Social Security (Temporary Additional Support) Amendment Regulations 2006

2006/48

Social Security (Temporary Additional Support) Amendment Regulations 2006


Note

These regulations are administered in the Ministry of Social Development.


  • Preamble

    At Wellington this 6th day of March 2006

Pursuant to section 132AB of the Social Security Act 1964, Her Excellency the Governor-General, acting on the advice and with the consent of the Executive Council, makes the following regulations.

1 Title
2 Commencement
  • These regulations come into force on 1 April 2006.

3 Interpretation
  • Regulation 4 of the principal regulations is amended by inserting in the definition of standard costs, before the expression 132AB(1)(b), the word section.

4 Prescribed amount of support: exceptions
  • The principal regulations are amended by omitting the examples below regulation 13, and substituting the examples set out in Schedule 1.

5 Schedule 2 amended
  • [Revoked]

    Regulation 5 was revoked, as from 1 April 2007, by regulation 5 Social Security (Temporary Additional Support) Amendment Regulations 2007 (SR 2007/58).

6 Part 1 of Schedule 3 amended
  • The second column of clause 1 of Part 1 of Schedule 3 of the principal regulations is amended by—

    • (a) omitting the words net rate, and substituting the word amount; and

    • (b) inserting in paragraph (a), before the words the 1 or more, the words the net rate of.


Schedule 1
New examples substituted below regulation 13 of principal regulations

r 4

Example 1—single unemployment beneficiary with 2 dependent children

P is a single unemployment beneficiary with 2 dependent children, both of whom are younger than 13 years of age.

1

P’s weekly chargeable income is $503.14, and is made up of—

$249.10

net unemployment benefit; and

$119.00

family support—a credit of tax under subpart KD of the Income Tax Act 2004; and

$84.00

accommodation supplement for a resident renting in area 1; and

$51.04

disability allowance (paid at the maximum).

2

P’s weekly allowable costs are $313.96, and are made up of—

$200.00

rent in area 1 (deduct $20.96 loading from accommodation costs); and

$134.92

disability costs via disability allowance.

3

P’s disposable income is therefore $189.18, which is the remainder (a positive amount) obtained by subtracting—

$313.96

P’s weekly allowable costs; from

$503.14

P’s weekly chargeable income.

4

P’s standard costs are $257.67, and are made up of—

$174.37

70% of the net unemployment benefit; and

$83.30

70% of family support.

5

P’s standard costs, $257.67, exceed P’s disposable income, $189.18, by $68.49. The deficiency is therefore $68.49.

6

The upper limit is $74.73 (which is 30% of the net unemployment benefit).

If P is eligible for temporary additional support under regulations 6 to 8, and an application form for that support is completed as required by regulation 9, then the amount of that support that P may be granted per week, under regulation 10, is $68.49, which is the lesser of the deficiency, $68.49, and the upper limit, $74.73. (Although P has disability costs included in his or her allowable costs, the disability exception amount is not available to P under regulation 11, because P’s deficiency does not exceed the upper limit.)

Example 2—married unemployment beneficiary with 3 dependent children

S is a married unemployment beneficiary with 3 dependent children; all of whom are younger than 13 years of age.

1

S’s weekly chargeable income is $557.92, and is made up of—

$289.84

net unemployment benefit; and

$166.00

family support—a credit of tax under subpart KD of the Income Tax Act 2004; and

$102.08

disability allowance x 2 (paid at the maximum).

2

S’s weekly allowable costs are $327.48, and are made up of—

$200.00

Housing New Zealand rent in area 1 (deduct $20.96 loading from accommodation costs); and

$148.44

disability costs via disability allowance.

3

S’s disposable income is therefore $230.44, which is the remainder (a positive amount) obtained by subtracting—

$327.48

S’s weekly allowable costs; from

$557.92

S’s weekly chargeable income.

4

S’s standard costs are $319.09, and are made up of—

$202.89

70% of the net unemployment benefit; and

$116.20

70% of family support.

5

S’s standard costs, $319.09, exceed S’s disposable income, $230.44, by $88.65. The deficiency is therefore $88.65.

6

The upper limit is $86.95 (which is 30% of the net unemployment benefit).

7

The disability exception amount is $13.91 (which is 30% of the excess disability costs total).

If S is eligible for temporary additional support under regulations 6 to 8, and an application form for that support is completed as required by regulation 9, then the amount of that support that S may be granted per week, under regulations 10 and 11, is $100.86.

That amount, $100.86, is the sum of—

(a)

$86.95, which is the lesser of the deficiency, $88.65, and the upper limit, $86.95 (see regulation 10(1)(a)); and

(b)

$13.91, which is the disability exception amount available to S under regulation 11 (see regulation 10(1)(b)).

Example 3—single unemployment beneficiary with no dependent children

X is a single unemployment beneficiary who is 26 years of age and has no dependent children.

1

X’s weekly chargeable income is $193.92, and is made up of—

$173.92

net unemployment benefit; and

$20.00

disability allowance.

2

X’s weekly allowable costs are $159.48, and are made up of—

$130.00

Housing New Zealand rent in area 1 (deduct $20.96 loading from accommodation costs); and

$20.00

disability costs via disability allowance; and

$30.44

consumer credit contracts.

3

X’s disposable income is therefore $34.44, which is the remainder (a positive amount) obtained by subtracting—

$159.48

X’s weekly allowable costs; from

$193.92

X’s weekly chargeable income.

4

X’s standard costs are $121.74 (which is 70% of the net unemployment benefit).

5

X’s standard costs, $121.74, exceed X’s disposable income, $34.44, by $87.30. The deficiency is therefore $87.30.

6

The upper limit is $52.18 (which is 30% of the net unemployment benefit).

If X is eligible for temporary additional support under regulations 6 to 8, and an application form for that support is completed as required by regulation 9, then the amount of that support that X may be granted per week, under regulation 10, is $52.18, which is the lesser of the deficiency, $87.30, and the upper limit, $52.18. (Although X has disability costs included in his or her allowable costs, the disability exception amount is not available to X under regulation 11, because his or her disability costs are met by his or her disability allowance.)

Schedule 2
Amendments to Schedule 2 of principal regulations

r 5

[Revoked]

  • Schedule 2 was revoked, as from 1 April 2007, by regulation 5 Social Security (Temporary Additional Support) Amendment Regulations 2007 (SR 2007/58).

Diane Morcom,

Clerk of the Executive Council:

Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on 1 April 2006, amend the Social Security (Temporary Additional Support) Regulations 2005 (SR 2005/334), which also come into force on 1 April 2006.

The substantive amendments—

  • increase certain payments listed in Schedule 2 of the principal regulations, in accordance with a 3.16% increase in the All Groups Consumers Price Index:

  • substitute examples below regulation 13 of the principal regulations to reflect changes to the financial components of the examples.


Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 9 March 2006.