Social Security (Income and Cash Assets Exemptions) Regulations 2011

Reprint as at 31 October 2016

Coat of Arms of New Zealand

Social Security (Income and Cash Assets Exemptions) Regulations 2011

(SR 2011/287)

Anand Satyanand, Governor-General

Order in Council

At Wellington this 22nd day of August 2011

Present:
His Excellency the Governor-General in Council

Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

These regulations are administered by the Ministry of Social Development.

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

Contents

1Title
2Commencement
3Interpretation
3AInterpretation
3BApplication
3CItems declared not to be income
3DPayments declared not to be cash assets
4Interpretation
5Payments and amounts in respect of which exemptions have effect on and after specified dates
6Payments and amounts declared not to be income
7Payments declared not to be cash assets
7AInterpretation
7BApplication
7CPayments declared not to be cash assets
8Interpretation
9Application
10Payments and income declared not to be income
11Payments and income declared not to be cash assets
12Interpretation
13Application
14Payments and income declared not to be income
15Payments declared not to be cash assets
16Interpretation
17Application
18Items and payments declared not to be income
19Interpretation
20Application
21Payments declared not to be income
22Application
23Payments and income declared not to be income
24Payments declared not to be cash assets
25Interpretation
26Application
27Operational allowances declared not to be income
28Interpretation
29Application
30Payments and income declared not to be income
31Payments declared not to be cash assets
32Interpretation
33Items declared not to be income
34Items declared not to be cash assets
35Effect of election to defer receipt of benefits
36Interpretation
37Application
38Payments and income declared not to be income
39Payments and income declared not to be cash assets
40Interpretation
41Payments and interest declared not to be income
42Payments declared not to be cash assets
43Interpretation
44Application
45Payments and income declared not to be income
46Payments declared not to be cash assets
47Revocations
48Savings provision
49Interpretation
50Application
51Items declared not to be income
52Items declared not to be cash assets
Gazette Information
Reprint notes

Regulations

1 Title

These regulations are the Social Security (Income and Cash Assets Exemptions) Regulations 2011.

2 Commencement

These regulations come into force on the 28th day after the date of their notification in the Gazette.

3 Interpretation

In these regulations, unless the context otherwise requires,—

Crown means all or any of the following:

(a)

the Sovereign in right of New Zealand:

(b)

all Ministers of the Crown, and all departments of the Public Service specified in Schedule 1 of the State Sector Act 1988:

(c)

Crown entities as defined in section 7(1) of the Crown Entities Act 2004 (for example, DHBs):

(d)

every other instrument of the Crown in respect of the Government of New Zealand, whether the instrument is or was an agency, corporation, department, division, enterprise, service, or otherwise (for example, every predecessor in title of a DHB)

DHB has the meaning given to it by section 6(1) of the New Zealand Public Health and Disability Act 2000

ex gratia payment means a payment made without an acknowledgment of legal liability

predecessor in title, in relation to a DHB, has the meaning given to it by section 2(1) of the Health Sector (Transfers) Act 1993.

Part 1AA Accommodation supplement arrears payments

Part 1AA: inserted, on 31 October 2016, by regulation 4 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2016 (LI 2016/232).

3A Interpretation

In this Part, a specified processing error, for a person, means incorrect data relating to either or both of the type of the person’s premises and the person’s accommodation costs (within the meaning of section 61E of the Act) being entered—

(a)

into a computer system operated by or on behalf of the department; and

(b)

as a result of a system error; and

(c)

at any time in the years 1993 to 2014 (inclusive).

Regulation 3A: inserted, on 31 October 2016, by regulation 4 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2016 (LI 2016/232).

3B Application

The exemptions in regulations 3C and 3D

(a)

apply to any lump sum payment of arrears of accommodation supplement made—

(i)

on or after 1 November 2016; and

(ii)

as a result of the department correcting a specified processing error; and

(b)

have effect, in respect of the income or cash assets specified in regulations 3C and 3D, on and after 1 November 2016; but

(c)

apply only for the first 12 months after the payment concerned is made.

Regulation 3B: inserted, on 31 October 2016, by regulation 4 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2016 (LI 2016/232).

3C Items declared not to be income

Any income derived by the person from a payment specified in regulation 3B(a) is not income for the purposes of the Act.

Regulation 3C: inserted, on 31 October 2016, by regulation 4 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2016 (LI 2016/232).

3D Payments declared not to be cash assets

A payment specified in regulation 3B(a) is not cash assets for the purposes of the Act.

Regulation 3D: inserted, on 31 October 2016, by regulation 4 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2016 (LI 2016/232).

