Annual Maximum Fee Movement (AMFM)

The Annual Maximum Fee Movement (AMFM) policy sets limits on fees that tertiary education organisations (TEOs) can charge learners. Its purpose is to promote affordable study for learners while allowing TEOs some flexibility in setting fees.

Looking to apply for an exception?

AMFM rates

The 2027 AMFM is 6.00 percent.
TEOs may increase their fees (GST exclusive) for eligible courses by up to 6.00 percent above what they charged in 2026.
The AMFM for 2026 was also set at 6.00 percent.

The AMFM rate for each year is published in the relevant year's funding mechanisms.

Funding mechanisms and delegations

When AMFM applies

The AMFM policy applies to courses funded through the following funds:

Delivery at Levels 3 to 7 (non-degree) on the New Zealand Qualifications and Credentials Framework (NZQCF) and all industry training (DQ3-7)
Delivery at Levels 7 (degree) to 10 on the NZQCF (DQ7-10).

It applies to:

fees that all domestic students are required to pay for provider-based learning, and
fees for courses established by a TEO that are a substitute for an existing course on the same or similar subject matter, at the same or a similar level on the NZQCF, and
fees for micro-credentials approved by the New Zealand Qualifications Authority (NZQA) to be part of a programme leading to a qualification.

For more information about micro-credential fees, see Micro-credentials.

When AMFM doesn't apply

The annual maximum fee movement does not apply to:

fees charged for programmes or micro credentials funded under DQ3-7 in the work-based modes of delivery
fees charged for stand-alone micro-credentials, which are fixed at a maximum of $64 per credit for provider-based learning
fees for new courses that are not substitutes for existing courses, where fees must be no more than the 75th percentile of fees charged for similar courses
low or zero fee courses, where fees can be increased to no more than the 75th percentile of fees charged for similar courses.

Low or zero fee courses

For 2027, if you charged less than $511.11 per EFTS (GST inclusive) for a DQ3-7 or DQ7-10 funded course in 2026, including where fees were set at zero, you may increase the fee in 2027.

The new fee cannot be higher than the 75th percentile of fees charged for similar courses.

More information on these requirements will be published soon.

This does not apply to fees that have been temporarily reduced from 2024.

Flexibility for fee reductions

From 2024, if you reduce fees for a course, or do not offer a course, across one or more calendar years, you can return to the maximum fee you charged before the reduction. You can then apply AMFM increases for the years in which the fee was reduced.

Note: This only applies from 2024. It does not apply to fee reductions made before 2024.

Corresponding polytechnics and corresponding courses (2026–27)

Specific AMFM rules apply to polytechnics established on or after 1 December 2025 delivering corresponding courses. They may:

charge the fee that applied to that course before 1 April 2020, plus AMFM increases for each subsequent year, or
depending on when the polytechnic was established, continue with the rate set by NZIST and increase that rate by the 2026 and/or 2027 AMFM.

Note: This provision is optional and time-bound (2026–27).

Definitions

Corresponding course means a course that:

was subject to NZIST’s programme unification process; and
is offered by a polytechnic established on or after 1 December 2025; and
is the same as or very similar to (as determined by the Tertiary Education Commission [TEC]) a course delivered by its corresponding polytechnic before 1 April 2020.

Corresponding polytechnic means a polytechnic that became a subsidiary of NZIST on 1 April 2020 that corresponds by name, location, or other unique identifying feature, to a polytechnic established on or after 1 December 2025.

AMFM classification (polytechnics)

What we’re defining

For the AMFM rule, we will treat any NZIST fee change between 1 April 2020 and the disestablishment of NZIST as part of its programme-unification activity. This includes programme roll-outs, network fee alignments, AMFM-only increases, and site-specific repricing.

What this allows

If you are a polytechnic established on or after 1 December 2025, you may charge the pre-1 April 2020 fee plus the cumulative AMFM for each subsequent year, provided:

the course’s fee was changed by NZIST at any point between 1 April 2020 and the disestablishment of NZIST
you are an eligible provider (a polytechnic established on or after 1 December 2025)
the course is the same as, or very similar to, the version offered by the corresponding polytechnic before 1 April 2020.

AMFM exceptions

Exception criteria

Under exceptional circumstances, you may be granted an exception that allows you to increase your 2027 fee by up to an additional 6.00 percent on top of the 6.00 percent permitted under the 2026 AMFM rule.

Applications must show that:

it is financially unsustainable to deliver the course, in terms of the cost of delivering the course and taking into account the total income that the course would generate (including government funding and tuition fees), and that there are no satisfactory alternatives to limit cost
existing fees for the course are no more than the 75th percentile of the range of fees charged for similar courses, and
in addition, any two of the following three criteria must be met:
- where the course is part of a programme at Levels 3–10 on the NZQCF that has been delivered previously, the programme has a cohort-based qualification completion rate that meets or exceeds the median performance benchmark for the NZQCF level in the previous year
- you can demonstrate that the course is in some way unique or special; for example, that there are no available local alternatives, and
- not allowing an exception will prevent you from making a significant contribution to the achievement of one or more of the government’s priorities, as set out in the Tertiary Education Strategy.

Note: There is a limit to the number of courses for which a TEO can request an exception each year. For details on this, see AMFM exceptions: Application guidelines and assessment information (PDF 493 KB).

How to apply for an exception to the AMFM

The application process for 2027 is now open.

Applications are due by 5.00pm, 27 November 2026.

Applications are only for courses that start between 1 January 2027 and 31 December 2027.

Submit applications and all supporting information to our Customer Contact Team at customerservice@tec.govt.nz. Use the subject line [EDUMIS] – Exception to the AMFM.

Use the following forms and templates to make your AMFM exception application: