Training Incentive Allowance and Fees Free

The final-year Fees Free programme was introduced from 1 January 2025. Eligible learners starting their final year of study from 2025 can claim their fees for their final year once they complete their study.

Note if a client uses Training Incentive Allowance for course fees in their final calendar year of study, they cannot get final-year Fees Free for fees in that calendar year.

Clients who are in their final year of study must decide whether to use Training Incentive Allowance towards their course fees, or fund their course fees another way (e.g. Student Loan) to claim final-year Fees Free if they complete their qualification. MSD will support clients in making this decision.

For more information, see:

• Tertiary Education Commission Entitlement - final-year Fees Free

Some clients who used first-year Fees Free in 2024 may be able to use their remaining entitlement in 2025. This is determined by the Tertiary Education Commission.

Clients who can use their remaining first-year Fees Free entitlement in 2025, cannot get Training Incentive Allowance for the same course fees. However, if the client’s remaining first-year Fees Free entitlement does not fully cover their course fees, they may use Training Incentive Allowance for the fees not already covered.

Example – client has remaining first-year Fees Free entitlement

Josie started study in July 2024 and had her full course fees of $8,000 paid through the first-year Fees Free programme.

As her course fees were fully covered by first-year Fees Free, Josie could not use Training Incentive Allowance towards her course fees.

Josie continues the same qualification in 2025 with course fees of $7,000.

She is eligible to use her remaining $4,000 first-year Fees Free entitlement towards her total course fees.

Josie can use Training Incentive Allowance of $3,000 to cover her remaining course fees that are not covered by first-year Fees Free.