Implementation – final-year Fees Free
Implementation – final-year Fees Free
This page sets out the implementation plan for the final-year Fees Free policy.
This page sets out the implementation plan for the final-year Fees Free policy.
We will regularly update this page as details are confirmed for the service design of the final-year Fees Free policy.
On this page:
Claiming Fees Free entitlement
From 2026, after completing their first eligible provider-based qualification or work-based programme, learners will log in to myIR to confirm their eligibility if they meet the criteria, and claim their final-year Fees Free entitlement.
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 to claim their entitlement.
If eligible, the entitlement will either be paid against the learner’s student loan balance if they have one or, if not, will be paid to the learner’s nominated bank account. The first payments for completed qualifications will be made in early 2026.
Learners need to organise payment of their fees as required by their TEO. TEOs will not receive Fees Free payments from Tertiary Education Commission (TEC)/Inland Revenue (IR) on behalf of eligible learners under the final-year Fees Free policy.
Roles of agencies
The Ministry of Education leads the policy work for final-year Fees Free. The TEC and IR lead the implementation work.
TEC is responsible for collecting learner enrolment and qualification completion data from tertiary education organisations. TEC will determine qualification/programme eligibility, calculate entitlement for learners, and provide data to IR to support identity matching and the assessment of learner eligibility. TEC will continue to hold the relationship with TEOs with regards to Fees Free.
IR is responsible for assessing learner eligibility and paying entitlement to eligible learners. IR will provide support to learners through their customer service channels.
TEC will continue to support learners through our customer service channels for the remainder of 2024 and into 2025. Learners can also access information on the Fees Free website.
Data collection
To support the final-year Fees Free scheme, TEOs will need to submit learner fee and provider-based qualification completion data. To reduce ongoing administrative burden for TEOs, we plan to collect this data using the Single Data Return (SDR) and Industry Training Register (ITR) collection processes on DXP Ngā Kete, instead of the separate monthly reporting templates used for the first-year Fees Free scheme. However, this will require system changes to the SDR/ITR and to student/trainee management systems to ensure we collect the data required.
With the Data System Refresh (DSR) programme already underway, we are integrating the data collection requirements for final-year Fees Free into the existing DSR specifications.
Provider-based data changes will be integrated into the data specifications for SDR in May 2025. Fees Free data submissions will be required for the first time in the August 2025 SDR.
Work-based data changes are expected to be integrated into the work-based data specifications in December 2024. Fees Free data submissions will be required for the first time from July 2025.
Identity matching
We’re asking TEOs to collect and report learner IRD numbers to TEC to enable effective and efficient data matching across agencies and support the payment of Fees Free entitlement payments by Inland Revenue. A learner’s IRD number will be used alongside their NSN and date of birth to confirm their identity and assist with confirmation of their eligibility.
We are undertaking a Privacy Impact Assessment (PIA) for the collection of IRD numbers by TEOs, and the Ministry of Education has provided a summary of the initial PIA to the Office of the Privacy Commissioner.
We will provide TEOs with advice on the collection, retention and deletion of IRD numbers.
Frequently asked questions
If an employer pays for a learner’s fees, can the employer claim the entitlement when the learner completes their qualification?
Inland Revenue will only be making payments directly to learners – either offsetting their loan balance by the relevant amount for learners with loans or paying the learner’s entitlement into a nominated bank account.
The final-year Fees Free policy is about rewarding learners for completing their tertiary study or training. Paying Fees Free entitlement to employers does not align with this. It would also add significant administrative complexity and cost which does not align with the Government’s overall focus on improving the effectiveness, efficiency and responsiveness of public services.
Employers and learners will need to agree on how they will manage situations where the employer pays the fees. Employers may wish to adapt employment practices and contracts as necessary.
Are there tax implications for learners receiving the entitlement?
Fees Free entitlement paid to the learner will not be considered income for tax purposes.
There are tax implications if an employer has paid a learner’s fees and claimed them as an expense, and the learner agrees to repay the employer the Fees Free entitlement. Once the employer receives the payment from the learner the amount will be taxable to the employer.
Will statutory declarations still be used to confirm eligibility?
No. Learners will need to declare that they meet eligibility criteria when they apply for their Fees Free entitlement via myIR. They will be asked to provide relevant information and confirm that the information is true and correct as part of this process.
While creating the proposed implementation design, we considered the barriers that statutory declarations create for some learners and opted for an application process that could be completed digitally to reduce administrative complexity for learners and agencies.
Will TEOs be able to check a learner’s eligibility?
No, TEOs will not be able to check a learner’s eligibility.
Learners will be able to work through the eligibility criteria and determine if they think they meet them. In 2025, we aim to provide a tool for learners to self-assess their eligibility against the full criteria.
However, learners won’t be able to confirm their eligibility using their NSN until after they have completed their qualification or programme, and the TEC will not be providing a list of the eligible learners by NSN to TEOs. This is because we won’t know if the learner is eligible or not until they complete their qualification or programme, and they may need to submit additional information to IR to confirm eligibility.
We will provide TEOs with as much information as possible on entitlement settings and programme eligibility so they can help learners understand their entitlement.
What happens if the learner hasn’t paid their fees to the TEO?
TEOs will be responsible for ensuring that learners pay their fees and recovering any debt that the learner has. Fees Free entitlement will not be paid to the TEO where the learner has not paid their fees.
There is no intention to include a reporting field for TEOs to record whether fees have been paid in full, or to provide this information to Inland Revenue.
How soon after completion will learners receive their entitlement?
We will be ready to start making payments in early 2026, including payments for eligible learners that completed their qualification in 2025. A learner can apply for their entitlement at any time, but the frequency of payments is yet to be confirmed, as they rely on the frequency of data collection.