Social Security (Financial Assistance for Caregivers) Amendment Act 2021

1 Title

This Act is the Social Security (Financial Assistance for Caregivers) Amendment Act 2021.

2 Commencement

This Act comes into force on 1 July 2021.

3 Principal Act

This Act amends the Social Security Act 2018.

Part 1 Substantive and consequential amendments

4 Section 44 amended (Who is eligible caregiver)

(1)

In section 44(d), after “principal caregiver”, insert “or principal temporary caregiver”.

(2)

5 Section 47 amended (Who is eligible caregiver)

(1)

In section 47(d), after “principal caregiver”, insert “or principal temporary caregiver”.

(2)

6 Schedule 2 amended

In Schedule 2, insert in their appropriate alphabetical order:

principal temporary caregiver, for the purposes of eligibility for the orphan’s benefit or unsupported child’s benefit in relation to a dependent child, means a person who, in MSD’s opinion,—

(a)

has the primary responsibility for the day-to-day care of the child—

(i)

on a temporary basis; or

(ii)

for such an unknown or uncertain period that the person is not a principal caregiver; and

(b)

retains the primary responsibility for the day-to-day care of the child under paragraph (a), even if the person makes additional care arrangements for the child; and

(c)

is not a body of persons (whether incorporated or unincorporated); and

(d)

is not a proprietor of, or employed in,—

(i)

a residence established under the Oranga Tamariki Act 1989; or

(ii)

any other institution in which the child is being cared for

temporary OB or UCB caregiver, in relation to a dependent child, means a person who—

(a)

is the principal temporary caregiver of the child; and

(b)

is entitled to and receiving an orphan’s benefit or an unsupported child’s benefit for the child (including under section 329(b))

7 Schedule 4 amended

(1)

In Schedule 4, Part 4, replace clause 3 with:

Allowances
3The following allowances in respect of the child:
(a)on and after 1 July 2018, a clothing allowance; and
(b)on and after 1 December 2021, an annual holiday allowance; and
(c)on and after 1 December 2021, a birthday allowance for the child’s birthday in 2022 and every year after that.
4The allowances are in the same amount or at the same rate as the rates of payment determined under section 363(1) of the Oranga Tamariki Act 1989 for—
(a)any clothing allowance:
(b)any Christmas allowance (or any subsequent annual holiday allowance):
(c)any birthday allowance.
5The allowances are in addition to the applicable rate in clause 1.
When caregiver is entitled to and paid holiday allowance
6A person is entitled to the holiday allowance if the person is entitled to the orphan’s benefit for the child on 25 December.
7The holiday allowance is payable before 25 December to a person whom MSD expects to be entitled to that allowance.
8Payment of the holiday allowance before 25 December is subject to the condition that the person is liable to repay the whole of the allowance if the person is not entitled to the allowance on 25 December.
When caregiver is entitled to and paid birthday allowance
9A person is entitled to the birthday allowance if the person is entitled to the orphan’s benefit for the child on the entitlement date.
10The entitlement date for the birthday allowance is the date of the child’s birthday.
11However, 1 March is the entitlement date for a birthday that occurs, or would otherwise occur, on 29 February.
12The birthday allowance is payable before the entitlement date to a person whom MSD expects to be entitled to that allowance.
13Payment of the birthday allowance before the entitlement date is subject to the condition that the person is liable to repay the whole of the allowance if the person is not entitled to the allowance on that date.
Effect of section 329
14For the purposes of this Part, a person is considered to be entitled to the orphan’s benefit for the child if the person is being paid that benefit for the child under section 329(b).

(2)

In Schedule 4, Part 5, replace clause 3 with:

Allowances
3 The following allowances in respect of the child:
(a)on and after 1 July 2018, a clothing allowance; and
(b)on and after 1 December 2021, an annual holiday allowance; and
(c)on and after 1 December 2021, a birthday allowance for the child’s birthday in 2022 and every year after that.
4The allowances are in the same amount or at the same rate as the rates of payment determined under section 363(1) of the Oranga Tamariki Act 1989 for—
(a)any clothing allowance:
(b)any Christmas allowance (or any subsequent annual holiday allowance):
(c)any birthday allowance.
5The allowances are in addition to the applicable rate in clause 1.
When caregiver is entitled to and paid holiday allowance
6A person is entitled to the holiday allowance if the person is entitled to the unsupported child’s benefit for the child on 25 December.
7The holiday allowance is payable before 25 December to a person whom MSD expects to be entitled to that allowance.
8Payment of the holiday allowance before 25 December is subject to the condition that the person is liable to repay the whole of the allowance if the person is not entitled to the allowance on 25 December.
When caregiver is entitled to and paid birthday allowance
9A person is entitled to the birthday allowance if the person is entitled to the unsupported child’s benefit for the child on the entitlement date.
10The entitlement date for the birthday allowance is the date of the child’s birthday.
11However, 1 March is the entitlement date for a birthday that occurs, or would otherwise occur, on 29 February.
12The birthday allowance is payable before the entitlement date to a person whom MSD expects to be entitled to that allowance.
13Payment of the birthday allowance before the entitlement date is subject to the condition that the person is liable to repay the whole of the allowance if the person is not entitled to the allowance on that date.
Effect of section 329
14For the purposes of this Part, a person is considered to be entitled to the unsupported child’s benefit for the child if the person is being paid that benefit for the child under section 329(b).
8 Further amendments in relation to temporary OB or UCB caregiver

Amend the principal Act as set out in Part 1 of Schedule 3.

