Accommodation Supplement

What Is This Payment?

The Accommodation Supplement is a weekly housing-cost subsidy administered by Work and Income (Ministry of Social Development). It is one of the most frequently claimed New Zealand benefits, paid to over 300,000 households at any given time and stackable on top of every main benefit and on top of paid work.

The Supplement sits alongside Jobseeker Support, Sole Parent Support, Supported Living Payment, NZ Superannuation and Veteran's Pension, and it is also paid to working households whose accommodation costs swallow a large share of their take-home pay. Both partners' incomes count toward the income test, and applications are usually decided within 5 to 10 working days of evidence being received.

Three accommodation types are covered: renting a private-market property, boarding in someone else's home with a board agreement, and mortgage repayments on a home you own. Public-housing tenants whose rent is set by Kainga Ora at an income-related rate are not eligible, because their housing cost is already subsidised through the rent itself.

The Supplement is paid weekly while the eligibility gates remain met. MSD reassesses when circumstances change: a rent rise or fall, a partner moving in or out, a region move that crosses a regional-cap boundary, an asset jump from an inheritance, or a change in main-benefit status. From 1 April 2026 entry thresholds rose roughly 3 percent against 2025 figures (for example, single rent or board moved from $90 to $93 per week), while the regional weekly caps were left unchanged.

How Much Can You Get?

The annual figure flows from a four-step weekly formula:

1. Step 1 - Entry test: if weekly_accommodation_cost is at or below the household entry threshold, the result is zero. Otherwise compute excess = weekly_cost - entry_threshold.
2. Step 2 - 70 percent taper: weeklyByFormula = excess × 0.70.
3. Step 3 - Regional cap: weeklyBeforeIncomeAbatement = min(weeklyByFormula, weekly_max), where the cap depends on household type and area.
4. Step 4 - Income abatement: weeklyAmount = max(0, weeklyBeforeIncomeAbatement - max(0, family_weekly_income - income_threshold) × 0.25). Annual amount is weeklyAmount × 52.

Worked example 1 - single Auckland renter, no income. Bilqis is 22, single, no children, renting a small apartment in central Auckland (Area 1) for $400 per week. She has just lost her job and has no income this week. Step 1: entry threshold for a single renter is $93, excess is $400 - $93 = $307. Step 2: 70 percent taper gives $307 × 0.70 = $214.90 per week. Step 3: the Area 1 single cap is $165, which is lower than $214.90, so the cap binds and the pre-abatement amount is $165. Step 4: zero income, no abatement. Result: $165 per week, $8,580 per year.

Worked example 2 - sole parent in Christchurch, working part-time. Roshanak is a sole parent with two children, renting a three-bedroom house in Christchurch (Area 2) for $500 per week, earning $400 per week from a part-time job. Step 1: sole-parent rent threshold is $168, excess is $500 - $168 = $332. Step 2: 70 percent taper gives $232.40 per week. Step 3: the Area 2 large-family cap is $220, which binds. Step 4: sole-parent income threshold is $883 per week and her $400 income is below it, so abatement is zero. Result: $220 per week, $11,440 per year.

Worked example 3 - working couple with children, partial after both caps. Ewan and his partner have two children and live in Wellington (Area 1) renting at $300 per week with combined weekly income of $1,200. Step 1: couple-with-children rent threshold is $205, excess is $300 - $205 = $95. Step 2: 70 percent taper gives $66.50 per week. Step 3: Area 1 large-family cap is $305, well above $66.50, so the formula amount stands. Step 4: with-children income threshold is $1,088 per week; income excess is $1,200 - $1,088 = $112; abatement is $112 × 0.25 = $28 per week. Result: $66.50 - $28 = $38.50 per week, $2,002 per year.

Eligibility Conditions

1. residency in {citizen, pr, qualifying_visa} - New Zealand citizenship, permanent residence, or a qualifying visa class such as a refugee or protected-person visa. Tourist and short-stay work visas do not qualify.
2. age >= 16 - The Supplement is open from 16. Younger applicants are routed to the Independent Youth Benefit or to a parent's claim.
3. accommodation_type in {renting, boarding, mortgage} - Private-market rent, formal board with a board agreement, or mortgage repayments on a home you own. Free housing, employer-provided staff quarters with no rent, and Kainga Ora income-related rent tenancies do not qualify.
4. cash_assets <= 8,100 when single without dependent children, or cash_assets <= 16,200 when partnered or with dependent children. Cash assets include bank balances, term deposits and shares; they exclude your home, everyday vehicle and reasonable household contents.
5. weekly_accommodation_cost > entry_threshold - The threshold varies by household type and tenure: single $93 rent or board / $112 mortgage; couple no children $158 / $190; sole parent $168 / $202; couple with children $205 / $247 (all 1 April 2026).

How To Apply

Channel: apply through Work and Income, either by signing in to MyMSD online (my.msd.govt.nz) or by visiting your local service centre. Existing main-benefit clients can add the Supplement as a top-up; new applicants need to complete a full client registration first.

