Social Security (Cash Assets and Income Exemptions—Ex Gratia and Compensation Payments) Amendment Regulations 2019

2019/128

Coat of Arms of New Zealand

Social Security (Cash Assets and Income Exemptions—Ex Gratia and Compensation Payments) Amendment Regulations 2019

Patsy Reddy, Governor-General

Order in Council

At Wellington this 17th day of June 2019

Present:
Her Excellency the Governor-General in Council

These regulations are made under sections 422(1), 423(1)(b), and 428(1) and (2)(f) of the Social Security Act 2018 on the advice and with the consent of the Executive Council.

Regulations

1 Title

These regulations are the Social Security (Cash Assets and Income Exemptions—Ex Gratia and Compensation Payments) Amendment Regulations 2019.

2 Commencement

These regulations come into force on 21 June 2019.

3 Principal regulations

These regulations amend the Social Security Regulations 2018 (the principal regulations).

4 Schedule 8 amended

(1)

In Schedule 8, clause 1, item 6,—

(a)

after “the Crown”, insert “or a specified other entity”; and

(b)

delete “Only for the first 12 months after the payment is made”.

(2)

In Schedule 8, clause 2, item 10,—

(a)

after “the Crown”, insert “or a specified other entity”; and

(b)

delete “Only for the first 12 months after the payment is made”.

(3)

In Schedule 8, clause 4, item 5,—

(a)

after “the Crown”, insert “or a specified other entity”; and

(b)

delete “Only for the first 12 months after the payment is made”.

(4)

In Schedule 8, Part 10 heading, after “the Crown”, insert “or specified other entity”.

(5)

In Schedule 8, clause 13, definition of compensation, paragraph (a)(ii), after “the Crown”, insert “or a specified other entity”.

(6)

In Schedule 8, clause 13, insert in their appropriate alphabetical order:

faith-based institution means an organisation whose purpose or activity is connected to any religious or spiritual belief system,—

(a)

however the organisation is described; and

(b)

whether or not the organisation is formally incorporated; and

(c)

whether or not the organisation is connected with any 1 or more particular faiths, religions, or denominations

specified other entity means any person who, or unincorporated body of persons that, is not the Crown (as defined in clause 5), but is all or any of the following:

(a)

any entity (that is, any society, institution, or trustees of a trust) registered as a charitable entity under the Charities Act 2005:

(b)

any trustees or society incorporated as a board under the Charitable Trusts Act 1957:

(c)

a society incorporated under the Incorporated Societies Act 1908:

(d)

a person who, when the harm or claimed harm referred to in clause 14(a)(ii) occurred or is alleged to have occurred, was engaged, funded, licensed, or registered by the Crown (as so defined) to provide services that are related to that harm or claimed harm:

(e)

a faith-based institution

(7)

In Schedule 8, replace clause 14(a) with:

(a)

any compensation or ex gratia payment—

(i)

made by the Crown or a specified other entity to a person; and

(ii)

made in recognition of harm, or in respect of a claim of harm, that occurred or is alleged to have occurred in New Zealand; and

(iii)

made before 21 June 2019 and on and after that date retained (in whole or in part) by the person, or made on or after 21 June 2019; and

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 21 June 2019, amend Schedule 8 of the Social Security Regulations 2018. The amendments relate to any compensation or ex gratia payment—

  • made by the Crown or a specified other entity to a person; and

  • made in recognition of harm, or in respect of a claim of harm, that occurred or is alleged to have occurred in New Zealand; and

  • made before 21 June 2019 and on and after that date retained (in whole or in part) by the person, or made on or after 21 June 2019.

The amendments ensure that the amount of the payment, and related income, are not treated as cash assets for the purposes of determining the person’s accommodation supplement or temporary additional support entitlements under the Social Security Act 2018 (the Act). They also ensure that the amount of the payment and income relating to that amount are not the person’s income for the purposes of the Act. These exemptions apply with no specified time limit (that is, not only for the first 12 months after the payment is made or, for payments made before 21 June 2019, not only for the first 12 months starting on 21 June 2019).

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 20 June 2019.

These regulations are administered by the Ministry of Social Development.