Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698832106792.pdf (New Zealand)
2012/207 Social Security (Criteria for Incentive Payments and Money Management) Regulations 2012 Jerry Mateparae, Governor-General Order in Council At Wellington this 6th day of August 2012 Present: His Excellency the Governor-General in Council Pursuant to section 132 of the Social Security Act 1964, His Excel- lency the Governor-General, acting on the advice and with the con- sent of the Executive Council, makes the following regulations.
Contents Title Commencement Interpretation Part 1 Criteria for incentive payments When young person meets criteria for payment of education, training, or work-based learning incentive payment When young person meets criteria for payment of budgeting incentive payment Page 2 2 2 3 4 1 Social Security (Criteria for Incentive Payments and Money Management) Regulations 2012 2012/207 When young person meets criteria for payment of parenting education incentive payment Part 2 Money management When money management applies How specified payment may be paid Other payments that may be paid to young person or on account of young person When young person may opt out of money management Criteria for managing payments Young person who opts out of money management or meets criteria for managing own payments may request payments redirected Electing money management Payment of specified payments if young person has elected money management 4 5 6 7 7 8 8 8 9 Regulations Title These regulations are the Social Security (Criteria for Incen- tive Payments and Money Management) Regulations 2012.
Commencement These regulations come into force on 20 August 2012.
Interpretation In these regulations, unless the context otherwise requires,— Act means the Social Security Act 1964 contracted service provider, in relation to a young person, means the contracted service provider assigned to that young person under section 181 of the Act incentive payment has the same meaning as in section 3(1) of the Act specified benefit means a benefit referred to in any of para- graphs (a) to (d) of the definition of specified beneficiary in section 157 of the Act r 1 (1) 2 2012/207 Social Security (Criteria for Incentive Payments and Money Management) Regulations 2012 Part 1 r 4 (b) (c) specified payment, in relation to a young person, means— (a) any youth support payment payable to the young person (including the in-hand allowance up to the maximum set out in clause 6 of Schedule 26 of the Act): any WFF tax credit payable to the young person by the chief executive: for the purposes of section 179(4)(a)(iv) of the Act,— the amount of any accommodation supplement, (i) temporary additional support, or childcare assist- ance to which the young person is entitled (other than a payment for childcare assistance made to a provider under the Social Security (Childcare Assistance) Regulations 2004): the amount of any special assistance of an on- going kind under section 124(1)(d) of the Act to which the young person is entitled (other than a payment for childcare made to a provider under any such welfare programme): the amount of any incentive payment payable to the young person: in relation to a young person to whom section 171(1) or (2) of the Act applies, the portion of the specified benefit payable to the young person under section 83 of the Act (iii) (iv) (ii) young person means a person aged at least 16 years but under the age of 20 years youth support payment has the same meaning as in section 3(1) of the Act.
(2) A term that is used in these regulations and not defined, but defined in the Act, has the same meaning as in the Act.
4 Part 1 Criteria for incentive payments When young person meets criteria for payment of education, training, or work-based learning incentive payment A young person meets the criteria for the payment of an educa- tion, training, or work-based learning incentive payment if— 3 Part 1 r 5 Social Security (Criteria for Incentive Payments and Money Management) Regulations 2012 2012/207 (a) (b) (c) the young person is receiving a youth payment or a young parent payment; and the young person has, since starting to receive a youth support payment, completed 6 months’ participation and achievement in education, training, or work-based learning, as the case may be; and the contracted service provider in question has con- firmed to the department or, as the case requires, the department is satisfied that the young person has com- plied with paragraph (b).
5 When young person meets criteria for payment of budgeting incentive payment A young person meets the criteria for the payment of a budget- ing incentive payment if— (a) (b) (c) (d) the young person is receiving a youth payment or a young parent payment; and the young person has, since starting to receive a youth support payment, completed 3 continuous months’ at- tendance and participation in discussions on budgeting with his or her contracted service provider or, as the case requires, an officer of the department; and the young person has completed a budgeting pro- gramme approved by the chief executive for the purposes of section 170(1)(b) of the Act; and the service provider has confirmed to the department, or, as the case requires, the department is satisfied, that the young person has complied with paragraph (b).
6 When young person meets criteria for payment of parenting education incentive payment (1) A young person meets the criteria for the payment of a parent- ing education incentive payment if— (a) the young person is receiving a young parent payment; and the young person has, since starting to receive a youth support payment, completed 3 continuous months’ regular engagement with his or her contracted service (b) 4 2012/207 Social Security (Criteria for Incentive Payments and Money Management) Regulations 2012 Part 2 r 7 (f) (c) (e) (d) provider or, as the case requires, an officer of the de- partment; and the service provider has confirmed to the department, or, as the case requires, the department is satisfied, that the young person has complied with paragraph (b); and the young person has participated in and completed a parenting education programme approved by the chief executive for the purposes of section 170(1)(c) of the Act; and each of his or her dependent children is enrolled with a primary health organisation; and each of his or her dependent children aged 5 years or below is up to date with checks under the WellChild programme or any similar programme established in its place; and each of his or her dependent children aged 5 years or below attends an approved early childhood education programme or is placed in other suitable childcare dur- ing any time that the young person spends in education, training, work-based learning, or part-time work.
If a young person is unable to comply with the requirements of any of subclause (1)(d) to (g) because of the unavailability of the programme, service, or enrolment in question, the young person must be treated as complying if he or she takes steps agreed with the young person’s contracted service provider or, as the case requires, with the department in preparation for the availability of the programme, service, or enrolment (for example, enrolling on a waiting list).
(g) Part 2 Money management When money management applies Subject to subclause (2), regulation 8 applies to a young person if— (a) (b) a specified payment is payable to a young person; and the young person (under section 11D of the Act or other- wise) or his or her contracted service provider has pro- vided details to the department of the young person’s— 5 (2) 7 (1) Part 2 r 8 Social Security (Criteria for Incentive Payments and Money Management) Regulations 2012 2012/207 accommodation costs; and service costs; and lawful debts or other liabilities; and (i) (ii) (iii) the young person has not opted out under regulation 10.
(c) In the case of a young person to whom section 29 of the Social Security (Youth Support and Work Focus) Amendment Act 2012 applies and until regulation 8 applies to that young per- son, the chief executive may pay a specified payment to that young person in accordance with section 82(3) of the Act.
How specified payment may be paid Subject to section 177(2) of the Act, the chief executive must pay each instalment of a specified payment payable to the young person in the following order and manner: (a) first, by paying such amount as the chief executive thinks reasonable in the circumstances of the young person directly towards the young person’s accommo- dation costs and service costs: secondly, by paying such amount as the chief execu- tive thinks reasonable in the circumstances of the young person directly towards the young person’s debts or other liabilities (including any reduction or deduction required or authorised under the Act): thirdly, by paying to or on account of the young per- son the in-hand allowance up to the amount specified in clause 6 of Schedule 26 of the Act: fourthly, unless subclause (2) applies, by crediting such amount as the chief executive thinks reasonable in the circumstances of the young person to a payment card, voucher, or device that enables the young person to ob- tain goods or services from a participating supplier.
(b) (c) (d) In the case of the supply of goods or services to a young person by a non-participating supplier, the chief executive may pay the amount that would have been paid under subclause (1)(d) either— (a) (b) In this clause, participating supplier means a supplier who has agreed with the department to supply goods or services to directly to that supplier; or to or on account of the young person.
(2) 8 (1) (2) (3) 6 2012/207 Social Security (Criteria for Incentive Payments and Money Management) Regulations 2012 Part 2 r 10 young persons on presentation of a payment card, voucher, or other device, and non-participating supplier means a sup- plier who has not so agreed.
9 (1) Other payments that may be paid to young person or on account of young person Subject to subclause (2), the chief executive may pay all or part of the following payments to or on account of a young person to whom regulation 8 applies: (a) (b) any disability allowance or child disability allowance: any special assistance under section 124(1)(d) of the Act that is not of an ongoing kind: any payments under the training incentive allowance programme, the course participation assistance pro- gramme, or the DPB sole parent study assistance programme established under section 124(1)(d) of the Act: any advance payment of a benefit under section 82(6) of the Act.
(c) (d) (2) The chief executive may only make a payment under sub- clause (1)(b) to (d) after first consulting the young person’s contracted service provider, if there is one.

