Social Security Amendment Act 1998

Social Security Amendment Act 1998

Public Act1998 No 19
Date of assent19 May 1998

Contents

Title


An Act to amend the Social Security Act 1964 to provide for the community wage and other matters relating to benefits

BE IT ENACTED by the Parliament of New Zealand as follows:

1 Short Title and commencement
  • (1) This Act may be cited as the Social Security Amendment Act 1998, and is part of the Social Security Act 1964 (the principal Act).

    (2) Part 1 comes into force on 1 July 1998.

    (3) Part 2 comes into force on 1 September 1998.

    (4) Part 3 and Schedule 1 come into force on 1 October 1998.

    (5) Part 4 and Schedule 2 come into force on 1 February 1999.

Part 1
Amendments to principal Act coming into force on 1 July 1998

2 Interpretation
3 Sickness benefits
  • (1) This subsection amended s 54(1) of the principal Act.

    (2) If a person was receiving a sickness benefit immediately before 1 July 1998, nothing in subsection (1) affects the person's entitlement to continue to receive that benefit.

4 Rates of sickness benefit
  • (1) This subsection amended s 55(1) of the principal Act.

    (2) This subsection amended s 55(2) of the principal Act.

    (3) This subsection inserted s 55(3) of the principal Act.

5 Unemployment benefits
  • (1) This subsection amended s 58(1)(d) of the principal Act.

    (2) If a person was receiving an unemployment benefit immediately before 1 July 1998, nothing in subsection (1) affects the person's entitlement to continue to receive that benefit.

6 Young job seekers' allowances
  • (1) This subsection amended s 59B(1)(g) of the principal Act.

    (2) If a person was receiving a young job seeker's allowance immediately before 1 July 1998, nothing in subsection (1) affects the person's entitlement to continue to receive that benefit.

7 Training benefits: qualifications
  • (1) This subsection amended s 60AA(2)(c) of the principal Act.

    (2) If a person was receiving a training benefit immediately before 1 July 1998, nothing in subsection (1) affects the person's entitlement to continue to receive that benefit.

8 Independent youth benefits: basic qualifications
  • (1) This subsection amended s 60F(2)(c) of the principal Act.

    (2) If a person was receiving an independent youth benefit immediately before 1 July 1998, nothing in subsection (1) affects the person's entitlement to continue to receive that benefit.

9 Schedule 8 amended
  • (1) This subsection amended Schedule 8 of the principal Act.

    (2) This subsection amended s 61H(1)(d) of the principal Act.

10 Schedule 9 amended
  • This section amended Schedule 9 of the principal Act.

Part 2
Amendments to principal Act coming into force 1 September 1998

11 Interpretation
  • (1) This subsection inserted definitions of the terms Capacity for work, Chief executive, Employment, Open employment, Psychologist, Sheltered employment and Sickness in s 3(1) of the principal Act.

    (2) This subsection substituted para (b)(iv) of the definition of the term benefit in s 3(1) of the principal Act.

    (3) This subsection inserted para (f)(iva) of the definition of the term income in s 3(1) of the principal Act.

12 Child disability allowance
  • (1) This subsection amended s 39A of the principal Act.

    (2) This subsection amended s 39A(3) of the principal Act.

    (3) Every handicapped child's allowance that was payable immediately before 1 September 1998 becomes, on that date, a child disability allowance under section 39A of the principal Act (as amended by this section).

    (4) 

    • (b) This paragraph amended ss 39C and 53A of the principal Act.

    • (c) This paragraph amended s 72 of the principal Act.

    • (d) This paragraph amended Schedule 19 of the principal Act.

    (5) This subsection substituted immediately above section 39A of the principal Act.

13 New heading and sections substituted
  • This section inserted s 39F and the preceding heading, and substituted s 40 of the principal Act.

14 New sections substituted
  • This section substituted s 44, inserted a new s 45, and repealed s 46 of the principal Act.

15 New sections relating to assessment of capacity for work inserted
  • (1) [Repealed]

    (2) This subsection repealed the heading immediately following section 46 of the principal Act.

