Starting January 1, 2025, first-time tertiary learners in New Zealand will benefit from a new Fees Free entitlement of up to $12,000 for their final year of provider-based study or the final two years of work-based learning.
This initiative, announced by Tertiary Education and Skills Minister Penny Simmonds, is designed to reward students’ commitment and encourage them to complete their qualifications.
“Targeting funding to the final year of study rewards students’ hard work and dedication, motivating them to complete their qualifications and achieve their goals,” said Simmonds.
The final-year Fees Free entitlement applies to learners studying at Level 3 or above on the New Zealand Qualifications and Credentials Framework. Payments will be available from 2026 for studies completed in 2025, ensuring students are supported as they approach the culmination of their educational journeys.
This policy replaces the existing first-year Fees Free scheme, which will end for new learners at the close of 2024. The change fulfills a commitment by the National-New Zealand First Coalition to implement a final-year model, approved by Cabinet in April 2024.
The new approach focuses on incentivising educational success and ensuring that tertiary education funding delivers the maximum benefit for learners and their communities.
“This decision reflects the Government’s focus on incentivising educational success and ensuring funding delivers maximum value for both learners and communities,” said Simmonds.
The policy will be administered by the Tertiary Education Commission and Inland Revenue. Eligible learners can claim their entitlement through the myIR system starting in early 2026, supported by streamlined data-sharing processes.
“This Government is focused on fostering educational achievement, rewarding perseverance, and preparing learners for bright futures,” Simmonds added.
Image credit: Joshua Hoehne
All making people pay student fees for already publicly funded tertiary education institutions, is, in essence, imposing a double tax levied on families, who are the future of this nation. I never agreed with it when it came in, in the 1990’s and I still don’t today.
This is a ersatz measure that, in a grudging, mean spirited way, reflects how dissatisfied with the Yank style neo liberal users pays model of tertiary education. A model that no doubt drives people off shore so they can earn as much as they can to pay the usurious thing back.
Fully agree.
Putting students in debt, the equivalent of a mortgage with no asset backing, is iniquitous and shortsighted.