Evidence to bring:

• Tenancy agreement or written board agreement, or a current mortgage statement showing weekly repayment.
• Recent rent receipts, bank statements showing rent direct debits, or a printed Tenancy Services bond record.
• Identity (NZ passport, driver licence, birth certificate or RealMe verified identity) and IRD number.
• Bank account details for weekly direct credit.
• Cash-asset declaration covering all accounts, term deposits and shares for both partners.
• Income proof for both partners (recent payslips, self-employment summary, or a Working for Families notice).
• Household-composition evidence where dependent children are claimed (birth certificates, school enrolment).

Timeline: a complete file is normally decided within 5 to 10 working days, with payment then made weekly into your nominated account. Re-assessment triggers: a rent rise or fall above $5 per week, a region move (Area 1 to Area 3, etc.), a partner moving in or out, a child being born or leaving home, an asset change crossing the $8,100 or $16,200 line, or a change in main-benefit status.

Open the official Work and Income page →

Rule-Based Scenarios

Scenario A - single Auckland renter on Jobseeker, region cap binds. Deshawn is 28, single, no children, on Jobseeker Support, renting a studio in central Auckland (Area 1) for $440 per week with cash assets of $1,200. Step 1: excess over the $93 single rent threshold is $347 per week. Step 2: 70 percent taper gives $242.90 per week. Step 3: the Area 1 single cap of $165 binds, dropping the pre-abatement amount to $165. Step 4: Jobseeker payments do not feed the AS income test in their own right, and his earned income is zero this week, so abatement is zero. Result: $165 per week, $8,580 per year on top of his Jobseeker rate.

Scenario B - sole parent in regional NZ, partial after region cap. Fariza lives in Palmerston North (Area 3) with one child, renting a two-bedroom unit for $360 per week, earning $720 per week from full-time retail work. Cash assets are $9,800, well within the $16,200 family limit. Step 1: excess over the $168 sole-parent rent threshold is $192 per week. Step 2: 70 percent taper gives $134.40 per week. Step 3: the Area 3 family cap of $105 binds, dropping the amount to $105. Step 4: her $720 weekly income is below the $883 sole-parent income threshold, so abatement is zero. Result: $105 per week, $5,460 per year.

Scenario C - working couple with children in Wellington, partial after income abatement. Gulnara and her partner live in central Wellington (Area 1) with two children, renting at $620 per week, combined weekly income $1,360. Step 1: excess over the $205 couple-with-children rent threshold is $415 per week. Step 2: 70 percent taper gives $290.50 per week. Step 3: the Area 1 large-family cap of $305 does not bind, so the pre-abatement amount stays at $290.50. Step 4: their income exceeds the $1,088 with-children threshold by $272; abatement is $272 × 0.25 = $68 per week. Result: $290.50 - $68 = $222.50 per week, $11,570 per year.

Common Mistakes

• Applying while in Kainga Ora housing. Public-housing tenants pay an income-related rent that already subsidises their housing cost; the Accommodation Supplement does not stack on top of an IRRS tenancy. Applications from current Kainga Ora tenants are declined at the gate.
• Asset limit confusion. The single-without-children limit is $8,100 and the partnered-or-with-children limit is $16,200. A common failure point is a small inheritance or a tax refund that briefly pushes a single applicant over $8,100; MSD takes the asset balance on the date the claim is decided, so timing matters.
• Forgetting that region affects the cap. Moving from Auckland (Area 1, single cap $165 per week) to a regional centre such as Whanganui (Area 3, single cap $80 per week) can halve the maximum payable, even when the formula amount stays the same. Update your address through MyMSD on the day you move.
• Not declaring cost reductions. When rent drops because of a flatmate moving in, when you stop boarding, or when the mortgage is paid off, the Supplement must be reassessed. Failure to report creates a debt that MSD will recover from future weekly payments.
• Confusing entry threshold with income threshold. The entry threshold uses weekly accommodation cost ($93 to $247 per week depending on household type and tenure) and gates the formula. The income threshold uses family weekly income ($677 to $1,088 per week) and drives the 25 percent abatement. They apply at different stages of the calculation and are not interchangeable.
• Mortgage holders missing eligibility. Owning a home with a mortgage qualifies; in 2026 the single mortgage threshold is $112 per week, so weekly mortgage payments above $112 trigger the formula. Freehold homes (no mortgage cost) do not qualify because there is no accommodation cost to subsidise.

Related Benefits

• Jobseeker Support - the main income benefit for unemployed and low-hours workers; the Accommodation Supplement routinely stacks on top for renters whose weekly cost is above the entry threshold.
• Sole Parent Support - main benefit for sole parents with a youngest child under 14; the sole-parent entry threshold ($168 per week rent or board in 2026) is higher than the single threshold, reflecting larger expected accommodation costs.
• NZ Superannuation - retirees often claim the Supplement on top of NZ Super; Super clients use the standard entry thresholds and household-type regional caps without any Super-specific adjustment.
• Winter Energy Payment - companion seasonal payment for main-benefit recipients and Super clients during the May to October winter period; paid separately from the Accommodation Supplement and does not abate it.
• Community Services Card - most Accommodation Supplement recipients are also eligible for the CSC given household income levels; the CSC reduces GP fees and prescription co-payments.
• Accommodation Costs Arrears Grant - one-off recoverable grant for rent or mortgage arrears; complements ongoing Accommodation Supplement for renters in temporary distress facing eviction or mortgagee sale.