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 2012, increases most benefits, pensions, and allowances to reflect a 1.77% increase in the New Zealand Consumers Price Index from the December 2010 quarter to the December 2011 quarter (calculated for all quarters using the CPI All Groups excluding cigarettes and other tobacco products).
Clause 5 increases the amounts of funeral grants payable under the Social Security Act 1964 (the 1964 Act) in respect of people who die on or after 1 April 2012.
Clause 6 and Part 1 of Schedule 1 make amendments required by section 61HA of the 1964 Act to increase the following benefits: widow's, orphan's, unsupported child's, invalid's, unemployment, sickness, domestic purposes, independent youth, and related emergency benefits, and the long-term hospital rate. The maximum amount of income that a blind beneficiary may earn, and still receive a subsidy, is also increased.
Clause 7 and Part 2 of Schedule 1 make amendments under section 61H of the 1964 Act to increase child disability and disability allowances, and the asset and income limits in Schedule 31 of the 1964 Act.
Clause 8 and Part 1 of Schedule 2 make amendments required by section 15 of the New Zealand Superannuation and Retirement Income Act 2001 (the 2001 Act) to Schedule 1 of that Act, to increase the rates of New Zealand superannuation entitlements. 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.
Clause 9 and Part 2 of Schedule 2 are also made under section 61H of the 1964 Act, and make further amendments to Schedule 1 of the 2001 Act.
Clause 10 and Schedule 3 make some additional increases to figures already increased by clauses 8 and 9, and Schedule 2, to honour the Government's commitments in relation to the level of New Zealand superannuation.