Parliament has given a third reading to the Education (Tertiary Education and Other Matters) Amendment Bill, which will come into force on the day after it receives the Royal Assent.
The bill gives the Tertiary Education Commission new powers under the Act to monitor the tertiary sector and to hold providers to account.
A new offence provision of falsifying a student's record has been introduced and the penalty has increased to a fine not exceeding $50,000.
The new law recognises community tertiary education providers as a new type of private training establishment. These are not-for-profit community groups which provide tertiary education for the public good.
Education Minister Chris Hipkins says the new category will allow the public to distinguish community tertiary education providers from for-profit education providers.