Residential Care and Disability Support Services (Annual Adjustment of Applicable Asset Thresholds and Income-from-assets Exemption) Regulations 2022

2022/149

Coat of Arms of New Zealand

Residential Care and Disability Support Services (Annual Adjustment of Applicable Asset Thresholds and Income-from-assets Exemption) Regulations 2022

Cindy Kiro, Governor-General

Order in Council

At Wellington this 23rd day of May 2022

Present:
The Right Hon Jacinda Ardern presiding in Council

These regulations are made under sections 74(1)(h) and 75 of the Residential Care and Disability Support Services Act 2018 on the advice and with the consent of the Executive Council.

Regulations

1 Title

These regulations are the Residential Care and Disability Support Services (Annual Adjustment of Applicable Asset Thresholds and Income-from-assets Exemption) Regulations 2022.

2 Commencement

These regulations come into force on 1 July 2022.

3 Principal Act
4 Schedule 2 amended
Applicable asset thresholds

(1)

In Schedule 2, clause 1(2), replace “$239,930” with “$256,554”.

(2)

In Schedule 2, clause 1(3), replace “$131,391” with “$140,495”.

Income-from-assets exemption

(3)

In Schedule 2, clause 5, definition of income-from-assets exemption,—

(a)

paragraph (a), replace “$1,042” with “$1,114”:

(b)

paragraph (b), replace “$2,083” with “$2,228”:

(c)

paragraph (c), replace “$3,125” with “$3,341”.

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 July 2022, amend Schedule 2 of the Residential Care and Disability Support Services Act 2018 (the Act) in accordance with section 75 of the Act, which makes it mandatory for certain figures in the schedule to be increased, on 1 July each year, to reflect increases in the relevant New Zealand Consumers Price Index for the previous year.

The amendments—

  • adjust the applicable asset thresholds specified in Part 1 of Schedule 2 (which are applied as part of the financial means assessment of a person’s assets to determine whether the person is financially eligible for a residential care subsidy) by—

    • increasing applicable Threshold A from $239,930 to $256,554 (clause 1(2) of Schedule 2):

    • increasing applicable Threshold B from $131,391 to $140,495 (clause 1(3) of Schedule 2):

  • adjust the definition of income-from-assets exemption in clause 5 of Part 3 of Schedule 2 (which relates to the amount of income derived from assets that is considered exempt from a person’s financial means assessment when determining the contribution the person is required to make towards the cost of their residential care) by increasing it—

    • from $1,042 to $1,114 if the person is single:

    • from $2,083 to $2,228 if the person’s spouse or partner is a resident assessed as requiring care:

    • from $3,125 to $3,341 if the person’s spouse or partner is not a resident assessed as requiring care.

The adjustments reflect the percentage upward movement in the index number of the New Zealand Consumers Price Index (All Groups) for the year ending on 31 March 2022 (6.9%).

The adjusted amounts apply for the year beginning on 1 July 2022 and ending on 30 June 2023. On 1 July 2023, the amounts must be increased again to reflect the upward movement (if any) in the relevant index numbers for the year ending on 31 March 2023.

Issued under the authority of the Legislation Act 2019.

Date of notification in Gazette: 26 May 2022.

These regulations are administered by the Ministry of Social Development.