jul 1, 1993 - Accommodation Supplement - starts
Description:
The Accommodation Supplement was implemented as a means of Housing NZ returning a profit, replacing a range of housing subsidies.
Source: Murphy, L. (2003). Reasserting the 'social' in social rented housing: Politics, housing policy and housing reforms in new zealand. International Journal of Urban and Regional Research, 27(1), 90-101.
The Accommodation Supplement (AS) replaced the Accommodation Benefit. The AS was available to beneficiaries, non-beneficiaries and recipients of National Superannuation who had high housing costs, relative to their income, and low assets. It was available to renters, boarders and home-owners.
People whose accommodation costs included rent payable to the Housing Corporation or payments under any mortgage security to the Housing Corporation of New Zealand, Housing New Zealand Limited or the Crown in the right of the Ministry of Maori Development were not eligible for the AS if:
• the mortgage security was at a concessionary rate; or
• they were receiving a Rent Rebate which was still being credited against their rent.
The following groups were not eligible for the AS:
• students receiving a Student Allowance under the Student Allowances Regulations 1991, or who would be eligible to receive an allowance were it not for their income or their parent’s income;
• people receiving residential care disability services who had had their financial means assessed under the Social Security Act 1964; and
• the spouse of person who was already receiving the AS.
Formula
(Housing Costs-Entry Threshold) x Subsidy Rate ≤ Applicable Maximum Rate - Abatement
Housing Costs were:
• rent
• board (2/3rds of the amount paid for board and lodgings)
• ownership (mortgage repayments, essential repairs and maintenance, local authority rates, house insurance premiums)
The Entry Threshold was:
• for renters and boarders 25 percent of their weekly benefit plus if they had a dependent child or children, the first child rate of Family Support. For non-beneficiaries, 25 percent of the applicable weekly rate of the Invalids Benefit, plus if they had a dependent child or children the first child rate of Family Support. (Note for people under 25 receiving youth rates of benefit, the entry threshold was based on the adult rate of benefit)
• for home-owners 30 percent of their weekly benefit benefit plus if they had a dependent child or children, the first child rate of Family Support. For non-beneficiaries, 30 percent of the applicable weekly rate of the Invalids Benefit, plus if they had a dependent child or children the first child rate of Family Support. (Note for people under 25 receiving youth rates of benefit, the entry threshold was based on the adult rate of benefit)
The Subsidy Rate was:
• 65 percent of allowable housing costs above the entry threshold.
Applicable Maximum Rate was:
• specified for family type and region (Auckland, Wellington and Rest of New Zealand)
Abatement was determined by:
• Cash assets and income
Source: https://www.msd.govt.nz/about-msd-and-our-work/about-msd/history/social-assistance-chronology-programme-history.html
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