Source: Tertiary Education Commission
We also cover other parts of the Gazette notice that are not criteria but provide further explanatory information.
On this page:
Part 1. Criteria for significant amendment to a plan
Criterion: 1) For all TEOs, if a TEO proposes to:
a) increase its approved total amount of on-plan funding
A tertiary education organisation (TEO) needs TEC approval if it wants to increase an approved funding allocation. When we target additional funding to a TEO and increase its allocation, this also comes under the SPA criteria.
For further information on additional funding see 2025 in-year additional funding requests.
Criterion: 1) For all TEOs, if a TEO proposes to:
b) decrease or stop the provision of programmes or activities that are a TEC priority1 and increase provision of programmes or activities that are not a TEC priority
A TEO needs TEC approval if it wants to decrease or stop delivering programmes or activities that are a TEC priority and increase programmes or activities that are not a TEC priority.
The table below explains.
… priority provision
… non-priority provision
A TEO wants to change programmes from priority provision to …
A TEO does not need to seek TEC approval.
A TEO must submit a proposed SPA and seek TEC approval.
A TEO wants to change programmes from non-priority provision to …
A TEO does not need to seek TEC approval.
A TEO does not need to seek TEC approval.
TEC’s priorities are listed in Plan Guidance. We may also include other priorities that we deem necessary for the tertiary education system to operate effectively.
TEOs should refer to Plan Guidance for the year for which funding has already been approved when determining TEC’s priorities. For example, if a TEO’s Plan has been approved for the 2026 investment year, TEOs should refer to Plan Guidance for investment in 2026.
Investment Plan guidance, templates and timeframes
Criterion: 1) For all TEOs, if a TEO proposes to:
c) introduce existing programmes or activities in a region of New Zealand not currently provided for in its plan
A TEO needs TEC approval if it wants to introduce an existing programme in a region of New Zealand that is not currently included in its plan.
For example, if a TEO currently delivers a marketing qualification in Auckland and wants to offer that same qualification in Waikato, but doesn’t currently deliver any programmes in Waikato, it would need to seek our approval. This criterion does not cover any extramural activity.
Criterion: 1) For all TEOs, if a TEO proposes to:
d) reduce any of the commitments that it is required (by its plan) to use to measure whether proposed outcomes for programmes or activities are being or have been achieved. For the avoidance of doubt, this includes any adverse change to learner success milestones.
A TEO needs TEC approval if it wants to reduce any of its commitments. This includes any adverse change to learner success milestones.
For example, a TEO would need TEC approval to:
reduce the first-year retention rate commitment for Māori students at Level 7 degree from 81% to 75%, or
extend the date of a learner success milestone by a year.
Criterion: 2) For all TEOs currently approved to deliver a work-based mode of learning, if a TEO proposes to:
a) increase the number of EFTS in a work-based mode of learning; or
b) make any change to the qualification or credential, or region or mode of learning of any work-based mode of learning in its approved plan.
A TEO that is approved to deliver a work-based mode of learning, needs TEC approval to increase the number of equivalent full-time students (EFTS) it delivers in a work-based mode of learning.
A TEO needs TEC approval to make any other change to the qualification, credential, region or mode of learning of any work-based learning in its plan. For example, if a TEO wants to move a work-based learning qualification from Bay of Plenty to Hawke’s Bay, it needs TEC approval. This criterion is deliberately tight as the sector undergoes significant structural change.
Tertiary education institution (TEI)-specific criteria
Criterion: 3) For TEIs, in addition to paragraph 1 above, if a TEI proposes to introduce new programmes or activities in a new field of study. For the avoidance of doubt, this is for programmes or activities by qualification, not by course.
A TEI needs TEC approval if it wants to introduce a new qualification in a new field of study that it does not currently deliver in. “Field of study” is defined as narrow field of study in the Course New Zealand Standard Classification of Education (NZSCED) for all provision except (99) Other Natural and Physical Sciences and (06) Health provision, where detailed field of study applies.
For example:
a TEI would need to seek TEC approval to introduce a qualification in speech pathology or pharmacy if it didn’t already offer qualifications under that NZSCED detailed field of study for Health
a TEI would need to seek TEC approval to introduce a new qualification in building or teacher education under the NZSCED narrow field of study, if it didn’t already offer qualifications under that NZSCED narrow field of study.
