Accommodation Supplement explained: who can get it and how it works

The Accommodation Supplement is one of the most under-claimed forms of help in New Zealand. A big reason: people assume it's only for beneficiaries. It isn't. Plenty of working individuals and families on modest incomes qualify and never apply. This guide explains how it works so you can tell whether it's worth a look.

What is the Accommodation Supplement?

It's a weekly payment from Work and Income that helps with your rent, board or home-ownership costs. It's paid on top of any wages or benefit, and you don't have to be on a benefit to get it. It's aimed at people whose housing costs are high relative to their income.

Who can get it?

You may qualify if all of these apply:

• You have accommodation costs (rent, board, or mortgage and other home-owner costs).
• Your income is under the limit for your situation.
• Your cash assets are under the threshold: $8,100 for a single person, or $16,200 for a couple or sole parent.
• You're 16 or over, and a New Zealand resident or citizen who normally lives here.

It's specifically worth checking if you're a working household paying a lot of rent in a big city, that's exactly who it's designed for.

How the amount is worked out

Three things drive the figure:

1. Your area. New Zealand is split into four areas, and the maximum payment is higher where housing costs more. Area 1 (for example much of Auckland) has the highest maximums; Area 4 the lowest. For a single person with no children the maximum ranges from about $70 a week (Area 4) up to $165 a week (Area 1); for a couple or sole parent with children it ranges from about $120 up to $305 a week.
2. Your entry threshold. You have to be paying more than a set minimum towards housing before the supplement kicks in. The supplement covers 70% of your housing costs above that entry threshold, up to your area maximum.
3. The income and asset tests. The amount then reduces as your income rises, and cash assets over the thresholds above can rule you out.

Because the income test and your exact area both matter, the only way to get a reliable number is Work and Income's own check (see below). The figures here are current rates to give you a sense of the ballpark.

A quick example of the idea

Say you're a couple with children renting in a high-cost area, paying well above the entry threshold. The supplement would cover 70% of your rent above that threshold, but no more than the area maximum (around $305 a week for that situation). Your income then determines how much of that you actually receive.

How to check and apply

1. Use the Work and Income Accommodation Supplement check at workandincome.govt.nz. It asks for your area, income, costs and assets and gives you a proper estimate.
2. Apply through MyMSD if it looks like you qualify.
3. Keep them updated if your rent, income or living situation changes, since all three affect the payment.

If you have children, it's also worth checking Working for Families, which is separate and can be received at the same time.

The short version

The Accommodation Supplement helps with housing costs and is not just for beneficiaries: working households on modest incomes often qualify and miss out. It depends on your area, your housing costs above an entry threshold, and your income and assets. If you pay a decent chunk of your income in rent, it's worth a five-minute check with Work and Income.

This is general information using current rates, not financial advice. Rates and rules change, and your exact entitlement depends on your circumstances, so check with Work and Income at workandincome.govt.nz.