10 When young person may opt out of money management (1) A young person receiving a youth payment may opt out of money management if— (a) (b) he or she is 18 years or older; and the payment is being continued under section 162(1)(b) of the Act.
(2) A young person receiving a young parent payment may opt out of money management if— (a) (b) he or she is 19 years or older; and the payment is being continued under section 168(1)(b) of the Act.

(3) A young person opts out of money management by giving the chief executive written notice that he or she opts out of money management.
7 Part 2 r 11 Social Security (Criteria for Incentive Payments and Money Management) Regulations 2012 2012/207 (4) 11 12 (1) Regulation 8 does not apply to a young person who has opted out of money management under this regulation.
Criteria for managing payments The criteria referred to in section 179(7) of the Act for the man- agement of a young person’s own payments are the following: the young person has demonstrated continued compli- (a) ance with his or her obligations under section 170 of the Act; and the young person’s contracted service provider has ad- vised the department that it considers the young person to be financially competent or, as the case requires, the department considers the young person to be financially competent.
(b) Young person who opts out of money management or meets criteria for managing own payments may request payments redirected The chief executive, on the request of a young person who has opted out of money management under regulation 10 or has met the criteria set out in regulation 11 for managing his or her own payments, may pay all or part of a specified payment payable to the young person directly towards— (a) (b) his or her accommodation and service costs: his or her lawful debts or other liabilities (including any reduction or deduction required or authorised under the Act).
(2) A request under subclause (1)— (a) must be in writing; and (b) must specify the costs, debts, or other liabilities towards which the chief executive must pay the payment; and (c) may be withdrawn or otherwise cancelled at any time.

Electing money management A young person to whom section 171(1) or (2) of the Act applies for the time being may elect money management by giving the chief executive written notice that he or she elects money management.
13 8 2012/207 Social Security (Criteria for Incentive Payments and Money Management) Regulations 2012 Explanatory note 14 Payment of specified payments if young person has elected money management The chief executive must pay each instalment of a specified payment payable to a young person who has elected money management under regulation 13 in the following order and manner: (a) first, by paying such amount as the chief executive thinks reasonable in the circumstances of the young person directly towards the young person’s accommo- dation costs and service costs: secondly, by paying such amount as the chief execu- tive thinks reasonable in the circumstances of the young person directly towards the young person’s debts or other liabilities (including any reduction or deduction required or authorised under the Act): thirdly, by paying the balance (if any, after payments under paragraphs (a) and (b)) to or on account of the young person.
(b) (c) Michael Webster, for 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 20 August 2012, arise out of amendments to the Social Security Act 1964 (the 1964 Act) made by the Social Security (Youth Support and Work Focus) Amendment Act 2012 (the 2012 Amendment Act).
In the explanation that follows, section references are references to new provisions inserted in the 1964 Act by the 2012 Amendment Act.

Sections 163(2) and 169(2) provide for the payment of incentive pay- ments to a young person to whom a youth payment is payable if that person meets the criteria prescribed by regulations.
Part 1 of these 9 Explanatory note Social Security (Criteria for Incentive Payments and Money Management) Regulations 2012 2012/207 regulations sets out the criteria for payment of each of the following incentive payments: • an education, training, or work-based learning incentive pay- ment (regulation 4): a budgeting incentive payment (regulation 5): • • a parenting education incentive payment (regulation 6).

Section 179 deals with money management in relation to youth sup- port payments.
Section 179(1) states the general rule that no payment under a youth support payment can be paid to or on account of a young person concerned personally and by section 179(4)(a) various payments “must be paid in a manner stated in regulations made under this Act for the purposes of this section”.

Part 2 of these regulations sets out how those payments must be made.
Broadly, the regulations prescribe a mandatory system of money management whereby pay- ment of any youth support payment and certain other benefits and allowances payable to young persons is made directly to the supplier of the young person’s living needs.

Certain classes of young persons may opt out of the money management regime (regulation 10).
In addition, under section 179(7) the chief executive may make payment to or on account of a young person personally if that young person has met prescribed criteria.

Those criteria are prescribed in regulation 11.

Finally, a young person who does not otherwise fall within the mandatory money management regime may voluntarily elect money management (regulation 13) and regulation 14 prescribes the man- ner and order of payment in such a case.
Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 9 August 2012.

These regulations are administered by the Ministry of Social Development.

12 10 Wellington, New Zealand: Published under the authority of the New Zealand Government—2012