Inland Revenue kept fees-free ads running after learning scheme would end

Inland Revenue is defending its decision to run ads for the fees-free tertiary education scheme for more than a month after it knew the policy was being axed.

The Government agency spent $50,000, excluding GST, to run advertising through Google Ads, Meta, Go Media and TVNZ between May 4 to June 29, targeting those who were already eligible for the subsidy.

Inland Revenue told Newstalk ZB staff working on Budget initiatives became aware of the Government’s intentions to scrap fees-free in its current form on May 7.

It said the campaign targeted learners who were already eligible to receive entitlements, and plans and objectives were therefore not affected by changes to future eligibility.

The agency said advertising was planned to remind learners to apply for their final year fees-free entitlement.

It said the ads were meant to align with the Tertiary Education Commission transferring eligibility information to Inland Revenue - something that happens three times a year.

“The reported changes did not impact the target audience for this advertising activity – learners who were eligible and needed to apply,” the tax agency said.

In early May, Finance Minister Nicola Willis confirmed the scheme covering the final year of tertiary study would be scrapped in Budget 2026, after Winston Peters let the “Budget leak” slip in an interview with Newstalk ZB.

Those who complete an eligible qualification or programme in 2026 are still able to apply for fees free within 12 months of completing their course, up to December 31, 2027.

People who complete their qualification or programme after December 31, 2026 will no longer be eligible for the scheme.

Tyler Groenewald, the national co-ordinator of student-led advocacy group Generation Screwed, questioned why Inland Revenue was advertising fees free in the first place.

“People leaving high school are very aware that the first year was free, and then of the change. I highly doubt if somebody is applying for university in New Zealand, they’re unaware.”

Groenewald said the $50,000 spend from Inland Revenue was “hugely concerning and also confusing for students”.

Greens tertiary education spokesperson Francisco Hernandez said he had no issue with the advertising campaign.

“I think it’s good to let people know, who are eligible for the scheme, that they can claim it. It’s good that the Government’s being proactive in reaching out to people who are eligible and able to claim it this year.”

Scrapping the final-year fees free scheme is expected to save the Government more than $1 billion over four years.

Budget 2026 confirmed the savings would be partially redirected to expanding trade training opportunities for secondary students, with the Government pledging to double the number of trades academy places over four years.

The Greens have been calling for the Budget 2026 decision to be reversed.

Hernandez said the Green Party is “committed to working towards fees free, and a barrier-free education for everyone” but was working through the mechanisms of what that may look like.

Labour leader Chris Hipkins said his party would not reintroduce the scheme if it formed a government after the election, giving a firm 'no.'

Hernandez said it was “definitely disappointing” to see Labour “walk away” from the scheme.

“We’re committed to the principle of it; the design is something that we’re still working through and we’re keen to have a dialogue with people on,” he said

Act leader David Seymour said the fees-free scheme was a “poorly targeted programme that cost taxpayers nearly $350 million a year while doing little to improve access for disadvantaged students”.

Regional Development Minister Shane Jones said more than $2 billion had been spent on fees-free over the past eight years with no real impact.

He said the scheme did not increase enrolments or completion rates, “especially for those from low-income backgrounds”.

Azaria Howell is a multimedia reporter working from Parliament’s press gallery. She joined NZME in 2022 and became a Newstalk ZB political reporter in late 2024, with a keen interest in public service agency reform and government spending.