These regulations, which come into force on 1 April 2019, are made under the Residential Care and Disability Support Services Act 2018 (the Act) and amend the Residential Care and Disability Support Services Regulations 2018 (the principal regulations).

Clauses 4 and 5 amend the principal regulations to increase—

• the annual clothing allowance payable under regulation 8 of the principal regulations to $283.97; and

• the personal allowance specified in regulation 19 of the principal regulations to $45.28 per week.

The new amounts reflect a 1.69% increase in the New Zealand Consumers Price Index from the December 2017 quarter to the December 2018 quarter (calculated for all quarters using the New Zealand Consumers Price Index (All Groups), excluding cigarettes and other tobacco products).

Clause 6 inserts new regulation 20 into the principal regulations, which revokes the Social Security (Long-term Residential Care) Regulations 2005, as those regulations have been replaced by the principal regulations.

Clause 7 amends Schedule 3 of the principal regulations, which lists assets that are exempt assets for the purposes of a means assessment under Act. The amendments insert a new exemption to ensure that any payment received by a person on or after 1 April 2019 to correct an underpayment of their accommodation supplement under the Social Security Act 1964 between 1 April 2005 and the close of 31 March 2018 (inclusive) is an exempt asset. The exemption applies only in respect of the first 12 months after the payment concerned is made.