Under sections 419(3)(d) and 420(1)(b) of the Education and Training Act 2020 (“Act”), the Minister of Education (“Minister”) gives notice of the proposed conditions setting requirements relating to fees for student services that tertiary education organisations (TEOs) may charge to domestic students. This will replace the “Ministerial Direction on Compulsory Student Services Fees for 2019” published in the New Zealand Gazette, 9 May 2019, Notice No. 2019-go2120 that came into effect on 1 August 2019.

Notice

Title— This notice may be cited as the Tertiary Education (Requirements for Student Services Fees) Notice 2022.

Commencement— Providers must give effect to the requirements relating to fees for student services as soon as reasonably practical after 1 January 2023.

Proposal— I propose to specify the requirements that TEOs must adhere to in relation to charging domestic students fees for the provision of student services. With the passage of the Education and Training Amendment Act (No. 2), fees for student services can now be regulated as conditions on funding mechanisms issued under section 419 of the Act.

The conditions on student services fees that are imposed through a Ministerial direction will instead be imposed through conditions set out in this notice on the following funding mechanisms issued under section 419 of the Act:

• Delivery at levels 1 and 2 on the New Zealand Qualifications Framework (NZQF) (DQ1-2) – the funding mechanism that provides funding for provision at levels 1 and 2 on the NZQF
• Delivery at levels 3-7 (non-degree) on the NZQF and all industry training (DQ3-7) – the funding mechanism that provides funding for programmes funded at levels 3-7 (non-degree) on the NZQF and all industry training.
• Delivery at levels 7 and above on the NZQF (DQ7+) – the funding mechanism that provides funding for programmes funded at level 7 (degree level) and above on the NZQF

I propose to introduce new requirements on TEOs funded through DQ3-7 specifying that apprentices and trainees must not be charged a compulsory fee for the provision of student services. TEOs must give apprentices, trainees and their employers the option of paying for and accessing student services. This follows on from the transitional provisions under section 60 of Schedule 1 of the Act that expire 31 December 2022 that prevent trainees from being charged a compulsory fee for the provision of student services.

For the purpose of this notice, apprentices and trainees are defined as apprentices and trainees previously funded through the Industry Training Fund.

Call for submissions— Any TEO, student organisation, student or any other person, body or organisation that has an interest in this matter is invited to make a submission on the proposed requirements as set out in this notice. All submissions should be sent to:

Requirements for Student Services Fees Submissions, Tertiary Education Policy, Ministry of Education, PO Box 1666, Wellington 6140. Email: Tertiary.Strategy@education.govt.nz.

Date for submissions— All submissions must be received by 31 August 2022.

Dated at Wellington this 2nd day of August 2022.

Hon CHRIS HIPKINS, Minister of Education.

Proposed Conditions

Objective

1. The objective of the requirements on TEOs that charge fees for the provision of student services is to ensure:

1. accountability in the use of fees for student services to students; and
2. involvement of students in decisions in the charging and use of fees for student services; and
3. fair arrangements for students in different tertiary education settings (for example, work-based students or students in fees-free foundation education programmes)

Coverage

2. All TEOs that charge student services fees to domestic students who are funded through one of the funding mechanisms listed above must comply with the requirements set out in this notice.

3. TEOs must give effect to the requirements in this notice as soon as reasonably practicable after 1 January 2023.

Requirements

4. Opt-in arrangements for trainees and apprentices— TEOs must not charge a compulsory fee for the provision of student services to apprentices, trainees or their employers. TEOs must give apprentices, trainees and their employers the option of paying for and accessing student services. Where apprentices and trainees opt in to receive student services and pay fees, TEOs are still required to comply with the requirements outlined in paragraphs 5 to 10.

5. Decision-making— TEOs must establish and demonstrate adequate arrangements for decisions to be made jointly, or in consultation with the students enrolled at the TEO, or their representatives, on the following matters:

1. The maximum amount that students will be charged for student services; and
2. the types of services to be delivered (within the permitted categories set out below); and
3. the procurement of these services; and
4. the method for authorising expenditure on these services.

6. Accounting for the use of student services fees— TEOs must either hold all student services fees in a separate bank account or ensure that all income and expenditure associated with the provision of such services is separately accounted for in the TEO’s accounting system.

7. Reporting on student services fees— Institutions must provide information on all student services fees through their annual report, and registered private training establishments must provide information on all student services fees through a written report to students. Institutions and registered PTEs must include the following information in their annual report or written report to students:

1. a description of the services funded out of the student services fee; and
2. a statement of the fee income and expenditure for each type of student service; and
3. the student services fee amount charged per equivalent full-time student (EFTS) or academic year (or however it is calculated); and
4. a statement describing how the provider is complying with the accounting requirements specified above in paragraph 6.

8. Private training establishment’s written reports to students— Registered private training establishments charging a student service fee must provide to the Tertiary Education Commission a copy of the report that is provided to students. A copy of the report must be sent to:

Requirements for Student Services Fees Submissions, Monitoring and Crown Ownership, The Tertiary Education Commission, PO Box 27048, Wellington 6141. Email: cssf@tec.govt.nz.

9. Publishing information online— Providers charging student services fees must, as soon as reasonably practicable each year, publish the following information on their website:

1. basic student services fee information for the year, including the amount charged per EFTS (or however it is calculated) and a description of the student services the fee supports; and
2. a description of the current year’s student services fee decision-making process – including a description of how the current fees and services offered were determined, how consultation with students occurred, and what the decisions were; and
3. a description of how students can be involved in student services fee decisions for the following year – i.e. how TEOs propose to consult with their students and what issues might be considered.

10. Categories of student services— Providers may charge student services fees to support the delivery of the following categories of services:

1. Advocacy and legal advice – Advocating on behalf of individual students and groups of students, and providing independent support to resolve problems. This includes advocacy and legal advice relating to accommodation.
2. Careers information, advice and guidance – Supporting students’ transition into post-study employment.
3. Counselling services – Providing non-academic counselling and pastoral care, such as chaplains.
4. Employment information – Providing information about employment opportunities for students while they are studying.
5. Financial support and advice – Providing hardship assistance and advice to students on financial issues.
6. Health services – Providing health care and related welfare services.
7. Media – Supporting the production and dissemination of information by students to students, including newspapers, radio, television and internet-based media.
8. Childcare services – Providing affordable childcare services while parents are studying.
9. Clubs and societies – Supporting student clubs and societies, including through the provision of administrative support and facilities for clubs and societies.
10. Sports, recreation and cultural activities – Providing sports, recreation and cultural activities for students.

Hon CHRIS HIPKINS, Minister of Education.