You are liable for the $12000NZ cost of the foundation training. However, if you do not have this money to hand then you can have it added on to your loan as well as living costs for the 2 years that you will be training.
Any lessons that you do not use during the foundation training will indeed be paid back to you at $140 per lesson. Should you require remedial lessons above the standard amount(which CTC says is almost unheard of) then these will be charged to you at a cost of around $240 per lesson.