Part 1 Canterbury earthquake exemptions

4 Interpretation

In this Part, unless the context otherwise requires,—

Canterbury earthquake means the earthquake that occurred on 4 September 2010 in Canterbury, and includes all of its aftershocks

Government offer means an offer by or on behalf of the Government of New Zealand in respect of any residential premises in the red zone either—

(a)

to purchase the whole of the premises and to subrogate the owner’s claims for damage to the premises from the earthquake to the Earthquake Commission continued by section 4 of the Earthquake Commission Act 1993 and the owner’s insurance company; or

(b)

to purchase the land only of the premises, without subrogation of the owner’s claim for damage to the premises from the earthquake to the owner’s insurance company

red zone or red zone land means the area designated in the Prime Minister’s public announcement of 23 June 2011 as the red zone, and any other area included in that zone or designated as red zone land by any subsequent announcement of the New Zealand Government

related interest on a payment to which regulation 5(1), (3), or (5) applies means any interest that is—

(a)

interest derived from that payment; or

(b)

interest derived from related interest.

Compare: SR 2011/15 r 3

5 Payments and amounts in respect of which exemptions have effect on and after specified dates

(1)

This subclause applies to every payment made on or after 13 September 2010—

(a)

by the Canterbury Earthquake Commission (a body set up by the National Board of New Zealand Red Cross Incorporated in consultation with the Mayors of Christchurch City, the Waimakariri District, and the Selwyn District, and proposed to be incorporated as a charitable trust under the Charitable Trusts Act 1957); and

(b)

in relation to the effects of the Canterbury earthquake; and

(c)

out of the fund created by donations made to the Canterbury Earthquake Appeal of New Zealand Red Cross Incorporated (and by money from other sources).

(2)

This subclause applies to every amount that is—

(a)

an amount of related interest on a payment to which subclause (1) applies; and

(b)

acquired on or after 13 September 2010 and before,—

(i)

if the person intends to use the payment to repair or rebuild any existing premises or to purchase any replacement residential premises, the expiry of 48 months starting from the day when that payment was made; or

(ii)

in any other case, the expiry of 12 months starting on the day the payment was made.

(3)

This subclause applies to every payment made on or after 24 December 2010—

(a)

by the Earthquake Commission continued in existence by section 4(1) of the Earthquake Commission Act 1993, or by an insurance company; and

(b)

either in respect of the destruction of or any damage to any property caused by the Canterbury earthquake, or for or towards the costs of renting accommodation in place of residential premises destroyed or made uninhabitable by the Canterbury earthquake.

(4)

This subclause applies to every amount that is—

(a)

an amount of related interest on a payment to which subclause (3) applies; and

(b)

acquired on or after 24 December 2010 and before,—

(i)

if the person intends to use the payment to repair or rebuild any existing premises or to purchase any replacement residential premises, the expiry of 48 months starting from the day when that payment was made; or

(ii)

in any other case, the close of 31 March 2012.

(5)

This subclause applies to every payment made on or after 23 June 2011 by the Crown as a payment or part payment of the purchase price for any property or land in the red zone under a Government offer that has been accepted by the person to whom it was made.

(6)

This subclause applies to every amount that is—

(a)

an amount of related interest on a payment to which subclause (5) applies; and

(b)

acquired on or after 23 June 2011 and before,—

(i)

if the person intends to use the payment to repair or rebuild any existing premises or to purchase any replacement residential premises, the expiry of 48 months starting from the day when that payment was made; or

(ii)

in any other case, the expiry of 12 months starting on the day the payment was made.

(7)

For the purposes of subclauses (4)(b) and (6) and regulation 7(1),—

(a)

if any payments to which subclause (3) or (5) applies are paid in instalments, or 1 or more payments are made under subclause (3) or (5), the date that the payments are made is the date on which the final instalment is paid or the last payment is made:

(b)

if any payments to which subclause (3) or (5) applies are paid in instalments for different purposes, or 1 or more payments are made under subclause (3) or (5) for different purposes, but in either case are part of a single compensation package, the date that the payments are made is the date on which the final instalment is paid or the last payment is made.

Compare: SR 2011/15 r 4

Regulation 5(2)(b): replaced, on 30 March 2012, by regulation 4(1) of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations (No 3) 2012 (SR 2012/43).

Regulation 5(2)(b)(i): amended, on 9 December 2014, by regulation 4(1) of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations (No 3) 2014 (LI 2014/383).

Regulation 5(4)(b): replaced, on 30 March 2012, by regulation 4(2) of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations (No 3) 2012 (SR 2012/43).

Regulation 5(4)(b)(i): amended, on 9 December 2014, by regulation 4(1) of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations (No 3) 2014 (LI 2014/383).

Regulation 5(6): replaced, on 9 December 2014, by regulation 4(2) of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations (No 3) 2014 (LI 2014/383).

Regulation 5(7): inserted, on 30 March 2012, by regulation 4(3) of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations (No 3) 2012 (SR 2012/43).

6 Payments and amounts declared not to be income

Any payment or amount to which regulation 5(1), (2), (3), (4), or (6) applies is not income for the purposes of the Act in relation to the person to whom it was made or by whom the amount was acquired.

Compare: SR 2011/15 r 5

Regulation 6: amended, on 9 December 2014, by regulation 5 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations (No 3) 2014 (LI 2014/383).

7 Payments declared not to be cash assets

(1)

On any day, any payment to which regulation 5(3) applies that was made less than 48 months before that day is not cash assets for the purpose of the Act in relation to the person to whom the payment was made.

(2)

On any day, any payment to which regulation 5(1) or (5) applies that was made less than the specified time before that day is not cash assets for the purpose of the Act in relation to the person to whom the payment was made.

(3)

In subclause (2), specified time, in relation to a person and a payment, means,—

(a)

if the person intends to use the payment to repair or rebuild any existing premises or to purchase any replacement residential premises, 48 months; or

(b)

in any other case, 12 months.

Regulation 7: replaced, on 30 March 2012, by regulation 5 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations (No 3) 2012 (SR 2012/43).

Regulation 7(1): amended, on 9 December 2014, by regulation 6 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations (No 3) 2014 (LI 2014/383).

Regulation 7(3)(a): amended, on 9 December 2014, by regulation 6 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations (No 3) 2014 (LI 2014/383).

Part 1A Employment and Work Readiness Assistance Programme payments

Part 1A: inserted, on 26 June 2014, by regulation 4 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations (No 2) 2014 (LI 2014/168).

7A Interpretation

In this Part, Employment and Work Readiness Assistance Programme means the Employment and Work Readiness Assistance Programme established and approved by the Minister for Social Development under section 124(1)(d) of the Social Security Act 1964 on 6 March 2014.

Regulation 7A: inserted, on 26 June 2014, by regulation 4 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations (No 2) 2014 (LI 2014/168).

7B Application

The exemption in regulation 7C applies only for the first 12 months after the payment is made.

Regulation 7B: inserted, on 26 June 2014, by regulation 4 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations (No 2) 2014 (LI 2014/168).

7C Payments declared not to be cash assets

Any lump sum payment made under the Employment and Work Readiness Assistance Programme is not cash assets for the purposes of the Act.

Regulation 7C: inserted, on 26 June 2014, by regulation 4 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations (No 2) 2014 (LI 2014/168).

Part 2 EVSA (Neville Wallace Memorial) Children’s & Grandchildren’s Trust payments

8 Interpretation

In this Part, unless the context otherwise requires, Trust means the trust immediately before the commencement of this Part called the EVSA (Neville Wallace Memorial) Children’s & Grandchildren’s Trust—

(a)

that was established as the EVSA Youth Development Trust by a trust deed signed on 4 December 1993; and

(b)

whose trustees are incorporated as a charitable trust board under the Charitable Trusts Act 1957.

Compare: SR 2009/405 r 3

9 Application

The exemptions in regulations 10 and 11

(a)

apply to any payments made on or after 17 August 2007; and

(b)

apply only in respect of the first 12 months after the payment is made.

Compare: SR 2009/405 r 4

10 Payments and income declared not to be income

(1)

This subclause applies to—

(a)

any payment made to a person by the Trust; and

(b)

any income derived by the person from that payment.

(2)

Any payment or income to which subclause (1) applies is not income for the purposes of the Act.

Compare: SR 2009/405 r 5

11 Payments and income declared not to be cash assets

(1)

This subclause applies to—

(a)

any payment made to a person by the Trust; and

(b)

any income derived by the person from that payment.

(2)

Any payment or income to which subclause (1) applies is not cash assets for the purposes of the Act.

Compare: SR 2009/405 r 6

Part 3 Ex gratia and compensation payments made by the Crown

12 Interpretation

In this Part, unless the context otherwise requires,—

compensation

(a)

means a payment made—

(i)

in satisfaction of a judgment or an order of any court or an award of any tribunal, other than an award of costs; or

(ii)

in settlement of a claim against the Crown (whether or not that claim has been formally filed in a court or tribunal); and

(b)

does not include a payment made pursuant to—

(i)

an employment relationship; or

(ii)

a contract to provide goods or services

economic loss means loss that is of a pecuniary nature, for example, lost wages

harm

(a)

means illness or injury, or both; and

(b)

includes—

(i)

physical harm; and

(ii)

mental harm; and

(iii)

humiliation, loss of dignity, and injury to the feelings of the aggrieved person; but

(c)

does not include—

(i)

economic loss; or

(ii)

loss or reduction of property; or

(iii)

loss of any benefit, whether or not of a monetary kind, that the aggrieved person might reasonably have been expected to obtain; or

(iv)

loss of employment or office

property has the meaning given to it by section 4 of the Property Law Act 2007.

Compare: SR 2008/347 r 3

13 Application

The exemptions in regulations 14 and 15 apply only for the first 12 months after the payment is made.

Compare: SR 2008/347 r 4

14 Payments and income declared not to be income

(1)

This subclause applies to—

(a)

any compensation or ex gratia payment made—

(i)

by the Crown to a person; and

(ii)

in recognition of harm or in respect of a claim of harm; and

(b)

any income derived by the person from a payment referred to in paragraph (a).

