The Annual Maximum Fee Movement (AMFM)
The Government regulates how much tertiary providers can increase their fees for domestic students each year through the AMFM. This caps the percentage increase on fees that can be charged for existing provider-based courses funded by the Tertiary Education Commission (TEC) for qualifications at level 3 and above on the New Zealand Qualifications and Credentials Framework (NZQCF).
When setting the AMFM, the Government aims to strike a balance between:
- protecting the affordability of tertiary education for learners and their families,
- giving tertiary providers some flexibility to increase fees to help meet rising costs, and
- managing costs to government through student loans and fees-free support.
Tertiary providers must adhere to the Government’s requirements.
We have confirmed that the AMFM for 2025 will be set at 6.0%. This permits a 6.0% increase on the tuition fees and compulsory course costs for existing courses (GST exclusive) charged in 2024 to domestic students.
| Year | Rate |
|---|---|
| 2015 | 4% |
| 2016 | 3% |
| 2017 | 2% |
| 2018 | 2% |
| 2019 | 2% |
| 2020 | 2% |
| 2021 | 1.1% |
| 2022 | 1.7% |
| 2023 | 2.75% |
| 2024 | 2.8% |
| 2025 | 6.0% |
A tertiary education provider may apply to the TEC for an exception from the AMFM based on justifiable circumstances. These include:
- requiring providers to demonstrate that the course (rather than the provider) is not financially sustainable without an exception, which would also be subject to quality assurance and strategic alignment criteria
- limiting eligibility to courses that have fees below the 75th percentile of fees for similar courses
- a provider-level cap on the number of exception applications that can be made each year.
Regulations from 2024 allowing providers to temporarily reduce the fees for a course across calendar years, while retaining the flexibility to subsequently return the previous fee, will continue for 2025. This will continue to provide flexibility with the AMFM and enables new and varied pricing strategies for providers.
Fee limits for micro-credentials
Micro-credentials are short study awards, distinct from qualifications, and certify achievement of a coherent set of skills and knowledge and that have evidence of need by industry, employers, iwi and/or the community.
The micro-credential fee cap sets a per-credit cap on the fees that providers can charge domestic students enrolled in micro-credentials. The micro-credential fee cap for the 2025 calendar year will remain at $64 (GST inclusive) per credit.
Where a micro-credential is made up wholly or partly of existing courses that lead to a qualification, the fees for these components of the micro-credential must be no more than the maximum fee permitted under existing AMFM regulations (not the $64 per credit fee cap). Any components of the micro-credential that are not part of a qualification would be subject to the fee cap.
The TEC has discretion to manage an exceptions process so that providers can seek an exemption to the $64 per credit cap. The TEC will assess evidence submitted by tertiary providers that demonstrates higher actual and reasonable costs and strong industry needs.
