Guidelines for suspension or cancellation
If a primary Jobseeker Support Student Hardship client has commenced full-time employment they will no longer qualify for Jobseeker Support Student Hardship. Generally, their benefit must be suspended or cancelled from the date they commenced full-time employment.
If their full-time employment is for a limited period, there are different ways to treat the benefit depending on:
- the proposed length of the employment
- the client's circumstances
- whether the client would qualify for Seasonal Work Assistance
- whether they qualify for Extra help such as Accommodation Supplement, Disability Allowance, Family tax credit, Best Start tax credits or In-work tax credit
To determine whether the Jobseeker Support Student Hardship should be suspended or cancelled, MSD will consider:
- if the employment is likely to last for less than 8 weeks
- if the client is no longer intending to study
- if the client qualifies for Extra help during the period of employment
- whether the client gets Family tax credit and Best Start tax credit
- if the client qualifies for Working for Families Tax Credits from Inland Revenue
Family tax credit and Best Start tax credit
Family tax credit and Best Start tax credit can be paid for a maximum of 8 weeks after a benefit is suspended or cancelled when a client commences employment. Payment of the tax credits will continue at the same rate that was paid while the client was getting a benefit.
For more information see:
Extra help
If a client commences full-time employment they may qualify for Extra help as a non-beneficiary.
The client does not need to complete a new application if they were already getting the Extra help with their main benefit. If they continue to qualify the rate payable should be reviewed.
If the client qualifies for Extra help they are not already getting with their main benefit, a new application is generally required.
For more information see:
- Processing standards Non-beneficiary assistance [no link find out why]
Legislation
- Calculation of family tax credit section MD 3 Income Tax Act 2007
- Best Start tax credit entitlement section MG 1 Income Tax Act 2007
- Review of entitlement and rate payable section 304 Social Security Act 2018
