Housing Restructuring and Tenancy Matters (Prescribed Elements of Calculation Mechanism) Regulations 2018

Regulations

1 Title

These regulations are the Housing Restructuring and Tenancy Matters (Prescribed Elements of Calculation Mechanism) Regulations 2018.

2 Commencement

These regulations come into force on 1 October 2018.

3 Interpretation

(1)

In these regulations, unless the context otherwise requires,—

cash assets has the same meaning as in section 61E of the Social Security Act 1964

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)

dependent child,—

(a)

in regulation 9, has the same meaning as in section YA 1 of the Income Tax Act 2007; and

(b)

in any other provision of these regulations, has the same meaning as in section 3(1) of the Social Security Act 1964

DHB has the same meaning as in section 6(1) of the New Zealand Public Health and Disability Act 2000

disability support services has the same meaning as in section 6(1) of the New Zealand Public Health and Disability Act 2000

income-tested benefit has the same meaning as in section 3(1) of the Social Security Act 1964

predecessor in title, in relation to a DHB, has the same meaning as in section 2(1) of the Health Sector (Transfers) Act 1993

section means a section of the Act.

(2)

A term or expression defined in the Act and used, but not defined, in these regulations has the same meaning as in the Act.

4 Transitional, savings, and related provisions

The transitional, savings, and related provisions (if any) set out in the Schedule have effect according to their terms.

Prescribed proportions, thresholds, and amounts

5 Proportion of income up to threshold

For the purpose of section 107(2)(a), the proportion of 25% is prescribed.

6 Thresholds

For the purposes of section 107(2)(a) and (b), the following thresholds are prescribed:

(a)

for a sole tenant who has no spouse or partner and no dependent children, the rate stated in clause 1(a) of Schedule 1 of the New Zealand Superannuation and Retirement Income Act 2001, after deduction of standard tax; and

(b)

in every other case, the rate stated in clause 1(c) of Schedule 1 of the New Zealand Superannuation and Retirement Income Act 2001, after deduction of standard tax and multiplied by 2.

7 Proportion of income above threshold

For the purpose of section 107(2)(b), the proportion of 50% is prescribed.

8 Proportion of family tax credit

For the purposes of sections 107(2)(c) and 107(3)(b), the proportion of 25% is prescribed.

9 Prescribed amount of family tax credit

For the purposes of sections 107(2)(c)(ii) and 107(3)(b)(ii), the maximum rate of family tax credit payable under subparts MA to MF and MZ of the Income Tax Act 2007 in respect of an eldest dependent child who is under 16 years is prescribed.

10 Proportion of benefit

For the purpose of section 107(3)(a), the proportion of 25% is prescribed.

Contributions by additional residents

11 Application

This regulation applies to social housing if, and only if, in the agency’s opinion, the applicable persons’ principal source of income is contributions from additional residents.

12 Extent to which contributions included in income

For the purpose of section 109(2),—

(a)

if regulation 11 applies to social housing, the weekly income of the applicable persons includes all contributions from additional residents:

(b)

if regulation 11 does not apply to social housing and the applicable persons receive contributions from fewer than 3 additional residents, their weekly income does not include any contributions from additional residents:

(c)

if regulation 11 does not apply to social housing and the applicable persons receive contributions from 3 or more additional residents, their weekly income—

(i)

does not include any contributions from the 2 additional residents making the greatest contributions; and

(ii)

includes only 62% of the sum of the contributions from the other additional resident or residents.

Payments included in or excluded from income

13 Certain payments to be income

For the purpose of section 110(1)(a), a person’s weekly income includes—

(a)

the appropriate weekly proportion of every amount or payment received as—

(i)

an income-tested benefit other than an orphan’s benefit or an unsupported child’s benefit; or

(ii)

New Zealand superannuation under the New Zealand Superannuation and Retirement Income Act 2001 or a veteran’s pension under Part 6 of the Veterans’ Support Act 2014; or

(iii)

a study grant; and

(b)

amounts received under the Accident Compensation Act 2001 as weekly compensation for loss of earnings or potential earning capacity; and

(c)

any minimum family tax credit that the person is eligible for under subparts MA to MF and MZ of the Income Tax Act 2007.

14 Certain payments not to be income

For the purpose of section 110(1)(b), a person’s weekly income does not include—

(a)

an amount or a payment—

(i)

received as a benefit, an allowance, or other payment under the Social Security Act 1964 not referred to in regulation 13(a); or

(ii)

received as a parental tax credit, child tax credit, in-work tax credit, or Best Start tax credit under subparts MA to MG and MZ of the Income Tax Act 2007; or

(iii)

of a kind stated in any of subparagraphs (ii) to (xv) of paragraph (f) of the definition of income in section 3(1) of the Social Security Act 1964; or

(b)

for a person with a disability (A),—

(i)

the value of any regular disability support services supplied to A:

(ii)

any direct payment of disability support made by or on behalf of the Crown to A, or a person on A’s behalf, for the purposes of purchasing or obtaining disability support services for A; or

(c)

the value of any regular disability support services supplied to any dependent child of the person who—

(i)

is residing in the social housing concerned; and

(ii)

is a person with a disability.

15 Assessable assets

(1)

For the purpose of section 111(2), assessable assets,—

(a)

for a person with a spouse or partner or a single person with a dependent child or children, means any cash assets in excess of $5,400:

(b)

in any other case, means any cash assets in excess of $2,700.

(2)

If, on or after the date on which this subclause comes into force, a person receives an impairment lump sum under Schedule 1 of the Accident Compensation Act 2001 or a lump sum payment of an independence allowance under Part 13 of the Accident Insurance Act 1998 or Part 4 of Schedule 1 of that Act, then for the period of 12 months following the receipt of that lump sum payment, the applicable amount in subclause (1)(a) or (b) is considered to be increased by the amount of that payment.

Period for estimating income

16 Period for estimating income

For the purpose of section 113, the period of 52 weeks is prescribed.

Schedule Transitional, savings, and related provisions

r 4

Part 1 Provisions relating to these regulations as made

There are no transitional, savings, or related provisions relating to these regulations as made.

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 1 October 2018, are made under the Housing Restructuring and Tenancy Matters Act 1992 (the Act) and prescribe elements of the calculation mechanism for the purposes of calculating a person’s income-related rent under the Act.

These regulations re-enact, with some modification, the prescribed elements of the calculation mechanism currently set out in Schedule 2 of the Act (as contemplated by the definition of calculation mechanism in section 2(1) of the Act). Regulation 14(b)(ii) is new, and provides that a person’s weekly income, for the purposes of determining a person’s assessable income, does not include any direct payment of disability support made by or on behalf of the Crown to the person, or on that person’s behalf, for the purposes of purchasing or obtaining disability support services for the person.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 27 September 2018.

These regulations are administered by the Ministry of Social Development.