Child Support is assessable income from next review on or after 1 July 2023

Child Support is only included as assessable income at the client's next Income Related Rent annual review or unrelated permanent change in circumstances (whichever occurs first) on or after 1 July 2023.

An unrelated permanent change in circumstances is a change not related to Child Support and may include (but is not limited to) changes to an applicable people assessable income or assets, or to the number of people living at the property.

The unrelated permanent change in circumstances does not need to result in a difference to the rate of Income Related Rent.

For more information see:

If the client gets Child Support through Inland Revenue from 1 July 2023, we only include payments made to them on or after 22 August 2023 as assessable income.

This is because Child Support paid by Inland Revenue is paid in arrears.

Any Child Support paid by Inland Revenue on or before 22 August 2023 covers a liability period before July 2023 and is excluded.

Example - unrelated permanent change in circumstances

Tiana lives with her partner, 2 dependent children and her mother in social housing. She gets Jobseeker Support at the 'couple with children rate' and has been getting Child Support of $420 a month paid under a formula assessment from Inland Revenue since May 2023. The Child Support is not currently included as assessable income for the household's Income Related Rent.

On 30 July 2023, Tiana contacts MSD to say her mother (who is a tenant) is moving into a rest home. This is a permanent change in circumstances and the rate of Income Related Rent for the household needs to be reviewed.

Although there is an unrelated permanent change in circumstances, MSD will not include Tiana's Child Support as assessable income for the review. This is because her Child Support has not been paid for a period on or after 1 July 2023 at time of review.

When a client gets Child Support through another arrangement, e.g. a private arrangement you must determine what period the Child Support is paid for.

If it is paid for a period on or after 1 July 2023, it is included as assessable income.

Example - annual review

Jim works full-time and has been getting private arrangement Child Support of $300 a month for over a year. However, last month (June) his ex-partner could not afford to pay him Child Support.

On 12 July 2023, Jim's ex-partner pays him $600: $300 for June and $300 for July.

On 14 July 2023, MSD does an annual review of Jim's Income Related Rent. When calculating Jim's rate of Income Related Rent for his annual review, MSD:

• includes Jim's Child Support of $300 for July 2023, because it was paid for a period on or after 1 July 2023 and
• excludes Jim's Child Support of $300 for June 2023, because it was paid for a period before 1 July 2023