    Subsection (1) was repealed, as from 8 March 2001, by section 4(3) Social Security Amendment Act 2001 (2001 No 1).

16 Right of appeal on medical grounds
  • (1) [Repealed]

    (2) This subsection amended s 53A(1) of the principal Act.

    (3) This subsection inserted s 53A(1A) of the principal Act.

    (4) [Repealed]

    Subsections (1) and (4) were repealed, as from 8 March 2001, by section 4(3) Social Security Amendment Act 2001 (2001 No 1).

17 Regulations relating to work capacity assessment
  • [Repealed]

    Section 17 was repealed, as from 8 March 2001, by section 4(3) Social Security Amendment Act 2001 (2001 No 1).

Part 3
Amendments to principal Act coming into force on 1 October 1998

18 Interpretation
  • (1) This subsection inserted definitions of the terms Community wage, Community wage earner, Full-time student, Job seeker contract, Participation allowance, Part-time work-tested beneficiary, Regular, Suitable employment, and Work test in s 3(1) of the principal Act.

    (2) This subsection substituted the definitions of the terms non-entitlement period, work-tested beneficiary, work-tested benefit, and work-tested spouse in s 3(1) of the principal Act.

    (3) This subsection inserted para (aa) of the definition of the term benefit in s 3(1) of the principal Act.

    (4) This subsection repealed paragraph (b)(v) of the definition of the term benefit in s 3(1) of the principal Act.

    (5) This subsection repealed the definition of the term community task force project in s 3(1) of the principal Act.

    (6) Section 3(1) of the principal Act is amended by omitting the words Full employment, and substituting the words Full employment or full-time employment.

    (7) This subsection inserted para (f)(va) of the definition of the term income in s 3(1) of the principal Act.

    (8) This subsection amended the definition of the term part-time work in s 3(1) of the principal Act.

    (9) This subsection amended the definition of the term work-tested domestic purposes beneficiary in s 3(1) of the principal Act.

    (10) This subsection amended the definition of the term work-tested widow's beneficiary in s 3(1) of the principal Act.

    (11) This subsection substituted s 3(5) of the principal Act.

    (12) Section 60JC(1) of the principal Act is consequentially amended—

    • (a) This paragraph amended s 60JC(1)(b) of the principal Act.

    • (b) This paragraph amended s 60JC(1)(c) of the principal Act.

19 Right of appeal
  • (1) This subsection amended s 12J(1)(a) of the principal Act.

    (2) 

    • (a) This paragraph amended s 12J(2) of the principal Act.

    • (b) This paragraph substituted s 12J(2)(e) of the principal Act.

20 Widows' benefits
  • (1) This subsection substituted s 21(2B) of the principal Act.

    (2) This section amended s 21(2C) of the principal Act.

21 Domestic purposes benefits for solo parents
  • (1) This subsection substituted s 27B(2B) of the principal Act.

    (2) This subsection amended s 27B(2C) of the principal Act.

22 Domestic purposes benefits for women alone
  • (1) This subsection substituted s 27C(5) of the principal Act.

    (2) This subsection amended s 27C(6) of the principal Act.

23 Right of appeal on medical grounds
  • This section substituted s 53A(1)(ba) of the principal Act.

24 Sections 54 to 56 repealed
25 Sections 58 to 60C repealed
26 Independent youth benefits: basic qualifications
  • (1) This subsection substituted s 60F(3) of the principal Act.

    (2) This subsection substituted s 60F(6) of the principal Act.

27 Independent youth benefits: sickness, injury, or disability
  • This section substituted s 60FD of the principal Act.

28 Purposes of sections 60H to 60M
  • This section substituted s 60GA(b)(ii) of the principal Act.

29 Voluntary unemployment or loss of employment through misconduct, etc
  • (1) 

    • (a) This paragraph substituted the definition of the term Employment in s 60H(1) of the principal Act.

    • (b) This paragraph repealed the definition of the term regular in s 60H(1) of the principal Act.

