Source: Tertiary Education Commission
Last updated 19 January 2021
Last updated 19 January 2021
This page explains when tertiary education institutions (TEIs) need the consent of the Secretary for Education to dispose of plant and equipment and other non-land and building assets and when consent isn’t required. It also explains how to work out your institution’s Asset Disposal Limit and the process and timeframes for getting consent.
This page explains when tertiary education institutions (TEIs) need the consent of the Secretary for Education to dispose of plant and equipment and other non-land and building assets and when consent isn’t required. It also explains how to work out your institution’s Asset Disposal Limit and the process and timeframes for getting consent.
Consent only required in some instances
Section 282(4) of the Education and Training Act 2020 requires that TEIs get written consent from the Secretary for Education to sell or otherwise dispose of assets, or interests in assets. No consent is needed if the asset’s value is less than an amount determined by the Minister, either directly or by formula (see section 282(5)).
The Minister has approved a formula which provides a limit up to which TEIs may dispose of assets without getting the consent of the Secretary for Education. The formula doesn’t apply to land and buildings. All disposals of land and buildings need the consent of the Secretary for Education.
For information on how to apply for consent to dispose of land and buildings see:
Sale or long-term lease of land and buildings
Crown asset transfer and disposal
How to calculate your Asset Disposal Limit
The Asset Disposal Limit (ADL) takes into account an institution’s size (based on income) and its financial management (based on working capital).
The formula establishing the ADL for an institution is:
Asset Disposal Limit (ADL) = $50,000 + (Total Income Term x Modified Current Ratio Factor).
The Total Income Term is determined as follows:
Total Income (TI)$ million
Total Income Term$ thousand
TI
