Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698832302596.pdf (New Zealand)
Social Security (Youth Support and Work Focus) Amendment Bill Government Bill As reported from the committee of the whole House 10—3 Social Security (Youth Support and Work Focus) Amendment Bill Key to symbols used in reprinted bill As reported from the committee of the whole House text inserted text deleted Hon Paula Bennett Social Security (Youth Support and Work Focus) Amendment Bill Government Bill Contents 5A Title Commencement Principal Act Part 1 Substantive provisions taking effect on 20 August 2012 or immediately Section 1A amended (Purpose) Section 3 amended (Interpretation) Section 11D amended Section 12J amended (Right of appeal) Section 21 amended (Widows’ benefits) Section 27B amended (Domestic purposes benefits for solo parents) Section 27G amended (Domestic purposes benefits for care at home of the sick or infirm) Section 54 amended (Sickness benefit: standard eligibility requirements) Section 54A amended (Sickness benefit: grounds of hardship) Sections 60F to 60GAC and cross-heading above section 60F repealed Section 82 amended (Payment of benefits) Section 83 amended (Apportionment of benefit between spouses or partners) 10—3 Page 5 5 6 6 6 8 8 8 8 8 8 9 9 9 9 1 Social Security (Youth Support and Work Focus) Amendment Bill 15 16 17 17A 18 18A Section 89 amended (Unemployment benefit: standard eligibility requirements) Section 105 amended (Exemption from obligations) Section 123D(a) amended (Regulations) New section 123E inserted 123E Services to encourage young
 persons to move to education, training, and employment New sections 123F to 123H inserted 123F Chief executive may enter into information-sharing agreement with chief executive of Ministry of Education 123G Consultation on proposed agreement 123H Agreements to be reviewed after 3 years New sections 125A to 125E inserted 125A Chief executive may contract with service providers 125B Contracts with service providers: contents and form 19 125E Chief executive may adopt existing contracts New sections 125C,
 125D, 125F, and 125G inserted 125C Release of personal information to and by contracted service provider 125D Information-sharing in relation to young persons 125F Information on provision of contracted services to be published 125G Actions of contracted service providers to be treated for certain purposes as if actions of department 125GA Operation of certain provisions to be reviewed after 3 years New section 125H inserted 125H Complaints to Privacy Commissioner New Part 5 inserted 19A 20 Part 5 Financial support for young people 156 157 158 159 Purpose Interpretation Youth payment Youth payment: basic criteria Youth payment: single young persons 2 9 10 10 10 10 10 10 11 12 12 13 13 14 14 14 16 17 17 17 18 18 19 19 19 20 21 Social Security (Youth Support and Work Focus) Amendment Bill Youth payment: young persons who are or have been married, or in civil union or de facto relationship Youth payment: ground of hardship Youth payment: continuation after age 18 Youth payment: rate and components Young parent payment Young parent payment: basic criteria Young parent payment: single young persons Young parent payment: persons who are or have been married, or in civil union or de facto relationship Young parent payment: ground of hardship Young parent payment: continuation after age 19 Young parent payment: rate and components Obligations Youth support payments: obligations Obligations of spouses and partners of specified beneficiaries Department to explain
 obligations to young person Sanction regime Sanctions for failure by young person receiving youth payment to comply with obligations under section 170 Sanctions for failure by young person receiving young parent payment to comply with obligations under section 170 Effect of sanctions on supplementary benefits Sanctions generally Effect of sanction on young parent payment Incentive payment may be cancelled if young person’s actions inconsistent with purpose 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174
 175 176 177 178 Administration 179 Money management in relation to youth support payments: general 179A Young person beneficiaries may elect money 180 management Chief executive may assign contracted service provider to young person 22 22 23 24 24 25 26 26 27 28 28 30 31 31 33 34 35 36 37 37 38 39 3 Social Security (Youth Support and Work Focus) Amendment Bill 21 Schedule 26 replaced Part 2 Consequential amendments, and transitional and savings provisions, taking effect on 20 August 2012 Consequential amendments to Income Tax Act 2007 and Child Support Act 1991 Amendment to Income Tax Act 2007 Amendment to Child Support Act 1991 Other consequential amendments Consequential amendments Transitional provision: entitlement to youth payment or young parent payment Savings provision: domestic purposes benefit under section 27G Transitional arrangements for financially disadvantaged people Part 3 Substantive provisions taking effect on 15 October 2012 Section 1B amended (Principles) Section 3 amended (Interpretation) Section 21 amended (Widows’ benefits) New section 21A inserted (Widows’ benefits: pre-benefit activities) 21A Widows’ benefits: pre-benefit activities Section 27B amended (Domestic purposes benefits for solo parents) Section 27C amended (Domestic purposes benefits for women alone) New section 27CA inserted (Domestic purposes benefits under section 27B or 27C: pre-benefit activities) 27CA Domestic purposes benefits under section 27B or 27C: pre-benefit
 activities New sections 60GAD to 60GAF inserted 60GAD Purpose of sections 60GAE and 60GAF 60GAE Beneficiaries having additional dependent child: general 60GAF Chief executive may refrain from applying section 60GAE Sections 60O to 60Z replaced 22 23 24 25 26 27 28 29 30 31 31A 32 33 34 35 4 39 39 40 40 40 42 43 43 43 45 45 45 46 46 46 46 46 47 47 48 48 Social Security (Youth Support and Work Focus) Amendment Bill cl 2 60P 60Q Purposes of section 60Q Certain obligations may be placed on beneficiaries and their
 spouses and partners 60R Department to explain obligations to beneficiaries Section 96A amended (Unemployment benefit: pre-benefit activities) Section 105 amended (Exemption from obligations) New section 116A inserted (Failure to comply with obligations under section 60Q(2)) 116A Failure to comply with obligations under section 60Q(2) Section 117 amended (Sanctions that may be imposed for failures) Section 119 amended (Calculation of failure rate) Section 122 amended (Meaning of recompliance) Part 4 Consequential provisions taking effect on 15 October 2012 Section 171 amended (Obligations of spouses and partners of specified beneficiaries) Section 123D amended (Regulations) Employment plans and certain sanctions cease to have effect Schedule 1 New Schedule 26 of Social Security Act 1964 Schedule 2 Consequential amendments 48 49 50 50 51 51 51 51 51 51 51 52 52 53 55 36 37 38 39 40 41 42 43 44 The Parliament of New Zealand enacts as follows: 1 Title This Act is the Social Security (Youth Support and Work Fo- cus) Amendment Act 2012.
Commencement 2 (1A) Part 1 (except for sections 17A, 18, 18A, and 19A), Part 2, and the schedules come into force on 30 July 20 August 2012.

5 5 cl 3 (1) (2) 3 Social Security (Youth Support and Work Focus) Amendment Bill Parts 3 and 4 come into force on 15 October 2012.

The rest of this Act comes into force on the day after the date on which it receives the Royal assent.

Principal Act This Act amends the Social Security Act 1964 (the principal 5 Act).
Part 1 Substantive provisions taking effect on 30 July 20 August 2012 or immediately Section 1A amended (Purpose) 4 (1) After section 1A(c), insert: 10 15 “(ca) to provide services to encourage and help young per- sons to move to education, training, and employment rather than to receiving financial support under this Act:”.
In section 1A(d), after “this Act”, insert “, and, in the case of young persons, seeking or receiving financial support under this Act, educational, budget management, and (where appro- priate) parenting requirements”.

Section 3 amended (Interpretation) In section 3(1), definition of benefit, after paragraph (b)(ii), insert: 20 “(iia) an incentive payment, a youth payment, and a young parent payment:”.
25 In section 3(1), insert in their appropriate alphabetical order: “contracted service provider has the meaning given by sec- tion 125A(1) “incentive payment means a payment referred to in any of clauses 7 to 9 of Schedule 26 “young parent payment means a young parent payment 30 payable under Part 5 “youth payment means a youth payment payable under Part 5 (2) 5 (1) (2) 6 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 5 (3) (4) (5) “youth support payment means a young parent payment or youth payment”.
In section 3(1), definition of dependent child, paragraph (d), replace “and 18” with “18, and 26”.

In section 3(1), definition of dependent child, after paragraph 5 (d), insert: “(e) does not include a child in respect of whom a young parent payment is being paid except in relation to that child’s parent or step-parent”.
In section 3(1), replace the definition of work-tested spouse 10 or partner with: “work-tested spouse or partner means a person— “(a) who— “(i) “(ii) has no dependent child under 6 years (or has no dependent child at all); and is not subject to obligations under section 171; and “(iii) has not been granted an exemption from the work test; and “(b) who— “(i) is the spouse or partner of a person granted an unemployment benefit, a sickness benefit, or an invalid’s benefit, (being, in each case, a benefit granted at a work-test married rate); or “(ii) both— 15 20 25 “(A) is the spouse or partner of a person granted an emergency benefit at a work-tested married rate; and “(B) has under section 61A(1A) been required by the chief executive to comply with the 30 work test; or “(iii) is— “(A) the spouse or partner of a person who is receiving long-term residential care in a hospital or rest home; and “(B) aged under 60 years; and “(C) in receipt of an invalid’s benefit under sec- tion 42(2) or an emergency benefit under regulations under section 155”.
35 7 Part 1 cl 5A Social Security (Youth Support and Work Focus) Amendment Bill 5A Section 11D amended In section 11D, after subsection (3), insert: “(3A) If the chief executive considers that the appropriate benefit for an applicant is a youth support payment, he or she may require as supporting evidence under subsection (2)(b) evidence of the 5 applicant’s accommodation costs and service costs (within the meaning of section 157), debts, and other liabilities.
“(3B) Subsection (3A) does not limit the generality of subsection (2)(b).” Section 12J amended (Right of appeal) In the heading to section 12J, replace “Right” with “Rights”.

In section 12J(1)(a), replace “or Part 4” with “Part 4, or Part 5”.

