Explanatory note
This note is not part of the regulations, but is intended to indicate their general effect.
Regulations 4 and 5 amend the principal regulations to increase the amounts that are allowed to be gifted under regulations 10 and 11 of the principal regulations during a gifting period without affecting an assets assessment conducted under section 34 of the Residential Care and Disability Support Services Act 2018.
Increases are being made this year because of a 2004 Cabinet decision that the allowable gifting levels be reviewed annually for adjustment in line with the New Zealand Consumers Price Index (all groups) (the CPI), and that adjustments be rounded down to occur in $500 increments when the growth in the CPI is $500 or more (the rounding rule). Subsequent adjustments are based on the figure prior to the application of the rounding rule.
This year the change in the CPI since the last $500 increment is enough to trigger adjustments to—
the gifting amount, from $7,000 to $7,500; and
the threshold for allowable gifts during the gifting period (which is based on 5 years of the gifting amount) from $35,000 to $37,500.
Issued under the authority of the Legislation Act 2019.
Date of notification in Gazette: 25 May 2023.
These regulations are administered by the Ministry of Social Development.