    (2) This subsection substituted s 60H(2) of the principal Act.

30 Mandatory interviews
  • (1) This section amended s 60HA(1)(a)(ii) of the principal Act.

    (2) Section 60HA(4) of the principal Act is repealed.

31 Effect of failure to attend or participate in mandatory interview
  • This section substituted s 60HB of the principal Act.

32 Beneficiaries to be work-tested
  • (1) Section 60HC(3) of the principal Act is repealed.

    (2) This subsection amended s 60HC(5) of the principal Act.

    (3) Section 60HC of the principal Act is amended by repealing subsections (6), (8), and (9).

    (4) This subsection substituted s 60HE(1) of the principal Act.

33 Section 60HCA repealed
34 Power of Director-General to grant exemption from mandatory interview or work test
  • (1) This subsection amended s 60HD(1)(b) of the principal Act.

    (2) This subsection substituted s 60HD(2) of the principal Act.

    (3) This section amended s 60HD(3) of the principal Act.

    (4) Section 60HD(4) of the principal Act is repealed.

35 Delay of work test obligation for existing beneficiaries
  • This section inserted s 60HF of the principal Act.

36 Failure to comply with work test
  • (1) This subsection amended s 60J(2)(a)(ii) of the principal Act.

    (2) Section 60J(6) of the principal Act is repealed.

37 Penalty for failure to attend or participate in mandatory interview or comply with work test
  • (1) This subsection amended s 60JA(4) of the principal Act.

    (2) This subsection substituted s 60JA(5)(b) of the principal Act.

    (3) This subsection amended s 60JA(10) of the principal Act.

38 Effect of participation in approved activities
  • (1) This subsection substituted s 60KA of the principal Act.

    (2) Where, before 1 October 1998, a person commenced participation in a community task force project or a training programme approved by the Director-General (under section 60KA of the principal Act as it was before its substitution by this section), that project or programme is an activity for the purposes of section 60KA (as substituted by this section) after that date.

39 Effect of sections 60H to 60J and section 60N on entitlement to supplementary benefits and on spouses
  • Section 60L of the principal Act is repealed.

40 Community task force scheme
41 Director-General may grant emergency benefit in cases of hardship
  • (1) This subsection amended s 61(1) of the principal Act.

    (2) This subsection inserted s 61(1A) of the principal Act.

42 Interpretation
  • This section substituted s 61E(1)(a) of the principal Act.

43 Exemption of income from friendly or like society
  • This section amended s 66(1) of the principal Act.

44 Disability allowance
  • (1) This subsection amended s 69C(1)(a) of the principal Act.

    (2) This subsection amended s 69C(5)(a) of the principal Act.

45 Rates of benefits for sole parents may be reduced
  • This section amended s 70A(1)(b) of the principal Act.

46 Special provisions in respect of earnings related compensation
  • Section 71A of the principal Act is amended—

    • (a) This paragraph amended s 71A(1)(a) of the principal Act.

    • (b) This paragraph amended s 71A(2).

47 Limitation where applicant receiving another benefit or war pension
  • This section amended s 72(b) of the principal Act.

48 Effect of absence of beneficiary from New Zealand
  • (1) This subsection amended s 77(2) of the principal Act.

    (2) This section amended s 77(3) of the principal Act.

49 Commencement of benefits
    • (a) This paragraph amended s 80(2)(b) of the principal Act.

    • (b) This paragraph amended s 80(5)(c) of the principal Act.

    • (c) This paragraph amended s 80(5)(c)(ii) of the principal Act.

    • (d) This paragraph amended s 80(14)(a) of the principal Act.

    (2) This subsection substituted s 80(5)(a) of the principal Act

50 Interpretation
  • This section substituted para (a)(iv), and repealed para (a)(v) to (vii) of the definition of the term income in s 80B of the principal Act.

