This note is not part of the regulations, but is intended to indicate their general effect.

These regulations are deemed to have come into force on 1 July 2015. The regulations amend Part 1 of Schedule 27 of the Social Security Act 1964 (the Act) to correct errors in asset thresholds used to assess eligibility for partial funding of long-term residential care (see Part 4 of the Act).

Section 155 of the Act requires the asset thresholds to be increased by an amount that reflects the movement in the New Zealand Consumers Price Index (All Groups) (the CPI) for the year that ended on 31 March 2015, rounded to the nearest whole dollar. The CPI movement for the year that ended on 31 March 2015 was incorrectly published by Statistics New Zealand as approximately 0.08%. These regulations replace the asset thresholds in Part 1 of Schedule 27 of the Act (which are based on a CPI movement of 0.08%) with asset thresholds that are based on the correct CPI movement of approximately 0.25%.

The corrected asset thresholds are—

• threshold A, which is $218,973 and which applies to a resident if—

  • the resident has no spouse or partner; or

  • the resident’s spouse or partner also requires care; or

  • the resident has elected to have threshold A apply even though his or her spouse or partner does not require care; and

• threshold B, which is $119,915 and which applies to a resident if the resident’s spouse or partner does not require care and the resident has not elected to have threshold A apply.

The increases in the asset thresholds are based on the previous year’s unrounded asset thresholds as required by section 155(3)(b) of the Act.

Section 155 of the Act also requires the income-from-assets exemptions set out in Part 3 of Schedule 27 to be increased by the amount of the movement in the New Zealand Consumers Price Index (All Groups, excluding cigarettes and other tobacco products) for the year that ended on 31 March 2015, as that amount is calculated under section 155(2A) of the Act. The movement in the New Zealand Consumers Price Index (All Groups, excluding cigarettes and other tobacco products) for the year that ended on 31 March 2015 was incorrectly recorded by Statistics New Zealand as approximately −0.17%. It is now recorded as 0%. No changes are required to the income-from-assets exemptions as a result of this correction.

These regulations revoke the Social Security (Long-term Residential Care) Amendment Regulations (No 2) 2015, which are superseded.