Govt Unveils Final-Year Fees Free Scheme Starting January 2025

Tertiary Education and Skills Minister Penny Simmonds announced the initiative, emphasizing its goal to reward commitment and incentivize completion.

Starting January 1, 2025, first-time tertiary learners in New Zealand will benefit from a new Final-Year Fees Free Scheme, offering up to $12,000 for their last year of provider-based study or the final two years of work-based learning. Tertiary Education and Skills Minister Penny Simmonds announced the initiative, emphasizing its goal to reward commitment and incentivize completion.

“This approach acknowledges students' hard work and motivates them to finish their qualifications,” says Ms. Simmonds. “It reflects the Government’s focus on fostering educational success and delivering value to learners and their communities.”

The Final-Year Fees Free applies to study at Level 3 and above on the New Zealand Qualifications and Credentials Framework. Payments will be disbursed after learners complete their first qualification or programme, with the initial payments available in 2026 for studies completed in 2025.

A Shift from First-Year to Final-Year Focus

The scheme replaces the existing First-Year Fees Free, which concludes at the end of 2024. This policy shift aligns with the National-New Zealand First Coalition Government’s commitment to prioritize completion over initial enrollment. Cabinet approved the final-year model in April 2024.

“The focus is on incentivizing success rather than just participation, ensuring tertiary education funding delivers tangible benefits for both learners and the economy,” Ms. Simmonds explained.

Simplified Implementation

The policy will be administered jointly by the Tertiary Education Commission (TEC) and Inland Revenue (IR), with payments handled via myIR to ensure efficiency. Learners can claim their entitlement from early 2026 through a streamlined data-sharing process.

Additional Benefits of the Final-Year Fees Free Scheme

• Motivational Impact: Encourages students to persist through the challenges of study, reducing dropout rates.
• Workforce Readiness: Supports students transitioning into skilled employment by alleviating financial burdens.
• Flexibility for Learners: Includes provider-based and work-based learning to cater to diverse career paths.

Broader Educational Support

This initiative is part of the Government’s broader commitment to preparing New Zealanders for future success, aligning with efforts to enhance vocational training and tertiary education pathways.

“We are creating opportunities that reward perseverance, support educational success, and set learners on the path to fulfilling and prosperous careers,” Ms. Simmonds said.

With the introduction of this forward-thinking scheme, New Zealand takes another step toward a future where education is a gateway to opportunity for all.