(2)

Any payment or income to which subclause (1) applies is not income for the purposes of the Act.

Compare: SR 2008/347 r 5

15 Payments declared not to be cash assets

(1)

This subclause applies to any compensation or ex gratia payment made—

(a)

by the Crown to a person; and

(b)

in recognition of harm or in respect of a claim of harm.

(2)

Any payment to which subclause (1) applies is not cash assets for the purposes of the Act.

Compare: SR 2008/347 r 6

Part 4 Health services and disability support services funded or provided by the Crown

16 Interpretation

In this Part, unless the context otherwise requires, health or disability dependant, in relation to any person (A), means any other person who—

(a)

is not a dependent child of A; but

(b)

has an illness or a sickness, an injury, or a disability; and

(c)

is a person for whose care A has the primary responsibility, other than on a temporary basis.

Compare: SR 2007/167 r 3

17 Application

The exemption in regulation 18 applies at any time after the person receives the item or payment concerned.

Compare: SR 2007/167 r 4

18 Items and payments declared not to be income

(1)

This subclause applies to the value of any health services or disability support services, or both,—

(a)

provided on or after 19 July 2007 to all or any of the following:

(i)

a person (A):

(ii)

a dependent child of A:

(iii)

a health or disability dependant of A; and

(b)

provided or funded (in whole or in part) by or on behalf of the Crown.

(2)

This subclause applies to any payment—

(a)

made on or after 19 July 2007 to a person (B) and used by the person for purchasing health services or disability support services, or both, for all or any of the following:

(i)

B:

(ii)

a dependent child of B:

(iii)

a health or disability dependant of B; and

(b)

made (in whole or in part) by or on behalf of the Crown.

(3)

Despite subclauses (1) and (2), nothing in those subclauses applies to services provided, or to any payment made, for the following reason or the following purpose, or both:

(a)

because of an employment relationship to which A or B is or was a party:

(b)

to enable A or B to meet his or her ordinary living expenses.

(4)

Any item or payment to which subclause (1) or (2) applies is not income for the purposes of the Act in relation to A or, as the case requires, B.

Compare: SR 2007/167 r 5

Part 5 Home-based care

19 Interpretation

In this Part, unless the context otherwise requires,—

caregiver has the meaning given to it in the code of practice

code of practice means the code of practice set out in the Schedule of the Education (Home-Based Care) Order 1992

home-based education and care has the meaning given to it in the code of practice

service provider has the meaning given to it in the code of practice.

Compare: SR 2004/363 r 4

20 Application

(1)

This Part applies to payments for home-based education and care received by a caregiver on or after 18 November 2004.

(2)

[Revoked]

Compare: SR 2004/363 r 3

Regulation 20(2): revoked, on 1 April 2012, by regulation 4 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations (No 2) 2012 (SR 2012/20).

21 Payments declared not to be income

(1)

This subclause applies to any payment to a caregiver for providing home-based education and care for a child that is arranged by a service provider in accordance with the code of practice.

(2)

For the purposes of subclause (1), the payment in respect of each child is the greater of,—

(a)

in respect of—

(i)

payments received on or after 18 November 2004 but before the close of 31 March 2011, $3.15 per hour:

(ii)

payments received on or after 1 April 2011 but before the close of 31 March 2012, $3.27 per hour:

(iii)

payments received on or after 1 April 2012 but before the close of 31 March 2013, $3.33 per hour:

(iv)

payments received on or after 1 April 2013 but before the close of 31 March 2014, $3.35 per hour:

(v)

payments received on or after 1 April 2014 but before the close of 31 March 2015, $3.40 per hour:

(vi)

payments received on or after 1 April 2015 but before the close of 31 March 2016, $3.42 per hour; and

(b)

the caregiver’s actual expenses per hour of providing home-based education and care to that child in accordance with the code of practice, verified by receipts and supporting documents needed to calculate those expenses that are provided by the caregiver in a form acceptable to the chief executive.

(3)

Any payment to which subclause (1) applies is not income for the purposes of the Act.

Compare: SR 2004/363 r 5

Regulation 21(2): replaced, on 1 April 2013, by regulation 4 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2013 (SR 2013/21).

Regulation 21(2)(a)(iv): amended, on 1 April 2014, by regulation 4(1) of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2014 (LI 2014/38).

Regulation 21(2)(a)(v): inserted, on 1 April 2014, by regulation 4(2) of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2014 (LI 2014/38).

Regulation 21(2)(a)(v): amended, on 1 April 2015, by regulation 4(1) of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2015 (LI 2015/31).

Regulation 21(2)(a)(vi): inserted, on 1 April 2015, by regulation 4(2) of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2015 (LI 2015/31).

Part 6 Lake Alice compensation or ex gratia payments

22 Application

The exemptions in regulations 23 and 24 apply only in respect of the first 12 months after the compensation or ex gratia payment concerned is made.

