Introduction to the Tertiary Research Excellence Fund
The New Zealand government has finalised the design of the Tertiary Research Excellence Fund, a major overhaul of how research is funded across the country's universities and other tertiary institutions. This new framework, known as TREF, replaces the long-standing Performance-Based Research Fund and commits $315 million annually to support research capability in the tertiary education sector. The changes aim to streamline processes while aligning research more closely with national economic priorities and innovation needs.
Background on the Previous Performance-Based Research Fund
For nearly two decades, the Performance-Based Research Fund served as the primary mechanism for distributing research funding to New Zealand's tertiary education organisations. It relied heavily on peer-reviewed assessments of individual researcher portfolios, a process that many described as resource-intensive and administratively burdensome. Over time, institutions and researchers alike called for reforms to reduce compliance costs and better reflect the evolving landscape of academic inquiry.
Official Announcement and Government Rationale
In early June 2026, the government confirmed the final structure of the Tertiary Research Excellence Fund following extensive consultation. The move is positioned as a response to the need for a more responsive and efficient system that rewards excellence and impact. Officials have emphasised that the new approach will lower administrative overhead while directing resources toward areas that deliver tangible benefits for New Zealand's economy and society.
Core Objectives and Design Principles of TREF
The Tertiary Research Excellence Fund is built around supporting research capability within universities and other tertiary providers. Its design prioritises a balanced set of metrics that include research degree completions, external research income, and field-weighted citation analysis. This metrics-driven model is intended to provide clearer signals about performance while encouraging collaboration and real-world application of research findings.
Funding Allocation Mechanisms and Metrics
Under the new framework, funding will be distributed based on a combination of established and updated indicators. Research degree completions remain a key component, recognising the importance of training the next generation of researchers. External research income from industry and other sources will carry significant weight, reflecting the government's push for stronger ties between academia and the private sector. Field-weighted citation analysis offers a quantitative measure of research influence across disciplines.
Institutions will benefit from reduced compliance requirements compared with the previous system. The Tertiary Education Commission will oversee implementation, working closely with universities to ensure smooth transition.
Photo by Sung Jin Cho on Unsplash
Timeline for Implementation and Transition
The Tertiary Research Excellence Fund is scheduled to fully replace the Performance-Based Research Fund by 2029, with transitional arrangements beginning earlier. This phased approach is designed to minimise disruption for researchers and institutions currently operating under the old rules. Early planning includes guidance on how existing contracts and assessments will be handled during the shift.
Perspectives from Universities and Researchers
University leaders have welcomed the emphasis on reduced bureaucracy while expressing cautious optimism about the new metrics. Many see opportunities for greater focus on applied research that supports New Zealand's key industries, including agriculture, technology, and health. Researchers in the humanities and social sciences have raised questions about how citation-based measures will account for the different ways impact is demonstrated in those fields.
Potential Impacts on Research Quality and Economic Growth
Proponents argue that the Tertiary Research Excellence Fund will strengthen New Zealand's research ecosystem by incentivising high-quality outputs that translate into economic and social benefits. By tying funding more explicitly to external income and completions, the system is expected to foster stronger partnerships between tertiary institutions and industry. This could enhance the country's innovation capacity and support workforce development in priority areas.
Challenges and Areas of Ongoing Discussion
Critics of the metrics-heavy approach point to risks that certain types of research, particularly fundamental or long-term inquiry, may receive less emphasis. There are also concerns about ensuring equity across disciplines and institutions of varying sizes. The government has indicated that ongoing monitoring and adjustments will be part of the rollout to address any unintended consequences.
Broader Context Within New Zealand's Science System Reforms
The launch of the Tertiary Research Excellence Fund occurs alongside wider changes to the national science and innovation system. These include the consolidation of Crown Research Institutes into new Public Research Organisations and the establishment of Research Funding New Zealand to oversee contestable funds. Together, these reforms signal a coordinated effort to make research more strategic and outcomes-focused.
Implications for Academics, Administrators, and Future Researchers
For academics, the new framework may influence decisions about research focus, collaboration, and career progression. University administrators will need to adapt internal processes to align with the updated metrics. PhD candidates and early-career researchers stand to benefit from continued emphasis on research degree completions, which could support stronger training pipelines in priority fields.
Future Outlook and Next Steps
As implementation proceeds, stakeholders across the higher education sector will be watching closely for details on exact weighting of metrics and support for transition. The Tertiary Research Excellence Fund represents a significant evolution in how New Zealand values and funds research excellence, with the potential to position the country more competitively on the global stage while addressing domestic priorities.