10 Section 21 amended (Widows’ benefits) In section 21(1)(a), after “who”, insert “is aged 19 years or 15 over and”.

Section 27B amended (Domestic purposes benefits for solo parents) Replace section 27B(2)(a) with: “(a) the applicant is aged 19 years or over; and”.
Section 27G amended (Domestic purposes benefits for care at home of the sick or infirm) In section 27G(2), delete “has attained the age of 16 years and”.
Replace section 27G(2A) with: (2) “(2A) An applicant must not be granted a domestic purposes benefit under this section unless,— “(a) in the case of an applicant without a dependent child, he or she is aged at least 18 years: in any other case, he or she is aged at least 19 years.” “(b) Section 54 amended (Sickness benefit: standard eligibility requirements) Replace section 54(2) with: 10 8 6 (1) (2) 7 8 9 (1) 20 25 30 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 15 “(2) An applicant for a sickness benefit— “(a) must be aged at least 18 years, in the case of an applicant without a dependent child: “(b) must be aged at least 19 years, in any other case.” 11 12 Section 54A amended (Sickness benefit: grounds of hardship) Repeal section 54A(2).
5 Sections 60F to 60GAC and cross-heading above section 60F repealed Repeal sections 60F to 60GAC and the cross-heading above 10 section 60F.
Section 82 amended (Payment of benefits) 13 (1) After section 82(6D), insert: “(6E) Subsections (6B) to (6D) do not apply to the advance payment of a youth support payment, or to the advance payment of any 15 other benefit payable to a person receiving a youth support payment.” (2) After section 82(7), insert: “(8) This section is subject to section 179.” 14 (1) Section 83 amended (Apportionment of benefit between spouses or partners) In section 83(1), replace “subsection (2)” with “subsections (2) and (2A)”.
(2) After section 83(2), insert: “(2A) Nothing in this section applies to— “(a) “(b) a rate of youth payment or young parent payment; or the rate of any benefit (other than a youth payment or young parent payment) payable to a person receiving a youth payment or young parent payment.” 15 Section 89 amended (Unemployment benefit: standard eligibility requirements) Replace section 89(2) with: “(2) An applicant for an unemployment benefit— 20 25 30 9 Part 1 cl 16 Social Security (Youth Support and Work Focus) Amendment Bill “(a) must be aged at least 18 years, in the case of an applicant without a dependent child: “(b) must be aged at least 19 years, in any other case.” 16 (1) (2) 17 Section 105 amended (Exemption from obligations) In section 105(1), after “work test obligations”, insert “or obli- 5 gations under section 170 or 171”.
In section 105(5),— (a) after “work test obligations”, under section 170 or 171”; and after “117”, insert “or (as the case requires) section 10 173 or 174”.

insert “or obligations (b) Section 123D(a) amended (Regulations) In section 123D(a), after “work test obligations”, insert “or obligations under section 170 or 171”.
17A New section 123E inserted Before section 124, insert the following section: “123E Services to encourage young persons to move to education, training, and employment The chief executive may do either or both of the following things: “(a) provide services to encourage and help young persons to move into education, training, and employment rather than to receiving financial support under this Act: enter (under section 125A) into contracts with service 25 providers to provide services of that kind on the chief executive’s behalf.” “(b) 15 20 18 New sections 123F to 123H inserted After section 123E (as inserted by section 17A of this Act), insert: 30 “123F Chief executive may enter into information-sharing agreement with chief executive of Ministry of Education “(1) The chief executive may enter into an agreement with the chief executive of the Ministry of Education relating to the shar- 10 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 18 ing, for the purposes of facilitating the provision of services of a kind described in section 123E(a), of information about young persons who have ceased to be enrolled at a registered school (as defined in section 2 of the Education Act 1989) or a tertiary education organisation (being an organisation as de- 5 fined in section 159B(1) of that Act).
“(2) While the agreement is in force, the chief executive of the Ministry of Education— “(a) may provide to the chief executive any information to which subsection (1) applies that the former considers 10 may facilitate the provision by the latter of services of a kind described in section 123E(a); and “(b) may use national student numbers for the purpose of gathering the information.

“(3) Subsection (2) overrides section 344(2) of the Education Act 15 1989.
“123G Consultation on proposed agreement “(1) Before entering into an agreement under section 123F(1), the parties must— “(a) consult on the proposed agreement, and invite submis- 20 sions on it from,— “(i) “(ii) the Privacy Commissioner; and any person or organisation that they consider rep- resents the interests of the kinds of people whose personal information will be shared under the 25 proposed agreement; and “(iii) any other person or organisation that the parties consider should be consulted; and “(b) consider all submissions received within a reasonable time of being invited.
30 “(2) The Privacy Commissioner— “(a) must consider the privacy implications of the proposed agreement; and “(b) may make any submissions under subsection (1)(a)(i) that he or she thinks fit.

35 11 Part 1 cl 18A Social Security (Youth Support and Work Focus) Amendment Bill “123H Agreements to be reviewed after 3 years “(1) Promptly after an agreement under section 123F(1) has been in effect for 3 years, the chief executive must conduct a review of its operation.
In conducting the review, the chief executive must consult— 5 “(a) “(2) the chief executive of the Ministry of Education (as the other party to the agreement); and the Privacy Commissioner; and any organisation or other person that he or she considers to represent the interests of the kinds of people whose 10 personal information may be shared under the agree- ment.
“(b) “(c) “(3) In conducting the review, the chief executive must consider— “(a) whether (and if so, to what extent) the agreement is operating— “(i) “(ii) otherwise than was expected by the parties when in a way that is unusual; or 15 they entered into it; or “(iii) otherwise than was expected by the Privacy Commissioner when he or she was consulted on 20 it under section 123G(1)(a)(i); and “(b) “(c) the extent to which the agreement is facilitating the provision of services of a kind described in section 123E(a); and the extent to which the agreement is impinging on the 25 privacy of individuals; and “(d) whether (and if so, to what extent) the benefits of shar- ing information under the agreement justify the costs of sharing it; and all submissions made in the course of the consultation 30 required by subsection (2).
“(e) “(4) After conducting the review, the chief executive must report to the Minister on its findings, and make to the Minister any recommendations arising from them that the chief executive considers appropriate.” 35 18A New sections 125A to 125E inserted After section 125, insert: 12 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 18A that are— “(i) “125A Chief executive may contract with service providers “(1) The chief executive may from time to time, on behalf of the Crown, enter into a contract with any person, body, or organ- isation (a contracted service provider) for the provision by the contracted service provider of services— “(a) 5 services of the kind referred to in section 123E(a); or services in relation to Part 5; and “(b) “(ii) that are services of a kind or description stated for the 10 purposes of this section by regulations under this Act.
“(2) The chief executive must not enter into a contract with a per- son, body, or organisation for the provision of services of a kind stated in subsection (1) unless the chief executive is satisfied that it— “(a) 15 is suitable to provide the services specified in the con- tract; and is suitable to work with young persons in providing those services; and has the powers and capacity to enter into and perform a 20 contract for those services.
“(b) “(c) “(3) In this section, young person has the meaning given by sec- tion 157.
“125B Contracts with service providers: contents and form “(1) A contract under section 125A— 25 “(a) must set out the responsibilities of the contracted ser- vice provider and the chief executive in respect of each of the services the provider is to provide under the con- tract; and “(b) must require the provider to co-operate with the chief 30 executive; and “(c) must contain all terms and conditions (if any) stated for the purposes of that section by regulations under this Act.
“(2) The contract must be in writing.

“(3) Subsection (1) does not limit section 125A.
35 13 Part 1 cl 19 Social Security (Youth Support and Work Focus) Amendment Bill “125E Chief executive may adopt existing contracts The chief executive may agree in writing with the other party to any contract the chief executive has entered into before the commencement of the Social Security (Youth Support and Work Focus) Amendment Act 2012 that this Act applies 5 to the contract as if it had been entered into under section 125A; and in that case, after the agreement takes effect, this Act applies to the contract (to the extent that it was capable of being entered into under that section) as if it had been entered into under that section.” 10 15 20 New sections 125C, 125D, 125F, and 125G inserted 19 (1) After section 125B (as inserted by section 18A of this Act), insert: “125C Release of personal information to and by contracted service provider “(1A) The purpose of this section is— “(a) “(b) “(c) to authorise the department and any contracted service provider to disclose to each other relevant personal in- formation about young persons to whom the provider’s contract under section 125A applies; and to assist the department to exercise and perform powers and functions under Part 5 and section 123E(a) and the provider to provide services under the contract; and to enable the prescription of— “(i) the circumstances in which the personal informa- 25 tion may be disclosed; and conditions governing the disclosure of the per- sonal information ; and “(ii) “(iii) conditions governing the way in which the per- sonal information is to be dealt with by the per- 30 son to whom it is disclosed.
“(1) This section applies to any personal information about a young person or young persons to whom a contract under section 125A applies that is held by the contracted service provider concerned or the department.
35 “(2) For the purposes of this section, regulations under this Act may state— 14 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 19 “(a) “(b) the circumstances in which a contracted service provider and its employees may release or disclose to the chief executive and employees of the department information to which this section applies held by the contracted service provider and the conditions with 5 which the chief executive and employees of the depart- ment must comply in dealing with the information; or the circumstances in which the chief executive and em- ployees of the department may release or disclose to a contracted service provider and its employees informa- 10 tion to which this section applies held by the depart- ment and the conditions with which the contracted ser- vice provider and its employees must comply in dealing with the information.
“(2A) Regulations of the kind referred to in subsection (2) must 15 not be made except on the recommendation of the Minister; and the Minister must not recommend the making of the regu- lations unless satisfied that the chief executive has consulted on the proposed regulations in the manner required by sec- tion 123G for an agreement under section 123F(1).
If satisfied on reasonable grounds that its disclosure is in ac- cordance with regulations of the kind referred to in subsec- tion (2), the chief executive, an employee of the department, a contracted service provider, or an employee of a contracted service provider may release or disclose information to which 25 this section applies.
“(3) 20 “(5) “(4) Nothing in this section requires the chief executive, employees of the department, a contracted service provider, or employees of a contracted service provider to release or disclose any in- formation.

