New Zealand Legislation: Regulations
Regulations are laws made under Acts
For the purposes of section 147A of the Act, instances of deprivation of property or income include, but are not limited to, the following:
(a) gifts that are gifted in the 12-month period prior to the commencement of the gifting period, or in any 12-month period preceding that period, to the extent that the total value of the gifts in each such period exceeds $27,000:
In the year before the commencement of the gifting period the person being means assessed and that person's spouse jointly make gifts having a total value of $100,000.
The person being means assessed and his or her spouse may be treated as having deprived themselves of $73,000 in respect of the gifts.
(b) a disposition of property at any time before the commencement of the gifting period for no consideration, or for a consideration less than the market value of the property at the time of disposition, may be treated as a gift for the purposes of paragraph (a):
Two years before the commencement of the gifting period the person being means assessed and that person's partner transfer the $300,000 house that they jointly own to a family member for $100,000. One year before the commencement of the gifting period the person being means assessed and that person's partner gift $50,000 to another family member.
The person being means assessed and his or her partner may be treated as having deprived themselves of $196,000 in respect of the disposition and the gift (being the sum of $200,000 less $27,000 for the disposition of the house and $50,000 less $27,000 for the monetary gift).
(c) a disposition of property during the gifting period for no consideration, or for a consideration less than the market value of the property at the time of disposition:
During the gifting period the person being means assessed sells his or her car for $10,000. The market value of the car at the time of sale was $20,000.
The person being means assessed may be treated as having deprived himself or herself of property to the extent of $10,000 in respect of the car sale.
(d) a failure at any time to exercise any right or entitlement to demand a payment:
The spouse of the person being means assessed makes a loan to another person with interest on the loan being payable on demand. The spouse of the person being means assessed never makes a demand for the interest.
The spouse of the person being means assessed may be treated as having deprived himself or herself of interest to the extent of the amount of interest that is payable on demand.
(e) a waiver of a right at any time to receive any entitlement or payment:
The person being means assessed and that person's partner jointly own a rental property. The tenants of that property fail to pay the rent payable under the tenancy agreement. The person being means assessed and that person's partner take no action to recover the unpaid rent.
The person being means assessed and his or her partner may be treated as having deprived themselves of income to the extent of the unpaid rent.
(f) an investment at any time in non-income-earning assets:
The person being means assessed deposits savings in a non-interest-bearing bank account.
The person being means assessed may be treated as having deprived himself or herself of income to the extent of income that could have been earned on the savings if the savings had been invested in an interest-bearing bank account.
Regulation 9B: inserted, on 19 September 2005, by regulation 4 of the Social Security (Long-term Residential Care) Amendment Regulations 2005 (SR 2005/265).
Regulation 9B: amended, on 22 November 2006, by section 21 of the Social Security (Long-term Residential Care) Amendment Act 2006 (2006 No 67).
