Full-time students pay $150 in support levies at present, plus $225 in various other student charges.
The proposal is to combine all charges into a single levy and increase the levy to $490 from next year, as well as to increase tuition fees next year by 4%, the maximum allowed by the Government.
Managers were consulting on the proposal and a final recommendation would go to next month's polytechnic council meeting, chief executive Phil Ker told yesterday's council meeting.
Based on figures in a report presented yesterday, the combination of levy and tuition fee increases would cost full-time domestic students an extra $394 next year.
Students can add the amount to their student loans.
Similar increases have also been factored into international student fees.
Part-time students, or those studying by distance learning would pay less.
However, the final amount of the student support levy and where the impact might fall could change, Mr Ker said yesterday.
During consultation, students had suggested the full increase apply to students enrolling for the first time from next year, with a lesser increase for those already in the system.
There had also been discussion about phasing in the levy increase over two years, but staff and students consulted had supported increasing it in one step, he said.
In June, the polytechnic signalled levies might be increased from $150 a year to $380 and tuition fees might rise 3%-4% next year as the polytechnic attempted to increase revenue.
Core Government funding for all tertiary institutions is being cut from next year and Otago Polytechnic expects to lose at least $2.8 million.
Yesterday's report said the cost of providing student support services this year had been calculated at $436 per full-time student.
The money funds services such as pastoral care, learning support, student health, computer laboratories, creche services and internet access.
The report recommended levies increase to $490, including GST, a figure comparable with the amount charged by other institutions.
"The continued provision of student support services is critical to improving student success and Otago Polytechnic's educational performance. Funding reductions by Government are significant and Otago Polytechnic must seek alternative sources of funding to remain viable - financially and educationally," the report said.
The recommendation was also to increase tuition fees 4% across the board, although the report said there would be some minor fluctuations to correct existing fee anomalies and the increase for some courses or parts of courses might be slightly less than 4%.
If adopted unchanged, the increases were expected to bring in an additional $1.1 million next year - $588,000 in student support levies and $520,000 in tuition fees.