In this section,— “employee, in relation to a contracted service provider, in- cludes a volunteer “held includes deemed for the purposes of the Official Infor- mation Act 1982 to be held.
“Compare: 2004 No 50 s 199J 30 35 15 Part 1 cl 19 Social Security (Youth Support and Work Focus) Amendment Bill “125D Information-sharing in relation to young persons “(1A) The purpose of this section is to authorise local agencies (for example, schools, primary health organisations, and the New Zealand Police) to disclose relevant personal information about a young person to the department or a contracted service 5 provider where the agency concerned considers it relevant to the exercise or performance of powers or functions under this Act in respect of the young person.
“(1) An agency specified by the Governor-General by Order in Council for the purposes of this subsection may, for the 10 purposes of this section, disclose any information about a young person to the chief executive, if satisfied on reasonable grounds that— “(a) “(b) subsection (3) applies to the young person; and the information will assist the department in— “(i) performing any function, or exercising any power, under Part 5; or achieving any of the purposes of this Act.
“(ii) 15 “(2) An agency specified by the Governor-General by Order in Council for the purposes of this subsection may, for the pur- 20 poses of this section, disclose any information about a young person to a contracted service provider, if satisfied on reason- able grounds that— “(a) the provider is the young person’s contracted service provider; and 25 “(b) subsection (3) applies to the young person; and “(c) the information will assist the provider in providing ser- vices under a contract under section 125A.
“(3) This subsection applies to a young person if he or she— “(a) “(b) “(c) has applied for or is receiving a youth support payment; 30 or is subject to obligations under section 171; or has left or finished education, and is not or may not be in employment or training; or “(d) has left or finished training, and is not or may not be in 35 employment.
“(3A) An order of the kind referred to in subsection (1) or (2) must not be made except on the recommendation of the Minister; and the Minister must not recommend the making of the order 16 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 19 unless satisfied that the chief executive has consulted on the proposed order in the manner required by section 123G for an agreement under section 123F(1).
“(4) Orders under subsection (1) or (2) may specify particular “(5) agencies, or agencies of any specified class or description.
In this section, agency has the meaning given to it by section 2(1) of the Privacy Act 1993.” 5 (2) After section 125E (as inserted by section 18A of this Act), insert: “125F Information on provision of contracted services to be 10 published The chief executive must ensure that there are published, no later than 1 October in every year,— “(a) a general description of the services provided by con- tracted service providers during the year ending on 15 30 June in that year, and of the contracted service providers; and “(b) details of the providers concerned.
“125G Actions of contracted service providers to be treated for certain purposes as if actions of department “(1) For the purposes of section 80AA, any action or inaction of a contracted service provider must be treated as an action or inaction of an officer of the department.

“(2) For the purposes of section 80A, a contracted service provider must be treated as an officer of the department.
20 25 “(3) For the purposes of section 86(9A) and (9B), the provision of information by, and any act or omission of, a contracted ser- vice provider must be treated as having been done or omitted by an officer of the department.
“125GA Operation of certain provisions to be reviewed after 3 30 years “(1) Promptly after the expiration of 3 years after the commence- ment of section 19 of the Social Security (Youth Support and Work Focus) Amendment Act 2012, the chief execu- tive must conduct a review of the operation of sections 123F, 35 123G, 125C, and 125D for consistency with the general le- 17 Part 1 cl 19A Social Security (Youth Support and Work Focus) Amendment Bill “(2) gislation then in force relating to the privacy of personal infor- mation.
In conducting the review, the chief executive must consult— “(a) “(b) the Privacy Commissioner; and any organisation or other person that he or she con- 5 siders to represent the interests of the kinds of people whose personal information may be disclosed under any of those provisions.
“(3) After conducting the review, the chief executive must report to the Minister on its findings, and make to the Minister any 10 recommendations for the amendment of those provisions aris- ing from them that the chief executive considers appropriate.” 19A New section 125H inserted After section 125GA (as inserted by section 19(1) of this Act), insert: 15 “125H Complaints to Privacy Commissioner “(1) A person may complain to the Privacy Commissioner if per- sonal information relating to the person has been disclosed under section 125C or 125D, on the grounds that the dis- closure was in breach of— “(a) “(b) regulations of the kind referred to in section 125C; or the requirements of section 125D.
20 “(2) A person may complain to the Privacy Commissioner if per- sonal information relating to the person has been disclosed pursuant to an information-sharing agreement under section 25 123F, on the grounds that the disclosure was in breach of the agreement.
“(3) Part 8 of the Privacy Act 1993— “(a) “(b) applies to a complaint under subsection (1) as if the regulations concerned and section 125D together con- 30 stituted a code of practice issued under Part 6 of that Act; and applies to a complaint under subsection (2) as if the information-sharing agreement concerned were a code of practice issued under Part 6 of that Act.” 35 18 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 20 New Part 5 inserted After section 155, insert: “Part 5 “Financial support for young people “156 Purpose 5 The purpose of this Part is to specify the supports, obligations, and sanctions that apply to certain young people who receive financial assistance under this Act.
“157 Interpretation 10 In this Part and in Schedule 26,— “accommodation costs, in relation to any young person, has the same meaning as in section 61E(1) except that, in relation to a person who is a boarder or lodger in any premises, it means 100% of the amount paid for board or lodging “approved training means an employment-related training 15 course approved by the chief executive “full-time course has the same meaning as in regulation 2(1) of the Student Allowances Regulations 1998 “in-hand allowance means the component of a youth support payment set out in clause 6 of Schedule 26 under that name 20 “NCEA level 2 means a level 2 National Certificate of Educa- tional Achievement issued by the New Zealand Qualifications Authority established under Part 20 of the Education Act 1989 “parents, in relation to a young person,— “(a) means the parents or guardians or other person who had 25 the care of the young person most recently before the young person turned 16 years; and includes any other parent, or guardian or former guardian, willing to have financial responsibility for the young person; but does not include— “(i) “(b) “(c) 30 the chief executive of the department responsible for administering the Children, Young Persons, and Their Families Act 1989 in his or her official capacity; or any body or organisation approved under section 396 of that Act 35 “(ii) 19 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill “service costs has the same meaning as in section 61E(1) “specified
 beneficiary means a person who is married, in a civil union, or in a de facto relationship and receives in his or her own right— “(a) “(b) a domestic purposes benefit under section 27G; or an emergency benefit, invalid’s benefit, sickness bene- fit, or unemployment benefit; or “(c) New Zealand superannuation paid at a rate specified in clause 2 of Schedule 1 of the New Zealand Superannu- ation and Retirement Income Act 2001; or a veteran’s pension paid at a rate specified in clause 2 of Schedule 11 of the War
 Pensions Act 1954 “(d) 5 10 15 “teen parent unit means an educational facility for teenage parents attached to a State school (within the meaning of the Education Act 1989) “WFF tax credit has the same meaning as in section YA 1 of the Income Tax Act 2007 “work-based learning, in relation to any person, means a course or programme undertaken (or to be undertaken) in the course of or by virtue of his or her employment that comprises, 20 or includes a component of, practical or on-the-job vocational learning (for example, an industry training programme or ap- prenticeship) “young person, — “(a) except in section 123E, means a person aged at least 25 16 years but under the age of 20 years; and in section 123E, means a person aged at least 15 years but under the age of 18 years.
“(b) “Youth payment “158 Youth payment: basic criteria “(1) The basic qualifications for entitlement to a youth payment are in subsection (2).

The qualifications for a single young person are in section 159.