51 Calculation of stand down
52 Ending of benefits
  • This section amended s 80BD(3) of the principal Act.

53 New Part 2 inserted
  • This section inserted Part 2 (comprising ss 87 to 100) of the principal Act.

54 Transfer of existing beneficiaries to community wage
  • (1) This section applies to persons receiving any of the following benefits immediately before the commencement of this section:

    • (a) An unemployment benefit (which includes the benefit known as the 55+ benefit):

    • (b) A young job seeker's allowance:

    • (c) A training benefit:

    • (d) A sickness benefit:

    • (e) The benefit known as the emergency sickness benefit, which benefit is an emergency benefit on the grounds of sickness, injury, or disability:

    • (f) The benefit known as the emergency unemployment benefit, which benefit is an emergency benefit where the chief executive has imposed work testing as a condition of the benefit, and the benefit is—

      • (i) Granted instead of, or in substitution for, an unemployment benefit; or

      • (ii) Analogous to an unemployment benefit.

    (2) If, immediately before the date of commencement of this section, a person was fulfilling the conditions of entitlement to the benefit, then on that date—

    • (a) The benefit becomes a community wage as if it had been granted under section 89 of the principal Act; and

    • (b) The person becomes a community wage earner; and

    • (c) If the benefit was paid at a married rate, then the community wage is payable as if the person and his or her work-tested spouse had each signed a job seeker contract.

    (3) A person who becomes a community wage earner under this section, and his or her work-tested spouse, must enter into a job seeker contract if required to do so by the chief executive, and section 95(3) of the principal Act applies to a failure to comply with the requirement. This subsection is subject to section 96(3).

55 Regulations providing for participation allowance
  • This section inserted s 132F of the principal Act.

56 Schedule 9 amended
  • (1) This subsection amended Schedule 9 of the principal Act.

    (2) This subsection substituted clause 5 of Schedule 9 of the principal Act.

57 Consequential amendments to other enactments
  • The enactments specified in Schedule 1 are consequentially amended in the manner indicated in that schedule.

Part 4
Amendments to principal Act coming into force on 1 February 1999

58 Interpretation
  • (1) This subsection inserted in s 3(1) of the principal Act the definitions of Work preparation exercise, and Work-test married rate.

    (2) This subsection amended the definition of the term dependent child in s 3(1) of the principal Act.

    (3) This subsection substituted the definition of the term part-time work-tested beneficiary in s 3(1) of the principal Act.

    (4) This subsection amended the definition of the term work-tested benefit in s 3(1) of the principal Act.

    (5) This subsection substituted paragraph (b) of the definition of the term work-tested domestic purposes beneficiary in s 3(1) of the principal Act.

    (6) This subsection substituted the definition of the term work-tested spouse in s 3(1) of the principal Act.

    (7) This subsection amended paragraph (b) of the definition of the term work-tested widow's beneficiary in s 3(1) of the principal Act.

    (8) This subsection amended s 3(5) of the principal Act.

    Subsection (4) was substituted, as from 1 October 1998, by section 9 Social Security (Work Test) Amendment Act 1998 (1998 No 94).

59 Widows' benefits
  • This section substituted s 21(2A) of the principal Act.

60 Rates of widows' benefits
  • This section amended s 24 of the principal Act.

61 Domestic purposes benefits for solo parents
  • This section substituted s 27B(2A) of the principal Act.

62 Domestic purposes benefits for women alone
  • This section amended s 27C(4) of the principal Act.

63 Rates of domestic purposes benefits
  • This section amended s 27H(1) of the principal Act.

64 Obligations on spouse of invalid's beneficiary
  • This section inserted s 42A in the principal Act.

65 Work preparation exercise
  • (1) This subsection substituted s 60HA of the principal Act.

    (2) This subsection substituted s 131A(2)(g) of the principal Act.

66 Beneficiaries to be work-tested
67 Power of chief executive to grant exemption from compliance with request under section 60HA or work test
  • (1) This subsection amended s 60HD(1) of the principal Act.

    (2) This subsection amended s 60HD(3) of the principal Act.

    (3) This subsection amended s 60HD(6) of the principal Act.

68 Penalty for failure to participate in work preparation exercise or comply with work test
  • (1) This subsection amended s 60JA(1) of the principal Act.

