Fixing Double Dips For Boarder And Rent Payments
Hon Louise Upston
Minister for Social Development and Employment
Legislation fixing the inconsistent treatment of boarder and rental payments has been passed into law in Parliament today.
The Social Assistance Legislation (Accommodation Supplement and Income-related Rent) Amendment Bill and the supporting legislation of the Social Security (Mandatory Reviews) Amendment Bill has addressed the inconsistent treatment of board and rent payments around housing subsidies.
'This has been an unnecessarily complicated and confusing system,' says Minister for Social Development and Employment Louise Upston.
'This legislative change means that from March 2026, payments from boarders and renters will be treated equally when considering housing assistance.
'These common-sense changes were signalled in Budget 2024. The changes don't take effect until March 2026, meaning recipients will have time to provide information about any boarders they have.'
Currently, if people have only one or two boarders, board payments aren't included when MSD calculates housing subsidies -- unless it's their main source of income. This can result in the Government subsidising the same accommodation costs more than once.
In contrast, rent payments received are included when calculating a person's eligibility for housing subsidies.
'This change supports our Government's aim of ensuring our public services are fiscally sustainable and effective.
'We believe that those who have a genuine need should be able to get the help they require while ensuring consistency across MSD payments,' Louise Upston says.
Passed this morning, the Social Security (Mandatory Reviews) Amendment Bill introduces mandatory reviews of some specified benefits. These reviews will require MSD to check in and confirm a client's eligibility and rate of benefit at least once a year.
Clients must confirm if they are receiving any contributions from boarders, as well as any other circumstances which may impact their eligibility and rate of benefit, like their income.
Some aspects of the mandatory reviews will use Automated Decision-Making so MSD staff can focus on supporting people in to work.
Notes
From 2 March 2026, payments from all boarders will be included when MSD:
Calculates how much a person can get for housing subsidies (e.g. Accommodation Supplement or Temporary Additional Support), and
Calculates the Income Related Rent (IRR) for a social housing tenant in a social housing property
Additionally, if the total board and rent a person receives exceeds their total accommodation costs (or market rent for social housing tenants), the excess amount will be considered as income for other MSD assistance.
The housing subsidies that will be impacted from 2 March 2026 are:
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