Amendments to Social Security Regulations 2018

9 Principal regulations
10 Regulation 20 amended (Interpretation)

(1)

In regulation 20(1), definition of total income, paragraph (c), replace “caregiver” with “caregiver; but”.

(2)

In regulation 20(1), definition of total income, after paragraph (c), insert:

(d)

does not include the following allowances under Part 4 or 5 of Schedule 4 of the Act:

(i)

a clothing allowance received by the caregiver on or after 1 July 2018; or

(ii)

a holiday allowance or birthday allowance received by the caregiver on or after 1 December 2021

11 Regulation 206 amended (Debts due to the Crown)

In the list of examples after regulation 206(b), after the last example, insert:

An amount repayable under clause 8 of Part 4 or 5 of Schedule 4 of the Act (holiday allowance paid before 25 December to a person not entitled to it on 25 December).

An amount repayable under clause 13 of Part 4 or 5 of Schedule 4 of the Act (birthday allowance paid before the entitlement date to a person not entitled to it on that date).

12 Schedule 8 amended

In Schedule 8, clause 3, table, after item 8, insert:

9A clothing, holiday, and birthday allowance to which Part 4 or 5 of Schedule 4 of the Act appliesNot chargeable income for the person to whom the payment was made
13 Further amendments to principal regulations in relation to temporary OB or UCB caregiver

Amend the principal regulations as set out in Part 2 of Schedule 3.

Part 2 Transitional, savings, and related provisions

14 Schedule 1 amended

In Schedule 1,—

(a)

insert the Part set out in Schedule 1 of this Act as the last Part; and

(b)

make all necessary consequential amendments.

Amendment to Social Security Regulations 2018

15 Principal regulations
16 Schedule 1 amended

In Schedule 1,—

(a)

insert the Part set out in Schedule 2 of this Act as the last Part; and

(b)

make all necessary consequential amendments.

Schedule 1 New Part 6 inserted into Schedule 1

s 14

Part 6 Provisions relating to Social Security (Financial Assistance for Caregivers) Amendment Act 2021

83 Transitional provision relating to eligibility criteria for orphan’s benefit

The amendments to section 44 and Schedule 2 that are made by the Social Security (Financial Assistance for Caregivers) Amendment Act 2021 apply to a person—

(a)

who makes an application for an orphan’s benefit for a child on or after 1 July 2021; or

(b)

whose application for an orphan’s benefit for a child was made, but not decided under section 301, before 1 July 2021.

84 Transitional provision relating to eligibility criteria for unsupported child’s benefit

The amendments to section 47 and Schedule 2 that are made by the Social Security (Financial Assistance for Caregivers) Amendment Act 2021 apply to a person—

(a)

who makes an application for an unsupported child’s benefit for a child on or after 1 July 2021; or

(b)

whose application for an unsupported child’s benefit for a child was made, but not decided under section 301, before 1 July 2021.

85 Transitional provision relating to eligibility criteria for childcare assistance

The amendments to sections 77 and 424 that are made by the Social Security (Financial Assistance for Caregivers) Amendment Act 2021 apply to a person—

(a)

who makes an application for childcare assistance for a child on or after 1 July 2021; or

(b)

whose application for childcare assistance for a child was made, but not decided under section 301, before 1 July 2021.

86 Transitional provision relating to eligibility criteria for child disability allowance

The amendments to sections 78 and 82 that are made by the Social Security (Financial Assistance for Caregivers) Amendment Act 2021 apply to a person—

(a)

who makes an application for a child disability allowance for a child on or after 1 July 2021; or

(b)

whose application for a child disability allowance for a child was made, but not decided under section 301, before 1 July 2021.

87 Transitional provision relating to holiday allowance

Clauses 3(b), 4 to 8, and 14 of Part 4 or 5 of Schedule 4 (as inserted by the Social Security (Financial Assistance for Caregivers) Amendment Act 2021) apply to a caregiver who becomes entitled to the orphan’s benefit or unsupported child’s benefit before, on, or after 1 December 2021.

88 Transitional provision relating to birthday allowance

Clauses 3(c), 4, 5, and 9 to 14 of Part 4 or 5 of Schedule 4 (as inserted by the Social Security (Financial Assistance for Caregivers) Amendment Act 2021) apply to a caregiver who becomes entitled to the orphan’s benefit or unsupported child’s benefit before, on, or after 1 December 2021.

