New Zealand’s vocational training system has changed significantly. Industry Training Organisations (ITOs) have been disestablished and replaced by Industry Skills Boards (ISBs). The shift has brought new structures, new responsibilities, and new points of contact for businesses and training providers.
The reforms didn’t happen overnight. They’ve been unfolding since the 2019 Review of Vocational Education, and some aspects are still evolving today. Understanding the new system is important for any organisation involved in workforce training.
In this blog, we’ll explore:
- What ITOs and ISBs are, and how they differ
- The eight Industry Skills Boards and what they cover
- Why ITOs were disestablished
- How the transition has unfolded
- What changed for employers and training providers
- What’s still being worked out
What is an Industry Training Organisation?
An Industry Training Organisation (ITO) was an industry-owned body. It was responsible for setting national skill standards and arranging workplace training for apprentices and trainees. There were 11 ITOs in total, each covering a specific set of industries.
They were established under the Industry Training Act 1992. They were funded by a combination of government and industry contributions.
What are Industry Skills Boards?
Industry Skills Boards (ISB) are an active industry-led body. They are responsible for setting and maintaining qualifications, endorsing training programs, and advising on workforce development priorities. There are eight ISBs, each covering a broad group of industry sectors.
They came into effect on 1 January 2026. They were established under the Education and Training (Vocational Education and Training System) Act 2025 and the Education and Training Act 2020 (as amended).
The Eight Industry Skills Boards in New Zealand
- Automotive, Transport and Logistics ISB. Covers motor vehicle trades, road transport, and logistics. Relevant for businesses in trucking, automotive repair, warehousing, and supply chain operations.
- Construction and Specialist Trades ISB. Covers building, construction, plumbing, electrical trades, and specialist construction sectors. Businesses operating in the residential or commercial build space fall under this ISB.
- Food, Fibre and Forestry ISB. Covers agriculture, horticulture, food processing, forestry, and aquaculture. Relevant for primary producers, processors, and businesses across the rural and fishing sectors.
- Energy and Infrastructure ISB. Covers civil infrastructure, electricity supply, telecommunications, and water industries. Businesses involved in infrastructure projects, utilities, or telco fall under this board.
- Manufacturing and Engineering ISB. Covers engineering trades and manufacturing. Relevant for businesses involved in fabrication, production, and technical trades outside of construction.
- Services Industry Skills Board. Covers hospitality, tourism, retail, business administration, hair and beauty, sport and recreation, and security. This is one of the broadest ISBs, spanning a wide range of consumer-facing industries.
- Education, Health and Community ISB. Covers health, education support, social services, and community work. Relevant for care providers, community organisations, and education support roles.
- Electrotechnology and Information Technology ISB. Covers electrical engineering, electronics, digital technology, AI, cybersecurity, and screen and game development. Relevant for tech businesses and trades working across both physical and digital infrastructure.
What is a Workforce Development Council?
Workforce Development Council (WDC) was an industry-led body responsible for setting qualifications and skill standards, endorsing training programs, and advising the Tertiary Education Commission (TEC) on funding priorities. Six WDCs were established in October 2021 as part of the Reform of Vocational Education.
However, WDCs were disestablished on 31 December 2025. Their functions have since been transferred to ISBs.
What is a PTE?
Private Training Establishments (PTEs) are privately operated organisations that deliver post-school education and vocational training. PTEs must be registered with the New Zealand Qualifications Authority (NZQA) and meet national quality standards. Registered PTEs can apply for TEC funding.
PTEs sit alongside polytechnics and wānanga as key training providers in New Zealand’s VET system. They tend to specialise in specific industries or skills.
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What Happened to ITOs?
ITOs were disestablished as part of the Reform of Vocational Education (RoVE) in February 2019. RoVE is the most significant overhaul of New Zealand’s vocational education system since 1992. It moved standard-setting functions to WDCs and training arrangement functions to Te Pūkenga. Both entities have since been replaced. ISBs now handle standard-setting, while polytechnics, PTEs, and wānanga have taken over training delivery. The reforms are a direct response to longstanding problems that had been building for years. These are:
Fragmentation
By the mid-1990s, over 50 ITOs operated across New Zealand. That number had reduced by the time of the reforms, but the system remained fragmented. ITOs operated independently. There was limited coordination between them or with the broader tertiary education sector. Polytechnics and ITOs often competed rather than collaborated, even when serving the same industries.
Duplication
Fragmentation led to duplication. Similar qualifications existed across multiple ITOs. Resources were spent on functions that could have been consolidated. The funding system made things worse by effectively pitting the polytechnic pathway against the workplace training pathway.
Employer Confusion
For businesses, the result was a system that was hard to navigate. With multiple ITOs covering overlapping industries, employers often weren’t sure who to contact or who was responsible for what. That confusion was a direct barrier to participation in workforce training.
The goal of RoVE was to fix all three.
How the Transition Unfolded
The shift from ITOs to ISBs didn’t happen in a single step. It has unfolded over several years, with multiple structural changes along the way.
- February 2019: RoVE announced by Minister of Education, Chris Hipkins.
- April 2020: Legislation passed. Te Pūkenga established to eventually merge 16 polytechnics.
- October 2021: Six Workforce Development Councils established. Standard-setting functions transferred from ITOs to WDCs.
- 2021 to 2022: ITOs transitioned training arrangement functions to Te Pūkenga, operating as transitional ITOs in the interim.
- January 2023: All 16 polytechnics formally merged into Te Pūkenga.
- December 2023: Incoming National-led government announced its intention to disestablish Te Pūkenga.
- October 2025: Legislation passed to disestablish Te Pūkenga and establish ISBs.
- 1 January 2026: Eight ISBs established. Ten regional polytechnics stood up. Work-based learning divisions transferred to ISBs.
