8 MAY 2014 NEW ZEALAND GAZETTE, No. 46 1335

Commission (TEC) to tertiary education organisations (TEOs).

Notice

1. Title—This notice may be cited as the Education (2015 Annual Maximum Fee Movement and Fee Limits) Notice 2014.

2. Commencement—The proposed conditions outlined in this notice apply for the 2015 academic year only.

3. Proposal—I propose to specify conditions under section 159L(3)(d) that the Tertiary Education Commission (TEC) must attach to funding provided under the relevant funding mechanisms, in particular:

   (a) to specify the annual limits by which TEOs can increase fees charged to domestic students enrolled in courses that are leading to short awards, certificate, diploma, degree and postgraduate qualifications that receive Student Achievement Component (SAC) funding in 2015; and

   (b) to specify the other conditions in relation to fees that the TEC must attach to SAC funding; and

   (c) to specify the conditions that the TEC must attach to specified education funds outlined in this notice.

4. Application—The conditions set out in this notice refer to:

   (a) Fees as including the following items: Tuition fees, compulsory course costs, examination fees, other charges associated with a programme of study, material charges, cost of field trips and any compulsory purchase of equipment or books through the organisation.

   (b) TEOs, as defined in section 159B, include tertiary education institutions (TEIs), private training establishments (PTEs) and rural education activities programme providers (REAPs).

5. Call for submissions—Any TEO and any other person, body or organisation having an interest in the matter is invited to make a submission on the proposed Annual Maximum Fee Movement (AMFM) and other proposed conditions set out in this notice.

   All submissions should be sent to:

   Annual Maximum Fee Movement and Fee Limits
   Submissions
   Tertiary Education Policy
   Ministry of Education
   PO Box 1666
   Wellington 6140
   Email: tertiary.strategy@minedu.govt.nz

6. Date for submissions—All submissions must be received by 29 May 2014.

   Dated at Wellington this 8th day of May 2014.

   HON STEVEN JOYCE, Minister for Tertiary Education, Skills and Employment.

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Proposed Conditions to be Attached to Student Achievement Component Funding (SAC) Allocated and Paid for by the Tertiary Education Commission (TEC) to Tertiary Education Organisations (TEOs)

General

1. These conditions apply to fees charged for SAC-funded provision in all TEOs.

2. The fees in relation to a particular course of study or training will be subject to these conditions if:

   (a) the TEO is the sole source of the item to which the cost relates; and

   (b) all students enrolled in the relevant course of study or training are required to pay the fees.

Annual Maximum Fee Movement (AMFM)

3. For 2015, the permitted AMFM is a 4% increase on the fees, exclusive of GST, charged in 2014 for short awards, certificate, diploma, degree and postgraduate courses at New Zealand Qualifications Framework (NZQF) Level 3 or above that receive SAC funding.

Exceptions to the AMFM

4. A TEO may apply, on the basis of exceptional circumstances, for exceptions from the 2015 AMFM of 4% for courses at NZQF Level 3 or above. Any exceptions granted will not exceed an additional 4% increase.

5. In considering exceptional circumstances, the TEC will use the following criteria:

   (a) The organisation is unable to support the course(s) while remaining financially viable;

   (b) for courses at NZQF Levels 3–8, the completion rate for the course met or exceeded the median performance benchmark for that level in the previous year;

   (c) the TEO can demonstrate that the qualification of which the course is a part is in some way unique or special, for example, that there are no local alternatives to the course available; and

   (d) that not allowing an exception will prevent the TEO from making a significant contribution to the achievement of one or more of the Government’s priorities, as set out in the Tertiary Education Strategy 2014/2019.

6. An application must satisfy all criteria to gain an exception.

Low or Zero Fee Courses

7. If the fees for a course, other than a course that is Level 1 or Level 2 on the NZQF and funded through the SAC funding mechanism, are less than $511.11 (GST inclusive) ($444.44 GST exclusive) per Equivalent Full-Time Student (EFTS) in 2014, then for 2015, the tertiary education provider can increase the fee to up to $511.11 (GST inclusive) ($444.44 GST exclusive) per EFTS, or can increase the fee for the course by 4%, whichever is the greater.

Fees for SAC Funded Level One and Two Provision

8. A TEO must not charge fees to learners aged under 25 years old enrolled in a course that is at Level 1 or Level 2 on the NZQF and funded through the Student Achievement Component (SAC) fund under the "Plan Allocation Process".

9. For all other SAC funded provision at NZQF Levels 1 and 2 that is delivered under the usual plan process, a TEO may not charge a higher fee for any course in 2015 than it charged for the same course, the last time that provider offered that course.

Proposed Conditions to be Attached to Specified Funds that are Allocated and Paid for by the Tertiary Education Commission to TEOs

10. A TEO may not charge fees to learners enrolled in 2015 in the courses funded by funds specified in paragraph 11.

11. Specified funds:

(a) Youth Guarantee Programme;

(b) Gateway;

(c) Māori and Pasifika Trades Training;