NZ $357 Weekly Handouts Stop at $722 – Are You at Risk?

NZ $357 Weekly Handouts Stop at $722: If you’re currently receiving Jobseeker Support in New Zealand, and you’ve taken on part-time or casual work, it’s critical to understand how much you can earn before your benefit begins to reduce—or stops altogether. In April 2025, the government updated the income thresholds for benefits. That means your $357 weekly Jobseeker Support payment could start decreasing if you earn more than $160 per week before tax, and may completely cut off once your income hits around $722/week.

Knowing these thresholds helps you plan your budget, avoid surprises, and stay compliant with reporting rules set by the Ministry of Social Development (MSD). This article will walk you through exactly how Jobseeker Support is affected by your earnings, explore real-life case studies, and provide you with practical steps and advice to stay financially stable while transitioning back into work.

NZ $357 Weekly Handouts Stop at $722

If you’re receiving Jobseeker Support and working part-time or casually, you’re walking a tightrope between earning more and losing your benefit. While the goal of Jobseeker is to help you transition back into the workforce, exceeding the $160 weekly income threshold starts to reduce your benefit. And at around $722/week, it cuts off entirely.

But this isn’t bad news—it’s a sign that you’re earning enough to start standing on your own. The key is to plan carefully, report honestly, and leverage other support options if needed. By staying informed and using tools like MyMSD, you can take control of your income, protect your entitlements, and prepare for a stable future.

What Is Jobseeker Support and Why Does It Matter?

Jobseeker Support is a form of financial assistance provided by the Ministry of Social Development (MSD) to help individuals who are:

• Looking for full-time employment (defined as 30+ hours per week)
• Temporarily unable to work due to a short-term illness, injury, or disability
• Aged 18 or older and meeting residency and income eligibility criteria

This support is meant to help cover basic living expenses while individuals search for work or recover from a temporary health condition. As of April 2025, the benefit amount for a single adult aged 25+ is $353.46 per week after tax.

Crucially, Jobseeker Support is not a fixed entitlement. It is means-tested, meaning how much you earn directly impacts how much you receive. If you’re working while receiving Jobseeker—whether in a permanent part-time job, a temporary gig, or a freelance role—you need to know how your wages interact with your benefit.

Understanding the Income Threshold: When Payments Start to Shrink

What’s the $160 Rule?

If you’re on Jobseeker, you can earn up to $160 per week (before tax) without any reduction to your benefit. This provides room for part-time or casual work without immediate consequences to your weekly payment.

What Happens If You Earn Over $160?

Once your weekly gross income exceeds the $160 threshold, every additional dollar earned results in a 70-cent deduction from your Jobseeker Support. The higher your earnings, the less support you receive.

When Does Your Benefit Stop Entirely?

When your total weekly income reaches approximately $722/week before tax, the deductions completely offset your benefit, and you receive nothing from Jobseeker for that week. If your income stays above this level consistently, your benefit may be stopped until your income drops again.

Example: If you earn $562 above the $160 threshold, MSD calculates a reduction of 70% on that surplus, or $393.40. If your full benefit is $353.46, you would receive $0 that week.

How Partner Income Affects Your Benefit

If you’re in a relationship, it’s not just your earnings that matter—your partner’s income is assessed too. Even if you have no income, your partner’s earnings can disqualify you from receiving Jobseeker Support altogether.

Partner Income Threshold

If your partner earns more than $1,000/week before tax, your benefit may be significantly reduced or stopped. MSD considers household income when assessing eligibility, aiming to direct support where it’s most needed.

Tip: Use the Work and Income Income Calculator to understand how your or your partner’s earnings impact your eligibility.

Real-Life Examples: What This Looks Like in Practice

Example 1: Sophie the Student

Sophie, 26, works part-time and earns $375/week. That’s $215 over the threshold. 70% of $215 = $150.50 reduction. Her Jobseeker Support is reduced from $353.46 to $202.96/week.

Example 2: Liam’s Side Hustle

Liam picks up extra shifts and earns $780 in one week. That’s $620 above the threshold. His Jobseeker reduces by $434 (70% of $620), which is more than his benefit. Result: No payment for the week.

Example 3: Ayesha’s Household Income

Ayesha is unemployed, but her partner earns $1,200/week. Although she doesn’t work, her combined household income makes her ineligible for Jobseeker.

Reporting Your Income – What MSD Expects

Honesty and accuracy are non-negotiable when it comes to Jobseeker Support. Here’s what you must do:

• Log into MyMSD weekly to report your income
• Include all earnings—this means wages, cash jobs, side hustles, and freelance payments
• Notify MSD of any change in your job, hours worked, or pay rate
• Report even irregular income—like one-off jobs or bonus payments

Failing to report income correctly can lead to overpayments, benefit recovery, or even legal consequences.

What If Your Income Goes Up Temporarily?

Let’s say you earn more one week due to extra shifts or seasonal work. Your benefit for that week will decrease or stop. However, if your income returns to normal afterward, you may start receiving your benefit again automatically.

Short-Term Changes

• Report weekly variations accurately
• Your benefit may fluctuate from week to week

Long-Term Changes

• If your income remains high, MSD may close your Jobseeker case
• You can reapply if your earnings drop again

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Alternative Support Options If You Exceed the Limit

If your income causes you to lose Jobseeker Support, don’t panic—there may be other forms of help available:

• Accommodation Supplement: Helps cover rent and housing costs
• Temporary Additional Support: For people whose essential costs exceed their income
• Working for Families Tax Credits: If you have children and meet certain criteria
• Special Needs Grants: For urgent, one-off expenses

Visit Work and Income’s A-Z benefits list to explore what else you may qualify for.

Is It Still Worth Working While Receiving Jobseeker?

Yes—often, it is. Even if your benefit reduces, there are many non-financial advantages to working while on Jobseeker:

• Increases your total take-home income
• Keeps your skills fresh and relevant
• Improves job prospects by building recent work history
• Shows MSD that you’re actively improving employability

And don’t forget—every hour you work could lead to full-time opportunities, independence, and even higher future earnings.

FAQs On NZ $357 Weekly Handouts Stop at $722

Q1: If I don’t report my income, will MSD find out?

Answer: Likely, yes. MSD conducts data matches with IRD and employers. Non-disclosure can lead to overpayment debts and prosecution.

Q2: I earned $700 this week. Will I still get some benefit?

Answer: Very little or possibly none. At that income level, your benefit will likely be reduced to zero.

Q3: What if my partner’s income goes up or down?

Answer: You must report all household changes. Partner income impacts your entitlement.

Q4: Can I keep my benefit open if I’m temporarily earning more?

Answer: Yes, MSD may pause it. Stay in touch and report weekly. If your income drops again, payments may resume.

Q5: How do I check how much I’ll get with my current income?

Answer: Use MSD’s income calculator or the deduction tables.