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.
The Minister for Universities, in consultation with the Minister for Vocational Education, has proposed that the AMFM for 2026 be set at 6.0%. This would permit a 6.0% increase on the tuition fees and compulsory course costs for existing courses (GST exclusive) charged in 2025 to domestic students.
Read more about the proposed fee regulation settings for 2026 and how to provide feedback.
| 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 circumstances include:
- where providers can 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
- there is a cap on the number of exception applications a single provider can make each year.
Regulations from 2025 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 2026. 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 small, stand-alone awards, distinct from qualifications, that certify achievement of a coherent set of skills and knowledge. Micro-credentials can be up to 40 credits in size.
The micro-credential fee cap sets a per-credit cap on the fees that providers can charge domestic students enrolled in micro-credentials. The fee cap for micro-credentials is proposed to remain at $64 per credit (GST inclusive) for 2026.
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.
Read more about the proposed fee regulation settings for 2026 and how to provide feedback.
