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Accommodation Supplement

From 1 April 2018, changes to the Accommodation Supplement will benefit around 136,000 households receiving the maximum rate by an average of $36 per week.

What is changing?

  1. Accommodation Supplement maximum payments will increase to better reflect the cost of housing across New Zealand.
  2. The make-up of the four Accommodation Supplement areas will be updated so people in areas where housing costs have increased the most will have access to higher payments. Maps of the new areas are available at www.msd.govt.nz/about-msd-and-our-work/newsroom/2017/budget-2017.html

How much are the Accommodation Supplement increases?


AREA FAMILY SIZE NEW MAXIMUM WEEKLY AMOUNT NEW MAXIMUM WEEKLY INCREASE
1 person $165 $20
Area 1 2 person $235 $75
3+ person $305 $80
1 person $105 $5
Area 2 2 person $155 $30
3+ person $220 $55
1 person $80 $15
Area 3 2 person $105 $30
3+ person $160 $40
1 person $70 $25
Area 4 2 person $80 $25
3+ person $120 $45

Some people will benefit from both the area changes and the area maxima increases shown above.

Why are the changes happening?

The Accommodation Supplement assists many beneficiaries, superannuitants and lower-income working families to meet their rental, board or mortgage payments.

The Family Incomes Package increases the Accommodation Supplement maximum amounts and updates the make-up of the Accommodation Supplement areas for the first time since 2005.

Who benefits from the increase?

Of the 136,000 households likely to benefit from the changes to the Accommodation Supplement:

75,000households
receiving a benefit will see an average increase of
$30A week
46,000low income
working people and families not receiving a main benefit will see an average increase of
$48A week
15,000superannuitants
will see an average increase of
$29A week

Impact on families in housing stress

The Family Incomes Package lifts the incomes of many households, especially those with low incomes after housing costs. The Package is expected to move around 20,000 households over the threshold and out of 'severe housing stress' (defined as having less than $180 per week after housing costs, adjusted for inflation, and household size and type). This includes around 15,000 households with children and around 35,000 children.

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