Examples of qualifications that would sit under different NZSCED levels
Detailed
Narrow
Broad
Speech Pathology
Rehabilitation Therapies
Health
General Medicine
Medical Studies
Health
Midwifery
Nursing
Health
Pharmacy
Pharmacy
Health
Computer applications and programming
Computer Science
Information Technology
Landscape Architecture
Architecture and Urban Environment
Architecture and Building
Glazing
Building
Architecture and Building
Jewellery Making
Visual Arts and Crafts
Creative Arts
Teacher Education: Early Childhood
Teacher Education
Education
Equine Trades
Agriculture
Agriculture, Environmental and Related Studies
How will we capture a TEI introducing a new qualification into a new field of study for the SPA criteria?
We have defined “field of study” to align to the New Zealand Standard Classification of Education (NZSCED). TEIs will need to provide information on the Course NZSCED for field of study, as opposed to the Programme NZSCED to support our assessment.
For example, using Course NZSCED would capture when a TEI introduces a new qualification in Physics and Astronomy. If this is in a field of study it has not previously delivered in, the TEI would be required to seek TEC approval. This new qualification would not be captured if we used the Programme NZSCED and would not be identified as a significant amendment to its Plan.
Private training establishment (PTE)-specific criteria
Criterion: 4) For PTEs, in addition to paragraphs 1 and 2 above, if a PTE proposes to:
a) introduce new programmes and activities that are not provided for in its plan
A PTE needs TEC approval if it wants to introduce a new programme or activity (eg, a new qualification) that it doesn’t currently deliver. While TEOs currently need to seek approval from the New Zealand Qualifications Authority (NZQA) to deliver certain programmes, TEC needs to decide whether it will fund this new programme.
Does this include new versions of a programme of learning approved by NZQA after a Type 1 or Type 2 change?
This would only apply where the new version of the programme overlaps with one of the criteria. For example, if the mode of learning changed from a provider-based to a work-based mode of learning, this would be covered by the criteria on work-based learning. This would be a Type 2 change for NZQA to approve (constituting a significant change to an approved programme) and TEC would need to approve it under the criteria. However, where the Type 2 change is approved by NZQA, and does not overlap with the SPA criteria, then a TEO does not need TEC approval.
Do PTEs need to seek TEC approval to deliver a new NZQA-approved programme against an existing qualification?
No, except where the new NZQA-approved programme features a change from the previously approved programme that is covered by the SPA criteria, eg, a change to a work-based mode of delivery.
Criterion: 4) For PTEs, in addition to paragraphs 1 and 2 above, if a PTE proposes to …:
b) change the qualification or credential, region (if currently provided for in its plan), and/or the mode of delivery of its approved EFTS:
by more than 10 EFTS where a PTE has 100 or fewer EFTS in a fund;
by more than 10% where a PTE has 101 to 249 EFTS in a fund;
by more than 25 EFTS where a PTE has 250 or more EFTS in a fund.
A PTE can make changes to some of its provision provided it is not covered in paragraphs 1 or 2 of the criteria. For example, a PTE needs TEC approval to shift provision from priority provision to non-priority provision as this is covered in paragraph 1. A PTE that is approved to deliver work-based learning needs TEC approval to increase the number of EFTS it has in work-based learning as this is covered in paragraph 2.
When can a PTE can use the PTE thresholds?
… priority provision
… non-priority provision
A PTE wants to change a programme or activity from priority provision to …
A PTE does not need to seek TEC approval, and if none of the other criteria in paragraphs 1 or 2 apply, it can make changes to its provision using the thresholds in paragraph 4.
A PTE must submit a proposed SPA and seek TEC approval. The thresholds do not apply.
A PTE wants to change a programme or activity from non-priority provision to …
A PTE does not need to seek TEC approval, and if none of the other criteria in paragraphs 1 or 2 apply, it can make changes to its provision using the thresholds in paragraph 4.
A PTE does not need to seek TEC approval, and if none of the other criteria in paragraphs 1 or 2 apply, it can make changes to its provision using the thresholds in paragraph 4.
Provided that paragraphs 1 and 2 do not apply, a PTE can shift some provision without seeking TEC approval. Based on the thresholds stated in the criteria, a PTE may change a qualification, credential, region and/or mode of delivery in its plan by up to 10 EFTS regardless of the size of its fund.
We provide examples below of how this will work in practice.
Example 1
A PTE has 50 EFTS in a fund. It can change 10 EFTS from one existing qualification to another in the same fund provided that the qualification does not meet any of the other criteria listed. For example, the qualification must not increase a non-priority qualification in place of a priority qualification. It can also change the region where those EFTS are delivered for the same 10 EFTS, provided that the PTE already delivers provision in that region.