Compare: SR 2007/321 r 4

23 Payments and income declared not to be income

(1)

This subclause applies to—

(a)

any compensation payment or ex gratia payment—

(i)

made to a person, on or after 1 September 2001, by or on behalf of the Crown; and

(ii)

made because the person is a former patient of the Lake Alice Psychiatric Hospital; and

(b)

any income derived (directly or indirectly) by the person from the payment referred to in paragraph (a).

(2)

Any payment or income to which subsection (1) applies is not income for the purposes of the Act.

Compare: SR 2007/321 r 5

24 Payments declared not to be cash assets

(1)

This subclause applies to any compensation payment or ex gratia payment—

(a)

made to a person, on or after 1 September 2001, by or on behalf of the Crown; and

(b)

made because the person is a former patient of the Lake Alice Psychiatric Hospital.

(2)

Any payment to which subclause (1) applies is not cash assets for the purposes of the Act.

Compare: SR 2007/321 r 6

Part 7 Operational allowances

25 Interpretation

In this Part, unless the context otherwise requires,—

member has the same meaning as in section CW 19(1) of the Income Tax Act 2004

operational allowance has the meaning given to it by section CW 19(4) of the Income Tax Act 2004.

Compare: SR 2007/55 r 4

26 Application

This Part applies to operational allowances paid to any member on or after 18 March 2007.

Compare: SR 2007/55 r 3

27 Operational allowances declared not to be income

Any payment of an operational allowance is not income for the purposes of the Act.

Compare: SR 2007/55 r 5

Part 8 Personal injury from hepatitis C infection contracted through New Zealand blood supply

28 Interpretation

In this Part, unless the context otherwise requires,—

New Zealand blood supply means either or both of the following:

(a)

blood collected in New Zealand (whether or not that blood was donated, or otherwise collected, with assistance provided or funded by or on behalf of the Crown); and

(b)

any blood product derived from blood of that kind

personal injury has the meaning set out in section 26 of the Accident Compensation Act 2001.

Compare: SR 2006/377 r 3

29 Application

The exemptions in regulations 30 and 31 apply only in respect of the first 12 months after the ex gratia payment concerned was made.

Compare: SR 2006/377 r 4

30 Payments and income declared not to be income

(1)

This subclause applies to—

(a)

any ex gratia payment—

(i)

made to a person, on or after 15 December 2006, by or on behalf of the Crown; and

(ii)

made because the person suffered a personal injury that is, or was caused by, hepatitis C infection contracted through the New Zealand blood supply; and

(b)

any income derived (directly or indirectly) by the person from the payment referred to in paragraph (a).

(2)

Any payment or income to which subclause (1) applies is not income for the purposes of the Act.

Compare: SR 2006/377 r 5

31 Payments declared not to be cash assets

(1)

This subclause applies to any ex gratia payment—

(a)

made to a person, on or after 15 December 2006, by or on behalf of the Crown; and

(b)

made because the person suffered a personal injury that is, or was caused by, hepatitis C infection contracted through the New Zealand blood supply.

(2)

Any payment to which subclause (1) applies is not cash assets for the purposes of the Act.

Compare: SR 2006/377 r 6

Part 9 Superannuation schemes

32 Interpretation

In this Part, unless the context otherwise requires,—

contribution means any contribution to a scheme (for example,—

(a)

an employer contribution (for example, a compulsory employer contribution); or

(b)

any Crown contribution)

Crown contribution,—

(a)

in relation to a KiwiSaver scheme, has the same meaning as in section 4(1) of the KiwiSaver Act 2006; and

(b)

in relation to a specified non-KiwiSaver scheme, means any Crown contribution

expected time of retirement, in relation to a member of a non-KiwiSaver scheme, means the member’s expected age or date of retirement as defined in the provisions of the scheme

fee subsidy,—

(a)

in relation to a KiwiSaver scheme, has the same meaning as in section 4(1) of the KiwiSaver Act 2006; and

(b)

in relation to a specified non-KiwiSaver scheme, means any fee subsidy

KiwiSaver scheme and KiwiSaver scheme rules have the same meanings as in section 4(1) of the KiwiSaver Act 2006

member’s interest, in relation to a member of a specified non-KiwiSaver scheme, means the total of—

(a)

the member’s contributions; and

(b)

any employer contributions (vested or unvested) in respect of the member; and

(c)

any fee subsidies paid in respect of the member; and

(d)

any Crown contribution paid in respect of the member

net value, in relation to a member’s interest, means the value of the member’s interest once any other appropriate debits and credits have been made to account for things like fees, permitted withdrawals or permitted proposed withdrawals, and positive and negative returns

non-KiwiSaver scheme means a scheme that is registered as a superannuation scheme under subpart 2 of Part 4 of the Financial Markets Conduct Act 2013

permitted, in relation to a withdrawal or proposed withdrawal from a scheme, means that the withdrawal is, or the proposed withdrawal if it were provided would be, permitted under the provisions of the scheme

proposed withdrawal means a withdrawal that has been applied for, but has not yet been provided

provision, in relation to a scheme, means a provision (express or implied) of either or both of the following:

