Government figures show the average rate of course completion in all parts of the tertiary education sector reached 80 percent last year.
The rates ranged from 80 percent in polytechnics to 86 percent in universities.
The rates have been rising since 2009 when the Government started publishing institutions' results and imposing financial sanctions if they under performed.
Tertiary Education Minister Steven Joyce said the Government's focus on performance rather than enrolments had paid off.
