Formula for initial stand-down periods

The following information is about the formula used to calculate initial stand-down periods. For the current and previous stand-down periods see:

• Introduction

Initial stand-down periods are calculated using the gross Average Ordinary Time Weekly Wage (AOTWW) rate, which is determined every 3 months by Statistics New Zealand using their Quarterly Employment Survey.

The unadjusted formula is for a married, civil union or de facto couple with no dependent children. The unadjusted formula is as follows:

The maximum initial stand-down period reduced from 10 weeks to 2 weeks, on 2 July 2007.

To take into account a client's family circumstances this formula is adjusted as follows:

• $80 per week is added to the allowable average income for each dependent child (this increased from $50 on 1 April 2005) and
• $80 per week is deducted from the allowable average income for single or sole parents

Clients can choose an income assessment period of either 26 or 52 weeks to calculate their gross average weekly income for stand-down purposes. You will need to calculate the gross average weekly income for both a 26 and 52 week period.

To calculate the average weekly income over a 26 week period, divide by 26, the total amount of income received by the client in the 26 week period immediately before their entitlement date.

To calculate the average weekly income over a 52 week period, divide by 52, the total amount of income received by the client in the 52 week period immediately before their entitlement date.

You should use the calculation that gives the client a lesser stand-down period.

For more information on average weekly income refer to the commencement date section of each main benefit.