The Minister of Education has confirmed tertiary fee regulation settings for 2022
Following consultation, the Minister of Education has confirmed fee regulation settings for tertiary education providers in 2022. This includes setting the Annual Maximum Fee Movement at 1.7 percent and clarifying what additional fees providers cannot charge from 1 January 2022.
The Annual Maximum Fee Movement
The Government regulates how much tertiary providers can increase their fees for domestic students each year through the Annual Maximum Fee Movement (AMFM). This caps the percentage increase on fees for existing courses at level 3 or above on the New Zealand Qualifications Framework. Micro-credentials remain subject to a $60 per credit cap (GST inclusive)
Following consultation, the Minister of Education has confirmed that the AMFM rate will be set at 1.7 percent for the 2022 calendar year. This is in line with forecast inflation for 2022 as published in the 2021 Budget Economic and Fiscal Update in May 2021. This permits a 1.7 percent increase on the fees (GST exclusive) charged in 2021 to domestic students.
Clarifying what additional fees providers cannot charge
In early 2021, the Ministry engaged with tertiary education institutions (TEIs) to get more information on additional compulsory fees that providers charge to students on top of tuition fees and compulsory course costs. This indicated that there are a small number of providers charging additional administrative charges for enrolment, exam fees and fees associated with the award of NZQA credits.
Following consultation, the Minister has also agreed to changes that clarify what costs are expected to be included within fee regulation settings. This will make it clear that providers cannot charge administrative fees for enrolment, exams, and the award of NZQA credits from 1 January 2022. These costs must be included within the compulsory course cost component of their fees, which are regulated.
This means that providers will still be able to charge other incidental administrative fees for additional services that are payable because of the specific circumstances of a student, such as application fees for selected entry programmes, exam resits, or exam relocations.
This is clarified through a short list in the Gazette notice, identifying examples of some of the exclusions:
A note about COVID-19 and Alert Level changes
We recognize that it is an extremely busy time for educators, leaders in education and students. This work has progressed in order to give the sector clarity on fee settings for 2022 and in order to meet statutory requirements to put fee regulation settings in time for 2022.
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