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Student allowance : Contents

Standard rates of Accommodation Benefit

The standard rate of Accommodation Benefit is paid to all eligible students who get Student Allowance.

The standard rates of Accommodation Benefit are updated each year on 1 January.

The new standard rates are calculated using the last 12 months of Ministry of Business and Innovation (MBIE) data for Territorial Authorities.

Note this excludes the sole parent rate of Accommodation Benefit as these rates are calculated in the same way as the Accommodation Supplement rates payable to clients getting Sole Parent Support.

Maximum amount payable

The maximum amount of Accommodation Benefit payable per week to eligible students is $60 (at 1 April 2026).

Calculating the standard rates of Accommodation Benefit

From 1 January 2023, the standard rate of Accommodation Benefit will be replaced by Territorial Authority rates. These rates are based on data provided by Ministry of Business, Innovation and Employment.

The Territorial Authority rate is found by:

  • subtracting $40 from the average of the mean weekly room rate for the Territorial Authority (using the last 12 months data provided by Ministry of Business Innovation and Employment) then
  • multiplying by 0.5

This calculation reflects that the standard rate of Accommodation Benefit is a 50% subsidy on any accommodation costs over $40.

For more information see:

Intramural and extramural students

The standard rate of Accommodation Benefit a student will get depends on if they are an intramural student or an extramural student.

Chatham Islands

Extramural students who live in the Chatham Islands will have their standard rate of Accommodation Benefit paid at $60 per week.

Other students living on islands not captured by Territorial Authorities will get the same rate of Accommodation Benefit as students living on the Chatham Islands.

Grandparenting standard rates of Accommodation Benefit

Some students getting the standard Accommodation Benefit rate before 1 January 2023 may get less Accommodation Benefit from 1 January 2023.

If calculations show the student's rate will be lower on 1 January 2023 than what they were getting or eligible to get within the same study application period on 31 December 2022, their original higher rate will be grandparented for the student.

Legislation

Extramural students are students who are not completing their studies onsite at an education provider e.g. they are using correspondence school or distance learning.

For these students the standard rate of Accommodation Benefit is based on their residential address.

Example

Mahesh lives in Timaru and studies by distance at Canterbury University. Mahesh gets the standard rate of Accommodation Benefit based on his Timaru address (not the education provider's address).

Intramural students are students completing their studies onsite at an education provider.

The standard rate of Accommodation Benefit is based on the location of their education provider, not their residential address.

Generally students will be living and studying on or near their providers location.

Example

Sara lives in Upper Hutt and attends Victoria University of Wellington - Te Herenga Waka.

As Sara is studying onsite, she is getting the standard rate of Accommodation Benefit for Victoria ...

A territorial authority is a City Council or District Council.

Legislation