F4.40 Minimum income requirement for sponsors (24/02/2020)

1. The sponsoring adult child and their partner (if joint income is considered) must demonstrate that their total income meets the minimum income threshold for two out of the three years prior to being invited to apply.

   Note: For example: If the current median income is $50,000 (Year 1), $45,000 the year before (Year 2) and $40,000 the year before (Year 3), the sponsor does not need to meet the latest median income of $50,000 if they are using their income in Year 2 or Year 3 to meet the requirement. They need to meet the specific income threshold for Year 2 ($45,000) and Year 3 ($40,000).

2. The minimum income thresholds are shown in the tables at F4.40.5 below.
3. The minimum income threshold is calculated based on the New Zealand median income from salary and is adjusted annually.
4. The minimum income that sponsor/s must meet is based on:
   1. whether the supporting adult child’s partner is jointly sponsoring the applicant; and
   2. the total number of people being sponsored by the adult child and their partner (if joint income is considered) on the date a decision on the residence application is made; and
   3. the median income on the last day of each year of the three year period
5. The total number of people being sponsored includes:
   1. any person and their partner that has been sponsored by the adult child and/or their partner in an earlier Parent Category resident visa application and is still being sponsored within the required sponsorship period; and
   2. any person and their partner who is included in the current Parent Category resident visa application.

Note: Where a partner’s income was used in support of an application processed using Parent Category instructions in place before 7 October 2019, but that partner did not act as a sponsor, this is not considered ‘sponsorship’ for the purposes of F4.40(d)(ii) or F4.40(e)(i).

F4.40.1 Meeting the minimum income requirement

1. Only taxable income that is recorded on Inland Revenue tax statements (Summary of Income) of the sponsor/s will be recognised when calculating a sponsor’s income (see F4.40.5).
2. Income earned by another legal entity, such as a company or a trust, cannot be included unless it has been paid directly to the sponsoring adult child and/or their partner in the form of shareholder-employee salary or dividends, or is income derived from the trust. This income must appear on the Inland Revenue tax statements of the sponsoring adult child and/or their partner.
3. The income of a sponsor’s partner may only be considered if the partner meets the requirements set out in F4.35.5.
4. The sponsoring adult child and their partner (if using joint income) must meet the evidential requirements set out at F4.45.

F4.40.5 Determining the three year period and the minimum income threshold for each year

1. The period over which a sponsor’s income will be assessed is the three years ending the last day of the month prior to the date the applicant/s were invited to apply
   1. Year 1 shall be the last 12 months from the month ending before the date of the ITA letter (i.e. this is the most recent 12 month period considered).
   2. Year 2 shall be the last 12 months before the start of year 1.
   3. Year 3 shall be the 12 months before the start of year 2.

   Note: For example: If the ITA date is 25/04/2020, the last day of the month ending before the ITA letter is 31/03/2020 and the three year period shall be determined as follows:
   - Year 1: 1 April 2019 to 31 March 2020
   - Year 2: 1 April 2018 to 31 March 2019
   - Year 3: 1 April 2017 to 31 March 2018

2. The income threshold required for each year is calculated based on the median income that is in effect on the last day of each year of the three year period.
3. The tables show the median income, the applicable time period and the corresponding income threshold for one and two sponsors supporting up to four parents:
   1. Minimum income thresholds for one sponsor:

   		Number of Parents
   Effective date	Median income	1	2	3	4
   24/02/2020 onwards	$53,040	$106,080	$159,120	$212,160	$265,200
   26/11/2018 to 23/02/2020	$52,000	$104,000	$156,000	$208,000	$260,000
   Before 26/11/2018	$50,523	$101,046	$151,569	$202,092	$252,615

   1. Minimum income thresholds for two (joint) sponsors:

   			Number of parents
   Effective date	Median income	1		2	3	4
   24/02/2020 onwards	$53,040	$159,120		$212,160	$265,200	$318,240
   26/11/2018 to 23/02/2020	$52,000	$156,000		$208,000	$260,000	$312,000
   Before 26/11/2018	$50,523	$151,569		$202,092	$252,615	$303,138

   Note: For example: If a single adult child is sponsoring one parent only, the applicable income threshold shall be determined by using the table in (i) above. If the ITA date is 25/03/2020 then:
   - in Year 1 the end of the 12 month period is 29/02/2020 (the month ending before the ITA date). From the table in (i) above, the median income on this date is $53,040 and the minimum income threshold for one parent is $106,080.
   - in Year 2, the last day of the year is 29/02/2019. The median income is $52,000 on this date and the minimum income threshold is $104,000.
   - in Year 3, the last day of the year is 29/02/2018. The median income is $50.523 on this date and the minimum income threshold is $101,046.

4. Where the total number of parents being sponsored is more than 4, the minimum income threshold will increase by the amount of the New Zealand median income (which applies for the stated period) for each additional parent being sponsored.

   Note: For example, if the total number of parents being sponsored by one sponsor is six, the required minimum income from 24/02/2020 onwards is $371,280 (calculated as follows: $265,200 + ($53,040 x 2 (additional parents)) = $371,280.

Effective 24/02/2020