Deciding if changes are permanent or temporary
When a client has had a change in circumstances, you must consider whether the change is likely to be permanent or temporary.
If the information provided is unclear you should discuss with the client whether the change is likely to be permanent or temporary.
This consideration must occur regardless of whether the change is likely to result in a decrease or an increase to the rate of Income Related Rent.
Whether you consider the change to be permanent or temporary depends on the individual circumstances of the client and the specific reason for the change.
Generally, for the purposes of Income Related Rent, a change that is likely to last or has lasted:
- less than 8-weeks is temporary
- 8- weeks or more is permanent
Temporary changes
Where you consider the change to be temporary you should note the changes in the client's record, including the expected duration of the change. This will enable a task to be generated for follow up.
Permanent changes
Where you consider the change to be permanent you should review the rate of Income Related Rent, and activate any changes to the rate.
Generally:
- a change in circumstances that will result in an increase in Income Related Rent will not be considered permanent until it has lasted 8-weeks or more
- for example when a client starts new employment, the change will not be considered permanent until they have maintained the employment for 8-weeks or more
- a change in circumstances that will result in a decrease in Income Related Rent will be considered permanent when it is likely to last or has lasted 8-weeks or more
- for example when a client indicates that their hours of work have reduced and this is expected to last for at least 8-weeks, the change can be considered permanent from the point the client notified MSD of the change or the date their income reduced, whichever is later
Permanent change when granting benefit, New Zealand Superannuation or Veterans Pension
When a client is granted a benefit, New Zealand Superannuation or Veterans Pension, this is considered a permanent change in circumstance from the start of the initial stand-down period, or if the initial stand-down is not imposed, from the commencement date of the assistance.
Permanent change when client gets Child Support under a formula assessment from Inland Revenue
When a client gets Child Support under a formula assessment from Inland Revenue, or the assessed amount has changed, this is generally considered a permanent change in circumstances from the date the client gets their first payment under that assessment (or reassessment).
This is because Child Support paid under a formula assessment is an annual entitlement paid to the client in monthly instalments and is likely to last (or may have already lasted) more than 8-weeks.
Note Child Support is only included as assessable income at a client's next Income Related Rent annual review or unrelated permanent change in circumstances (whichever is first) on or after 1 July 2023.
