Most of the main benefits will be impacted by how much you earn (“income-tested”).

If your income is more than a certain amount, your benefit can be reduced accordingly (see: “How earning money will affect your benefit (‘Abatement’)“).

Most of the main benefits are not impacted by your assets (they are not “asset-tested”). This means you won’t be refused a benefit or have your benefit reduced because of how much savings or other property you have. Although, if you are earning interest on these assets, this will be counted as income.

All hardship assistance payments, and some of the extra help, are both income and asset tested.

Social Security Act 2018, Schedule 3, Part 2 of Schedule 3

Income is generally defined as any money you receive that is not a one-off capital payment (e.g., a gift, a donation, a sale of an asset, an inheritance).

More specific guidelines about what counts as income can be found on www.workandincome.govt.nz if you search “Income/payments”. They also list the types of income you need to declare with Work and Income depending on the type of benefit you are getting.

The asset test is based on “cash assets”. This means money in the bank or other assets that can easily be converted into cash.

The house that you live in is not considered an asset, even if you own it. However, it may include a house or flat that you own but are not using as your home (because that property could be sold and converted to cash).

Social Security Act 2018, ss 6, 106, 128–135, 137, 169, 243, 255, 267, 430, Sched 2

If you are a parent and you’re getting a benefit, you’ll have to comply with a range of obligations (“social obligations”). You’ll have to:

• make sure that from age three your children are enrolled at and regularly attending pre-school (if one is available) or school, and
• make sure that your children are registered with a medical centre or primary health organisation and that, up to age five, they’re up to date with core checks under the WellChild programme, and
• attend interviews with Work and Income or an organisation acting on Work and Income’s behalf.

If you don’t meet these obligations, Work and Income may ask to set up regular meetings to discuss recomplying with your social obligations. They must be satisfied that you are taking all reasonable steps to meet your social obligations, even if you can’t currently meet them.

If you don’t respond or attend these meetings with Work and Income, your benefit can be reduced (see: “Trouble with Work and Income: Penalties, investigations and overpayments”).

Social Security Act 2018, ss 140 -146

If you have work-test obligations, you must:

• be available for and looking for work, either:
• 30 hours or more if you have full time work obligations
• 15 hours or more if you have part time work obligations
• be available for courses and other activities that are intended to improve your ability to find employment, and
• be applying for suitable jobs and going to job interviews, and
• accept any suitable job offers, including temporary, seasonal, or subsidised work.

If you can’t meet the work-test (for example, if you can’t attend a course, or turn down a job offer, or refuse to apply for a particular job) you need to be able to show a “good and sufficient” reason why you couldn’t comply.

You’ll likely have to provide proof. For example, if you can’t attend a course because you were unwell, you’ll likely have to provide a medical certificate.

If you don’t have a good and sufficient reason, your application for a benefit might be declined, or if you are getting a benefit, it might be reduced or stopped (see: “Trouble with Work and Income: Penalties, investigations and overpayments”).

Social Security Act 2018, ss 120 -126

If you have work preparation obligations, Work and Income may ask you to:

• plan for your employment
• attend an interview with Work and Income
• undertake activities to improve your ‘work readiness’, including to attend:
• a programme or seminar to increase skills for employment
• a work experience of work-exploration activity
• a work-related training
• a course of study

When deciding what work preparation obligations you have, Work and Income must consider what is reasonable and practical for your specific circumstances.

If you can’t meet the work preparation (for example, if you can’t attend a course, or show that you are planning for employment) you need to be able to show a “good and sufficient” reason why you couldn’t comply.

If you don’t have a good and sufficient reason, your application for a benefit might be declined, or if you are getting a benefit, it might be reduced or stopped (see: “Trouble with Work and Income: Penalties, investigations and overpayments”).

Work and Income will consider you to be in a relationship if you are married, in a civil union, or in a de facto relationship. This means:

• your partner’s income and assets will be relevant if you are asset or income tested,
• the rate of benefit you receive will be less than if you were single, and
• your partner has to comply with the relevant obligations as if they were applying for a benefit themselves.

Note: If Work and Income claim you’re in a relationship but you disagree with this, you should contact your nearest benefit-rights group (see: “Where to go for more support”) before you talk to Work and Income. Accusations of benefit fraud are serious matters, and can lead to criminal charges being laid against you.

