Recoverable Assistance Payment

What Is This Payment?

The Recoverable Assistance Payment (RAP) is administered by Work and Income (Ministry of Social Development). It is a one-off payment to help meet an essential cost — the kind of cost a Special Needs Grant covers — but it is aimed specifically at people who are not receiving a main benefit. Where the Advance Payment of Benefit serves beneficiaries by advancing their future payments, the RAP serves low-income non-beneficiaries who still need a hand with an urgent essential cost.

The defining feature of the RAP is that it is recoverable: you repay it. Repayment is normally arranged as regular instalments through Work and Income after the payment is made. This is the opposite of the Special Needs Grant, which is granted outright and never repaid. Because the RAP is a debt you take on, MSD assesses your ability to repay alongside the asset and income tests.

As with other hardship products in this family, there is no published weekly dollar figure. The amount is set to the actual essential cost, within MSD's policy limits, and decided by a case manager. That is why the Benefit Check rule engine treats the RAP as eligibility-only: it can confirm whether you clear the residency, asset and annual-income gates, but the final amount and the repayment schedule are case-by-case decisions made by Work and Income.

What Does the Payment Cover?

The RAP covers essential one-off costs for people not on a main benefit. Typical uses include:

• Essential household items. Replacing or repairing an essential item such as a broken appliance, where you have no other way to meet the cost immediately.
• Urgent essential services. A necessary one-off cost such as emergency dental work or a critical repair that cannot wait.
• Other genuine essential costs. A specific essential need recognised by Work and Income that you cannot meet from your own income or savings at the time it arises.

Because the payment is repayable, it suits a situation where you can meet the cost over time but not all at once. A case manager looks at the cost, your asset and income position, and your capacity to repay before deciding the amount and the repayment terms. If repaying would not be sustainable, or if you are actually on a main benefit, a different product — the Special Needs Grant or the Advance Payment of Benefit respectively — may be the right route. The RAP is not for ongoing or recurring expenses; those point towards weekly support such as Temporary Additional Support.

Eligibility Conditions

The Benefit Check rule engine applies four conditions. All must pass for the payment to be available; the amount and repayment terms are then set by a case manager.

1. Residency: residency in {citizen, permanent_resident, qualifying_visa}. You must hold New Zealand citizenship, a permanent resident visa, or a qualifying visa recognised by Work and Income.
2. Not on a main benefit: receiving_main_benefit = false. The RAP is specifically for people not receiving a main benefit. If you are on a main benefit, the rule returns no RAP — you would apply for the Advance Payment of Benefit instead.
3. Cash assets: cash_assets <= limit. Your liquid savings must be at or below $1,411.22 for a single person, or $2,351.46 for a couple or a sole parent. These are the same cash asset limits the Special Needs Grant uses.
4. Annual income: family annual income <= limit. Your annual family income must be at or below the limit for your family type:

   Family type	Annual income limit
   Single, aged 16-17	$45,716.84
   Single, aged 18 or over	$52,541.32
   Couple	$76,315.72
   Sole parent, 1 child	$63,756.68
   Sole parent, 2 or more children	$67,171

Note the income test here is annual, not weekly. This is a structural difference from the Special Needs Grant and the Advance Payment of Benefit, which both use a weekly income test. The annual figure combines your income and your partner's income where you are partnered.

How To Apply

Channels: Apply through the MyMSD online portal, by phone on 0800 559 009, or in person at a Work and Income service centre.

Evidence to have ready:

• Proof of identity (NZ passport, driver licence, birth certificate, or RealMe verified identity).
• IRD number and a New Zealand bank account number.
• Proof of residency status if you are not a New Zealand citizen.
• Evidence of the essential cost you need help with — for example a quote or invoice.
• Income evidence covering the year (payslips or an IR3) and recent bank statements showing your cash assets, plus your partner's details if you are partnered.

Timeline and repayment: A case manager assesses the request against the residency, asset and annual-income gates, confirms you are not on a main benefit, and considers your capacity to repay. If approved, the payment is made and a repayment arrangement — usually regular instalments — is set up. Keep up with the agreed instalments; missed repayments can affect future assistance.