(a)

the deed that established the relevant trust or (as the case may be) the Act of the Parliament of New Zealand that constituted the relevant arrangement:

(b)

any rules of the scheme

qualifying lock-in clause, in relation to a KiwiSaver scheme, means the provision of the scheme implied in its trust deed under section 126 and clause 4 (lock-in of funds to KiwiSaver end payment date) of Schedule 1 of the KiwiSaver Act 2006 and, in relation to a non-KiwiSaver scheme, means a provision of the scheme that—

(a)

prevents a member of the scheme from making or receiving a withdrawal from the scheme until all or any of the following apply to the member:

(i)

he or she reaches the expected time of retirement:

(ii)

before reaching the expected time of retirement, he or she leaves the employment in respect of which the scheme was constituted or established:

(iii)

before reaching the expected time of retirement, he or she leaves any employment covered by the scheme; and

(b)

may, but need not, be, or be accompanied by another provision of the scheme that is, a standard withdrawals clause

scheme means a retirement scheme within the meaning of section 6(1) of the Financial Markets Conduct Act 2013 (for example, a KiwiSaver scheme or a non-KiwiSaver scheme)

specified non-KiwiSaver scheme means a non-KiwiSaver scheme the provisions of which include a qualifying lock-in clause

standard withdrawals clause, in relation to a scheme, means a provision of the scheme that permits a member of the scheme to make or receive a withdrawal from the scheme in circumstances that are, or are essentially, the same as those specified in all or any of the following clauses of Schedule 1 of the KiwiSaver Act 2006:

(a)

clause 8 (purchase of a first home):

(b)

clause 10 (significant financial hardship):

(c)

clause 12 (serious illness)

withdrawal, in relation to a member and a KiwiSaver scheme or a non-KiwiSaver scheme,—

(a)

includes any benefit provided from, and debited against the member’s interest in, the scheme; but

(b)

does not include a permitted withdrawal or permitted proposed withdrawal that is a transfer (with or without the member’s consent) from the scheme to another KiwiSaver scheme or non-KiwiSaver scheme; and

(c)

for the purposes of regulations 33(2) and 34(2), does not include a withdrawal made or received in accordance with a standard withdrawals clause.

Compare: SR 2008/68 r 3

Regulation 32 non-KiwiSaver scheme: replaced, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Regulation 32 scheme: replaced, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

33 Items declared not to be income

(1)

This subclause applies to the following items if paid or made on or after 1 May 2008 in respect of a person as a member of a KiwiSaver scheme or specified non-KiwiSaver scheme:

(a)

employer contributions and any Crown contribution; and

(b)

fee subsidies; and

(c)

credits for positive returns.

(2)

However, subclause (1) applies in respect of a KiwiSaver scheme or specified non-KiwiSaver scheme only while a qualifying lock-in clause prevents the person, as a member of the scheme, from making or receiving a withdrawal from the scheme.

(3)

Any item to which subclause (1) applies is not income for the purposes of the Act.

Compare: SR 2008/68 r 4

34 Items declared not to be cash assets

(1)

This subclause applies to the net value of a person’s member’s interest, on or after 1 May 2008, in a specified non-KiwiSaver scheme.

(2)

However, subclause (1) applies in respect of a specified non-KiwiSaver scheme only while a qualifying lock-in clause prevents the person, as a member of the scheme, from making or receiving a withdrawal from the scheme.

(3)

The item to which subclause (1) applies is not cash assets for the purposes of the Act.

Compare: SR 2008/68 r 5

35 Effect of election to defer receipt of benefits

(1)

This regulation applies to a person who, as a member of a KiwiSaver scheme or specified non-KiwiSaver scheme, has exercised a right under the provisions of the scheme to elect to defer receipt of any benefit that he or she is eligible to receive under the scheme.

(2)

A qualifying lock-in clause must, for the purposes of regulations 33(2) and 34(2), be treated as not preventing the person, as a member of the scheme, from making or receiving a withdrawal from the scheme.

Compare: SR 2008/68 r 6

Part 10 Payments to victims of crime

36 Interpretation

In this Part, unless the context otherwise requires,—

crime means an offence for which the offender—

(a)

is liable on conviction to imprisonment for life or to imprisonment for more than 3 months; or

(b)

would have been liable on conviction to imprisonment for life or to imprisonment for more than 3 months but for circumstances (for example, where the offender has died)

immediate family, in relation to a person,—

(a)

means a member of the person’s family, whānau, or other culturally recognised family group, who is in a close relationship with the person at the time of the crime; and

(b)

to avoid doubt, includes—

(i)

a spouse, civil union partner, or de facto partner:

(ii)

a child or stepchild:

(iii)

a brother, sister, stepbrother, or stepsister:

(iv)

a parent or step-parent:

(v)

a grandparent

victim means—

(a)

a person against whom a crime has been committed by another person; and

(b)

a person who, through, or by means of, a crime committed by another person, has suffered physical or emotional harm, or loss of, or damage to, property; and

(c)

a parent or legal guardian of a child, or of a young person, who falls within paragraph (a) or (b), unless that parent or guardian is charged with the commission of, or convicted or found guilty of, or pleads guilty to, the crime concerned; and

(d)

a member of the immediate family of a person who, as a result of a crime committed by another person, has died, unless that member is charged with the commission of, or convicted or found guilty of, or pleads guilty to, the crime concerned.

