Entitlement – final-year Fees Free

Entitlement – final-year Fees Free

Last updated 31 October 2024
Last updated 31 October 2024

This page sets out a learner’s entitlement for the final-year Fees Free policy.

Final-year Fees Free entitlement is for the final year of the first eligible provider-based qualification or work-based programme a learner completes from 1 January 2025. Learners can’t choose which qualification or programme they use final-year Fees Free for.

Study or training undertaken on or after 1 January 2025 that a learner does not complete will not impact their eligibility for final-year Fees Free.

Entitlement is to be used within one provider-based qualification or work-based programme.

Fees will not be covered for study or training undertaken prior to 1 January 2025.

Learners can study either part-time or full-time. However, fees will not be covered for study or training undertaken more than 5 years before the qualification or programme completion date.

The “final year” of study may also be the first year of study for provider-based qualifications that are only 1 equivalent full-time student (EFTS).

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

Final year of provider-based study

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

Final-year Fees Free covers tuition fees, compulsory course costs and student services fees for provider-based learners.

Final year of work-based study

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

Final-year Fees Free covers all fees for training and assessment charged to eligible work-based learners and their employers, including fees paid to tertiary education organisations funded from the Delivery at Levels 3–7 (non-degree) on the New Zealand Qualifications and Credentials Framework and all industry training (DQ3-7) Fund, or directly to training and assessment providers.

Entitlement cannot be carried over

Entitlement must be used for the final year of one provider-based qualification or work-based programme. Entitlement cannot be carried over to another qualification or programme if the learner does not reach 1 EFTS, 24 months, or $12,000 including GST 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 qualification or programme completion.

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 their final year of study within the 5-year period.

Training Incentive Allowance

Learners who use the Training Incentive Allowance (TIA) to cover their course fees will not be able to access Fees Free for the final-year fees paid for the calendar year they received TIA funding.

This means a learner may use TIA to cover non-course costs, such as childcare or transport, during their final year and still receive Fees Free for their tuition, compulsory course costs, and student services fees. A learner may also use TIA in earlier years of their first qualification, and opt not to use TIA for course fees in their final year in favour of Fees Free. 

Learners who opt to use TIA for course fees in their final year and complete a qualification will not be eligible to receive Fees Free for the final year of a second qualification. 

The Ministry of Social Development will work with those applying for the TIA to help them make an informed decision on their use of the TIA and Fees Free.

Training Incentive Allowance – Work and Income

Receiving entitlement

From 2026, after completing their first provider-based qualification or work-based programme, learners will log in to myIR on Inland Revenue’s website to confirm their eligibility and claim their final-year Fees Free entitlement. The first payments for completed qualifications and programmes will be made in early 2026.

Learners have 12 months to claim their entitlement once they have completed their qualification or programme. Learners that complete their first qualification in 2025, before the claim process is available, will have until the end of 2026.

Only learners can claim their Fees Free entitlement. Employers that have paid learners’ fees may consider if it is appropriate to update employment agreements and/or arrangements with their employees.

Entitlement FAQs

What fees are included in learner entitlement?

Eligible fees for provider-based study include tuition fees, compulsory course costs and student services fees. No other fees, such as administration fees from StudyLink, will be covered.

Eligible fees for work-based learning include all fees for training and assessment that are covered by the learner or their employer.

If a learner does a shorter qualification and doesn’t use the full 1 EFTS or 24 months, can they carry over the remaining balance to another qualification?

No, there is no carry over for final-year Fees Free. Final-year Fees Free entitlement will only cover the first eligible provider-based qualification or work-based programme a learner completes. It won’t cover any subsequent qualifications or programmes. This includes situations where a learner enrols in two provider-based qualifications simultaneously or if they staircase from one qualification to the next.

Can a learner choose which qualification to use their entitlement on?

No, learners cannot choose which provider-based qualification or work-based programme they use their final-year Fees Free entitlement for. Fees for the final year of study or training will be payable to the learner on completion of their first eligible qualification or programme.

The learner won’t be eligible for final-year Fees Free for subsequent qualifications or programmes.