What is the Accommodation Supplement?
Accommodation Supplement is a weekly payment which helps people with their rent, board or the cost of owning a home. Eligibility depends on the level of income and assets someone has.
When rent goes above a certain level, the Government helps cover most of the cost. That means tenants who are eligible wouldn't pay the full cost of the increase if rents were to increase to a baseline of 80% of market rate.
How does it work?
The Accommodation Supplement helps by contributing to rent costs once they exceed a set threshold. In the Ashburton area, this threshold is $139 per week.
For every dollar of rent above this amount, the government covers 70% of the additional cost, up to a maximum limit, while the tenant pays the remaining 30%.
In practical terms, this means that once rent goes beyond $139, tenants only need to fund 30 cents of each extra dollar, with the supplement covering the rest, helping to make higher rents more affordable.
Some Examples
Hazel's situation
Maxwell's situation
Cynthia's situation