Compare: SR 2009/404 r 3

Regulation 36 crime paragraph (a): replaced, on 4 October 2013, by regulation 3(2) of the Criminal Procedure (Consequential Amendments) Regulations 2013 (SR 2013/409).

Regulation 36 crime paragraph (b): replaced, on 4 October 2013, by regulation 3(2) of the Criminal Procedure (Consequential Amendments) Regulations 2013 (SR 2013/409).

37 Application

The exemptions in regulations 38 and 39 apply only in respect of the first 12 months after the payment is made.

Compare: SR 2009/404 r 4

38 Payments and income declared not to be income

(1)

This subclause applies to—

(a)

any payment made by or on behalf of the Crown to a person because the person is a victim; and

(b)

any income derived by the person from that payment.

(2)

Any payment or income to which subclause (1) applies is not income for the purposes of the Act.

Compare: SR 2009/404 r 5

39 Payments and income declared not to be cash assets

(1)

This subclause applies to—

(a)

any payment made by or on behalf of the Crown to a person because the person is a victim; and

(b)

any income derived by the person from that payment.

(2)

Any payment or income to which subclause (1) applies is not cash assets for the purposes of the Act.

Compare: SR 2009/404 r 6

Part 11 Viet Nam veterans ex gratia payments

40 Interpretation

In this Part, unless the context otherwise requires, MoU on measures related to veterans means the memorandum of understanding—

(a)

signed on 6 December 2006 for and on behalf of the following (the parties):

(i)

the Ex-Vietnam Services Association; and

(ii)

the Royal New Zealand Returned and Services Association; and

(iii)

the Crown; and

(b)

not intended to be legally binding on the parties, but recording their intentions on a package of measures related to Viet Nam veterans and other veterans.

Compare: SR 2007/98 r 3

41 Payments and interest declared not to be income

(1)

This subclause applies to—

(a)

any ex gratia payment—

(i)

made to a person, on or after 27 April 2007, by the Crown; and

(ii)

made in accordance with the MoU on measures related to veterans; and

(b)

any interest derived (directly or indirectly) by the person from the payment referred to in paragraph (a).

(2)

Any payment or interest to which subclause (1) applies is not income for the purposes of the Act.

Compare: SR 2007/98 r 4

42 Payments declared not to be cash assets

(1)

This subclause applies to any ex gratia payment—

(a)

made to a person, on or after 27 April 2007, by the Crown; and

(b)

made in accordance with the MoU on measures related to veterans.

(2)

Any payment to which subclause (1) applies is not cash assets for the purposes of the Act.

Compare: SR 2007/98 r 5

Part 12 Viet Nam Veterans and Their Families Trust payments

43 Interpretation

In this Part, unless the context otherwise requires,—

MoU on measures related to veterans has the meaning given to it in regulation 40

Trust means the trust established by the trust deed and that was, immediately before the commencement of these regulations, called the Viet Nam Veterans and Their Families Trust

trust deed means the deed signed on 16 August 2007 in accordance with clause 18 of the MoU on measures related to veterans.

Compare: SR 2008/348 r 3

44 Application

The exemptions in regulations 45 and 46 apply to any payments made on or after 17 August 2007.

Compare: SR 2008/348 r 4

45 Payments and income declared not to be income

(1)

This subclause applies to—

(a)

any payment made to a person by the Trust other than a payment of the kind referred to in any of paragraphs (a) to (d) of clause 14.2 of the trust deed; and

(b)

any income derived by the person from a payment referred to in paragraph (a).

(2)

Subclause (1) applies only in respect of the first 12 months after the payment is made.

(3)

Any payment or income to which subclause (1) applies is not income for the purposes of the Act.

Compare: SR 2008/348 r 5

46 Payments declared not to be cash assets

(1)

This subclause applies to any payment made to a person by the Trust other than a payment of the kind referred to in any of paragraphs (a) to (d) of clause 14.2 of the trust deed.

(2)

Subclause (1) applies only in respect of the first 12 months after the payment is made.

(3)

Any payment to which subclause (1) applies is not cash assets for the purposes of the Act.

Compare: SR 2008/348 r 6

Part 13 Miscellaneous provisions

47 Revocations

The regulations specified in the Schedule are revoked on the commencement of these regulations.

48 Savings provision

(1)

The revocation of any provision by these regulations does not affect any document made or any thing done under the revoked provision.

