Hon Penny Simmonds
Minister for Tertiary Education and Skills

From 1 January 2025, first-time tertiary learners will have access to a new Fees Free entitlement of up to $12,000 for their final year of provider-based study or final two years of work-based learning, Tertiary Education and Skills Minister Penny Simmonds says.

“Targeting funding to the final year of study rewards students’ hard work and dedication, motivating them to complete their qualifications and achieve their goals,” Ms Simmonds says.

The final-year Fees Free entitlement applies to learners studying at Level 3 and above on the New Zealand Qualifications and Credentials Framework.

Payments will be made after learners complete their first qualification or programme, with the first payments available in 2026 for studies completed in 2025.

This change delivers on the National-New Zealand First Coalition’s commitment to replace the first-year Fees Free scheme with a final-year model, approved by Cabinet in April 2024.

The new approach aims to incentivise success and maximise the value of tertiary education funding for both learners and communities.

“This decision reflects the Government’s focus on incentivising educational success and ensuring funding delivers maximum value for both learners and communities,” Ms Simmonds says.

The Tertiary Education Commission and Inland Revenue will implement the policy, with Inland Revenue handling payments through streamlined data-sharing processes. Eligible learners can claim their entitlement via myIR from early 2026.

The current first-year Fees Free scheme will conclude for new learners at the end of 2024.

This forward-thinking initiative highlights the Government’s commitment to supporting educational success and creating opportunities for New Zealanders.

“This Government is focused on fostering educational achievement, rewarding perseverance, and preparing learners for bright futures,” Ms Simmonds says.

Note:

For more information, please visit www.feesfree.govt.nz/final-year

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