Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2016

2016/232

Coat of Arms of New Zealand

Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2016

Patsy Reddy, Governor-General

Order in Council

At Wellington this 17th day of October 2016

Present:
Her Excellency the Governor-General in Council

These regulations are made under sections 132 and 132AA of the Social Security Act 1964 on the advice and with the consent of the Executive Council.

Regulations

1 Title

These regulations are the Social Security (Income and Cash Assets Exemptions) Amendment Regulations 2016.

2 Commencement

These regulations come into force on 31 October 2016.

3 Principal regulations

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

4 New Part 1AA inserted

After regulation 3, insert:

Part 1AA Accommodation supplement arrears payments

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).

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.

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.

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.

Michael Webster,
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 31 October 2016, are made under the Social Security Act 1964 (the Act). They amend the Social Security (Income and Cash Assets Exemptions) Regulations 2011. The amendment inserts new Part 1AA relating to lump sum payments, made on or after 1 November 2016, of arrears of accommodation supplement. The definition of income in section 3(1) of the Act excludes (see paragraph (f)(i) of that definition) any benefit received under the Act. However, new Part 1AA ensures that, on and after 1 November 2016, but only for the first 12 months after the payments are made,—

  • income derived from the payments is not income for the purposes of the Act; and

  • the payments are not cash assets for the purposes of the Act.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 20 October 2016.

These regulations are administered by the Ministry of Social Development.