Official Work and Income page for the Recoverable Assistance Payment →

Rule-Based Scenarios

These scenarios use the exact decision logic from the Benefit Check rule engine. Each shows whether the four gates pass; the amount and repayment terms in a real case are set by a case manager.

Scenario 1 — Low-income worker passes all gates

Heather is 41, a New Zealand citizen, single, and working part-time on $46,000 a year. She is not on any main benefit. Her washing machine has failed and she has $300 in savings. Residency passes (citizen). She is not receiving a main benefit, so that gate passes. Her cash assets of $300 are below the single limit of $1,411.22. Her annual income of $46,000 is below the single 18-plus limit of $52,541.32. All four gates pass, so a Recoverable Assistance Payment is available for the essential cost of a replacement machine. Heather will repay the amount in instalments arranged with Work and Income.

Scenario 2 — Blocked because already on a main benefit

Murray is 52, a permanent resident, and is currently receiving Jobseeker Support. He needs help with an urgent dental cost. His cash assets and income would both pass the RAP tests, but because receiving_main_benefit = true, the RAP rule returns nothing. Murray is not blocked from help — he is simply directed to the right product. As a main-benefit recipient, the Advance Payment of Benefit is his equivalent route, advancing his future benefit payments for the essential cost.

Scenario 3 — Couple blocked by annual income

Fiona and Greer are a partnered couple, neither on a main benefit. Fiona earns $45,000 a year and Greer earns $40,000, giving a combined annual income of $85,000. The couple annual income limit is $76,315.72. Because $85,000 exceeds $76,315.72, the income gate fails and no payment is returned — even though their cash assets of $1,000 are under the $2,351.46 couple limit and neither is on a benefit. A household above the annual income limit is expected to meet a one-off essential cost from its own resources.

Common Mistakes

• Applying while on a main benefit. The RAP is only for people not receiving a main benefit. If you are on Jobseeker Support, Sole Parent Support or another main benefit, the RAP rule returns nothing; the Advance Payment of Benefit is your equivalent product. Applying for the wrong one delays the help you need.
• Treating it as a free grant. The RAP is recoverable — you repay it, usually in instalments. It is not the same as the Special Needs Grant, which is never repaid. Plan for the repayments before you commit, and tell Work and Income if a payment schedule would not be sustainable.
• Using the weekly income figure instead of the annual one. The RAP income test is annual, not weekly. A single 18-plus applicant compares their yearly income against $52,541.32, not a weekly figure. Confusing this with the Special Needs Grant's weekly test leads to incorrect self-assessment.
• Picking the wrong annual income tier. The annual limit depends on family type: $52,541.32 single 18-plus, $76,315.72 couple, $63,756.68 sole parent with one child, and $67,171 sole parent with two or more children. Using the single figure when you are partnered or a sole parent gives the wrong result.
• Overlooking the cash asset test. A single applicant with $1,500 in savings is over the $1,411.22 cash asset limit and will be declined on assets, even if their annual income is well under the limit. Check liquid savings against your limit first.
• Assuming approval is automatic once the gates pass. Clearing the residency, asset and income gates makes the payment available, but a case manager still assesses the cost and your capacity to repay before setting the amount and the instalment plan. The rule engine confirms eligibility, not the final figure.

Related Benefits

• Special Needs Grant — the non-recoverable counterpart for the same kinds of essential cost; it shares the same cash asset limits but uses a weekly income test and is never repaid.
• Advance Payment of Benefit — the recoverable product for people who are on a main benefit, repaid out of future benefit payments; it is the route Murray takes in Scenario 2.
• Temporary Additional Support — a weekly top-up for ongoing essential costs that are not met by other income, rather than a one-off repayable payment.
• Community Services Card — an income-tested healthcare concession card that many low-income RAP applicants also qualify for, cutting GP and prescription costs.
• Funeral Grant — a specific one-off grant towards funeral costs, with its own asset and income tests; relevant when the essential cost is a bereavement.
• Establishment Grant — one-off help with setting up a home for eligible caregivers, a different targeted grant within the wider hardship assistance family.