New Accommodation Cost Rules for RSE Workers from April 2026

From April 2026, a redesigned accommodation cost framework will come into force for Recognised Seasonal Employer (RSE) workers in New Zealand, reshaping how employers calculate, charge, and recover accommodation costs. This approach establishes clear rent caps, transparent quality-based criteria, and strict compliance obligations, ensuring fairness for workers while providing certainty for employers.

A Standardised Approach to RSE Worker Accommodation Costs

The updated system introduces a nationally consistent methodology for determining accommodation charges under the RSE scheme. Instead of variable or unclear pricing practices, accommodation costs will be governed by weekly rent caps directly linked to measurable quality standards.

Under this framework:

• Weekly rent caps will range between NZD $150 and NZD $211

• The applicable cap will depend on objective accommodation features

• Employers may recover only the actual cost of providing accommodation

• All charges must be reasonable, lawful, and fully transparent

This system is designed to remove ambiguity while supporting better housing outcomes for seasonal workers.

Weekly Rent Caps Based on Accommodation Quality

Accommodation charges will no longer be arbitrary. Each property will be assessed against defined criteria that determine the maximum allowable weekly rent.

Key Factors Influencing Rent Caps

The rent cap applicable to each accommodation will be determined by:

• Number of occupants per bedroom

• Age and condition of the building

• Bathroom type and proximity

• Private vs shared facilities

• Direct or indirect access to bathrooms from bedrooms

Higher-quality accommodation with improved privacy, modern facilities, and better layouts will qualify for higher rent caps, while lower-spec accommodation will be limited to the lower end of the scale.

Encouraging Investment in Higher-Quality Worker Housing

This quality-linked pricing model is intentionally structured to incentivise employer investment in improved accommodation standards.

By allowing higher rent caps for higher-quality housing, the framework:

• Rewards employers who upgrade or build compliant accommodation

• Promotes healthier, safer living environments

• Aligns accommodation costs with real value and quality

• Supports workforce wellbeing and retention

The outcome is a sustainable housing ecosystem within the RSE scheme rather than short-term cost recovery practices.

Legal Compliance Remains Mandatory

Despite the introduction of rent caps, employment law obligations remain unchanged. Employers must continue to comply fully with:

• Minimum Wage Act

• Wages Protection Act

• All applicable employment and payroll deduction laws

Accommodation deductions must never reduce a worker’s pay below lawful thresholds, and employers remain responsible for ensuring deductions are lawful, consented to, and correctly documented.

Actual Cost Recovery Only

Employers will be permitted to recover only the genuine cost of providing accommodation. Profit-making through accommodation charges is not permitted under the RSE framework.

Recoverable costs may include:

• Rent or mortgage-related accommodation expenses

• Maintenance and compliance-related costs

• Utilities directly associated with accommodation provision

All recovered amounts must be reasonable, defensible, and auditable if requested by authorities.

Transparent Assessment Criteria for Predictability

Accommodation quality will be assessed using clearly defined and published criteria, offering predictability for employers and clarity for workers.

This transparency ensures:

• Workers understand what they are paying for

• Employers can plan accommodation investments confidently

• Disputes related to accommodation costs are minimised

• Compliance audits are streamlined and objective

Annual Rent Cap Adjustments for Inflation

To maintain fairness over time, rent caps will be updated annually. These adjustments will reflect inflationary changes, ensuring accommodation providers are not disadvantaged by rising costs while maintaining worker affordability.

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