Benefit obligations and sanctions: what changed in 2025-26

Who the system applies to

The traffic light system applies to people on Jobseeker Support or Sole Parent Support, and possibly Emergency Benefit or Emergency Maintenance Allowance. Supported Living Payment recipients are mostly exempt. Youth Payment and Young Parent Payment follow Youth Services rules.

How it works now

Stage	What it means	What to do
Green	You are meeting obligations	Keep going.
Orange	You missed an obligation with no accepted reason	Contact Work and Income immediately. You get an appointment to explain. With a good reason you return to green; without one it's an 'obligation failure' that counts for 2 years, and you are given an activity to complete within 5 working days.
Red	Your benefit may be reduced or stopped	Contact them immediately; complete the activity to get back to green.

Failures	What happens
1	Benefit reduced by 50% for 4 weeks. No dependent children: it stops if you do nothing in that time. With children: reviewed.
2	Paid at 50% (with dependent children) or stopped (without).
3, or refusing a suitable job offer without good reason	Paid at 50% (with children) or stopped (without); a 6-week activity and you must reapply. Refuse the activity and you can't get a benefit for 13 weeks.

Activities such as Upskilling, Report Job Search, Money Management and Community Work Experience can stop a reduction or stop being applied when you're placed on them. In orange, completing your activity within 5 working days of moving to orange puts you back to green; not completing it moves you to red. I could not confirm the exact start dates of each activity, so check the traffic light page on workandincome.govt.nz.

The first weeks and the 26-week reset

If you have full-time work obligations you must attend 'Kōrero Mahi: Let's talk work' within 2 weeks of starting Jobseeker Support. 'Into work' applies to people with part-time obligations because of a health condition or disability.
If you can't attend, rebook and tell them why. No good reason can mean a reduction or stopped payment.
You re-apply every 26 weeks if you still need Jobseeker Support. If you reapply at 26 weeks you may need to attend a seminar again.
Declare income by Friday 6pm for the week earned, tell them about address or relationship changes, and tell them before travelling overseas.

New in 2026: 18 and 19-year-olds

Work and Income says the criteria for Jobseeker Support are changing for 18 and 19-year-olds and a small number of 16 and 17-year-olds, with more information and an application form available from 2 November 2026; affected clients are being written to. From that date they must pass a Parental Assistance Test (a parental income test and a parental support test) to get Jobseeker Support or the equivalent Emergency Benefit. StudyLink reports the enabling bill (the Social Security (Jobseeker Support and Accommodation Supplement) Amendment Bill) passed its final reading on 25 August 2026. The parental income limit quoted by StudyLink is $67,225 (combined, before tax). Young people with dependent children, or receiving Foster Care Allowance for a child in their care, are exempt. Check Work and Income for the final Jobseeker version of the test.

Other 2026 changes

Social Security (Modernisation) Amendment Act 2026: Work and Income says that from 1 July 2026 it can use automated decision-making for more rules-based decisions (for example re-granting Jobseeker Support when all criteria are met), more benefits will need regular confirmation of circumstances, and you will be told when automation was used and can still ask for a review done by a person. Some medical-evidence changes (up to 40 extra working days to provide evidence if you contact them before coverage expires) and rules for dependent children turning 18 start later, so check dates on the Work and Income site. Budget 2026 (28 May 2026): $93 million over two years from July 2026 for sole-parent work support; weekly income charging from June 2027; automatic use of Inland Revenue wage data from 3 July 2028.

If you think it's unfair

Within 5 working days of being told you've failed an obligation, call 0800 559 009 and dispute it, explaining your reason.
If you still disagree, ask for a Review of Decision (within 3 months). See the review and appeals guide.
Get help from CAB (0800 367 222) or a Community Law centre.

Disputing an obligation failure

I'm calling about the obligation failure recorded on [date]. I couldn't attend because [reason, e.g. I was unwell / a job interview / no transport / I didn't receive the text]. I have [evidence]. I'd like this failure recorded as a good reason, and my status reset to green. Please send me your decision in writing.

Sources

General information only. Confirm with the agency for your situation. Spotted something out of date? Email help@unemployed.nz.