The qualifications for a young person who is or has been married, in a civil union, or in a de facto relationship are in section 160.
30 35 “(2) The basic qualifications for entitlement to a youth payment are that the young person— 20 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 “(a) “(b) “(c) is aged 16 or 17 years; and is without a dependent child or dependent children; and either— “(i) is undertaking or is available for a full-time course of secondary instruction, or education, or approved training, or approved work-based learning, leading to— “(A) NCEA level 2; or “(B) an equivalent qualification (in the opinion tertiary 5 of the chief executive); or “(C) a higher qualification; or 10 “(ii) would be so available but for circumstances that would qualify the young person for an exemption under section 105 from the obligation to under- take education or training or work-based learning 15 in section 170(1)(a); and “(d) meets the residential requirements set out in section “(e) 74AA; and has no income or an income of less than the amount that would fully abate the youth payment.
“(3) Nothing in subsection (2)(e) affects the entitlement of a young person to receive a youth payment if, during a tem- porary period, the person has income sufficient to abate the payment fully but the person otherwise fulfils the conditions of entitlement to the payment.
“Compare: 1964 No 136 ss 60F(1), (2), 89(5) 20 25 “159 Youth payment: single young persons “(1) A single person is entitled to a youth payment if— “(a) “(b) section 158(2) applies to him or her; and the chief executive is satisfied that the young person is 30 in exceptional circumstances.
“(2) For the purposes of subsection (1), a young person is in ex- ceptional circumstances if— “(a) each of his or her parents (and guardians (if any)) is unable to support him or her financially; or “(b) his or her relationship with his or her parents (and guardians (if any)) has broken down, and none of them is prepared to support him or her financially; or 35 21 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill “(ba) he or she has ceased to be subject to— “(i) “(ii) an agreement under section 140 of the Children, Young Persons, and Their Families Act 1989; or an order under section 78, 101, or 283(n) of that Act; or 5 “(iii) a sole guardianship order under section 110 of that Act; or “(c) the chief executive is satisfied that (for some other good and sufficient reason) the young person cannot reason- ably be expected to be financially dependent on his or 10 her parents or any other person.
“(3) However, a young person is not in exceptional circumstances if— “(a) “(b) he or she has the option of living with a parent or guardian but chooses not to; and the chief executive is not satisfied that there are good and sufficient reasons for the young person not to live with that parent or guardian.
“Compare: 1964 No 136, s 60FA “160 Youth payment: young persons who are or have been married, or in civil union or de facto relationship A person is entitled to a youth payment if— “(a) he or she is or has been married or in a civil union or de facto relationship; and 15 20 “(b) he or she is not married to, or in a civil union or de 25 facto relationship with, a specified beneficiary within the meaning of any of paragraphs (b) to (d) of the definition of that term in section 157; and section 158(2) applies to him or her.
“(c) “161 Youth payment: ground of hardship The chief executive may grant a youth payment under sec- tion 159 or 160 to a young person who meets the criteria in paragraphs (a) to (c) and (e) of section 158(2) but does not meet the criteria referred to in paragraph (d) of that sub- section if— “(a) the young person is suffering hardship; and 30 35 22 5 10 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 “(b) “(c) the young person is not qualified to receive any other benefit; and the young person is unable to earn a sufficient income to support himself or herself and his or her spouse or partner (if any).
“Compare: 1964 No 136 s 90(1) “162 Youth payment: continuation after age 18 “(1) A youth payment granted when the young person concerned was aged under 18 years continues, if he or she is otherwise qualified for it,— “(a) “(b) in the case of a payment granted on an application made on or after the commencement of Part 1 of the Social Security (Youth Support and Work Focus) Amendment Act 2012, until the close of the day on which the period of 6 months from the commencement of the payment 15 expires, even if he or she turns 18 during the period; or in the case only of a payment granted to a young person who, on the day when he or she turns 18, is (in the chief executive’s opinion) continuing in a course of educa- tion, training, or work-based learning, until,— “(i) if the course is a course of secondary instruction, the close of the calendar year in which the young person turned 18: in any other case, the earlier of— “(A) the close of the calendar year in which the 25 young person turned 18; and the close of the day the course ends.
“(B) “(ii) 20 “(2) While a youth payment continues by virtue of subsection (1)(a), the young person concerned is not eligible to be granted any of the following benefits: a widow’s benefit: “(a) a domestic purposes benefit: “(b) a sickness benefit: “(c) an emergency benefit: “(d) an unemployment benefit.
“(e) 30 35 23 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill “163 Youth payment: rate and components “(1) A youth payment is payable at the appropriate rate set out in Schedule 26, which includes the component set out in that schedule.
If a young person to whom a youth payment is payable meets 5 the criteria prescribed for the purposes of this section by regu- lations made under this Act, there is payable together with that payment the appropriate incentive payment (if any) stated in Schedule 26.

“(2) “(3) Subsection (2) is subject to section 178.

10 “Young parent payment “164 Young parent payment: basic criteria “(1) The basic qualifications for entitlement to a young parent pay- ment are in subsection (2).
The qualifications for a single person are in section 165.

The qualifications for a young 15 person who is or has been married, in a civil union, or in a de facto relationship are in section 166.
“(2) The basic qualifications for entitlement to a young parent pay- ment are that the young person— is aged 16 to 18 years; and “(a) is a parent or step-parent of a dependent child or de- “(b) pendent children; and either— “(i) “(c) 20 is undertaking or is available for a full-time course of secondary instruction, tertiary educa- 25 tion, approved training, or approved work-based learning, leading to— “(A) NCEA level 2; or “(B) an equivalent qualification (in the opinion of the chief executive); or “(C) a higher qualification; or 30 “(ii) would be so available but for circumstances— “(A) under which the obligation to undertake education or training or work-based learn- ing in section 170(1)(a) would not, 35 under section 170(3), apply to the young person; or 24 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 “(B) that would qualify the young person for an exemption under section 105 from that obligation; and “(d) meets the residential requirements set out in section “(e) 74AA; and has no income or an income of less than the amount that would fully abate the young parent payment.
5 “(3) Nothing in subsection (2)(e) affects the entitlement of a young person to receive a young parent payment if, during a temporary period, the person has income sufficient to fully 10 abate the payment but the person otherwise fulfils the condi- tions of entitlement to the payment.
“(4) For the purposes of subsection (2)(b), a dependent child of a young person who is married, in a civil union, or in a de facto relationship must also be treated as a dependent child of the 15 young person’s spouse or partner.
“Compare: 1964 No 136 ss 3(5), 60F(1) and (2), 89(5) “165 Young parent payment: single young persons “(1) A young person is entitled to receive a young parent payment if— “(a) “(b) subsection (2) or subsection (3) or subsection (4) section 164(2) applies to him or her; and applies to him or her.
“(2) This subsection applies to a single young person if he or she— “(a) “(b) “(c) is aged 16 or 17 years; and is not living with a parent or guardian; and is in exceptional circumstances (within the meaning of section 159).
20 25 “(3) This subsection applies to a single young person if— he or she is aged 16 or 17 years; and “(a) “(b) he or she is living with or being financially supported 30 “(c) by a parent or guardian; and the family scheme income (within the meaning of the Income Tax Act 2007) of the parent or guardian concerned and the spouse or partner (if any) of the 35 parent or guardian concerned is less than the amount that would, in accordance with sections MD 1 and MD 13 of that Act, fully abate the amount of the parent 25 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill or guardian concerned’s family tax credit entitlement under that Act.
“(4) This subsection applies to a single young person who is aged 18 years.
“(5) For the purposes of the calculation required by subsection 5 (3)(c), if the parent or guardian with whom the young per- son concerned is living or by whom he or she is being sup- ported has no family tax credit entitlement because that parent or guardian has no dependent children (within the meaning of section YA 1 of the Income Tax Act 2007), that parent or 10 guardian’s family tax credit entitlement must be calculated as if the young person and his or her dependent child or children were dependent children (within the meaning of that section) of that parent or guardian.
“(6) Nothing in this section entitles a parent or guardian to whom 15 subsection (5) applies to a family tax credit.
“166 Young parent payment: persons who are or have been married, or in civil union or de facto relationship A young person is entitled to receive a young parent payment if section 164(2) applies to him or her, and— “(a) he or she is not married or in a civil union or de facto relationship, but has been married or in a civil union or de facto relationship relationship; or “(b) he or she is married, or in a civil union or a de facto rela- 20 tionship, but his or her spouse or partner is not a speci- 25 fied beneficiary within the meaning of paragraphs (b) to (d) of the definition of that term in section 157.
“Compare: 1954 No 136 s 60FB “167 Young parent payment: ground of hardship The chief executive may grant a young parent payment under 30 section 165 or 166 to a young person who meets the criteria in paragraphs (a) to (c) and (e) of section 164(2) but does not meet the criteria referred to in paragraph (d) of that subsection if— “(a) “(b) the young person is suffering hardship; and the young person is not qualified to receive any other benefit; and 35 26 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 “(c) the young person is unable to earn a sufficient income to support himself or herself, and his or her spouse or partner (if any) and dependent children.
“Compare: 1964 No 136 s 90(1) “168 Young parent payment: continuation after age 19 “(1) A young parent payment granted when the young person con- cerned was aged under 19 years continues, if he or she is other- wise qualified for it,— “(a) 5 “(b) in the case of a payment granted on an application made on or after the commencement of section 20 of the So- 10 cial Security (Youth Support and Work Focus) Amend- ment Act 2012, until the close of the day on which the period of 6 months from the commencement of the payment expires, even if he or she turns 19 during the period; or in the case only of a payment granted to a young person who, on the day when he or she turns 19, is (in the chief executive’s opinion) continuing in a course of educa- tion, training, or work-based learning, until,— “(i) if the course is a course of secondary instruction, 20 the close of the calendar year in which the young person turned 19: in any other case, the earlier of— “(A) “(ii) 15 the close of the calendar year in which the young person turned 19; and the close of the day the course ends.
“(B) “(2) While a young parent payment continues by virtue of subsec- tion (1)(a), the young person concerned is not eligible to be granted the following benefits: a widow’s benefit: “(a) a domestic purposes benefit: “(b) a sickness benefit: “(c) an emergency benefit: “(d) an unemployment benefit.
“(e) 27 25 30 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill “169 Young parent payment: rate and components “(1) A young parent payment is payable at the appropriate rate set out in Schedule 26, which includes the component set out in that schedule.
If a young person to whom a young parent payment is payable 5 meets the criteria prescribed for the purpose of this section by regulations made under this Act, there is payable together with that payment the appropriate incentive payment (if any) stated in Schedule 26.

