Draft 2023 UFS funding conditions

Draft 2023 UFS funding conditions

Last updated 2 August 2022
Last updated 2 August 2022

We are inviting sector feedback on the draft 2023 Unified Funding System (UFS) funding conditions. Please send us your feedback by 31 August 2022.

Funding determination and funding conditions are published annually as part of the investment process. 

  • Funding determinations are drafted by the Ministry of Education (MoE). They explain the structure and design of funds, and how they are administered. Sometimes referred to as a funding mechanism or shortened to s.419 (after the applicable section in the Education and Training Act).
  • Funding conditions are drafted by the Tertiary Education Commission (TEC). They explain the terms and conditions that apply to the fund.

We are releasing the draft 2023 UFS funding conditions:

  • to complement the release of the 2023 UFS funding determinations by the MoE, and
  • to be clear how we will manage funding under the new system.

Ministry of Education consultation on 2023 UFS funding determinations

What are the changes?

The 2023 UFS funding conditions are a combination of:

  • existing Student Achievement Component at level 3 and above (SAC3+)
  • Industry Training, and
  • new, UFS-specific conditions. 

The 2023 UFS funding conditions will be subject to the 2023 base funding conditions and defined terms, which will be published in the 2023 Funding Conditions Catalogue. The existing base funding and defined terms can be found in our 2022 Funding Conditions Catalogue (PDF, 1.9 MB).

We are inviting feedback on two sets of conditions:

1. Non-degree delivery at levels 3-7 and all industry training up to level 7 on the NZQF Fund

This fund comprises the delivery and learner components of the UFS.

Non-degree delivery at levels 3-7 and all industry training up to level 7 on the NZQF Fund Funding Conditions (PDF, 501 KB)

The changes for non-domestic learners are not reflected in our funding conditions. MoE will implement the exemptions scheme via the Domestic Student Gazette Notice at which time we will update our conditions. 

More information about the exemptions scheme for non-domestic learners

2. Strategic component of the UFS for vocational education and training

This funding determination covers the strategic component of the UFS, as well as transition funding for private training establishments (PTEs).

We’ve drafted three sets of funding conditions, one for each sub-sector that is eligible for funding:

How do the funding condition changes affect funds currently open for applications?

Please note that the following two funds are currently open, but involve funding conditions that are still to be confirmed.

2023 PTE Strategic Fund

Applications for the 2023 PTE Strategic Fund are currently open.

Further information on applying for the 2023 PTE Strategic Fund

The TEC has worked with PTEs to set up the application process for this fund. The application process is in line with decisions already taken by Cabinet and the Minister, and we do not expect any changes to the funding determination that will affect the application process.

Transition funding

The funding determination gives TEC the power to set criteria for accessing transition funding. 

Eligibility criteria for transition funding

Some funding conditions pre-set by agreement from Cabinet and Minister

Some policy settings in relation to the 2023 UFS funding determinations have been set previously by Cabinet and the Minister. As a result, we are unable to change those settings in response to feedback.

To identify these pre-determined policy settings, please see the MoE's consultation document on funding determinations. The specific conditions relating to these matters are not subject to change.

How to provide feedback

To provide feedback on the draft 2023 UFS funding conditions, email your comments to CustomerService@tec.govt.nz with the subject [EDUMIS] – 2023 UFS Funding Conditions. Please send us your feedback by 31 August 2022.

We will consider your feedback, and will include the final 2023 UFS funding conditions as a new section in the 2023 Funding Conditions Catalogue. This will be published on the TEC website in October 2022.

If you would also like to provide feedback on the Ministry of Education’s funding determinations, please go to the MoE website link above.