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 2013, amend Schedule 27 of the Social Security Act 1964 (the Act). Schedule 27 relates to means assessments for long-term residential care.

The relevant asset thresholds set out in Schedule 27 are increased, as required by section 155(2) of the Act, by 0.86%. This is the amount of the movement in the New Zealand Consumers Price Index (All Groups) for the year ended 31 March 2013. The new asset thresholds, rounded up to the nearest whole dollar (as required by section 155(3) of the Act), are—

• Threshold A: $215,132 (applies to residents with no spouse or partner, or whose spouse or partner also requires care, or whose spouse or partner does not require care but has elected to have Threshold A apply):

• Threshold B: $117,811 (applies to residents with a spouse or partner who does not require care and who has not elected to have Threshold A apply).

The income-from-assets exemption set out in Schedule 27 is increased, as required by section 155(2) of the Act, by 0.61%. This is the amount of the movement in the New Zealand Consumers Price Index (All Groups, excluding cigarettes and other tobacco products) for the year ended 31 March 2013, as that amount is calculated under section 155(2A) of the Act. The changes in the amounts, after rounding up to the nearest whole dollar, are as follows:

• from $945 to $951, if the person is single:

• from $1,890 to $1,902, if the person's spouse or partner is a resident assessed as requiring care:

• from $2,835 to $2,852, if the person's spouse or partner is not a resident assessed as requiring care.