“(2) “(3) Subsection (2) is subject to section 178.
10 “Obligations “170 Youth support payments: obligations “(1) A young person receiving a youth support payment is subject to the following obligations: “(a) to be enrolled in and undertaking to the satisfaction 15 of the chief executive, or be available for, a full-time course of secondary instruction or tertiary education or approved training or work-based learning leading to— “(i) NCEA level 2; or “(ii) an equivalent qualification (in the opinion of the 20 chief executive); or “(iii) a higher qualification: “(c) “(b) when required by the chief executive, to participate in and complete a budgeting programme approved by the chief executive for the purpose: in the case only of a young person receiving a young parent payment, when required by the chief executive, to participate to the satisfaction of the chief executive in a parenting education programme approved by the chief executive for the purpose: 25 30 “(d) when required by the chief executive, to attend and par- ticipate in any interview with an officer of the depart- ment or other person on behalf of the chief executive: if a contracted service provider assigned to the young person by the chief executive has so required, to attend 35 and participate in any interview with that provider: “(e) 28 “(f) “(g) Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 to report to the department, or to any contracted service provider assigned to the young person by the chief ex- ecutive, on his or her compliance with the obligations in paragraphs (a) to (c) and subsection (2) as often as, and in the manner that, the chief executive (or, as the 5 case requires, the provider) reasonably requires: to co-operate with the chief executive, or with any con- tracted service provider assigned to the young person by the chief executive, in managing the spending of the young person’s youth payment or young parent pay- 10 ment, and (in particular)— “(i) attend and participate in regular discussions on budgeting with an officer of the department (or, as the
 case requires, the provider); and at any discussion or when otherwise required, 15 provide information on— “(A) “(ii) the young person’s accommodation costs and service costs and other lawful debts and liabilities for the purpose of section 179(4); and 20 “(B) how the young person has spent the amount of the payment paid to him or her and how the young person has spent any money credited to a payment card, voucher, or device in accordance with 25 regulations under this Act.
“(2) A young person receiving a young parent payment is also sub- ject to the following obligations: “(a) 30 to enrol every dependent child with a primary health organisation: to keep every dependent child under the age of 5 years up-to-date with checks under— “(i) the programme that immediately before the com- mencement of section 20 of the Social Secur- ity (Youth Support and Work Focus) Amend- 35 ment Act 2012 was known as WellChild; or “(ii) any similar programme established in its place: to ensure the child’s attendance at an approved early childhood education programme (as defined in regula- “(b) “(c) 29 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill tions under this Act) or other suitable childcare while the young person is in education, training, work-based learning, or part-time work.
“(3) Except as provided in subsection (4), the obligations in sub- sections (1) and (2) apply to a young person receiving a 5 youth support payment from the time that it is first paid to the young person.
“(4) Where a young person receiving a young parent payment is the principal caregiver of his or her youngest dependent child and the child is aged under 12 months, the obligation in subsec- 10 tion (1)(a) begins to apply (in relation to the young person) only on the earlier of the following days: “(a) the first day on which— “(ia) “(i) the child is at least 6 months old; and a suitable place is available for the young person 15 in a teen parent unit; and the chief executive is satisfied that there are no special circumstances justifying the obligation’s beginning to apply later: “(ii) “(b) the day on which the child becomes 12 months old.
20 “(5) A failure without good and sufficient reason to comply with obligations under this section is subject to sanctions, as pro- vided in sections 173 and 174.
“171 Obligations of spouses and partners of specified beneficiaries 25 “(1) A young person who is aged 16 or 17 years and is without dependent children and is the spouse, or civil union or de facto partner, of a specified beneficiary— “(a) to the obligations set out is subject 170(1)(a) and (b), (d) to (f), and (g)(i) as if he or she 30 were receiving a youth payment; and is not subject to the work test or to employment plan obligations under section 60Q.
in section “(b) “(2) A young person who is aged 16 to 18 years, has a dependent child or children, and is the spouse, or civil union or de facto 35 partner, of a specified beneficiary— 30 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 “(a) “(b) in section to the obligations set out is subject 170(1)(a) to (f) and (g)(i), and 170(2) as if he or she were receiving a young parent payment; and is not subject to the work test or to employment plan obligations under section 60Q.
5 “(3) A failure without good and sufficient reason to comply with any of the obligations placed on a young person under this section,— “(a) for a young person who would, but for subsection (1)(b) or (2)(b), be subject to the work test, is a failure 10 to comply with the work test for the purposes of section 117; and for a person who would, but for subsection (1)(b) or (2)(b), be subject to employment plan obligations under section 60Q, is a failure to comply with section 60Q(1) 15 for the purposes of section 60U.
“(b) “172 Department to explain obligations to young person The chief executive must take reasonable and appropriate steps to make every young person who is subject to obliga- tions under section 170 or 171 aware of— “(a) “(b) those obligations; and the consequences of failure to comply with them and (in particular) the sanctions that may be imposed under this Act for failing to comply with them.
“Compare: 1964 No 136 ss 60GAC, 105C 20 25 “Sanction regime “(1) “173 Sanctions for failure by young person receiving youth payment to comply with obligations under section 170 If satisfied that a young person receiving a youth payment has, without good and sufficient reason, failed to comply with an 30 obligation placed on him or her by section 170, the chief executive must,— “(a) for a first or second failure,— “(i) suspend the in-hand allowance and any incen- tive payments until the young person satisfies the 35 obligation (or, if he or she has failed to comply 31 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill “(ii) with 2 or more obligations, until he or she satis- fies all of them); and if the young person has not satisfied the obliga- tion (or, if he or she has failed to comply with 2 or more obligations, if he or she has not satisfied all 5 of them) within 4 weeks after the date on which the suspension took effect, suspend the whole of the youth payment and any incentive payments until the young person satisfies the obligation or obligations; and 10 “(b) for a third failure, cancel the youth payment and any incentive payments.
“(2) A person whose benefit is cancelled under subsection (1)(b)— “(a) “(b) is not entitled to be granted any benefit for 13 weeks 15 from the date of the cancellation; and if he or she wishes to become entitled to a benefit again, must apply for it and establish his or her eligibility for it.

20 “(2A) Subsection (2) is subject to sections 123 to 123B.
“(3) For the purposes of subsection (2A), a 6-week approved ac- tivity is completed in accordance with section 123B if it is completed in such a way that its completion would be in ac- cordance with section 123B if subsection (1)(b) of that section referred to the following activities (rather than those to which 25 it in fact refers): “(a) if the young person concerned is not already in part-time work, participation in part-time work or work experi- ence: “(b) participation in recognised community activities (as de- 30 “(c) fined in section 88A): participation in any other activity that the chief execu- tive considers will enhance skills or improve motiva- tion.
“(4) This section overrides every other provision of this Act.
35 32 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 “174 Sanctions for failure by young person receiving young “(1) parent payment to comply with obligations under section 170 If satisfied that a young person receiving a young parent pay- ment has, without good and sufficient reason, failed to comply 5 with an obligation placed on him or her by section 170, the chief executive must,— “(a) for a first or second failure, suspend the in-hand allow- ance and any incentive payments until the young person satisfies the obligation (or, if he or she has failed to com- 10 ply with 2 or more obligations, until he or she satisfies all of them); and for a third failure,— “(i) cancel the young person’s young parent payment; and cancel any incentive payments.
“(b) “(ii) “(2) A person whose benefit is cancelled under subsection (1)(b)— “(a) “(b) is not entitled to be granted any benefit for 13 weeks from the date of the cancellation; and if he or she wishes to become entitled to a benefit again, must apply for it and establish his or her eligibility for it.

“(2A) Subsection (2) is subject to sections 123 to 123B and section 177.
“(3) For the purposes of subsection (2A), a 6-week approved ac- tivity is completed in accordance with section 123B if it is completed in such a way that its completion would be in ac- cordance with section 123B if subsection (1)(b) of that section referred to the following activities (rather than those to which 30 it in fact refers): “(a) if the young person concerned is not already in part-time work, participation in part-time work or work experi- ence: “(b) participation in recognised community activities (as de- 35 “(c) fined in section 88A): participation in any other activity that the chief execu- tive considers will enhance skills or improve motiva- tion.
33 15 20 25 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill “(4) In order to satisfy himself or herself that a young person has established continued eligibility for a young parent payment, the chief executive may require the young person to comply with the requirements of section 11D(2) as if applying for a young parent payment (and that section, with any necessary 5 modifications, applies accordingly).

“(5) This section overrides every other provision of this Act.
“175 Effect of sanctions on supplementary benefits “(1) While a young person’s youth payment is cancelled under sec- tion 173,— “(a) “(b) “(c) 10 the young person is not entitled to receive any accom- modation supplement or temporary additional support if he or she is not married or in a civil union or de facto relationship: if the young person is married or in a civil union or 15 de facto relationship and his or her spouse or partner’s youth payment is not also cancelled under that sec- tion,— “(i) any accommodation supplement or temporary additional support otherwise payable to him or 20 her must be reduced by half, and paid to the spouse or partner; and any accommodation supplement or temporary additional support otherwise payable to his or her spouse or partner must be reduced by half: “(ii) 25 if the young person is married or in a civil union or de facto relationship and his or her spouse or partner’s youth payment is also cancelled under that section,— “(i) the young person is not entitled to receive any accommodation supplement or temporary addi- 30 tional support otherwise payable to him or her; and the young person’s spouse or partner is not entitled to receive any accommodation supple- ment or temporary additional support otherwise 35 payable to him or her.
“(ii) “(2) The cancellation under section 174 of the young parent pay- ment of a young person who is a sole parent has no effect on 34 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 his or her entitlement to receive any accommodation supple- ment or temporary additional support.
“(3) While the young parent payment of a young person who is married to or in a civil union or de facto relationship with a spouse or partner whose young parent payment is not also can- 5 celled under that section is cancelled under section 174,— “(a) any accommodation supplement or temporary addi- tional support otherwise payable to him or her must be reduced by half, and paid to the spouse or partner; and any accommodation supplement or temporary addi- 10 tional support otherwise payable to his or her spouse or partner must be reduced by half.
“(b) “(4) Where the young parent payment of each of 2 young persons who are married to, or in a civil union or de facto relation- ship with, each other is cancelled, each is entitled to receive 15 only half of any accommodation supplement or temporary ad- ditional support that would otherwise be payable to him or her.

