New Zealand’s Vocational Education System: The Legislation is Passed – What Happens Now?

In my first two articles of this series, I explored the history of New Zealand’s vocational education system and the announcement of the 2026 reforms. With the legislation now passed and the sector rapidly preparing for implementation on 1 January 2026, it’s time to examine what comes next.

In late October 2025, the Education and Training (Vocational Education and Training System) Amendment Bill passed through Parliament. The passage of this legislation marks a turning point. What was announced as a concept in April 2025 is now law. From 1 January 2026, New Zealand’s vocational education landscape will fundamentally change…again.

Eight Industry Skills Boards Confirmed

The Government has confirmed eight Industry Skills Boards (ISBs) to replace the current six Workforce Development Councils. These new statutory bodies will be responsible for setting vocational education standards, developing qualifications, endorsing programmes, and moderating assessments.
The eight ISBs will cover: Automotive, Transport, and Logistics; Construction and Specialist Trades; Food, Fibre and Forestry; Infrastructure; Manufacturing and Engineering; Services; Health and Community; and Electrotechnology and Information Technology. Every subject area will fit into one of these ISBs, a change from the original plan to move some subjects under NZQA’s purview. It’s being framed as a win for industry, but my worry is that for really small subjects, there will be no representation in these ISBs.

Each ISB will have governance structures dominated by industry representatives, ostensibly designed to ensure that qualifications will be aligned with workplace needs. They will be funded through public funding, optional industry levies, and fees for quality assurance services. These QA fees concern me: they could restrict innovation, especially if QA policies aren’t made public. The WDCs each had their own policy, so six different ones, and none public which caused issues when providers would submit their proposals and would receive different feedback and interpretations of different elements under the NZQCF (New Zealand Qualifications and Credentials Framework). I hope the ISBs will create one consistent, published policy, though I’m not holding my breath.

Ten Regional Polytechnics Re-established

The legislation enables re-establishing ten regional polytechnics as independent institutions, dismantling Te Pūkenga. Cabinet has confirmed in principle which institutions will operate as standalone polytechnics, with some in a federation model anchored by The Open Polytechnic of New Zealand.

Unitec and Manukau Institute of Technology will stand up as a single entity. Otago Polytechnic and UCOL will be standalone within the federation. Four polytechnics: Whitireia and WelTec, Nelson Marlborough Institute of Technology, NorthTec, and Tai Poutini Polytechnic, will remain within a renamed transitional entity (the New Zealand Institute of Skills and Technology, or NZIST) while working toward financial viability. Decisions on their future are expected in the first half of 2026.

The Transition Challenge

The transition will be complex. Workforce Development Councils finish operations on 19 December 2025, with ISBs commencing on 1 January 2026. WDCs have been encouraging providers to submit outstanding applications by early October to ensure processing before handover. Any in-flight submissions will transfer to the newly established ISBs.

Very little was done prior to the legislation passing. With work on ISBs only really starting in late October and standing up 1 January, there’s very little time to hire staff and establish policies. 2026-2027 is being called the transition period, but surely the transition period should be before the changes happen? The transition is happening simultaneously with the change, meaning 2026 will almost certainly be chaos.

Questions Remaining

Significant questions remain unanswered. How will ISBs coordinate on cross-sector qualifications? What happens to the four polytechnics that cannot yet achieve financial viability? How will industry-led standard-setting work for industries outside traditional apprenticeship models?

The staff of WDCs and Te Pūkenga divisions face continued uncertainty. Many have lived through multiple restructures since 2020, and while their expertise is critical to the transition’s success, the human cost of constant organisational change should not be underestimated.

The legislation is passed. The structures are confirmed. Now comes implementation, always the hardest part. Whether this new model will address New Zealand’s fundamental vocational education challenges remains to be seen.

In my next article, I will examine the new Tertiary Education Strategy 2025-2030, which sets the broader policy direction and reveals how these vocational reforms fit into the Government’s vision.

By Stuart G. A. Martin, the Founder of George Angus Consulting