Social Security (Rates of Benefits and Allowances) Order 2019

2019/27

Coat of Arms of New Zealand

Social Security (Rates of Benefits and Allowances) Order 2019

Patsy Reddy, Governor-General

Order in Council

At Wellington this 25th day of February 2019

Present:
Her Excellency the Governor-General in Council

This order is made under sections 452 and 453 of the Social Security Act 2018 and sections 15 and 16 of the New Zealand Superannuation and Retirement Income Act 2001 on the advice and with the consent of the Executive Council.

Order

1 Title

This order is the Social Security (Rates of Benefits and Allowances) Order 2019.

2 Commencement

(1)

This order comes into force on 1 April 2019.

(2)

Subclause (1) applies with the following exceptions:

(a)

clause 3 comes into force as stated in clause 3(2):

(b)

clause 4 comes into force as stated in clause 4(2):

(c)

clause 5 comes into force immediately after the commencement of clauses 3 and 4.

3 Mandatory adjustments under section 453 of Social Security Act 2018

(1)

In each provision of the Social Security Act 2018 listed in the first column of Part 1 of Schedule 1 of this order, replace, in each place, the amount set out opposite to that provision in the second column with the amount set out opposite to that provision in the third column.

(2)

By virtue of section 453 of the Social Security Act 2018, this clause—

(a)

comes into force on 1 April 2019; and

(b)

applies to benefits (within the meaning of that Act) payable on and after that date.

4 Mandatory adjustments under sections 15 and 16 of New Zealand Superannuation and Retirement Income Act 2001

(1)

In each provision of the New Zealand Superannuation and Retirement Income Act 2001 listed in the first column of Part 2 of Schedule 1 of this order, replace the amount set out opposite to that provision in the second column with the amount set out opposite to that provision in the third column.

(2)

By virtue of section 15(6) of the New Zealand Superannuation and Retirement Income Act 2001, this clause—

(a)

comes into force on 1 April 2019; and

(b)

applies to New Zealand superannuation payable on and after that date.

5 Discretionary increases under section 452 of Social Security Act 2018

(1)

In each provision of the Social Security Act 2018 listed in the first column of Part 1 of Schedule 2 of this order, replace the amount set out opposite to that provision in the second column with the amount set out opposite to that provision in the third column.

(2)

In each provision of the New Zealand Superannuation and Retirement Income Act 2001 listed in the first column of Part 2 of Schedule 2 of this order, replace the amount set out opposite to that provision in the second column with the amount set out opposite to that provision in the third column.

6 Revocation

Schedule 1 Mandatory adjustments

cls 3, 4

Part 1 Adjustments to social security benefits and allowances

Provision amendedOld amount ($)New amount ($)
Schedule 4, Part 1 (Jobseeker support)
Clause 1(a)143.55145.98
Clause 1(b)179.44182.47
Clause 1(c)224.28228.07
Clause 1(d)215.34218.98
Clause 1(e)334.05339.69
Clause 1(f)334.05339.69
Clause 1(g)(i)179.44182.47
Clause 1(g)(ii)192.25195.50
Clause 1(h)(i)179.44182.47
Clause 1(h)(ii)205.06208.53
Clause 1(i)(i)179.44182.47
Clause 1(i)(ii)205.06208.53
Clause 1(j)(i)358.88364.94
Clause 1(j)(ii)384.50391.00
Clause 2179.44182.47
Clause 3(i)179.44182.47
Clause 3(ii)192.25195.50
Schedule 4, Part 2 (Sole parent support)
Clause 1334.05339.69
Schedule 4, Part 3 (Supported living payment)
Clause 1(a)217.80221.48
Clause 1(b)269.15273.70
Clause 1(c)379.19385.60
Clause 1(d)(i)224.28228.07
Clause 1(d)(ii)237.09241.10
Clause 1(e)(i)224.28228.07
Clause 1(e)(ii)249.90254.12
Clause 1(f)(i)224.28228.07
Clause 1(f)(ii)249.90254.12
Clause 1(g)(i)448.56456.14
Clause 1(g)(ii)474.18482.20
Clause 1(h)(i)224.28228.07
Clause 1(h)(ii)249.90254.12
Clause 7(a)224.28228.07
Clause 7(b)249.90254.12
Schedule 4, Part 4 (Orphans’ benefit)
Clause 1(a)229.83233.71
Clause 1(b)211.95215.53
Clause 1(c)193.99197.27
Clause 1(d)169.97172.84
Schedule 4, Part 5 (Unsupported child’s benefit)
Clause 1(a)229.83233.71
Clause 1(b)211.95215.53
Clause 1(c)193.99197.27
Clause 1(d)169.97172.84
Schedule 4, Part 6 (Rates and component of youth payment and young parent payment, and criteria for incentive payments)
Clause 1179.44182.47
Clause 2169.17172.03
Clause 3334.05339.69
Clause 4179.44182.47
Clause 5(a)205.06208.53
Clause 5(b)192.25195.50
Schedule 4, Part 10 (Rates of generally abolished former widows’ benefits under section 21 of Social Security Act 1964 as saved by clause 55 of Schedule 1 of Social Security Act 2018 for reciprocity agreement applicants or recipients)
Clause 1334.05339.69
Clause 2224.28228.07
Schedule 4, Part 11 (Rates of generally abolished former DPB for solo parents under section 27B of Social Security Act 1964 as saved by clause 55 of Schedule 1 of Social Security Act 2018 for reciprocity agreement applicants or recipients)
Clause 1334.05339.69
Clause 2224.28228.07
Schedule 4, Part 12 (Rates of benefits payable to long-term hospital patients)
Clause 144.5345.28