- 31 December 2026: Te Pūkenga (now operating as NZIST) to be fully disestablished.
- 1 January 2028: All work-based training programs must transfer from ISBs to polytechnics, PTEs, or wānanga.
What is Retained and What is Lost
Apprenticeships and traineeships continue. Qualifications remain valid. The people delivering training on the ground are largely the same. What has changed is the governance structure sitting above them.
The hands-on training arrangement function that ITOs once provided no longer sits with them. Providers such as polytechnics and PTEs are now responsible for managing all aspects of an apprenticeship or traineeship, including pastoral care for learners.
Funding has also changed. ITOs were funded through a combination of government and industry contributions. ISBs draw on core public funding, fees for quality assurance services, and optional industry levies. That direct financial link between industry and training support has changed shape. Its long-term implications are still playing out.
What It Means for Employers
Who to Engage With Now
Under the old system, employers dealt with a single ITO for both training standards and training arrangement. That’s no longer the case.
Your relevant ISB is now the body to engage with on qualifications, standards, and workforce training priorities. To find your ISB, identify which of the eight boards covers your industry using the TEC’s ISB coverage page.
For enrolling apprentices and trainees, your contact point depends on which work-based learning division or provider is operating in your sector. That will change as divisions transition to PTEs and polytechnics through 2026 and 2027.
Practical Next Steps for Employers
If you currently have apprentices or trainees enrolled, nothing changes immediately. Existing training agreements transfer automatically. Continue working with your current training contact.
If you are looking to enrol new apprentices or trainees, reach out to the work-based learning division or provider relevant to your sector. If you are unsure who that is, the TEC’s employer information page is a good starting point.
If you want to have a say in how training is shaped for your industry, connect with your relevant ISB. These bodies are actively building industry engagement and want input from employers.
What It Means for Training Providers
Changes to Accreditation and Program Approval
NZQA updated its rules in January 2026 to reflect the new VET system. The terminology has shifted from WDCs to ISBs throughout, and several requirements have been simplified.
Providers no longer need ISB endorsement for Type 2 changes to programs. The sub-contracting rules have also moved into the new Quality Assurance of Tertiary Education Providers Rules. For PTEs, financial reporting requirements have shifted from annual to biennial, unless NZQA specifically requires otherwise.
The fully updated rules are available on the NZQA website.
Working With ISBs
ISBs are now the relevant body for program endorsement. For any program that leads to a vocational qualification, providers need to work with the ISB that covers their industry sector to get that program endorsed before NZQA approval.
ISBs are also playing a direct role in determining which providers receive work-based training responsibilities. Through 2026 and 2027, work-based learning divisions will transition out of ISBs and into polytechnics, PTEs, and wānanga. The ISB recommends which provider should receive the provision. The TEC board makes the final call. Providers interested in taking on work-based learning in their sector should engage with their relevant ISB and the TEC early.
It’s worth noting that PTEs don’t operate independently of ISBs. ISBs set the standards and endorse the programs that PTEs must meet and deliver. A PTE’s ability to deliver funded vocational training is directly tied to the standards and endorsements set by the relevant ISB.
What’s Still Evolving
As of 1 January 2026, the new system is in place. Eight ISBs are operating. Ten regional polytechnics have been re-established. Work-based learning divisions that previously sat under Te Pūkenga have temporarily transferred to ISBs and must fully transition to providers by 1 January 2028.
Several significant questions remain open:
- Four polytechnics, NorthTec, WITT, Whitireia and WelTec, and Tai Poutini, remain within NZIST while decisions are made about their financial viability and long-term model.
- How ISBs will coordinate on qualifications and training pathways that span multiple sectors is untested.
- The network of PTEs, polytechnics, and wānanga that will ultimately deliver work-based learning is still being built out.
The VET sector has experienced two major structural reforms in five years. The current system only became fully operational in January 2023 before another overhaul began. Sector confidence is still rebuilding, and the pace of change has left many organisations navigating ongoing uncertainty.
Navigating the New VET Landscape
The shift to ISBs brings real change for training providers. Providers must meet new endorsement requirements and adapt to evolving delivery responsibilities. Having the right systems in place matters more than ever.
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Get in touch with our Sales team to find out how Cloud Assess fits your organisation.
Frequently Asked Questions (FAQs)
FAQs about Industry Skills Boards
What Is the Difference Between an ITO and an ISB?
In the past, ITOs set standards and arranged training. They were the single point of contact for both functions. ISBs only handle standard-setting. Training delivery now sits with polytechnics, PTEs, and wānanga.
Where Can I Find My Relevant Industry Skills Board?
The Tertiary Education Commission maintains a full list of ISBs and their industry coverage. Visit the TEC’s ISB page to find which board covers your sector.
Why Were ITOs Disestablished in New Zealand?
ITOs were disestablished as part of RoVE in 2019. The review identified fragmentation across too many organisations, duplication of qualifications, and employer confusion about who to engage with.
What is NZIST?
NZIST stands for New Zealand Institute of Skills and Technology. It is the operating name for Te Pūkenga during its wind-down period. It is acting as a transitional entity to support program handover until its full disestablishment at the end of 2026.
Do ISBs Affect How My Business Pays Its Training Levy?
Industry levies under the new system are optional. ISBs can introduce a levy if there is industry support, but this requires agreement on scope and fee amounts. Check with your relevant ISB for the most current information.
What Happens With Training Agreements Under the New ISB System?
Existing training agreements transfer automatically. If you currently have apprentices or trainees enrolled, nothing changes immediately. For new training agreements, you will sign with a training provider such as a polytechnic or PTE rather than an ITO. The process is similar, but your point of contact has changed. Reach out to the work-based learning division or provider operating in your sector to get started.
