This note is not part of the order, but is intended to indicate its general effect.
This order, which comes into force on 1 April 2007, does 2 things.
First, it increases most benefits and superannuation, according to an increase in the All Groups Consumers Price Index (CPI) of 2.63%.
Clauses 3 and 4 amend the Social Security Act 1964. Clause 5 amends the New Zealand Superannuation and Retirement Income Act 2001.
Clause 3 increases the amounts of funeral grants.
Clause 4 and Schedule 1 increase the following benefits: widow's, orphan's, unsupported child's, invalid's, unemployment, sickness, domestic purposes, child disability, disability, independent youth, related emergency benefits, and the hospital rate. The maximum amount of income that a blind beneficiary may earn, and still receive a subsidy, is also increased, as are the asset and income limits in Schedule 31.
Clause 5 and Schedule 2 increase the rates of New Zealand superannuation entitlements to reflect both changes in the CPI and the minimum required rate of New Zealand superannuation in section 16 of the New Zealand Superannuation and Retirement Income Act 2001 (which sets minimum rates for New Zealand superannuation). The rates of New Zealand superannuation that are amended are the gross rates, but the CPI adjustment has been calculated in relation to the net rate in each case.
Secondly, the order (in clause 6 and Schedules 3 and 4) makes some additional increases to figures already increased by clauses 4 and 5 and Schedules 1 and 2, to implement the Government's commitments in relation to the level of New Zealand superannuation and make related changes.