For the Performance Based Research Funding Exercise of 2012, two principles for eligibility were enunciated by the New Zealand Tertiary Education Commission, whereby those submitted were firstly expected to contribute to the learning environment at the degree level and/or secondly make a substantive contribution to research activity. The accompanying eligibility guidelines defined how these principles were to be realized by participating Tertiary Education Organizations. However the interpretation of the teaching eligibility guidelines appears to have been widely inconsistent between institutions. This has raised considerable debate relating to inclusion/exclusion of researchers and reporting of quality scores. For the non University participants it also raises concerns for equity of treatment, and significant questions around the definition of degree level teaching.