Cases: [1997] 1 NZLR 94 (CA), [2000] NZHC 326/96, [1993] 2 NZLR 369, [1991] NZLR 241 (HC)

If you’re not legally married or in a civil union, Work and Income can still consider you to be a couple if you’re in a relationship that they consider is in the nature of a marriage (“de facto”). The test for this has two parts.

First, is there an “emotional commitment for the foreseeable future”? There’s no clear definition of this term, but the level of commitment needs to be more than just a long-standing friendship. It might involve, for example, joint parenting of children, holidaying together, and sharing social engagements. It isn’t necessary for the couple to be having sex.

If there has been family violence, this may mean that the necessary emotional commitment doesn’t exist and therefore that it’s not a relationship in the nature of marriage. However, this will depend on the particular case.

Second, are you “financially interdependent”? This might involve:

• making joint financial decisions (for example, both people signing a tenancy agreement or mortgage), or
• sharing household costs (for example, if one person pays the power bill and the other pays the phone bill), or
• supporting each other financially during tough times, or
• daily activities such as sharing household chores and cooking meals for each other.

Note: The law isn’t consistent in what it considers to be a “de facto relationship”. The test explained above applies to benefit law, but there are different tests for if you break up or if your partner dies (see: “Wills”, “A death in the family” and “Relationships and break-ups” ).

If you’re legally married or in a civil union, you’re considered to be part of a couple for benefit purposes unless you are clearly no longer in a relationship.

You don’t need to be legally divorced to show that you’re separated from your partner. You’ll need to show Work and Income that you’re living apart from one another, and that you don’t meet the definition of being in a de-facto relationship.

You don’t necessarily need to be living in separate homes to be considered living apart, but Work and Income will ask you why you continue to live in the same place, and check if it is a temporary or permanent solution.

Note: You don’t necessarily have to be living in the same home to be considered in a de facto relationship. Vice versa, you don’t have to be living in a different place to be considered living apart. Work and Income will consider things like if you are sharing a room and/or bed, your reasons for where you are living, and if it is a temporary or permanent solution.

Social Security Act 2018, ss 6, 147, 149, 151, 250, 261–263, Sched 2 Misuse of Drugs Act 1975, s 2(1) (definition of “controlled drug”)

You and/or your partner might be drug tested if:

• you have full-time or part-time work obligations, and
• you are referred by Work and Income to a job that requires you to take a drug test before they employ you.

You can be required to take either an initial test (a “screening” test), or a more accurate test (an “evidential” test), or both. These will test you for anything that is classified as a controlled drug.

Note: If you have been diagnosed with a drug addiction or undergoing certain drug treatments, Work and Income shouldn’t refer you to a job that requires you to take a drug test.

If you fail a drug test, Work and Income might charge you for the cost of the test. The cost will be taken out of your weekly benefit payment.

You’ll be considered as having failed a drug test if you:

• fail a drug test, or
• refuse to have a drug test, or
• you refuse to apply for a job that requires a drug test.

If you refuse to have a drug test without a good reason, you’ll be treated as if you failed the drug test.

If you fail a screening test, you can dispute the result by asking for the same sample to be tested by a more accurate test (an “evidential” drug test).

The first time you fail a drug test, your benefit will be cut by half. You’ll get the full benefit again if you agree to stop using drugs (called “re-complying”). If you haven’t re-complied within four weeks after your benefit was reduced, your benefit will be stopped completely until you agree to stop using drugs.

If you fail a drug test a second time within 12 months, your benefit will be cut completely (or cut by half if you have dependent children). You’ll only be able to get your benefit back by agreeing with Work and Income that you’ll:

• pass an additional drug test within 25 working days (this allows time for drugs to pass through your system), and
• give them evidence of the test result within 30 working days.

Social Security Act 2018, ss 114

You need to let Work and Income know before you head overseas, otherwise your benefit will be stopped. The exception is if there is a humanitarian reason for your absence (e.g. to be with a dying family member), in which case you must notify Work and Income as soon as is reasonable considering the circumstances.

You need to tell Work and Income the following:

• the date you’re leaving New Zealand
• the date you’re expecting to arrive back in New Zealand
• the reason for the travel – you may have to provide proof of this.