Part 2 Adjustments to superannuation entitlements

Provision amendedOld amount ($)New amount ($)
Schedule 1 (New Zealand superannuation entitlements)
Clause 1(a)463.04471.21
Clause 1(b)425.55433.20
Clause 1(c)350.76357.19
Clause 2(b)664.68676.70

Schedule 2 Discretionary increases

cl 5

Part 1 Increases to social security asset limits, etc

Provision amendedOld amount ($)New amount ($)
Schedule 4, Part 3 (Supported living payment)
Clause 2354.28358.07
44.8745.63
Schedule 4, Part 6 (Rates and component of youth payment and young parent payment, and criteria for incentive payments)
Clause 11217.22220.90
267.22270.90
Clause 12217.22220.90
317.22320.90
Schedule 4, Part 9 (Child disability allowance and disability allowance)
Clause 147.6448.45
Clause 263.2264.29
Clause 339.4340.10
Schedule 5, Part 1 (Asset limits)
Clause 11,076.961,095.16
Clause 21,794.511,824.83
Clause 31,414.091,437.99
Clause 41,519.011,544.68
Schedule 5, Part 2 (Income limits)
Clause 5491.92500.23
Clause 6565.36574.91
Clause 7821.16835.04
Clause 8686.04697.63
Clause 9722.78734.99
Schedule 5, Part 3 (Disability allowance income limits)
Clause 10531.61540.59
Clause 11648.92661.30
Clause 12963.80983.12
Clause 13741.41753.94
Clause 14781.14794.34

Part 2 Increases to superannuation entitlements

Provision amendedOld amount ($)New amount ($)
Schedule 1 (New Zealand superannuation entitlements)
Clause 1(a)471.21475.42
Clause 1(b)433.20437.14
Clause 1(c)357.19360.42
Clause 2(a)701.52720.84
Clause 2(b)676.70682.86
Clause 344.5345.28
Clause 439.4340.10

Michael Webster,
Clerk of the Executive Council.

Explanatory note

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 2019, increases a range of benefits, allowances, asset limits, and superannuation entitlements, etc. The increases reflect both mandatory adjustments and some additional discretionary increases. Where an annual consumers price index (CPI) increase is required, it reflects the increase of 1.69% in the New Zealand Consumers Price Index from the December 2017 quarter to the December 2018 quarter, calculated for all quarters using the New Zealand Consumers Price Index (All Groups), excluding cigarettes and other tobacco products.

Annual CPI increases are required under section 453 of the Social Security Act 2018 for the following benefits: jobseeker support, sole parent support, supported living payment, orphan’s benefit, unsupported child’s benefit, youth payment and young parent payment, former widows’ benefit, former domestic purpose benefit and the hospital rate. These increases are set out in Part 1 of Schedule 1.

Annual CPI increases are also required, under section 15 of the New Zealand Superannuation and Retirement Income Act 2001, to superannuation entitlements. Those increases may sometimes also be more than the CPI increase in order to meet the further requirements (in sections 15(3)(a) and (b) and 16 of that Act) that the increases maintain a specified relationship to the net average wage and also maintain the proportional relationship of specified rates. The total of the increases required by both sections 15 and 16 of the Act is set out in Part 2 of Schedule 1.

The discretionary increases made under section 452 of the Social Security Act 2018 are in respect of—

  • the income thresholds for a totally blind beneficiary to be eligible for an additional allowance:

  • the rates of child disability allowance and disability allowance:

  • the abatement rates and income limits for the youth payment and young parent payment:

  • various asset and income limits that may be applied to certain assistance.

These increases are set out in clause 5 and Part 1 of Schedule 2.

Increases to superannuation entitlements, which build on the increases set out in Part 2 of Schedule 1, are also made, as the current practice is to ensure that the net married couple rate of New Zealand superannuation is set at a minimum of 66% of the net average wage. The rates of New Zealand superannuation that are amended in all cases are the gross rates, but the increase has been calculated in relation to the net rate in each case. Single rates are increased consequentially in order to maintain the proportional relationship of rates. These increases are set out in Part 2 of Schedule 2.

This order is a confirmable instrument, and an annual confirmable instrument, under section 47B of the Legislation Act 2012. It is revoked, or taken to have been invalid for past operation, at the close of 30 June 2020 unless earlier confirmed by an Act of Parliament. That stated time is the applicable deadline under section 47C(1)(a) of the Legislation Act 2012.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 28 February 2019.

This order is administered by the Ministry of Social Development.