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 2026 AMFM is 6.0 percent.
TEOs may increase their fees (GST exclusive) for eligible courses by up to 6.00 percent above what they charged in 2025.
The AMFM for 2025 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

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) (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
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
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

Fees charged for industry training (ie, programmes or micro credentials) funded under DQ3-7 in the work-based modes of delivery are exempt.

Flexibility for fee reductions

From 2024, if you reduce fees for 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)

Special AMFM rules apply to polytechnics established on or after 1 January 2026 and business divisions of Te Pūkenga delivering corresponding courses.

From 1 January 2026, if a polytechnic established on or after this date (or a business division of Te Pūkenga) delivers a corresponding course it may:

charge the fee that applied to that course before 1 April 2020, plus AMFM increases for each subsequent year, or
continue with the rate set by Te Pūkenga and increase that rate by the 2026 AMFM only.

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

Definitions

Corresponding course means a course that:

was subject to Te Pūkenga’s programme unification process; and
is offered by a polytechnic established on or after 1 January 2026 or a business division of Te Pūkenga; 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 Te Pūkenga on 1 April 2020 that corresponds directly, either by name, location, or other unique identifying feature, to a polytechnic established on or after 1 January 2026.

AMFM classification (polytechnics and business divisions of Te Pūkenga)

What we’re defining

For the AMFM rule, we will treat any Te Pūkenga fee change between 1 April 2020 and 31 December 2025 as part of Te Pūkenga’s 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 January 2026, or a business division of Te Pūkenga, 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 Te Pūkenga at any point between 1 April 2020–31 December 2025
you are an eligible provider (2026 polytechnic or Te Pūkenga business division)
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 2026 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 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 2026 is now open.

Applications are due by 5.00pm, 28 November 2025.

Applications are only for courses that start between 1 January 2026 and 31 December 2026.

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: