Couples with different pay periods

If a New Zealand Superannuation or Veteran's Pension client paid fortnightly has a partner getting a weekly benefit, they will get their payments from MSD at different times.

New Zealand Superannuation and Veteran's Pension are generally not income tested.

However, the couple's combined income is assessed for the partner paid a weekly main benefit and any extra help.

When clients in this situation get information share Child Support payments, the income is charged using the rules that apply to the receiving carer.

If the receiving carer has a fortnightly pay period, the income charge follows the fortnightly charging rules. If the receiving carer has a weekly pay period, the income charge follows the weekly charging rules.

The couple's joint income is still charged against any income-tested assistance either client is getting.

Example 1

Derek gets New Zealand Superannuation payments fortnightly. His partner Meredith gets Supported Living Payment paid to her weekly.

Derek is the receiving carer for his granddaughter and gets formula-assessed Child Support of $100 a month from the child's mother. MSD is notified of the Child Support income through the information share with Inland Revenue.

The information share Child Support payments Derek gets are calculated over a 4-week period. This follows the fortnightly charging rules because Derek gets his New Zealand Superannuation payment fortnightly.

The income is charged against Meredith's weekly Supported Living Payment. This means that the income charge is $25 per week for 4 weeks.

Example 2

Daphne gets New Zealand Superannuation and Disability Allowance payments fortnightly. Her partner Fred gets Jobseeker Support payments weekly.

Fred is the receiving carer for his son and gets monthly Child Support of $100 from his son's mother. This Child Support is a voluntary agreement through Inland Revenue.

The information share Child Support payments Fred gets are calculated over a 4- or 5-week period, as Fred's Jobseeker Support is on a weekly pay cycle.

Because both Fred and Daphne are getting income-tested assistance, the weekly amount that is charged against Fred's Jobseeker Support is also counted towards the couple's total fortnightly income for Daphne's Disability Allowance payments.

The income charge is $25 per week in 4-week months, and $20 per week in 5-week months.