A proposed 2.8% Annual Maximum Fee Movement along with increasing the cap on micro-credential fee with policy changes on fee regulations, is included in the same.
The Annual Maximum Fee Movement (AMFM) and the micro-credential fee cap has the government regulating the limit of how much fees can the tertiary education providers charge the domestic students annually.
The maximum percentage increase permitted on fees for existing courses at level 3 and above is set by the AMFM on the New Zealand Qualifications and Credentials Framework (NZQCF) respectively.
A 2.8% AMFM rate for 2024 is proposed by the Minister of Education considering the inflation prediction for the calendar year of 2024. This move will allow the tertiary education providers to charge up to a 2.8% GST inclusive fee rise from that charged in the year of 2023. The objective is to achieve a golden mean by offering some flexibility to the tertiary education providers to cover the rising costs in 2024 along with maintaining the affordability of the tertiary education for students.
The tertiary education providers can charge the domestic students enrolled in micro-credentials through the per-credit cap on the fees under the micro-credential fee cap rule. The previous micro-credential fee cap of $60 per-credit was introduced in early 2021, that has not been changed so far. The proposed increase in the micro-credential fee cap to $64 per-credit for the 2024 year is corresponding to the cumulative AMFM rate surge from 2022 year respectively.