These regulations are made under section 74 of the Residential Care and Disability Support Services Act 2018 on the advice and with the consent of the Executive Council.

1	Title
2	Commencement
3	Principal regulations
4	Regulation 18 amended (Income exempt from means assessment)
5	Schedule 3 amended
	Schedule New Part 22 inserted in Schedule 3
	Explanatory note
	Administrative Information

Regulations

1 Title

These regulations are the Residential Care and Disability Support Services (Income and Cash Assets Exemption) Amendment Regulations 2021.

2 Commencement

These regulations come into force on 11 June 2021.

3 Principal regulations

These regulations amend the Residential Care and Disability Support Services Regulations 2018.

4 Regulation 18 amended (Income exempt from means assessment)

After regulation 18(f), insert:

(g)

for the first 12 months after the payment concerned is made, any lump sum residential care subsidy refund (as defined in clause 38 of Schedule 3) made to the person on or after 11 June 2021, and any income derived (directly or indirectly) by the person from the payment.

5 Schedule 3 amended

(1)

In Schedule 3, clause 1, after item 22, insert:

A lump sum residential care subsidy refund and any income to which clause 39 applies

Exempt assets of the person or the person’s spouse or partner

Only for the first 12 months after the refund is made

(2)

In Schedule 3, after Part 21, insert the Part 22 set out in the Schedule of these regulations.

Schedule New Part 22 inserted in Schedule 3

r 5(2)

Part 22 Lump sum residential care subsidy refund

38 Interpretation

(1)

In this Part, lump sum residential care subsidy refund means any lump sum payment of all or any of the following, made by MSD on or after 11 June 2021, and arising from a retrospective review of any means assessment (for example, any assessments of cash assets, chargeable income, or income) by MSD following the decision in Chief Executive of the Ministry of Social Development v Broadbent [2019] NZCA 201:

(a)

a benefit:

(b)

a residential care subsidy refund:

(c)

special assistance paid under a programme established under section 100 or 101 of the Social Security Act 2018.

(2)

In this clause,—

(a)

a reference to a benefit, or to special assistance paid under a programme established under section 100 or 101 of the Social Security Act 2018, includes a reference to a benefit, or to special assistance paid under a programme established, under the Social Security Act 1964:

(b)

a reference to a residential care subsidy under the Residential Care and Disability Support Services Act 2018 includes a reference to a residential care subsidy under the Social Security Act 1964.

39 Payments and income

This clause applies to—

(a)

a lump sum residential care subsidy refund made to a person (A); and

(b)

any income derived (directly or indirectly) by A from payment of the refund referred to in paragraph (a).

Michael Webster,
Clerk of the Executive Council.

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 11 June 2021, amend regulation 18 and Schedule 3 of the Residential Care and Disability Support Services Regulations 2018. That regulation and that schedule list income exempt from a means assessment as to income, and exempt assets for the purposes of conducting a means assessment, to determine a person’s eligibility for financial support for long-term residential care under the Residential Care and Disability Support Services Act 2018. The amendments relate to a lump sum residential care subsidy refund arising from a retrospective review of financial means assessment by the Ministry of Social Development where the review finds that a person has paid more towards the cost of their care than they should have. The review may also result in a lump sum payment of a benefit because the person’s income for the purposes of the Social Security Act 1964 or the Social Security Act 2018 has been overestimated.

The amendments ensure that the amount of the payment and related income are, for the first 12 months after the payment is made, income exempt from a means assessment as to income, and an exempt asset for the purposes of the means assessment.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 10 June 2021.

These regulations are administered by the Ministry of Social Development.

Residential Care and Disability Support Services (Income and Cash Assets Exemption) Amendment Regulations 2021