Schedule 2 New Part 7 inserted into Schedule 1 of Social Security Regulations 2018

s 16

Part 7 Provisions relating to Social Security (Financial Assistance for Caregivers) Amendment Act 2021

11 Transitional provision relating to eligibility criteria for childcare assistance

The amendments to subpart 6 of Part 2 and Schedule 2 that are made by the Social Security (Financial Assistance for Caregivers) Amendment Act 2021 apply to a person—

(a)

who makes an application for childcare assistance for a child on or after 1 July 2021; or

(b)

whose application for childcare assistance for a child was made, but not decided under section 301 of the Act, before 1 July 2021.

12 Transitional provision relating to eligibility criteria for temporary additional support

The amendments to subpart 10 of Part 2 that are made by the Social Security (Financial Assistance for Caregivers) Amendment Act 2021 apply to a person—

(a)

who makes an application for temporary additional support for a child on or after 1 July 2021; or

(b)

whose application for temporary additional support for a child was made, but not decided under section 301 of the Act, before 1 July 2021.

Schedule 3 Further amendments in relation to temporary OB or UCB caregiver

ss 8, 13

Part 1Further amendments to Social Security Act 2018

In section 77, after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In section 78(1)(b)(i), after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In section 82, after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In section 424(2)(c), replace “the income of the principal caregiver and that caregiver’s spouse or partner,” with “the income of the principal caregiver or temporary OB or UCB caregiver, the income of that caregiver’s spouse or partner,”.

In section 424(2)(e), after “principal caregiver’s”, insert “or temporary OB or UCB caregiver’s”.

Replace section 424(3)(a) with:

(a)

the income of—

(i)

the principal caregiver or temporary OB or UCB caregiver; and

(ii)

that caregiver’s spouse or partner:

Replace section 424(3)(c) with:

(c)

whether any of the following people has a disability or serious illness:

(i)

the dependent child:

(ii)

the principal caregiver or temporary OB or UCB caregiver of the dependent child:

(iii)

any of the other dependent children of that caregiver (whether that person is the principal caregiver or temporary OB or UCB caregiver of any of those other dependent children):

In section 424(3)(e), after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

Part 2Further amendments to Social Security Regulations 2018

In regulation 20(1), replace the definition of household income with:

household income—

(a)

in relation to a child or the child’s principal caregiver, means the sum of—

(i)

the total income of the child’s principal caregiver; and

(ii)

the total income of the spouse or partner (if any) of the child’s principal caregiver (whether or not that spouse or partner is also the child’s other caregiver); or

(b)

in relation to a child or the child’s temporary OB or UCB caregiver, means the sum of—

(i)

the total income of the child’s temporary OB or UCB caregiver; and

(ii)

the total income of the spouse or partner (if any) of the child’s temporary OB or UCB caregiver (whether or not that spouse or partner is also the child’s other caregiver)

In regulation 20(1), definition of other caregiver, paragraph (a), after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In regulation 25, after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In regulation 26(a), after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In regulation 30(1)(b), after “principal caregiver,”, insert “temporary OB or UCB caregiver,”.

In the heading to regulation 32, replace principal caregiver with caregiver.

Replace regulation 32(1)(c) with:

(c)

the child’s principal caregiver is also the principal caregiver or temporary OB or UCB caregiver of some other child, who is either in hospital or is a child for whom a child disability allowance is payable; or

(d)

the child’s temporary OB or UCB caregiver is also the principal caregiver or temporary OB or UCB caregiver of some other child, who is either in hospital or is a child for whom a child disability allowance is payable.

In regulation 32(3)(b), after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In regulation 32(4), after “principal caregiver”, insert “or temporary OB or UCB caregiver” in each place.

In regulation 33, after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In the heading to regulation 34, replace principal caregiver with caregiver.

In regulation 34(b), after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In the heading to regulation 35, replace principal caregiver with caregiver.

In regulation 35(b), after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In regulation 37(2), after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In regulation 40, after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In the heading to regulation 41, replace principal caregiver with caregiver.

Replace regulation 41(1)(c) with:

(c)

the child’s principal caregiver is also the principal caregiver or temporary OB or UCB caregiver of some other child, who is either in hospital or is a child for whom a child disability allowance is payable; or

(d)

the child’s temporary OB or UCB caregiver is also the principal caregiver or temporary OB or UCB caregiver of some other child, who is either in hospital or is a child for whom a child disability allowance is payable.

In regulation 41(3)(b), after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In regulation 41(4), after “principal caregiver”, insert “or temporary OB or UCB caregiver” in each place.

In the heading to regulation 42, replace principal caregiver with caregiver.

In regulation 42(b), after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In the heading to regulation 43, replace principal caregiver with caregiver.

In regulation 43, after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In regulation 59(1)(a), after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In regulation 59(1)(b), after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In regulation 59(3)(d)(ii), after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In Schedule 2, item 1, after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In Schedule 2, item 2, after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

In Schedule 2, item 3, after “principal caregiver”, insert “or temporary OB or UCB caregiver”.

Legislative history

30 July 2020

Introduction (Bill 308–1)

8 December 2020

First reading and referral to Social Services and Community Committee

31 May 2021

Reported from Social Services and Community Committee

(Bill 308–2)

8 June 2021

Second reading

23 June 2021

Third reading

28 June 2021

Royal assent

This Act is administered by the Ministry of Social Development.