(2)

Every document made or thing done under the revoked provision, so far as it has effect at the time of the revocation and could have been made or done under these regulations, continues and has effect as if—

(a)

it had been made or done under the corresponding provision of these regulations; and

(b)

the corresponding provision of these regulations had been in force when the document was made or the thing was done.

(3)

This regulation does not limit the provisions of the Interpretation Act 1999.

Part 14 Payments under Sleepover Wages (Settlement) Act 2011

Part 14: inserted, on 17 February 2012, by regulation 6 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2012 (SR 2012/4).

49 Interpretation

(1)

In this Part, unless the context otherwise requires,—

specified employer means—

(a)

Idea Services; or

(b)

Timata Hou; or

(c)

any other employer in the health and disability sector to whom subpart 2 of Part 2 of the Sleepover Act applies (with or without modifications) because of an order made under section 24(1)(b) of the Sleepover Act; or

(d)

any other employer to whom subparts 1 and 2 of Part 2 of the Sleepover Act apply (with or without modifications) because of an order made under section 24(1)(a) of the Sleepover Act.

(2)

A term that is defined in section 4 or 23 of the Sleepover Act and that is used but not defined in this Part has the same meaning as in section 4 or 23 of the Sleepover Act.

Regulation 49: inserted, on 17 February 2012, by regulation 6 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2012 (SR 2012/4).

50 Application

(1)

The exemption in regulation 51 applies on and after the date on which the performance of the sleepover concerned ended.

(2)

The exemption in regulation 52 applies only for the first 12 months after the payment concerned is made.

Regulation 50: inserted, on 17 February 2012, by regulation 6 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2012 (SR 2012/4).

51 Items declared not to be income

(1)

This subclause applies to every payment—

(a)

of back wages that are for a sleepover that began to be performed on or after 1 June 2004; and

(b)

made by a specified employer, made on or after 18 October 2011, and made to any of the following who is entitled to the payment under any of sections 14 to 16 of the Sleepover Act:

(i)

a current employee:

(ii)

a recent employee:

(iii)

a historic employee.

(2)

Any payment to which subclause (1) applies is not income for the purposes of the Act.

Regulation 51: inserted, on 17 February 2012, by regulation 6 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2012 (SR 2012/4).

52 Items declared not to be cash assets

(1)

This subclause applies to every payment—

(a)

of back wages that are for a sleepover that began to be performed on or after 1 June 2004; and

(b)

made by a specified employer, made on or after 18 October 2011, and made to any of the following who is entitled to the payment under any of sections 14 to 16 of the Sleepover Act:

(i)

a current employee:

(ii)

a recent employee:

(iii)

a historic employee.

(2)

Any payment to which subclause (1) applies is not cash assets for the purposes of the Act.

Regulation 52: inserted, on 17 February 2012, by regulation 6 of the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2012 (SR 2012/4).

Schedule Regulations revoked

r 47

Title of regulationsSR reference
Social Security (Cash Assets Exemption—Redundancy Payment) Regulations 20082008/448
Social Security (Income and Cash Asset Exemptions—Viet Nam Veterans and Their Families Trust Payments) Regulations 20082008/348
Social Security (Income and Cash Assets Exemptions—Canterbury Earthquake) Regulations 20112011/15
Social Security (Income and Cash Assets Exemptions—EVSA (Neville Wallace Memorial) Children’s & Grandchildren’s Trust Payments) Regulations 20092009/405
Social Security (Income and Cash Assets Exemptions: Ex Gratia and Compensation Payments Made by the Crown) Regulations 20082008/347
Social Security (Income and Cash Assets Exemptions—Lake Alice Compensation or Ex Gratia Payments) Regulations 20072007/321
Social Security (Income and Cash Assets Exemptions—Payments to Victims of Crime) Regulations 20092009/404
Social Security (Income and Cash Assets Exemptions: Personal Injury from Hepatitis C Infection Contracted Through New Zealand Blood Supply) Regulations 20062006/377
Social Security (Income and Cash Assets Exemptions: Superannuation Schemes) Regulations 20082008/68
Social Security (Income and Cash Assets Exemptions—Vietnam Veterans Ex Gratia Payments) Regulations 20072007/98
Social Security (Income Exemption: Health Services and Disability Support Services Funded or Provided by the Crown) Regulations 20072007/167
Social Security (Income Exemption: Home-based Care) Regulations 20042004/363
Social Security (Income Exemption: Operational Allowances) Regulations 20072007/55

Rebecca Kitteridge,
Clerk of the Executive Council.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 25 August 2011.

Reprints notes
1 General

This is a reprint of the Social Security (Income and Cash Assets Exemptions) Regulations 2011 that incorporates all the amendments to those regulations as at the date of the last amendment to them.

2 Legal status

Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment. Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, has the status of an official version under section 17 of that Act. A printed version of the reprint produced directly from this official electronic version also has official status.

3 Editorial and format changes

Editorial and format changes to reprints are made using the powers under sections 24 to 26 of the Legislation Act 2012. See also http://www.pco.parliament.govt.nz/editorial-conventions/.