Summarised by Centrist
From November 2026, the government is tightening eligibility for Jobseeker benefits.
Social Development Minister Louise Upston said the new Parental Assistance Test means 18- and 19-year-olds will only qualify for Jobseeker or emergency benefits if their parents earn below the income threshold of $65,529 (before tax) or can prove they cannot reasonably rely on them for support.
The change, announced at Budget 2025 and brought forward by a year, is expected to make about 4300 young people ineligible for Jobseeker while 4700 remain eligible in 2027–28. Upston said the goal is to raise expectations for families and reduce welfare dependency.
“We want to be clear with young people, our expectation is that they are in further education, training or a job; welfare should be a long way away from their first option,” she said.
Prime Minister Christopher Luxon called it a “pretty simple deal,” saying parents and teens share responsibility.
Exceptions will apply for those with dependent children or who are estranged from their parents.
The government says early welfare reliance has long-term costs, citing data that under-25s on Jobseeker spend an average of 18 years on benefits over their lifetimes.
Upston also announced a $1000 bonus for 18–24-year-olds who find work through the Ministry of Social Development’s coaching service and stay off benefits for 12 months. The scheme begins in October 2026.