Example 2
A PTE has 200 EFTS in a fund. It can change 20 EFTS from one existing region to another (10%) provided it already delivers provision in that region. It can also change the qualification it delivers. For example, it can move 20 EFTS from Dunedin to Invercargill if it already delivers provision in these two regions. Of those 20 EFTS, it can also shift from an existing tourism qualification to an existing hospitality qualification, provided none of the criteria in paragraph 1 apply.
It has another 150 EFTS in another fund. It can change 15 EFTS from one qualification to another qualification for that fund, provided it has been approved for both modes.
It has 30 EFTS in another fund. It can change 10 EFTS from provider-based: extramural to provider-based mode of learning in that fund, provided it has been approved for both modes.
When does a PTE need TEC approval?
A PTE needs TEC approval to make any change when that PTE:
has between 1 and 100 EFTS in a fund and wants to change more than 10 EFTS from a qualification, credential, region and/or mode of delivery to another in the same fund, or
has 101 to 249 EFTS in a fund and wants to change more than 10% of its EFTS from a qualification, credential, region and/or mode of delivery to another in the same fund, or
has 250 or more EFTS in a fund and wants to change more than 25 EFTS from a qualification, credential, region and/or mode of delivery to another in the same fund.
If a PTE makes more than one change to its programmes or activities in a calendar year, it must seek our approval before the total changes made add up to more EFTS than the threshold allows. For example, if a PTE has 140 EFTS in a fund and it changes 10 EFTS in April and then wants to change another 5 EFTS in June, it would need TEC approval to change the 5 EFTS in June as this is more than the 14 EFTS (or 10%) that it can change without TEC approval in a calendar year.
Criterion: 4) For PTEs, in addition to paragraphs 1 and 2 above, if a PTE proposes to:
c) for hours-based funds only, change, by more than 5,000 hours:
the number of hours the PTE will deliver in a region (if currently provided for in its plan); or
the number of hours associated with a particular mode of delivery.
In relation to hours-based funds only, a PTE needs TEC approval if a PTE wants to:
change the number of hours it delivers in a region by more than 5,000 hours, or
change the number of hours associated with a particular mode of delivery by more than 5,000 hours.
How are the changes to EFTS value or learner hours counted for the PTE threshold in paragraph 4 of the SPA criteria?
The changes to EFTS or learner hours are only counted once. For example, if a PTE changes three EFTS from one qualification to another qualification, that is counted as three EFTS, not six.
Additional explanatory information in the Gazette notice
6) In determining whether an amendment to a plan is a significant amendment for the purposes of the above criteria in paragraphs 4(b) and 4(c), the PTE must take into account all changes to the plan in the calendar year, regardless of whether those changes have already been made. For the avoidance of doubt, the maximum allowable changes is the cumulative total of all changes made in the calendar year.
A PTE must seek our approval if the total changes proposed add up to more EFTS than the threshold allows. This includes when a PTE makes more than one change to its programmes or activities in a calendar year in relation to changes it could make under the thresholds.
For example, if a PTE has 200 EFTS in a fund and changes 15 EFTS from one region to another, this would not require TEC approval on its own (as it is less than 10%). However, if the PTE then wants to shift 10 EFTS from one qualification to another, cumulatively, the total changes are more than 10% (25 of its 200 funded EFTS) and the PTE would require TEC approval for the additional changes.
This does not include other changes that a PTE makes to provision because of other criteria. For example, if a PTE wants to shift 10 EFTS from priority provision to non-priority provision, these 10 EFTS wouldn’t be counted.
7) Any over-delivery for which a TEO will receive flexible funding, or any delivery up to 105% (if such a limit is specified in the relevant funding conditions), does not require a significant amendment to a plan and is treated as if it is specified in the mix of provision.
The SPA criteria do not apply for allowable over-delivery, so TEOs will not be required to submit a proposed SPA in these circumstances. For example, the tolerance bands allow for over-delivery up to 105% of Delivery at Levels 3 to 7 (non-degree) on the New Zealand Qualifications and Credentials Framework and all industry training Fund (DQ3-7) and Delivery at Levels 7 (degree) to 10 on the New Zealand Qualifications and Credentials Framework Fund (DQ7-10).
This includes flexible funding for eligible TEOs of up to 102% or 10 EFTS, whichever is larger. This means that TEOs are funded for delivery up to 102%, provided they meet the flexible funding requirements.
