Budget 2024 changes for students
30 May 2024.
The Government has announced changes for tertiary students as part of their Budget announcements.
You can read more on the Budget website:
Fees Free
Fees Free currently pays for your first year of study if you meet the criteria. From January 2025 it will pay for the final year of study instead.
This means students entering their final year of study from 1 January 2025 - who haven't already had their first-year fees free – can be eligible for Fees Free for their final year of study. This will include provider and work-based study or training at level 3 and above on the New Zealand Qualifications and Credentials Framework.
Students will have their fees returned after they complete their final year of study. For these students, their fees will be returned after 1 January 2026.
Once detailed decisions have been made, further information will be available on the Fees Free website:
Personal Income Tax thresholds
From 31 July 2024 the Personal Income Tax thresholds will be adjusted. This means some Student Allowance after-tax rates will increase by up to $2.16 a week.
This will happen automatically for all payments made on or after 31 July – you don't need to do anything.
How much Student Allowance you get depends on your situation. If you're on a special tax code, the impact may be different.
You can find the rates from 31 July here:
Student Loans are not affected by changes to the Personal Income Tax thresholds.
Changes to overseas student loan interest rate
Interest rates on student loans will be increasing by 1% for people overseas from 1 April 2025.
See Inland Revenue's website for more information: