Changes announced in Budget 2025

Nothing is changing now. More information about these changes will come out closer to when they happen.

You can find more information about this on the Budget website:

Jobseeker Support eligibility for single 18-19-year-olds tightens in 2027

From July 2027, a parental assistance test will be introduced for Jobseeker Support and Emergency Benefit for single 18- and 19-year-olds.

The test will assess whether the young person can reasonably be expected to rely on their parents or caregivers for financial support. The design of the test is still being worked on.

Young people who need support from MSD will still be able to get it.

Accommodation Supplement changes in 2027

In 2027, the entry threshold will increase for some homeowners, and some boundaries are changing.

Entry threshold increasing for some homeowners

From 1 April 2027, the ‘entry threshold’ for some homeowners to qualify for Accommodation Supplement will increase from 30 percent to 40 percent.

The entry threshold is the minimum amount people must pay towards their housing costs. You can see the current entry thresholds here: Benefit rates at 1 April 2025 - Work and Income.

The new entry threshold won’t apply to people who get New Zealand Superannuation, Veteran’s Pension, Supported Living Payment, or who pay rent or board.

Changing boundaries

From 1 April 2027, Accommodation Supplement area boundaries will change to reflect residential and urban growth in some places, e.g. parts of Queenstown.

This means the maximum Accommodation Supplement payable in some places will increase.

The new boundaries have not yet been finalised.

Working for Families consultation

The Government is consulting on possible changes to make Working for Families more accurate and easier for families to understand and manage their payments.

The Government is also asking for feedback on how to smooth the change from being on a benefit to being in work.

You can read the Working for Families discussion document here: Public consultation - the Working for Families scheme - MSD.govt.nz

More effective use of Inland Revenue’s income data

From July 2028, we’ll use Inland Revenue’s information on wages and salary to calculate payment rates, instead of people manually declaring their wage or salary to MSD.

This will help ensure people get the right payment at the right time. It’ll also mean less debt for these people, as they won’t get overpaid if they declare their income late.

Automated Decision-Making

Over the next few years we’ll expand our use of Automated Decision-Making in some processes. This will be for simple rules-based decisions, and in line with MSD’s Automated Decision Making Standard.

We’ll also remove Automated Decision-Making from the processing of some types of assistance, to strengthen our staff’s involvement.

We’ll provide clear information about any use of Automated Decision-Making, including if it’s part of making any changes to processes.