New measure rules out young people with higher-earning parents
The New Zealand government is tightening eligibility for Jobseeker Support in a bid to cut down benefit dependency among youth.
Social Development and Employment Minister Louise Upston announced last week a new Parental Assistance Test that will be implemented in November 2026.
"We are bringing our Budget initiative forward for implementation to November 2026," Upston said in a statement.
"From then, all young people aged 18 and 19 without dependent children will have to pass a Parental Assistance Test in order to access Jobseeker Support or the equivalent Emergency Benefit."
Under the test, children of parents who are earning more than $65,529 will not be eligible for the benefit and will be supported by their parents instead.
"Currently, this limit is $65,529 and it is expected to rise to reflect the Annual General Adjustment of benefit payments," the government said in its announcement.
"This limit will ensure that young people from very low-income families will still be able to access support if required."
New incentive for youth
Meanwhile, the government is also introducing a new $1,000 incentive for young people under the government's Community Job Coaching service. The bonus will apply to those who:
- Have worked with Community Job Coaching after being on a benefit for at least 12 months
- Find work
- Stay off the benefit for 12 months
- Are in work at the time of their application
The payment will be available starting October 2026, according to the national government.
The new measures are part of the government's goal of reducing the number of young people who are dependent on government benefits.
There are currently 15,045 people between the ages of 18 and 19 who are on the Jobseeker benefit, according to government data.
"Going on welfare when you're young is a trap, with recent modelling suggesting that people under the age of 25 on Jobseeker Support will spend an average of 18 or more years on a benefit over their lifetimes," Upston said.
"I have far greater hopes and aspirations for those young Kiwis than a life on welfare."
