Notice Type
Notice Title

The Education (2011 Annual Maximum Fee Movement) Notice 2010

Under sections 159L(3)(d) and 159M(b) of the Education Act 1989, the Minister for Tertiary Education gives notice of the proposed conditions setting limits on the annual increases that tertiary education organisations may make to fees and course costs charged to domestic students in 2011.
N o t i c e
1. Title-This notice may be cited as the Education (2011 Annual Maximum Fee Movement) Notice 2010.
2. Commencement-The proposed conditions outlined in this notice apply for the 2011 academic year only.
3. Proposal-I propose:
(a) to specify the conditions setting annual limits that tertiary education organisations can increase fees charged to domestic students in short awards, certificate, diploma, degree, and postgraduate level courses that receive student achievement component funding in 2011; and
(b) to specify the other conditions in relation to fees that the Tertiary Education Commission (TEC) must attach to student achievement component funding in 2011.
4. Call for submissions-Any tertiary education organisation 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 Submissions
Tertiary Education Policy
Ministry of Education
PO Box 1666
Wellington 6140
5. Date for submissions-All submissions must be received by 19 August 2010.
Dated at Wellington this 26th day of July 2010.
HON STEVEN JOYCE, Minister for Tertiary Education.
Proposed Conditions to be Attached to Student Achievement Component Funding Allocated and
Paid For by the Tertiary Education Commission to Tertiary Education Organisations
1. These conditions apply to fees and course costs for all provider types: tertiary education institutions (TEIs), private training establishments (PTEs), rural education activities programme providers (REAPs) and other tertiary education providers (OTEPs).
2. The fee and course costs in relation to a particular course of study or training will be subject to these conditions if:
(a) the tertiary education organisation 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 fee or course costs.
3. For the purpose of this policy, the following items
are included in the definition of "fees": Tuition fees, compulsory charges, 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.
Annual Maximum Fee Movement (AMFM)
4. For 2011, the AMFM allows for a 4% increase on the fees and course costs, exclusive of GST, charged in 2010 for short awards, certificate, diploma, degree and postgraduate courses that receive student achievement component funding.
Exceptions to the AMFM
5. TEOs may apply, on the basis of exceptional circumstances, for exceptions in 2011 from the AMFM of 4%, for up to an additional 4% increase.
6. 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) the completion rate for the course met or exceeded the median performance benchmark for the previous year for the NQF level of that course;
(c) the TEO can demonstrate that the course 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 provider from making a significant contribution to the achievement of the Government’s priorities, as set out in the Tertiary Education Strategy 2010/15;
7. An application must satisfy all criteria to gain an exception.
Low or Zero Fee Courses
8. If the fee and course costs for a course are less than $444.44 (GST excl.) per Equivalent Full-Time Student (EFTS) in 2010, then for 2011, the provider can increase the fee to up to $444.44 (GST excl.) per EFTS, or can increase the fee for the course by 4%, whichever is the greater.
Youth Guarantee Programmes
9. Participants on youth guarantee programmes funded through the student achievement component are not to be charged any fees or compulsory course costs.
Professional Masters Programmes
10. Professional masters programmes (eg MBAs) are exempt from any limit on fee increases.
11. Where the TEC finds that a tertiary education provider is not complying with the conditions set out in this notice, it can withdraw student achievement component funding for that course. This sanction will only be exercised as a final resort, and the TEC will work with the provider to rectify any non-compliance in the first instance.
Note: Effect of this Notice
These notes do not form part of this notice, but are intended to indicate its general effect.
A. Section 159L(3)(d) of the Education Act 1989 ("the Act") provides that the Minister, when determining the design of a funding mechanism, may specify the conditions that the TEC must attach to funding provided under the mechanism, including conditions that limit the fees that an organisation may charge domestic students.
B. Under section 159M(b) of the Act, the Minister may
not specify conditions setting limits on fees until two months after the date of publication of a notice in the New Zealand Gazette that:
(i) states that the Minister proposes to specify such conditions; and
(ii) sets out the proposed conditions; and
(iii) invites submissions on the proposed conditions; and
(iv) specifies the date by which submissions must
be received, which must be a date no more than
21 days after the date of the New Zealand Gazette notice.
C. The conditions setting limits on fees subsequently specified by the Minister in accordance with section 159L(3)(d) of the Act must be attached as conditions on the receipt of funding payable by the Tertiary Education Commission to an organisation under section 159YA and 159ZC of the Act.
D. Under sections 227(1A) and 236C of the Act, TEIs and PTEs respectively must not charge domestic students a fee that exceeds the maximum specified as a condition on funding approved by the TEC under sections 159YA and 159ZC of the Act.