Annual general adjustment and assessable income

A change in income due to the annual general adjustment is not included as assessable income until the next review of a client's Income Related Rent. This could be when there is:

• a change in circumstances review (eg a review due to a permanent change in income which is a material difference) or
• an annual review

A client's Income Related Rent may change at annual review, due to the annual general adjustment. When this happens, the housing provider will be notified of the annual review processing date.

The housing provider cannot increase the rent until the earliest rent effective date following the 60-day notice period.

The Income Related Rent income thresholds increase when there is an annual general adjustment of New Zealand Superannuation. This is because the income thresholds are calculated using a net rate of New Zealand Superannuation, shown in the table below.

For some non-beneficiary clients, their Income Related Rent may decrease if their income threshold increases. This is because more of their assessable income will be below their Income Related Rent income threshold.

These clients will have their Income Related Rent reviewed at the next available review after the annual general adjustment. This will usually be when there is:

• a change in circumstances review or
• an annual review

If the client is due a refund because of the increase to the Income Related Rent income threshold, this refund should be backdated up to 1 April at the earliest (the date the income threshold changed).