How will the SPA criteria work with over-delivery?
Scenario
Flexible funding rule
SPA criteria
Outcome
A PTE has 15 EFTS in DQ3-7.
The flexible funding rule does not apply as they have fewer than 20 EFTS.
They can change up to 10 EFTS (under the PTE thresholds) without requiring TEC approval.
The PTE can change the region of 10 EFTS from x to y, for example, without seeking TEC approval (provided no other criteria apply).
A PTE has 150 EFTS in DQ3-7.
The flexible funding rule applies, and they can deliver up to 160 EFTS.Note: 10 EFTS is greater than 2%.
The PTE can change up to 10 EFTS without requiring TEC approval.
The PTE can change the mode of delivery of 10 EFTS from online to provider-based, for example, without seeking TEC approval (provided no other criteria apply).
A TEI has 1,000 EFTS in DQ7+.
The flexible funding rule applies, and they can deliver up to 1,020 EFTS.
The TEI can deliver an additional 20 EFTS in any type of provision, regardless of whether it is priority or non-priority provision.
The TEI must seek approval to shift funding from priority to non-priority provision based on their approved Mix of Provision (MoP). For example, in their approved MoP, 30% of provision is priority and 70% is non-priority.Increasing non-priority provision above 70% requires a SPA. The calculation excludes the additional 20 EFTS delivered through flexible funding.
Criteria for replacement of a plan
Criterion: if a TEO proposes to:
8) change the TEO’s mission and role detailed in its plan in a way that is not consistent with the mission and role in its approved plan
A TEO needs TEC approval to replace its plan when it wants to change its mission and role in a way that is inconsistent with those in its current plan.
For example, if a TEO’s mission and role are predominantly focused on supporting learners to study health care and it wants to move into horticulture, this proposal changes its role in the network of provision and its overall mission.
Criterion: if a TEO proposes to:
9) make a change to a qualification, credential, region and/or mode of delivery over the course of a year that affects 50% or more of the TEO’s total programmes or activities, when measured by EFTS or hours learned, and where the total number of EFTS changing is 50 or more. For the avoidance of doubt, this includes cumulative changes made over the current year.
A TEO needs TEC approval to replace its plan when it wants to change 50% or more all its programmes or activities.
This applies to all the on-Plan funds for which it receives TEC funding.
This includes changing a qualification, credential, region and/or mode of delivery, measured by EFTS or hours learned.
TEOs that have fewer than 100 EFTS in total do not need to submit a Replacement Plan under this criterion. It only applies where the total number of EFTS (or equivalent hours) changing is 50 or more. A TEO with fewer than 100 EFTS would still be subject to the SPA criteria.
For example, if a TEO delivers 120 EFTS in agricultural qualifications in Canterbury, and it wants to shift 60% of those qualifications to Marlborough (72 EFTS), the TEO would need to submit a proposed Replacement Plan for TEC approval.
Part 2. SPA and RP assessment criteria
10) The criteria for assessing a significant amendment to or replacement of a plan are the same as the criteria prescribed by the TEC under section 424 of the Act for assessing proposed plans, set out in the current Education (Proposed Investment Plans: Content and Submission; Assessment Criteria; and Plan Summaries) Notice.
To assess a TEO’s request to change its plan based on the SPA and RP criteria, we will use the same assessment criteria that we use to assess proposed Investment Plans.
The assessment criteria are set out in a Gazette notice titled Education (Proposed Investment Plans: Content and Submission; Assessment Criteria; and Plan Summaries) Notice. It includes the year that it was published at the start of its title.
If a TEO’s Plan has been approved for the 2026 investment year, they should refer to the relevant Gazette notice. See the current Gazette notice for investment in 2026.
This includes the assessment criteria that TEC will use to assess a proposed SPA or RP when the criteria come into effect on 1 January 2026.
What do TEOs do if they meet the criteria?
We will provide further information on a process prior to the criteria (ie, the Gazette notice) coming into effect on 1 January 2026.
What should a TEO do before 1 January 2026 if it wants to change its Plan?
At this stage, there are no set criteria before 1 January 2026. If you are considering changes, then, as a first step, you will need to contact your Relationship Manager (RMI) or our Customer Contact Team.
If you have any questions, please contact 0800 601 301 or customerservice@tec.govt.nz using the subject line: [EDUMIS #] Significant Plan Amendment / Replacement Plan.
