Entitlement – final-year Fees Free

This page sets out learner entitlement for final-year Fees Free.

On this page:

Learners starting study or work-based learning for the first time on or after 1 January 2025 can receive Fees Free for the final year of the first eligible qualification or programme they complete.

Learners cannot choose which qualification or programme they use final-year Fees Free for.

Fees Free will not cover any study or work-based learning undertaken before 1 January 2025.

What “final year” means

Provider-based study and work-based learning each have their own definition of the “final year”, and which fees final-year Fees Free entitlement covers.

To get Fees Free, the “final year” must have started on or after 1 January 2025.

This applies to both part-time and full-time study or learning.

Final year of provider-based study

The “final year” of provider-based study is the final 1 equivalent full-time students (EFTS), or up to $12,000 including GST (whichever the learner reaches first).

The “final year” of study may also be the first year of study for qualifications that are only 1 EFTS.

Final year of work-based study

The “final year” of work-based learning is the final 24 months of active training, or up to $12,000 including GST (whichever the learner reaches first).

Fees covered by Fees Free

Provider-based study fees

Fees Free covers tuition fees, compulsory study fees and student services fees.

No other fees, such as administration fees from StudyLink, are covered.

Work-based learning fees

Fees Free covers all training and assessment fees, including fees paid to tertiary education organisations (TEOs), or paid directly to training providers.

Maximum entitlement

Learners can receive up to $12,000 (including GST), 1 EFTS of study or 24 months of work-based learning – whichever occurs first.

Entitlement cannot be carried over

Entitlement must be used for one qualification or programme. Entitlement cannot be carried over to another qualification or programme if the learner does not reach 1 EFTS, 24 months or $12,000 for their first qualification or programme.

Limit on calculating total fees

There is a 5-year limit on how we will calculate the total fees for the final year of study or training. Fees will not be covered for study or training undertaken more than 5 years before completing the qualification or programme.

For example, a learner who starts their final year, takes a break from study and then returns to complete their study more than 5 years later will only be covered for study undertaken within the 5-year period.

Receiving entitlement

Applying for Fees Free

From 15 January 2026, learners can apply for Fees Free through myIR on the Inland Revenue (IR) website:

Apply for Fees Free – Inland Revenue

Entitlement will be transferred to student loan balance or paid to bank account

If a learner is determined to be eligible and has a student loan, their Fees Free entitlement will be transferred to their student loan balance first. This will happen even if the learner did not use the student loan to pay for the eligible qualification or programme they completed.

There is more information on what this means for the learner on the Inland Revenue website.

If a learner does not have a student loan, the Fees Free entitlement will be paid directly to the learner’s bank account.

Fees Free is not considered income for tax purposes

Fees Free entitlement paid to the learner will not be considered income for tax purposes.

Entitlement for alternative study or learning paths

There are some circumstances where a learner may still receive entitlement if their study or training does not follow a typical qualification or programme completion path.

Changing qualifications or programmes part way through study or work-based learning

Generally, learners cannot get Fees Free for study that has been cross-credited from a different qualification or programme.

Learners can get Fees Free if they changed TEOs in their final year and continue in the same qualification or programme. Fees Free will cover the final year of that qualification or programme across both TEOs.

Exit qualifications

Learners can get Fees Free where they accept a qualification at a lower level on the New Zealand Qualifications and Credentials Framework (NZQCF) or an “exit qualification”. Fees Free will cover the final 1 EFTS or $12,000 of the qualification they were enrolled in, prior to being awarded the exit qualification.

TEOs are asked to report exit qualifications using the “Linked Qualification for Fees Free” field in the Single Data Return. This lets the Tertiary Education Commission (TEC) know to include the courses reported under the original qualification when calculating the learner’s entitlement for the completed qualification.

Expired qualifications

Learners can get Fees Free if they complete a qualification that expires during their final year.

TEOs are asked to report expired qualifications using the “Linked Qualification for Fees Free” field in the Single Data Return. This lets TEC know to include the courses reported under the expired qualification when calculating the learner’s entitlement for the completed qualification.

Enrolling in multiple qualifications at the same time

For provider-based study, a learner enrolled in multiple qualifications at the same time, such as in a concurrent degree, will only receive Fees Free for the first qualification they complete. TEC will use the qualification completion dates reported by TEOs to determine the first completed qualification. If a learner completes both qualifications on the same date, Fees Free will cover the qualification with the highest fees.

Conjoint qualifications reported under one qualification code are considered a single qualification completion for final-year Fees Free.

For work-based learning, the learner will receive Fees Free for the first programme they complete (apprenticeship or training programme). Work-based learning is based on completion of the parent programme, rather than the qualifications or programmes that make up that parent programme, many of which will be under the 120-credit minimum.

Overseas exchange programmes

Learners can get Fees Free if they complete their final year of their qualification as part of a formal overseas exchange, arranged through their domestic provider. Fees Free will cover the last 1 EFTS or $12,000 the learner undertook at their domestic provider.

For example, if a learner goes on exchange for their final year of study, their eligibility will be calculated based on their second-to-last year of study.

Learners who study overseas in their final year that are not on a formal exchange programme cannot get Fees Free.