    (2) This subsection amended s 60JA(4) of the principal Act.

    (3) This subsection substituted s 60JA(5)(a) of the principal Act.

    (4) This subsection substituted the definition of the term benefit in s 60JA(10) of the principal Act.

69 Effect of recompliance with work preparation exercise or work test
  • This section substituted s 60JB(1)(a) of the principal Act.

70 Reduction in benefit or non-entitlement period ends when person no longer required to comply with section 60HA or work test
  • This section amended s 60JC(2)(a) of the principal Act.

71 Effect on non-entitlement of undertaking employment
  • This section substituted s 60K of the principal Act.

72 Effect of participation in approved activities
  • (1) This subsection substituted s 60KA(2) and repealed s 60KA(3) of the principal Act.

    (2) This subsection amended s 60KA(4) of the principal Act.

    (3) This subsection amended s 60KA(5) of the principal Act.

    (4) This subsection amended s 60KA(8) of the principal Act.

73 Obligations of spouse of person granted emergency benefit
  • This section inserted s 61A in the principal Act.

74 Rates of benefits, etc may be increased by Order in Council
  • This section substituted s 61H(1)(d) of the principal Act.

75 Effect of absence of beneficiary from New Zealand
  • (1) This subsection amended s 77(2) of the principal Act.

    (2) This subsection amended s 77(3) of the principal Act.

    (3) This subsection amended s 77(3A) of the principal Act.

76 Recovery of payments made in excess of authorised rates
  • This section inserted ss 86(1E) and (1F) in the principal Act.

77 Job seeker contract for other beneficiaries
  • (1) This subsection amended s 95(4) of the principal Act.

    (2) This subsection amended s 95 of the principal Act.

78 Application of sections 58, 65, and 66
  • Section 58 (which amends section 3(1) of principal Act), section 65 (which substitutes a new section 60HA of the principal Act), and section 66 (which amends section 60HC of the principal Act) apply,—

    • (a) For a person granted a widow's benefit, or a domestic purposes benefit under section 27B or section 27C of the principal Act on or after 1 February 1999, from that date:

    • (b) For any other work-tested domestic purposes beneficiary or work-tested widow's beneficiary, from the earlier of the following dates:

      • (i) The date on which the beneficiary's benefit is next reviewed under section 81 of the principal Act; or

      • (ii) 1 February 2000:

    • (c) For a work-tested spouse in respect of whom a community wage or invalid's benefit or emergency benefit has been granted on or after 1 February 1999, from that date:

    • (d) For any other work-tested spouse of a beneficiary who has been granted a community wage, an invalid's benefit, or an emergency benefit, from the earlier of the following dates:

      • (i) The date on which the benefit is next reviewed under section 81 of the principal Act; or

      • (ii) 1 February 2000.

79 New Schedules 3 and 16 substituted
  • The principal Act is amended by repealing Schedules 3 and 16, and substituting the Schedules 3 and 16 set out in Schedule 2.

80 Child Support Act 1991 amended

Schedule 1
Enactments amended

Section 57

A
Acts amended

This Schedule amended the definition of the term salary and wages in section 84F, and ss 84G(7)(c), 84I(2)(c)(iv) and 84L(4) District Courts Act 1947 (1947 No 16); s 13 Family Protection Act 1955 (1955 No 88); s 35A Estate and Gift Duties Act 1968 (1968 No 35); para (b) of the definition of the term dependant, and para (d)(vii) of the definition of the term income in s 2 Rates Rebate Act 1973 (1973 No 73); ss 226A, and 238B Education Act 1989 (1989 No 80);; para (d)(i) of the definition of the term income in s 2 Legal Services Act 1991; the definition of the term financially independent, and para (c)(iii) to (v) of the definition of the term social security benefit in s 2(1), s 30(3), the definition of the term Gross married rate of community wage in s 30(5), and s 131(c) Child Support Act 1991 (1991 No 142);

  • Items relating to sections 226A and 238b Education Act 1989 and section 78(1) to (3) Accident Rehabilitation Compensation and Insurance Act 1992 were repealed, as from 1 October 1998, by section 11 Employment Services and Income Support (Integrated Administration) Act 1998 (1998 No 96).

