Contents
Temporary Additional Support : Contents

Formula for Temporary Additional Support

From 1 July 2021, the formula to calculate the weekly rate of Temporary Additional Support is as follows:

Step 1 - Calculate client's disposable income

Calculate the disposable income of the client and their partner (if any):

Weekly chargeable income

Less

Weekly allowable costs

Equals

Disposable income

Step 2 - Calculate client's deficiency (or surplus) in their disposable income

Calculate whether there is a deficiency or surplus in the disposable income of the client and their partner, (if any):

Standard costs

Less

Disposable income (from step 1)

Equals

Deficiency (positive amount) or
Surplus
(negative amount)

A client does not qualify for Temporary Additional Support if:

  • there is a surplus or
  • the deficiency is less than $1.00

If the client has a deficiency of $1.00 or more in their disposable income, they qualify for Temporary Additional Support. Go to Step 3 below.

Step 3 - Compare deficiency to upper limit of Temporary Additional Support to find lesser amount

Calculate the client's upper limit for Temporary Additional Support then compare this amount to the deficiency.

Upper limit

30% of the full net rate of main benefit payable to the client and their partner (if any) or

for non-beneficiaries 30% of the appropriate net rate of Jobseeker Support for the client and their partner, if any (except for certain refugees, protected persons or residence applicants)

Deficiency

from step 2

Compare the above

The rate of Temporary Additional Support is the lesser of the deficiency or the upper limit unless the client qualifies for a disability exception amount

If the deficiency is less than the upper limit, the rate of payment for Temporary Additional Support is the deficiency. The client will not qualify for the disability exception amount.

If the client qualifies for a disability exception amount, go to Step 4 below.

Step 4 - Calculate the disability exception amount (only if client qualifies)

Determine if the client qualifies for a disability exception amount. The client qualifies for a disability exception amount if the client's deficiency is greater than the upper limit and they or their family have excess disability costs.

Step 4(a) - Calculate the excess disability costs total

If the client qualifies for a disability exception amount, calculate the excess disability costs total. This is the total amount of excess disability costs of the client and their family.

Total all of the Disability Allowance costs for each family member (including any child for whom Orphans Benefit or Unsupported Childs Benefit is paid) who has costs that exceed the maximum amount of Disability Allowance paid

$0.00

Less the maximum rate of Disability Allowance paid for each family member (including any child for whom Orphans Benefit or Unsupported Childs Benefit is paid) who is getting the maximum amount of Disability Allowance

$

Equals excess disability costs total

$

Note the excess disability costs total must not include any costs for counselling (including the costs of transport to attend counselling) that are above the maximum rate of Disability Allowance.

Step 4(b) - Calculate the excess total costs

A client's excess total costs are the client and their partner's (if any) deficiency in their disposable income minus the upper limit of Temporary Additional Support. 'Excess total costs' are the costs that are not already covered by the upper limit of Temporary Additional Support.

Deficiency

$0.00

Less the upper limit of Temporary Additional Support

$

Excess total costs

$

Step 4(c) - Calculate applicable excess costs

Now find the client's applicable excess costs to determine what amount to use to calculate the disability exception amount.

A client's applicable excess costs is the lesser amount of their:

  • excess disability costs total and
  • excess total costs

Excess disability costs total

$0.00 (A)

Excess total costs

$0.00 (B)

Applicable excess costs

Lesser amount of (A) and (B)

Step 4(d) - Calculate the disability exception amount using the client's applicable excess costs

The disability exception amount provides a full subsidy for a client's applicable excess costs amount of up to $100. If the client has any applicable excess costs remaining after the full subsidy has been applied, these are subsidised at 30% of the remaining applicable excess costs amount.

Applicable excess costs amount will be fully subsidised up to $100

Up to $100 (C)

Find 30% of remaining balance of applicable excess costs not covered above (if any)

30% x remaining applicable excess (D)

Disability exception amount

Add (C) and (D) together

Step 5 - Calculate the rate of Temporary Additional Support

Calculate the rate of Temporary Additional Support.

Upper limit (from step 3)

$0.00

Plus disability exception amount (from step 4(d))

$

Equals rate of Temporary Additional Support

$

Before 1 July 2021 - Formula for Temporary Additional Support

On 1 July 2021, changes were made to the way the disability exception amount is calculated under the formula for Temporary Additional Support.

When a client qualifies for the disability exception amount for a period before 1 July 2021, you will need to assess the client's Temporary Additional Support for that period using the formula for Temporary Additional Support that applied before 1 July 2021.

Legislation

For the purposes of Temporary Additional Support, the net rate in relation to any benefit means the appropriate rate from the appropriate Schedule.

For New Zealand Superannuation it means the appropriate rate set out in Schedule 1 of the New Zealand Superannuation and Retirement Income Act 2001 after the deduction of standard tax.

For Veteran's Pension it means the appropriate rate set out in Regulation 42 of the Veterans' Support Regulations 2014 ...