Examples of backdating - at review
Examples of how backdating would work and the periods the refund should be issued for.
Example 1 - change in circumstances review
Tom finished his temporary contract for his job on 12 May 2023 and his income has reduced. Tom was unable to contact MSD straight away to tell them about this, as his father passed away and he had to travel for the funeral.
Tom contacts MSD on 3 June 2023 and provides the information.
Tom is paying rent to Kāinga Ora weekly on a Thursday (his rent charge date). The new rent takes effect from the next rent period after the notification from MSD.
A refund would be paid for the period from the earliest possible rent charge date, following the change in circumstances, to the day prior to the rent effective date.
Timeline:
- 12 May 2023: Tom finishes his contract.
- 18 May 2023: Date the rent charge was backdated to (start of refund period). If Tom had notified MSD of the change in time, the reduced rent would have taken effect from this date.
- 3 June 2023: Tom tells MSD that his contract finished on 12 May.
- 4 June 2023: MSD notifies housing provider of the new (lower) rate of Income Related Rent.
- 5 June 2023: Housing provider notifies Tom the rent will change, and tells him the effective date of the change.
- 8 June 2023: New rent effective date (a Thursday).
The refund period is 18 May 2023 to 7 June 2023.
Example 2 - change to income threshold at annual general adjustment
David and Leani both work full-time and do not get any ongoing assistance from MSD apart from their Income Related Rent.
On 1 April 2025, the income thresholds for Income Related Rent increase, as part of the annual general adjustment. This increase means more of their assessable income now falls below the income threshold for their household type.
On 23 June 2025, David and Leani return their completed annual review form to MSD. MSD reassesses the couple's Income Related Rent and determines their rent has decreased from $358 to $352 a week. This decrease is due to the change to the income threshold at the annual general adjustment. MSD must calculate a refund from 1 April 2025 as set out below.
The couple pays rent to Kāinga Ora weekly on a Thursday (their rent charge date).
The earliest rent charge date after 1 April is Thursday 3 April. The day before their next rent charge date is Wednesday 25 June. David and Leani have paid their rent in full (they have no rent arrears for the refund period). They are due a refund for this period as follows:
- Income Related Rent rate per week that needs to be refunded: $358 minus $352 = $6 a week
- Refund period: there are 12 weeks from 3 April until 25 June
- Refund amount: $6 x 12 weeks = $72 refund due from MSD to David and Leani
Timeline:
- 1 April 2025: The Income Related Rent income threshold changes at annual general adjustment.
- 3 April 2025: The decrease in rent would have taken effect from this date. This is the appropriate rent charge date to backdate to (start of the refund period).
- 23 June 2025: David and Leani hand in their annual review.
- 24 June 2025: Housing provider notified by MSD of the new rate of Income Related Rent.
- 25 June 2025: Housing provider tells David and Leani the rent will change, and the effective date of the change.
- 26 June 2025: The new rent effective date (a Thursday) .
The refund period is 3 April 2025 to 25 June 2025.
