Social Security (Long-term Residential Care—Budget Measures) Amendment Act 2012

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Social Security (Long-term Residential Care—Budget Measures) Amendment Act 2012

Public Act2012 No 40
Date of assent29 May 2012
Commencementsee section 2

The Parliament of New Zealand enacts as follows:

1 Title
  • This Act is the Social Security (Long-term Residential Care—Budget Measures) Amendment Act 2012.

2 Commencement
  • This Act comes into force on 1 July 2012.

3 Principal Act

Part 1
Applicable asset thresholds: Indexation

4 Purpose and application
  • (1) This Part amends the Social Security Act 1964 to ensure that the long-term residential care applicable asset thresholds for the year 1 July 2011 to 30 June 2012 are on 1 July in 2013, and on every following 1 July, subject to a required annual Consumers Price Index (or CPI) adjustment.

    (2) By way of explanation, the applicable asset threshold is the value of assets applied to determine whether a resident assessed as requiring care must use his or her assets to pay the cost of contracted care services provided to the person.

    (3) The principal Act as amended by this Part on 1 July 2012 applies in respect of residents assessed as requiring care before, on, or after 1 July 2012.

5 Section 155 amended (Regulations relating to this Part)
  • (1) In section 155(1)(i), after increasing, insert the applicable asset thresholds and.

    (2) In section 155(2), before income-from-assets exemption, insert applicable asset thresholds set out in Part 1 of Schedule 27 must be increased on 1 July 2013, and on every following 1 July, and the.

    (3) In section 155(2A), before must, insert insofar as they are required for the income-from-assets exemption (but not insofar as they are required for the applicable asset thresholds).

    (4) In section 155(3), after the adjusted amount of, insert an applicable asset threshold or, as the case requires, of.

    (5) In section 155(3)(b), after based on the, insert applicable asset threshold or the.

Part 2
Applicable asset thresholds: General

6 Purpose and application
  • (1) This Part amends the Social Security Act 1964 to ensure that the long-term residential care applicable asset thresholds for the year 1 July 2011 to 30 June 2012—

    • (a) also apply for all later years beginning on 1 July; but

    • (b) are, for the year 1 July 2012 to 30 June 2013, Consumers Price Index (or CPI) adjusted.

    (2) By way of explanation, the applicable asset threshold is the value of assets applied to determine whether a resident assessed as requiring care must use his or her assets to pay the cost of contracted care services provided to the person.

    (3) The principal Act as amended by this Part on 1 July 2012 applies in respect of residents assessed as requiring care before, on, or after 1 July 2012.

7 Schedule 27 amended
  • In Schedule 27, replace clauses 1 and 2 with:

    1 Applicable asset thresholds
    • (1) This clause specifies the applicable asset thresholds that apply annually for the year 1 July 2012 to 30 June 2013 and for all later years beginning on 1 July.

      (2) Threshold A is $213,297 and applies to every resident assessed as requiring care—

      • (a) who has no spouse or partner; or

      • (b) whose spouse or partner is also a resident assessed as requiring care; or

      • (c) whose spouse or partner is not a resident assessed as requiring care but who has elected, under clause 2, to have Threshold A apply to him or her rather than Threshold B.

      (3) Threshold B is $116,806 and applies to every resident assessed as requiring care—

      • (a) whose spouse or partner is not a resident assessed as requiring care; and

      • (b) who has not elected, under clause 2, to have Threshold A apply to him or her.

    2 Certain residents may elect which threshold to apply
    • (1) A resident assessed as requiring care whose spouse or partner is not a resident assessed as requiring care may elect to have Threshold A in clause 1 apply to him or her instead of having Threshold B in clause 1 apply.

      (2) A resident's election before 1 July 2012 and under this clause (as in force before 1 July 2012) to have Column A of the table in clause 1 (as in force before 1 July 2012) apply to him or her is, after 30 June 2012, treated as an election to have Threshold A in clause 1 apply to him or her.


Legislative history

24 May 2012Introduction (Bill 21–1), first reading, second reading, committee of the whole House, and third reading
29 May 2012Royal assent

This Act is administered by the Ministry of Social Development.