These regulations, which come into force on 1 July 2020, amend Schedule 2 of the Residential Care and Disability Support Services Act 2018 (the Act) in accordance with section 75 of the Act, which makes it mandatory for certain figures in the schedule to be increased, on 1 July each year, to reflect increases in the relevant New Zealand Consumers Price Index for the previous year.

The amendments—

• adjust the applicable asset thresholds specified in Part 1 of Schedule 2 (which are applied as part of the financial assessment of a person’s assets to determine whether the person is financially eligible for a residential care subsidy) by—

  • increasing applicable Threshold A from $230,495 to $236,336 (clause 1(2) of Schedule 2):

  • increasing applicable Threshold B from $126,224 to $129,423 (clause 1(3) of Schedule 2):

• adjust the income-from-assets exemption specified in Part 3 of Schedule 2 (which relates to the amount of income derived from assets that is considered exempt from a person’s financial means assessment when determining the contribution the person is required to make towards the cost of their residential care) by increasing it—

  • from $1,005 to $1,027 if the person is single:

  • from $2,009 to $2,054 if the person’s spouse or partner is a resident assessed as requiring care:

  • from $3,013 to $3,081 if the person’s spouse or partner is not a resident assessed as requiring care:

  (Definition of income-from-assets exemption in clause 5 of Schedule 2).

The adjustments to the applicable asset thresholds reflect the percentage upward movement in the index number of the New Zealand Consumers Price Index (All Groups) for the year ending 31 March 2020 (2.53%).

The adjustments to the income-from-assets exemption reflect the percentage upward movement in the index number of the New Zealand Consumers Price Index (All Groups Excluding Cigarettes and Tobacco Products) for the year ending 31 March 2020 (2.25%).

The adjusted amounts apply for the year beginning on 1 July 2020 and ending on 30 June 2021. On 1 July 2021, the amounts must be increased again to reflect the upward movement (if any) in the relevant index numbers for the year ending on 31 March 2021.