  • Schedule 1 was to have been amended, as from 1 July 1999, by section 415(1) Accident Insurance Act 1998 (1998 No 114) by omitting so much as relates to the Accident Rehabilitation and Compensation Insurance Act 1992. This was apparently in error because those items had already been repealed by section 11 Employment Service and Income Support (Integrated Administration) Act 1998 (1998 No 96).

  • The item relating to the Income Tax Act 1994 was repealed, as from 1 April 2005, by section YA 2 Income Tax Act 2004 (2004 No 35).

  • Schedule 1 was amended, as from 12 October 2001, by section 77 New Zealand Superannuation Act 2001 (2001 No 84) by omitting so much as relates to the Social Welfare (Transitional Provisions) Act 1990.

B
Regulations amended

RegulationAmendment
The Student Allowances Regulations 1991 (SR 1991/295)By omitting from regulation 19, and also from regulation 20(2), the words a sickness benefit, an invalid's benefit, an unemployment benefit, or a training benefit under Part I of, and substituting in each case the words a community wage or an invalid's benefit under.
The Health Entitlement Cards Regulations 1993 (SR 1993/l69)

By repealing paragraphs (d), (e), (f), and (g) of the definition of the term income tested benefit in regulation 2, and substituting the following paragraph:

  • (d) A community wage under the Social Security Act 1964; or.

By omitting from paragraph (i) of that definition the words an unemployment benefit or sickness benefit, and substituting the words a community wage.

The Social Security (Exemptions from Mandatory Interviews and Work Tests) Regulations 1996 (SR 1996/260)By omitting from regulation 3(3)(c), and also from regulation 4(2)(c), the words a sickness benefit, and substituting in each case the words a community wage on the grounds of sickness, injury, or disability.

Schedule 2
New Schedules 3 and 16 substituted in principal Act

Section 79

Schedule 3
Rates of widows' benefits

Sections 21, 24

1.(a) To a beneficiary with 1 dependent child$211.04 a week, subject to—
    (a)Income Test 5 if the beneficiary is a work-tested beneficiary whose youngest dependent child is aged 14 years or more, or
    (b)Income Test 1 in any other case.
 (b)To a beneficiary with 2 or more dependent children$230.24 a week, subject to—
    (a)Income Test 5 if the beneficiary is a work-tested beneficiary whose youngest dependent child is aged 14 years or more; or
    (b)Income Test 1 in any other case.
2.To a beneficiary without any dependent children$153.47 a week, subject to—
    (a)Income Test 5 if the beneficiary is a work-tested beneficiary; or
    (b)Income Test 1 in any other case.
3.For the purpose of clause 1, the chief executive may, in his or her discretion, disregard up to $20 a week of the beneficiary's personal earnings used to meet the cost of child care for the beneficiary's dependent child or children.

Schedule 16
Rates of domestic purposes benefits

Sections 27B, 27C, and 27H

1.(a)To a beneficiary with 1 dependent child$211.04 a week, subject to—
    (a)Income Test 5 if the beneficiary is a work-tested beneficiary whose youngest dependent child is aged 14 years or more; or
    (b)Income Test 1 in any other case
 (b)To a beneficiary with 2 or more dependent children$230.24 a week, subject to—
    (a)Income Test 5 if the beneficiary is a work-tested beneficiary whose youngest dependent child is aged 14 years or more; or
    (b)Income Test 1 in any other case.
2.To a beneficiary without any dependent children$153.47 a week, subject to—
    (a)Income Test 5 if the beneficiary is a work-tested beneficiary; or
    (b)Income Test 1 in any other case.
3.For the purpose of clause 1, the chief executive may, in his or her discretion, disregard up to $20 a week of the beneficiary's personal earnings used to meet the cost of child care for the beneficiary's dependent child or children.