“(5) A young person whose youth payment or young parent pay- ment is cancelled under section 173 or 174 is not entitled to receive an emergency benefit.
20 “(6) The cancellation of a young person’s youth payment or young parent payment under section 173 or 174 has no effect on his or her entitlement to receive any disability allowance, or child disability allowance.
“176 Sanctions generally “(1) For the purposes of sections 173 and 174, a young person 25 satisfies an obligation if he or she— “(a) “(b) remedies the failure concerned; or if (in the chief executive’s opinion) it is not possible to remedy the failure, undertakes to the chief executive’s 30 satisfaction an activity that is (in the chief executive’s opinion) the same as or substantially similar to the per- formance of the obligation.
“(2) Sections 113 (procedure for imposing sanctions), 114 (no- tices), and 119 (calculation of failure rate) apply with all 35 necessary modifications to the imposition of sanctions under sections 173 and 174.
35 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill “(3) “(4) In sections 173 and 174,— “second failure means a failure that occurs after the young person concerned has satisfied the obligation to which a first failure related; and “third failure means a failure that occurs after the young per- 5 son concerned has satisfied the obligation to which a second failure related.
If a young person whose youth support payment has been can- celled under section 173(1)(b) or 174(1)(b) is again granted a youth support payment,— “(a) 10 except as provided in paragraph (b), any incentive payments that were payable to the young person before the cancellation must be paid with the youth payment or young parent payment; but if the failure that led to the cancellation was a failure to 15 comply with section 170(1)(a), an education incen- tive payment is payable only if the young person again meets the conditions of entitlement to that payment set out in regulations under this Act.
“(b) “177 Effect of sanction on young parent payment “(1) If under section 174(1)(b)(i) a young person’s entitlement to a young parent payment is cancelled,— “(a) 20 the person is entitled during the period of cancellation to receive half of that base rate of young parent payment and only half the abatement rate in clause 10 or 11 of 25 Schedule 26 (as the case requires) applies to that rate; but “(b) during the period of cancellation, no incentive payments are payable.
“(2) While subsection (1)(b) applies to a young person, the 30 amounts payable must be paid to him or her or on his or her account personally.
“Compare: 1964 No 136 s 121 36 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 “178 Incentive payment may be cancelled if young person’s actions inconsistent with purpose “(1) The chief executive may cancel an incentive payment if satis- fied that the young person concerned has intentionally acted in a way inconsistent with the purpose for which it was granted.
5 “(2) The cancellation makes the young person ineligible for the incentive payment again until the chief executive decides that it may be re-granted.

“Administration “179 Money management in relation to youth support 10 payments: general “(1) Except as provided in this section and section 177(2), no payment under a youth support payment can be paid to or on account of the young person concerned personally.
“(2) Except as provided in subsection (4), every youth support 15 payment is payable by instalments of the number of weeks’ payment on the day or date, or the days or dates, in the month that the chief executive determines from time to time.

“(3) Every youth support payment is paid in respect of a 7-day week.
20 “(4) Except as otherwise provided in this Act,— “(a) the following must be paid in a manner stated in regu- lations made under this Act for the purposes of this sec- tion: “(i) any youth support payment in-hand allowance up to the maximum amount set out in clause 6 of Schedule 26): any WFF tax credit payable to a young person by the chief executive: “(ii) (including the 25 “(iii) the amount of any child disability allowance or 30 disability allowance to which a young person is entitled: “(iv) any other benefit or payment under this Act to which a young person is entitled specified for the purposes of this paragraph by the regulations; but 35 “(b) if no manner is for the time being stated for a benefit or payment of a kind referred to in paragraph (a)(i) to 37 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill (iv), it must be paid to or on account of the young person entitled to it in accordance with section 82(3).
“(5) A manner stated under subsection (4) may include crediting an amount to a payment card, voucher, or device, that enables a young person to obtain goods or services from a particular 5 supplier and enables the supplier to obtain payment from the department for the goods or services.

“(6) Subsection (5) does not limit the generality of subsection (4).
“(6A) If the chief executive considers that the young person has met 10 the criteria stated for the purposes of this section in regulations under this Act for managing his or her own payments, the chief executive may pay the whole or any part of the payments or payments referred to in subsection (4)(a) to or on account of the young person personally until a sanction is imposed on the 15 young person under section 173 or 174.
“(7) No appeal under this Act lies against a determination by the chief executive under regulations made under this Act for the purposes of this section.

“(8) This section overrides section 82(1) to (3).

“(9) Subsection (4) overrides section 80KS of the Tax Adminis- 20 tration Act 1994.

“(10) Section 84(1) is subject to regulations under this Act made for the purposes of subsection (4).
“179A Young person beneficiaries may elect money 25 management “(1) To the extent that regulations under this Act made for the pur- poses of this section allow (and subject to any conditions pre- scribed by the regulations), a young person to whom section 171 applies may elect to have any or all of the amounts stated 30 in subsection (2) that are payable to him or her paid in ac- cordance with section 179(4); and that subsection applies ac- cordingly with any necessary modifications.
“(2) The amounts are— “(a) “(b) “(c) any part of a specified beneficiary’s benefit: any part of any other benefit payable under section 83: any WFF tax credit: 35 38 Social Security (Youth Support and Work Focus) Amendment Bill Part 2 cl 22 “(d) “(e) any child disability allowance or disability allowance: any other benefit or payment under this Act to which he or she is entitled.

“(3) The young person may revoke the election at any time.
“180 Chief executive may assign contracted service provider 5 to young person The chief executive may assign a contracted service provider to a young person,— “(a) at any time after the young person has contacted the department for financial assistance at which the chief 10 executive considers that the most appropriate financial assistance for the young person is likely to be a youth support payment; or at the time, or at any time after, the youth support pay- ment is payable to the young person; or at any time section 171 applies to the young person.” 15 “(b) “(c) 21 Schedule 26 replaced Replace Schedule 26 with the Schedule 26 set out in Schedule 1 of this Act.
Part 2 Consequential amendments, and transitional and savings provisions, taking effect on 30 July 20 August 2012 Consequential amendments to Income Tax Act 2007 and Child Support Act 1991 22 (1) (2) (3) (4) Amendment to Income Tax Act 2007 This section amends the Income Tax Act 2007.

In section YA 1, definition of financially independent, para- graph (d), delete “, payable under Part 1 of the Act”.
In section YA 1, definition of income-tested benefit,–– repeal paragraph (c): (a) (b) in paragraph (g), replace “benefit” with “benefit:”.

In section YA 1, definition of income-tested benefit, after paragraph (g), insert: 20 25 30 39 Part 2 cl 23 Social Security (Youth Support and Work Focus) Amendment Bill “(h) young parent payment: youth payment”.

“(i) 23 (1) (2) Amendment to Child Support Act 1991 This section amends the Child Support Act 1991.
In section 2, the definition of social security benefit, para- 5 graph (c), after subparagraph (iv), insert: “(v) young parent payment”.

Other consequential amendments Consequential amendments 24 (1) Amend the principal Act as set out in Part 1 of Schedule 2.

10 (2) Amend the enactments specified in Part 2 of Schedule 2 as set out in that Part of that schedule.

(3) Amend the regulations specified in Part 3 of Schedule 2 as set out in that Part of that schedule.
Transitional provision: entitlement to youth payment or young parent payment This subsection applies to a person— (a) who, immediately before the commencement of this Part,— (i) was aged 16 or 17 years and did not have a de- 20 pendent child; and 15 (ii) was receiving in his or her own right an inde- pendent youth benefit or sickness benefit; and (aa) who— (i) (ii) is not married or in a civil union or de facto re- 25 lationship, and does not have an income that ex- ceeds the limit in clause 10 of Schedule 26; or is married or in a civil union or de facto relation- ship, and does not have a combined income that exceeds the limit in clause 11 of Schedule 26; 30 and (b) who is not the spouse or civil union or de facto partner of a specified beneficiary within the meaning of any of paragraphs (b) to (d) of the definition of that term in 25 (1) 40 Social Security (Youth Support and Work Focus) Amendment Bill Part 2 cl 25 section 157 of the principal Act (as inserted by sec- tion 20 of this Act).
(2) A person to whom subsection (1) applies is entitled, on the commencement of this Part of this Act to receive a youth payment as if it had been granted on that commencement under 5 section 159 or 160 of the principal Act.
This subsection applies to a person— (a) (3) 10 was aged 16, 17, or 18 years; and who, immediately before the commencement of this Part,— (i) (ii) was receiving in his or her own right a widow’s benefit, a domestic purposes benefit (other than a domestic purposes benefit under section 61G of the principal Act), a sickness benefit, an emergency benefit (being an emergency benefit 15 granted to the person on the basis that he or she would, but for his or her being aged 16 or 17 years, be entitled to a domestic purposes benefit under section 27B of the principal Act), or an unemployment benefit (other than an unemploy- 20 ment benefit granted under section 90(2) or (3) of the principal Act); and (b) who has a dependent child or children; and (ba) who— (i) is not married or in a civil union or de facto re- 25 lationship, and does not have an income that ex- ceeds the limit in clause 10 of Schedule 26; or is married or in a civil union or de facto relation- ship, and does not have a combined income that exceeds the limit in clause 11 of Schedule 26; 30 and (ii) (c) who is not the spouse or civil union or de facto partner of a specified beneficiary within the meaning of any of paragraphs (b) to (d) of the definition of that term in section 157 of the principal Act (as inserted by sec- 35 tion 20 of this Act).
(4) A person to whom subsection (3) applies is entitled, on the commencement of this Act to receive a young parent payment 41 Part 2 cl 26 Social Security (Youth Support and Work Focus) Amendment Bill as if it had been granted on that commencement under section 165 or 166 of the principal Act.
(5) A youth payment or young parent payment under subsection (6) 26 (1) (2) or (4)— (a) is, despite Schedule 26 but subject to section 26, 5 payable at not less than the rate of the benefit that the person was receiving immediately before the com- mencement of this Act; and continues at that rate until the young person’s entitle- ment to the payment is reviewed under section 81 fol- 10 lowing a change of circumstances.
(b) If, immediately before the commencement of this Part, the benefit of a person to whom subsection (1) or (3) applies is subject to a sanction under section 60Y or 60Z or 117 of the principal Act, on that commencement— the sanction ceases to apply; and (a) for the purposes of subsections (2) and (4), the rate of (b) the benefit that would have been payable if the sanction had not been imposed must be treated as the rate of the benefit that the person was receiving immediately 20 before that commencement.
15 Savings provision: domestic purposes benefit under section 27G This section applies to a person who— (a) 25 either— (i) (ii) was receiving a domestic purposes benefit under section 27G in his or her own right immediately before the commencement of this Act; or had made an application for a domestic purposes benefit under section 27G in his or her own right 30 before that commencement, and was granted the benefit (on that application) after that commence- ment; and (b) (c) is aged 16 or 17 years; or is aged 18 years and has a dependent child or children.
(2) A person to whom this section applies is entitled to continue to receive that benefit for so long as he or she otherwise qualifies for it as if section 9 of this Act had not been enacted.
35 42 Social Security (Youth Support and Work Focus) Amendment Bill Part 3 cl 29 27 (1) (2) (3) Transitional arrangements for financially disadvantaged people The Governor-General may, by Order in Council, make regu- lations authorising the provision of financial assistance to any people who are financially disadvantaged as a result of the net 5 effects of the amendments made by Part 1 or 2.
The regulations must state the day on and after which they have effect (which may be earlier than the day on which they were made).

The chief executive may provide financial assistance of the 10 kind prescribed by the regulations to a person disadvantaged as a result of the net effects of the amendments made by Part 1 or 2— (a) in the amount, for the period, and in accordance with the criteria, prescribed by the regulations; and in accordance with any other requirements imposed by the regulations.
(b) 15 (4) After it has initially been granted, financial assistance provided under the regulations must for the purposes of the principal Act be treated as a benefit; and the principal Act applies ac- 20 cordingly.

(5) A decision or determination made by the chief executive under the regulations is a decision or determination for the purposes of section 12J(1) of the principal Act.
28 29 (1) Part 3 Substantive provisions taking effect on 15 October 2012 Section 1B amended (Principles) In section 1B(c), replace “plan” with “prepare”.
Section 3 amended (Interpretation) In section 3(1), replace paragraph (a) of the definition of part- time work-tested beneficiary with— “(a) a person with a youngest dependent child aged 5 or older, but under 14 years, who is— “(i) “(ii) a work-tested spouse or partner; or a work-tested domestic purposes beneficiary; or 43 25 30 35 Part 3 cl 29 Social Security (Youth Support and Work Focus) Amendment Bill (2) “(iii) a work-tested widow’s beneficiary; or”.
In section 3(1), replace the definitions of work-tested benefi- ciary, work-tested benefit, and work-tested domestic pur- poses beneficiary with— “work-tested beneficiary means a person— “(a) who is granted an unemployment benefit; or “(b) who is— “(i) “(ii) “(iii) a work-tested widow’s beneficiary; or “(iv) a work-tested sickness beneficiary a work-tested spouse or partner; or a work-tested domestic purposes beneficiary; or 5 10 “work-tested benefit— “(a) except in relation to a work-tested domestic purposes beneficiary, a work-tested sickness beneficiary, or a work-tested widow’s beneficiary, means an unemploy- 15 ment benefit; and in relation to a work-tested spouse or partner, includes a sickness benefit, an emergency benefit, and an invalid’s benefit; and in relation to a work-tested domestic purposes benefi- 20 ciary, means a domestic purposes benefit under section 27B or 27C; and in relation to a work-tested sickness beneficiary, means a sickness benefit; and in relation to a work-tested widow’s beneficiary, means 25 a widow’s benefit “(b) “(c) “(d) “(e) “work-tested domestic purposes beneficiary means a person who has been granted a domestic purposes benefit under sec- tion 27B or 27C; and— “(a) who has no dependent children; or “(b) whose youngest dependent child— “(i) “(ii) is aged 5 years or older, but under 18 years; or is aged 18 years or older, and is a child in respect of whom that benefit is paid, or continues to be paid, under section 63A”.
30 35 (3) In section 3(1), replace the definition of suitable employment with— 44 Social Security (Youth Support and Work Focus) Amendment Bill Part 3 cl 31 (4) (5) “suitable employment in relation to a person, means employ- ment that the chief executive is satisfied is suitable for the per- son to undertake for a number of hours a week determined by the chief executive having regard to the employment required to satisfy the work test for that person”.
In section 3(1), paragraph (a) of definition of work-tested spouse or partner, replace “6” with “5”.
In section 3(1), insert in its appropriate alphabetical order— “work-tested widow’s beneficiary means a person who has been granted a widow’s benefit; and— “(a) who has no dependent children; or “(b) whose youngest dependent child— 5 10 “(i) “(ii) is aged 5 years or older, but under 18 years; or is aged 18 years or older, and is a child in respect of whom that benefit is paid, or continues to be 15 paid, under section 63A”.
30 Section 21 amended (Widows’ benefits) Replace section 21(2A) with— “(2A) A woman who receives a benefit under this section must— “(a) “(b) comply with any obligation arising under section 60Q; 20 and if she is a work-tested widow’s beneficiary, comply with the work test.” 31 New section 21A inserted (Widows’ benefits: pre-benefit activities) After section 21, insert: 25 “21A Widows’ benefits: pre-benefit activities “(1) This subsection applies to a person if— “(a) “(b) she contacts the department requesting financial assist- ance after the commencement of Part 3 of the Social 30 Security (Youth Support and Work Focus) Amendment Bill 2012; and the chief executive considers that the appropriate finan- cial assistance for her would be a widow’s benefit.
45 Part 3 cl 31A Social Security (Youth Support and Work Focus) Amendment Bill “(2) Section 96A(2) to (13) applies to a person to whom subsec- tion (1) applies, but as if every reference to an unemployment benefit were a reference to a widow’s benefit.” 31A Section 27B amended (Domestic purposes benefits for solo parents) Replace section 27B(2A)(a) with: “(a) comply with all obligations arising under section 60Q; or”.
32 Section 27C amended (Domestic purposes benefits for women alone) Replace section 27C(4) with: “(4) A woman who receives a benefit under this section must com- ply with the work test.” 33 New section 27CA inserted (Domestic purposes benefits under section 27B or 27C: pre-benefit activities) After section 27C, insert: “27CA Domestic purposes benefits under section 27B or 27C: pre-benefit activities “(1) This subsection applies to a person if— 5 10 15 “(a) “(b) he or she who contacts the department requesting finan- 20 cial assistance after the commencement of Part 3 of the Social Security (Youth Support and Work Focus) Amendment Bill 2012; and the chief executive considers that the appropriate finan- cial assistance for him or her would be a domestic pur- 25 poses benefit under section 27B or 27C.
“(2) Section 96A(2) to (13) applies to a person to whom subsec- tion (1) applies, but as if every reference to an unemployment benefit were a reference to a domestic purposes benefit under section 27B or 27C.” 30 34 New sections 60GAD to 60GAF inserted Insert before section 60GA the following sections: 46 Social Security (Youth Support and Work Focus) Amendment Bill Part 3 cl 34 “60GAD Purpose of sections 60GAE and 60GAF The purpose of sections 60GAE and 60GAF is to improve the financial and social outcomes for families that include people to whom those sections apply by providing earlier access to employment services and expectations, while recog- 5 nising the care and development needs of children.
“60GAE Beneficiaries having additional dependent child: general “(1) This section applies to a person (the beneficiary parent) who (whether or not by having given birth) becomes a caregiver, 10 or the principal caregiver, of a dependent child (an additional dependent child) while the person— “(a) is receiving a domestic purposes benefit, an invalid’s benefit, a sickness benefit, an unemployment benefit, a widow’s benefit, or an emergency benefit (whether in 15 his or her own right, or as the spouse or partner of the person granted the benefit); and is already a caregiver, or the principal caregiver, of a dependent child or children.
“(b) “(2) An additional dependent child aged 1 or over must not be in- 20 cluded in the determination for the purposes of the definitions of part-time work-tested beneficiary, work-tested domestic purposes beneficiary, work-tested spouse or partner, and work-tested widow’s beneficiary in section 3(1) and section 60Q(1) of— “(a) the age of the youngest dependent child of the benefi- ciary parent concerned; and 25 “(b) whether the beneficiary parent concerned has a depend- ent child or children under 5 or 14 (and if so, how many).
30 “(3) Subsection (2) may apply to 2 or more additional dependent children of the same beneficiary parent.
“(4) The chief executive may apply this section in relation to any dependent child or children of whom a person who already has any dependent child or children becomes a caregiver, or 35 the principal caregiver, if satisfied that— “(a) the person’s situation is analogous to that of a person to whom subsection (1) applies; or 47 Part 3 cl 35 Social Security (Youth Support and Work Focus) Amendment Bill “(b) to do so would best achieve the purpose stated in sec- tion 60GAD.
“(5) An example of a situation that is analogous to that of a person to whom section 60GAE(1) applies is that of a woman who gives birth during a period when she has temporarily ceased 5 receiving a benefit (whether in her own right, or as the spouse or partner of the person granted the benefit).

