Period of assessment

Parental income is tested against an annual income limit, but it does not have to be assessed over an annual period. MSD can choose to assess a parent's income over a period of 1, 2, 3, 4, 26 or 52 weeks. This ensures the assessment:

• accounts for variable income and irregular payments
• captures recent changes in a parent's income and
• provides the most accurate representation of the income the parent will get during the grant

Note only 1 income assessment period can be chosen per applicable parent, but a different period can be used for each applicable parent.

The income assessment period starts on the day before the:

• date of first contact, for an application
• child exclusion date, when a child leaves care
• effective date of the review, when a new applicable parent is tested after a change in circumstances or
• date the Parental Assistance Test applies to the young person, for any other change in circumstances

The income assessment includes all income the parent received in the previous 1, 2, 3, 4, 26 or 52 weeks.

Generally, a 1, 26 or 52 week assessment should be used. This is because these periods can account for variable income, irregular payments and recent changes, meaning they cover most situations. However, a 2, 3 or 4 week assessment may be needed if a parent has had a recent income change and the:

• payment frequency of that income aligns with 1 of these periods or
• parent has multiple types or sources of income with different pay frequencies that need to be captured

The assessment period cannot be nominated by the young person or their parent. MSD must choose an assessment period because it provides the most accurate representation of the income the parent will get during the grant. An assessment period cannot be chosen just because it will advantage the young person.

Example 1

Fahimi's father has been getting a benefit for the last 2 years. He started a new job 2 weeks ago and got his first weekly pay last week. MSD uses a 1-week assessment to capture his recent increase in income.

Example 2

Helga's mother lost her job 1 month ago and got her final pay 3 weeks ago. She has been granted a benefit and got her first payment last week. She also gets child support each fortnight.

MSD uses a 2-week assessment to capture her recent changes in income and her ongoing weekly and fortnightly income. If a 1-week assessment was used, her child support would not have been included. If a 3-week assessment was used, her final pay from employment would have been included even though it was a one-off payment.

Example 3

Kahurangi's father recently started getting income distributions from an investment fund which will be paid in 6-weekly instalments. He is also paid a fortnightly salary. He got his first payment from the investment fund 3 weeks ago, and his most recent salary payment 2 weeks ago.

MSD uses a 3-week assessment as this captures his stable salaried income and the recent addition of the regular investment income. If a 2-week assessment was used, his investment income would not have been included. If a 4-week assessment was used, 2 salary payments would have been included which would not accurately represent his ongoing income.

Example 4

Rawiri's mother recently moved from benefit to a full-time job with a rotating roster. Her shifts change on a 3-weekly cycle, and her hours fluctuate over those 3 weeks.

MSD uses a 3-week assessment as this captures the income from her new job over a full 3-week roster period. If a 2-week assessment was used, the variable hours over the 3-week period would not be captured. If a longer period was used, this would include her benefit payments, and the outcome would not accurately represent her ongoing income.

Example 5

Jonah's mother recently started a full-time job as a midwife and is paid monthly. Before this she was studying and getting a Student Allowance. MSD uses a 4-week assessment as this captures her recent change in income and the frequency of that income.

Example 6

Nav's father moved from part-time to full-time work 8 months ago and his wages more than doubled. He also gets quarterly payments from a family trust.

MSD uses a 26-week assessment as this captures his significant increase in income as well as the quarterly trust payments.

Example 7

Kylie's mother has a job selling cars. She has an annual salary which is paid fortnightly. She also gets irregular, variable commission payments each time she sells a car.

MSD uses a 52-week assessment as this captures her stable salary and her variable commission income.