Why NZ's new relocation support matters for employers

Published 1 April 2025 | 2 min read

Businesses across New Zealand face a common challenge - finding the right people for the job. Skills shortages exist in key regions, but job seekers who could fill these gaps often live elsewhere.

Employers watch qualified candidates turn down offers because relocation is too costly, leaving vacancies unfilled and operations stretched thin.

The government has stepped in with a new initiative, but what does it mean for businesses? How can employers benefit, and what are the potential pitfalls?

When relocation costs kill hiring plans

For years, businesses—especially in regional New Zealand—have struggled to attract workers due to relocation costs.

The previous '$5k to Work' scheme helped, but it lacked flexibility and wasn't always enough. Employers saw great candidates walk away because moving for work was financially out of reach.

Now, the government has introduced the Relocate for Work Support Programme. Set to launch on 31 March 2025, this scheme aims to remove financial barriers for job seekers receiving a main benefit.

But with new rules and limitations, businesses must understand how this affects their hiring strategies.

FAQs about the new scheme

Who qualifies for relocation support?

Job seekers on a main benefit with a confirmed job offer in another location.

What costs are covered?

Travel expenses (private vehicle, airfare, bus, or ferry) and moving household items.

What has changed from the old '$5k to Work' scheme?

More structured assistance, replacing the broader incentive-based approach.

Does this apply to all industries?

Yes, but the job must be sustainable and suitable.

What about non-beneficiaries or current employees relocating?

The scheme only applies to those on a main benefit, not existing employees or those seeking better opportunities elsewhere.

The legislation and business considerations

• Social Security Act 2018, Section 101(1) - Establishes the legal framework for relocation assistance.
• Relocate for Work replaces '$5k to Work' - A shift from a lump sum incentive to targeted cost support.
• Employment and Work Readiness Assistance Programme amendments - Changes reduce incentive payments from $5,000 to $3,000 over 52 weeks.
• Government focus on reducing long-term welfare dependence - Employers can expect a push for sustainable, long-term employment commitments.
• Administered by MSD - Employers may need to liaise with the Ministry of Social Development (MSD) to confirm eligibility when hiring beneficiaries.

What this means for employers

This programme gives businesses better access to job seekers who previously couldn't afford to move for work. If you're struggling to fill roles, particularly in regional areas, this could help drive stronger recruitment outcomes.

However, the scheme is not a silver bullet - it applies only to beneficiaries, and the support is limited to relocation costs, not broader incentives.

Employers should factor this into their workforce planning and consider other relocation support for skilled candidates outside the programme.

For more details, visit Ministry of Social Development or Employment New Zealand.

Note: This information is based on official details from Work and Income NZ and is subject to change. Always refer to the latest guidelines for the most accurate information. Visit Work and Income NZ here.