalf of a learner.

MPTT Tools Grant funding confirmation letter (PDF, 494 Kb)

We will only pay the tools grant for a learner if we receive the application within 18 months from the date the learner completed or left their MPTT pre-trades training.

Refer to the Tools Grant – MPTT - Guidelines for TEOs document for information about how to apply for tools grants for learners.

Tools Grant - MPTT - Guidelines for TEOs (PDF, 510 Kb)

Suspending or revoking funding

If a TEO has its funding approval revoked in accordance with section 159ZF of the Education Act 1989, the unspent portion of funding is repayable to the TEC.

See the following conditions: