Social Security (Rates of Benefits and Allowances) Order 2023

2023/38

Coat of Arms of New Zealand

Social Security (Rates of Benefits and Allowances) Order 2023

Cindy Kiro, Governor-General

Order in Council

At Wellington this 20th day of March 2023

Present:
Her Excellency the Governor-General in Council

This order is made under sections 452, 452A, 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 2023.

2 Commencement

This order comes into force on 1 April 2023, but clause 8 comes into force immediately after clauses 5, 6, and 7.

3 Interpretation

In this order, commencement date means 1 April 2023.

4 Application

(1)

In accordance with section 452A(5) of the Social Security Act 2018, clause 5 applies to benefits (as defined in that Act) payable on and after the commencement date.

(2)

In accordance with section 453(5) of the Social Security Act 2018, clause 6 applies to benefits (as defined in that Act) payable on and after the commencement date.

(3)

In accordance with section 15(6) of the New Zealand Superannuation and Retirement Income Act 2001, clause 7 applies to New Zealand superannuation payable on and after the commencement date.

(4)

In accordance with section 452(4) of the Social Security Act 2018, clause 8 applies to benefits, allowances, and entitlements payable on and after the commencement date.

5 Mandatory adjustments under section 452A of Social Security Act 2018

In each provision of the Social Security Act 2018 listed in the first column of Part 1 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.

6 Mandatory adjustments under section 453 of Social Security Act 2018

In each provision of the Social Security Act 2018 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.

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

In each provision of the New Zealand Superannuation and Retirement Income Act 2001 listed in the first column of Part 3 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.

8 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 Social Security Act 2018 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.

(3)

In each provision of the New Zealand Superannuation and Retirement Income Act 2001 listed in the first column of Part 3 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.

Schedule 1 Mandatory adjustments

cls 5, 6, 7

Part 1 Average weekly earnings wage adjustments to social security benefits and allowances

Provision amendedOld amount ($)New amount ($)
Schedule 4, Part 1 (Jobseeker support)
Clause 1(a)233.75248.34
Clause 1(b)274.37291.50
Clause 1(c)325.12345.41
Clause 1(d)315.00334.66
Clause 1(e)440.96468.48
Clause 1(f)440.96468.48
Clause 1(g)(i)268.00284.73
Clause 1(g)(ii)283.00300.66
Clause 1(h)(i)268.00284.73
Clause 1(h)(ii)283.00300.66
Clause 1(j)(i)536.00569.46
Clause 1(j)(ii)566.00601.32
Clause 2268.00284.73
Clause 3(i)268.00284.73
Clause 3(ii)283.00300.66
Schedule 4, Part 2 (Sole parent support)
Clause 1440.96468.48
Schedule 4, Part 3 (Supported living payment)
Clause 1(a)300.89319.67
Clause 1(b)359.00381.41
Clause 1(c)492.06522.77
Clause 1(d)(i)305.00324.04
Clause 1(d)(ii)320.00339.97
Clause 1(e)(i)305.00324.04
Clause 1(e)(ii)332.24352.98
Clause 1(g)(i)610.00648.08
Clause 1(g)(ii)640.00679.94
Clause 1(h)(i)305.00324.04
Clause 1(h)(ii)332.24352.98
Clause 2492.00522.71
Clause 264.2768.28
Clause 7(a)305.00324.04
Clause 7(b)332.24352.98
Schedule 4, Part 6 (Rates and component of youth payment and young parent payment, and criteria for incentive payments)
Clause 1274.37291.50
Clause 2254.38270.26
Clause 3440.96468.48
Clause 4268.00284.73
Clause 5(a)283.00300.66
Clause 5(b)283.00300.66
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 1440.96468.48
Clause 2325.12345.41
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 1440.96468.48
Clause 2325.12345.41

Part 2 CPI adjustments to social security benefits and allowances

Provision amendedOld amount ($)New amount ($)
Schedule 4, Part 4 (Orphan’s benefit)
Clause 1(a)296.42317.82
Clause 1(b)276.62296.59
Clause 1(c)256.72275.25
Clause 1(d)254.95273.36
Schedule 4, Part 5 (Unsupported child’s benefit)
Clause 1(a)296.42317.82
Clause 1(b)276.62296.59
Clause 1(c)256.72275.25
Clause 1(d)254.95273.36
Schedule 4, Part 12 (Rates of benefits payable to long-term hospital patients)
Clause 149.3352.89

Part 3 Adjustments to superannuation entitlements

Provision amendedOld amount ($)New amount ($)
Schedule 1, Part 1 (Rates generally)
Clause 1(a)538.24578.67
Clause 1(b)495.10532.43
Clause 1(c)408.66439.79
Schedule 1, Part 2 (Rates saved by Schedule 1AA)
Clause 1(b)774.70834.08

Schedule 2 Discretionary increases under section 452 of Social Security Act 2018

cl 8

Part 1 Increases to social security benefits and allowances that have been adjusted under Part 1 of Schedule 1

Provision amendedOld amount ($)New amount ($)
Schedule 4, Part 1 (Jobseeker support)
Clause 1(a)248.34250.63
Clause 1(b)291.50294.18
Clause 1(c)345.41348.59
Clause 1(d)334.66337.74
Clause 1(e)468.48472.79
Clause 1(f)468.48472.79
Clause 1(g)(i)284.73287.35
Clause 1(g)(ii)300.66303.43
Clause 1(h)(i)284.73287.35
Clause 1(h)(ii)300.66303.43
Clause 1(j)(i)569.46574.70
Clause 1(j)(ii)601.32606.86
Clause 2284.73287.35
Clause 3(i)284.73287.35
Clause 3(ii)300.66303.43
Schedule 4, Part 2 (Sole parent support)
Clause 1468.48472.79
Schedule 4, Part 3 (Supporting living payment)
Clause 1(a)319.67322.61
Clause 1(b)381.41384.92
Clause 1(c)522.77527.58
Clause 1(d)(i)324.04327.02
Clause 1(d)(ii)339.97343.10
Clause 1(e)(i)324.04327.02
Clause 1(e)(ii)352.98356.23
Clause 1(g)(i)648.08654.04
Clause 1(g)(ii)679.94686.20
Clause 1(h)(i)324.04327.02
Clause 1(h)(ii)352.98356.23
Clause 2522.71527.52
Clause 7(a)324.04327.02
Clause 7(b)352.98356.23
Schedule 4, Part 6 (Rates and component of youth payment and young parent payment, and criteria for incentive payments)
Clause 1291.50294.18
Clause 2270.26272.74
Clause 3468.48472.79
Clause 4284.73287.35
Clause 5(a)300.66303.43
Clause 5(b)300.66303.43
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 1468.48472.79
Clause 2345.41348.59
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 1468.48472.79
Clause 2345.41348.59

Part 2 Increases to social security rates and allowances, asset limits, income limits, and disability allowance income limits

Provision amendedOld amount ($)New amount ($)
Schedule 4, Part 6 (Rates and component of youth payment and young parent payment, and criteria for incentive payments)
Clause 11240.70258.08
290.70308.08
Clause 12240.70258.08
340.70358.08
Schedule 4, Part 9 (Child disability allowance and disability allowance)
Clause 152.7956.60
Clause 270.0475.10
Clause 343.6946.84
Schedule 5, Part 1 (Asset limits)
Clause 11,193.211,279.35
Clause 21,988.202,131.73
Clause 31,566.731,679.84
Clause 41,682.971,804.47
Schedule 5, Part 2 (Income limits)
Clause 5545.01584.36
Clause 6626.37671.59
Clause 7909.81975.49
Clause 8760.08814.95
Clause 9800.78858.59
Schedule 5, Part 3 (Disability allowance income limits)
Clause 10588.98631.50
Clause 11733.72786.69
Clause 121,092.551,171.42
Clause 13821.43880.73
Clause 14865.46927.94

Part 3 Increases to superannuation entitlements

Provision amendedOld amount ($)New amount ($)
Schedule 1, Part 1 (Rates generally)
Clause 349.3352.89
Schedule 1, Part 2 (Rates saved by Schedule 1AA)
Clause 1(a)817.32879.58

Rachel Hayward,
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 2023, increases a range of benefits, allowances, asset limits, and superannuation entitlements, etc, that are payable on and after that date. The increases reflect both mandatory adjustments and discretionary increases.

Where a net average weekly earnings adjustment is required, it reflects the increase of 6.24% in the net average wage from the December 2021 quarter to the December 2022 quarter.

Annual net average weekly earnings adjustments are required under section 452A of the Social Security Act 2018 for the following benefits:

  • jobseeker support:

  • sole parent support:

  • supported living payment:

  • youth payment and young parent payment:

  • former widows’ benefit:

  • former domestic purposes benefit.

Those increases are set out in Part 1 of Schedule 1.

Where an annual consumers price index (CPI) increase is required, it reflects the increase of 7.22% in the New Zealand Consumers Price Index from the December 2021 quarter to the December 2022 quarter (calculated for all quarters using the New Zealand Consumers Price Index (All Groups)).

Annual CPI increases are required under section 453 of the Social Security Act 2018 for the following benefits:

  • orphan’s benefit:

  • unsupported child’s benefit:

  • long-term hospital rates.

Those increases are set out in Part 2 of Schedule 1.

Annual CPI increases are also required, under section 15 of the New Zealand Superannuation and Retirement Income Act 2001, for superannuation entitlements. Those increases may sometimes be more than the CPI increase in order to meet the further requirements (in sections 15(3) 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 that Act are set out in Part 3 of Schedule 1.

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

  • certain rates of benefits payable to beneficiaries set out in Parts 1, 2, 3, 6, 9, 10, and 11 of Schedule 4 of the Social Security Act 2018:

  • the various asset and income limits that are set out in Schedule 5 of the Social Security Act 2018 for receiving certain benefits and grants:

  • the rates payable to superannuitants set out in Schedule 1 of the New Zealand Superannuation and Retirement Income Act 2001.

Those increases are set out in Schedule 2.

This order must be confirmed by an Act before the close of 30 June 2024. If it is not confirmed, it will be revoked on the close of that date. See subpart 3 of Part 5 of the Legislation Act 2019.

Issued under the authority of the Legislation Act 2019.

Date of notification in Gazette: 23 March 2023.

This order is administered by the Ministry of Social Development.