Fee cap for micro-credentials

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Source: Tertiary Education Commission

Last updated 2 October 2024

A maximum fee limit applies to some micro-credentials.

Fee regulation settings for micro-credentials are published in the funding mechanisms.

Funding mechanisms and delegations

From 1 January 2025, the maximum that you can charge for micro-credential fees is $64 (GST inclusive) per credit, if approved for Tertiary Education Commission (TEC) funding. This includes both new and existing micro-credentials.

This fee limit only applies to micro-credentials funded through the following funds:

Delivery at Levels 3 to 7 (non-degree) on the New Zealand Qualifications and Credentials Framework (NZQCF) and all industry training (DQ3-7
Delivery at Levels 7 (degree) to 10 on the NZQCF (DQ7 -10).

Note: fees charged for industry training (i.e. programmes or micro credentials funded under DQ3-7 in the work-based modes of delivery are exempt from fee caps for micro-credentials.

It does not apply to micro-credentials delivered in work-based learning modes funded through DQ3-7, or micro-credentials that are part of an approved programme leading to a qualification on the NZQCF.

For micro-credentials that are part of an approved programme leading to a qualification on the NZQCF, AMFM rules apply. For more information about the AMFM, see Annual Maximum Fee Movement (AMFM).

You may apply for an exception to the fee limit. You will need to provide evidence that the micro-credential is:

  • financially unsustainable to deliver, in terms of the cost of delivery and considering the total income the micro-credential would generate (including government funding and fees), and that there are no satisfactory alternatives to limit costs;
  • and supported by industry and/or employers to deliver the micro-credential and that it clearly meets industry and/or employer needs.

Applying for an exception to the fee limit

Information on fee limits to micro-credentials, including exception criteria, can be found at Fee cap for micro-credentials.

Re-prioritising funding from existing allocation

If we approve a micro-credential for funding, we expect that in most cases TEOs will re-prioritise funding from within their existing allocation. To do this, you will need to make an in-year Plan Amendment via a MoP change in DXP Ngā Kete.

You can increase the number of learners you enrol in the micro-credential over time (and make any necessary changes to the MoP) but you would need to ensure that the micro-credential continues to meet the priorities set out in the Tertiary Education Strategy, Plan Guidance and Supplementary Plan Guidance in force at the time of the proposed increase.

Plan Guidance and Toolkit
Tertiary Education Strategy

If we approve your micro-credential for funding and you would like to seek additional funding for it, you can submit an additional funding request either at the time of your micro-credential application, or after it is approved. You will need to follow the standard process for additional funding. You can do that as part of the annual investment round or as an in-year additional funding request.

We may consider investing additional funding to support micro-credentials if there is an exceptionally compelling case for strong employer or community demand and a clear contribution to government priorities.

In considering further funding, we will look at the performance of existing provision by the TEO, including whether their existing allocation can be reprioritised from lower performing provision to the micro-credential.

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