New Tertiary Research Excellence Fund Unveiled to Reduce Administrative Burden

The TREF builds on earlier decisions made by Cabinet in August 2025 and represents one of the most significant reforms to tertiary research funding in recent years.

The New Zealand Government has confirmed the final design of a new Tertiary Research Excellence Fund (TREF), a major reform aimed at strengthening the country's research sector, encouraging innovation, and reducing administrative burdens on tertiary institutions. The new funding model, approved by Cabinet, will replace the long-standing Performance-Based Research Fund (PBRF) and invest approximately $315 million annually into research capability across the tertiary education system. Announcing the changes, Minister for Tertiary Education and Minister of Science, Innovation and Technology Penny Simmonds said the new framework is designed to better align research activity with New Zealand's economic growth ambitions while simplifying the process through which institutions access research funding.

The TREF builds on earlier decisions made by Cabinet in August 2025 and represents one of the most significant reforms to tertiary research funding in recent years. Funding under the new model will continue to be allocated based on the research performance of participating tertiary education providers, but with a stronger emphasis on measurable impact and outcomes. According to the Government, the reform aims to create a more efficient and responsive funding system that rewards both research excellence and the real-world value generated by academic work.

Reduced Compliance Requirements Expected to Benefit Universities and Researchers

One of the key objectives of the new TREF is to significantly reduce compliance costs and administrative workloads that have long been associated with the Performance-Based Research Fund. Under the PBRF system, researchers were required to compile detailed individual Evidence Portfolios to demonstrate the quality and impact of their research. The process has often been criticised by universities and academics for being time-consuming, resource-intensive, and burdensome.

Minister Simmonds said the TREF will move away from this approach, allowing tertiary institutions to focus more on conducting research and less on meeting complex reporting requirements. "The new fund will significantly reduce compliance costs for tertiary education organisations," Simmonds said. "It enables a move away from the burdensome process of assembling individual Evidence Portfolios that was required under the PBRF."

The Government believes that reducing administrative obligations will free up valuable time and resources, enabling researchers to focus on innovation, knowledge creation, and collaboration with industry and communities. The streamlined approach is also expected to improve efficiency across the tertiary sector while maintaining accountability for public investment in research. The Tertiary Research Excellence Fund will continue to recognise high-quality research but will do so using a framework that is intended to be more modern, flexible, and better suited to today's research environment.

New Metrics Will Reward Commercialisation, Citations and Policy Outcomes

A major feature of the TREF is its increased emphasis on research impact, reflecting the Government's goal of ensuring publicly funded research contributes more directly to economic development, innovation, and public policy outcomes. The new funding framework will place greater weight on external research income, recognising institutions that successfully attract investment from industry, government agencies, and international partners.

In addition, several new performance measures will be incorporated into funding assessments. These include research citations, commercialisation outcomes, and policy impacts, providing a broader evaluation of how research contributes to society and the economy. By recognising commercialisation achievements, the Government hopes to encourage stronger links between researchers and businesses, helping translate academic discoveries into products, services, and technologies that can generate economic value. The inclusion of policy impact metrics is also expected to reward research that informs government decision-making and contributes to improved public services and social outcomes.

Minister Simmonds said the TREF is designed to support New Zealand's future workforce and innovation needs by creating incentives for research that delivers meaningful results. "The TREF will support New Zealand's future skills and innovation needs by rewarding research excellence and impact in a more responsive and efficient way," she said.

The final design of the fund has been shaped by extensive consultation and expert advice. A University Advisory Group chaired by renowned scientist and academic leader Sir Peter Gluckman played a central role in developing recommendations for the new model. The Government also engaged with sector experts, universities, and other stakeholders throughout the design process.

Implementation of the new framework will now move into the operational phase. The Tertiary Education Commission has been tasked with commencing detailed operational design work immediately to ensure a smooth transition from the existing PBRF system.

The changes will be introduced gradually beginning in 2027, allowing institutions time to adapt to the new requirements and funding arrangements. Full alignment with the TREF framework is expected by 2029, when funding allocations will be entirely based on the new model.