Voluntary Bonding Schemes

About the schemes

Are you a graduate teacher looking for your first teaching role? Or maybe you have already started at a school or kura that is part of the voluntary bonding schemes? If eligible, you can receive lump-sum payments to pay off your student loans faster or receive a cash payment if you don’t have a student loan.

There are 2 types of voluntary bonding schemes: the ongoing scheme and the expansion scheme. They have different eligibility criteria and payments for teachers. You can apply for 1 scheme only.

Ongoing scheme

To be eligible for the ongoing scheme, you must be teaching in a decile* 1 or an isolated school or kura.

You can apply for payments within the 12 months after completing your third, fourth or fifth consecutive year of teaching.

Expansion scheme

To be eligible for the expansion scheme, you must:

• be a teacher in an Auckland decile 2 or 3 school or kura; or
• be a teacher in a kaupapa Māori/Māori-medium setting; or
• be teaching science, maths, teach or te reo Māori.

You can apply for a one-off payment within the 6 months after completing your third consecutive year of teaching.

*Voluntary bonding uses the decile system as a targeting measure. We are currently reviewing and determining an appropriate replacement metric. The decile system will remain in place until we have made a decision and implemented a new metric. We will not change eligibility until then – this includes, for example, requests from schools based on their equity index.

Additional eligibility criteria

In addition, to be eligible for either scheme, you must be:

• a New Zealand Citizen or permanent resident
• a New Zealand-trained teacher
• provisionally certified
• teaching at least 0.5 full-time teaching equivalent (FTTE)
• teaching at an eligible school or kura.

Check your eligibility

Other key information

• All VBS payments are taxable lump sums.
• VBS payments will be paid onto your student loan balance if you have one. If the VBS payment exceeds your remaining loan balance, IRD will refund the difference at the end of the tax year.
• If you have received any other sort of TeachNZ scholarship, your eligibility for VBS or the payment values may be impacted.
• Periods of extended leave without pay (for example, parental leave) can impact your eligibility and when you should apply.
• During our peak busy period December to March, VBS processing times can be slower than usual. Applicants will receive an automated message which gives an indication of current processing times.
• Scheme payments are subject to income tax, an ACC earners levy, and may have an impact on your income tax obligations, Working for Families payments, and child support payments, etc.
• We suggest that you seek independent tax advice on how scheme payments will affect your tax position. For further tax information, contact Inland Revenue on 0800 775 247 or visit the IRD website.

Voluntary Bonding Scheme payments

Apply

If you are eligible and have completed your third, fourth or fifth year of teaching, complete the application form.

Voluntary Bonding Scheme application form [PDF, 366 KB]

We recommend looking at the application guide to help complete your application. 

Voluntary Bonding Scheme guidance [PDF, 298 KB]

Contact us

If you have any questions, we're here to help.

See our Contact us page for more information on how to get in touch.

Quote your MoE or applicant reference number if available.