“(6) Subsection (5) does not limit the generality of subsection (4).
“60GAF Chief executive may refrain from applying section 10 60GAE The chief executive may refrain (for any period he or she thinks fit) from applying section 60GAE in relation to any additional dependent child or children (within the meaning of that section) if satisfied in any particular case that– “(a) to do so would best achieve the purpose stated in sec- tion 60GAD; or there are circumstances beyond the control of the bene- ficiary parent concerned making it inappropriate or un- reasonable to apply that section.” “(b) 15 20 35 Sections 60O to 60Z replaced Replace sections 60O to 60Z with: “60P Purposes of section 60Q The purposes of section 60Q are— “(a) to facilitate the movement into ongoing employment (as 25 their parenting responsibilities and individual circum- stances allow) of beneficiaries to whom that section ap- plies; and to provide opportunities for them to improve their cap- abilities and preparation for employment; and to improve social and economic outcomes for them and their dependent children.
30 “(b) “(c) 48 Social Security (Youth Support and Work Focus) Amendment Bill Part 3 cl 35 “60Q Certain obligations may be placed on beneficiaries and their spouses and partners “(1) This section applies to every person (other than a person who is a work-tested beneficiary or is for the time being exempted under section 105) who— “(a) 5 “(b) “(c) is the recipient of a benefit under section 21 (the widow’s benefit) and has a youngest dependent child under the age of 5 years; or is the recipient of a benefit under section 27B (the domestic purposes benefit for solo parents) and has a 10 youngest dependent child under the age of 5 years; or is the spouse or partner of a person who— “(i) is the recipient of an emergency benefit, an in- valid’s benefit, a sickness benefit, or an unem- ployment benefit; and 15 “(ii) has a youngest dependent child aged under 5 years.
“(2) A person to whom this section applies has a general obliga- tion to take all steps that are reasonably practicable in his or her particular circumstances to prepare for employment and 20 (in particular) an obligation to comply with any requirement under subsection (3).
“(3) The chief executive may, from time to time, require a person to whom this section applies— “(a) “(b) to undertake planning for employment: to participate in or undertake (as the case requires) any of the following activities specified by the chief execu- tive that the chief executive considers suitable to im- prove his or her work-readiness or prospects for em- ployment: “(i) “(ii) a work assessment: a programme or seminar to increase particular skills or enhance motivation: an education programme: “(iii) a work-experience or work-exploration activity: “(iv) employment-related training: “(v) “(vi) any other activity (including rehabilitation) other than medical treatment, voluntary work, or activ- ity in the community.
49 25 30 35 Part 3 cl 36 Social Security (Youth Support and Work Focus) Amendment Bill “60R Department to explain obligations to beneficiaries The chief executive must take reasonable and appropriate steps to make every person who is subject to obligations under section 60Q aware of— “(a) “(b) those obligations; and the consequences of failure to comply with them and (in particular) the sanctions that may be imposed under this Act for failing to comply with them.” 36 Section 96A amended (Unemployment benefit: pre-benefit activities) Repeal section 96A(1) and substitute: (1) “(1) This section applies to a person if— “(a) “(b) he or she who contacts the department requesting finan- cial assistance after the commencement of this section; and the chief executive considers that the appropriate finan- cial assistance for him or her would be an unemploy- ment benefit.” 5 10 15 (2) In section 96A(2), replace “If the chief executive considers that the appropriate financial assistance for the person would 20 be an unemployment benefit, the chief executive may (for the purpose stated in section 1A(a)(ii)) require him or her” with “The chief executive may (for the purpose stated in section 1A(a)(ii)) require a person to whom this section applies”.
Insert after section 96A(2): (3) “(2A) For the purposes of subsection (2), suitable employment,— in relation to a person who has a dependent child aged under 14 years, and to whom this section applies by virtue of section 21A or 27CA, means employment that would be suitable employment within the meaning 30 of section 3(1) if he or she were a part-time work-tested beneficiary: in relation to any other person, means employment that would be suitable employment within the meaning of section 3(1) if he or she were a work-tested beneficiary.” 35 “(b) “(a) 25 50 Social Security (Youth Support and Work Focus) Amendment Bill Part 4 cl 42 Section 105 amended (Exemption from obligations) In section 105(1), after “work test obligations”, insert “, or obligations under section 60Q,”.
In section 105(5), after “work test obligations”, insert “, or obligations under section 60Q,”.
5 New section 116A inserted (Failure to comply with obligations under section 60Q(2)) Insert before section 117 the following section: 37 (1) (2) 38 “116A Failure to comply with obligations under section 60Q(2) The sanctions stated in section 117 must be imposed on a per- 10 son on whom an obligation has been imposed under section 60Q(2) if the chief executive considers that the person has, without a good and sufficient reason, failed to comply with it.” 39 40 41 Section 117 amended (Sanctions that may be imposed for failures) Insert before “are” in section 117(1) “or section 116A”.
15 Section 119 amended (Calculation of failure rate) Insert before “is” where it first occurs in section 119(2) “or section 116A”.

20 Section 122 amended (Meaning of recompliance) Insert before “a person” in section 122(1) “or section 116A”.
Part 4 Consequential provisions taking effect on 15 October 2012 42 Section 171 amended (Obligations of spouses and partners of specified beneficiaries) (1) Delete from subsections (1)(b), (2)(b), and (3)(b) of sec- tion 171 as inserted by section 20 of this Act) “employment plan”.

25 30 51 Part 4 cl 43 Social Security (Youth Support and Work Focus) Amendment Bill In section 171(3)(b) replace “section 60Q(1) for the purposes of 60U” with “section 60Q(2) for the purposes of section 116A”.
Section 123D amended (Regulations) In section 123D(a), after “work test obligations”, insert “, or 5 obligations under section 60Q,”.
Employment plans and certain sanctions cease to have effect On the commencement of this Part of this Act, the following cease to have effect if they were in force immediately before 10 that commencement: (a) all employment plans under former section 60R of the principal Act: all reviews of an employment plan commenced under former section 60S, 60U, or 60V of the principal Act: all requirements under former section 60W of the prin- cipal Act: all notices under former section 60X of the principal Act: all sanctions under section 60Y or 60Z of the principal 20 Act.
15 (b) (c) (d) (e) (2) 43 44 52 Social Security (Youth Support and Work Focus) Amendment Bill Schedule 1 Schedule 1 New Schedule 26 of Social Security Act 1964 Schedule 26 Rates and component of youth payment and young parent payment, and criteria for incentive payments Rates of youth payment and young parent payment s 21 ss 163, 169 5 For a single young person without dependent chil- dren.
For a single young person who— • • is aged 16 to 17 years; and is living with or being financially supported by a parent or guardian; and • has a dependent child or children.

For any other single young person with a dependent child or children.

For a young person who is married, in a civil union, or in a de facto relationship and is without depend- ent children.

For a young person who is married, in a civil union, or in a de facto relationship and has a dependent child or children.
$ 170.80 a week sub- ject to clause 10 134.64 a week sub- ject to clause 10 293.58 a week sub- ject to clause 10 170.80 a week sub- ject to clause 11 170.80 a week sub- ject to clause 11 Component 10 6 Maximum amount of in-hand allowance.
Rates of incentive payments 7 8 9 Education, training, or work-based learning incen- tive Budgeting incentive Parenting education incentive $ 50 a week $ 10 a week 10 a week 10 a week 53 Schedule 1 Social Security (Youth Support and Work Focus) Amendment Bill Schedule 26—continued Abatement rates and income limits The applicable rate of youth payment or young parent payment in clause 1, 2, or 3 must be reduced by $1 for every $1 of the young person’s weekly income that exceeds $206.73, but no amount of youth payment or young parent payment or incentive payment is payable if the young person’s weekly income exceeds $256.73.
The applicable rate of youth payment or young parent payment in clause 4 or 5 must be reduced by 50 cents for every $1 of the combined weekly income of the young person and his or her spouse or partner that exceeds $206.73, but no amount of youth payment or young parent payment or incentive payment is payable if that combined income exceeds $306.73.
For the purposes of clause 10 or 11 and a rate of young parent payment, the chief executive may, in his or her discretion, disregard up to $20 a week of the personal earnings of the young person used to meet the costs of child care for any of the person’s dependent children.
10 11 12 54 Social Security (Youth Support and Work Focus) Amendment Bill Schedule 2 Schedule 2 Consequential amendments Part 1 Consequential amendments to principal Act s 24 Section 3(1) In section 3(1), definition of income-tested benefit, repeal paragraph (d).

In section 3(1), definition of income-tested benefit, after paragraph (j), insert: “(k) “(l) a youth payment: a young parent payment”.

In section 3(1), definition of non-entitlement period, paragraph (e), replace “60GAB” with “170 or 171”.
In section 3(1), definition of suitable employment, delete “(or, as the case may be, the person’s obligations under section 60GAB)”.

5 10 15 Section 61 In section 61(1), first and second provisos, omit “an independent youth benefit,” in each place.

In section 61(1A), after “section 90”, insert “or a youth payment under section 161 or a young parent payment under section 167”.
20 Section 61E(1) In section 61E(1), definition of beneficiary, paragraph (a), replace “an independent youth benefit” with “a youth payment, a young par- ent payment”.

Section 61H(1) In section 61H(1), after “subsidy rate,”, insert “maximum amount of any component,”.

25 Section 61HA(2) In section 61HA(2), after “and 26” insert “(other than any rate of incentive payment)”.
30 55 Schedule 2 Social Security (Youth Support and Work Focus) Amendment Bill Part 1—continued Section 69C(1)(a) In section 69C(1)(a), replace “or an independent youth benefit” with “a youth payment, or a young parent payment”.

Section 70A(1)(b) In section 70A(1)(b), after subparagraph (v), insert: “(va) a young parent payment; or”.
5 Section 72(b) In section 72(b), second proviso, replace “an independent youth benefit on the ground specified in section 60F(6),”with “a youth payment or young parent payment granted pursuant to section 10 158(2)(c)(ii) or 164(2)(c)(ii) to a person who qualifies for an exemption under section 105 from the obligation to undertake education or training or work-based learning in section 170(1)(a) on the ground of his or her sickness, injury, or disability”.
Section 74AA(2) In section 74AA(2), replace “an independent youth benefit” with “a youth payment, a young parent payment”.

15 Section 77(2) In section 77(2), replace “an independent youth benefit” with “a youth payment or young parent payment”.

20 Section 77(3) In section 77(3), replace “an independent youth benefit” with “a youth payment or young parent payment”.

Section 80(2)(a) Replace “an independent youth benefit” with “a youth payment or a 25 young parent payment”.
Section 80(5)(a) In section 80(5)(a), after “unemployment benefit”, insert “, a youth payment, or a young parent payment” .

56 Social Security (Youth Support and Work Focus) Amendment Bill Schedule 2 Part 1—continued Section 80(5)(b) In section 80(5)(b), replace “an independent youth benefit” with “a youth payment, a young parent payment”.

Section 80(14)(a) In section 80(14)(a), after “purposes benefit”, insert “, a young parent 5 payment”.
Section 80B In section 80B, definition of income, repeal paragraph (a)(viii).

In section 80B, definition of income, after paragraph (a), insert: “(ab) the amount of any youth payment or young parent pay- 10 ment received by the person:”.

In section 80BA(4)(b)(ii), after “invalid’s benefit” insert “, youth payment or young parent payment”.

Section 80BA(4)(b)(i) In section 80BA(4)(b)(i), after “invalid’s benefit”, insert “a youth 15 payment, a young parent payment”.
Section 80BD(3) In section 80BD(3), replace “independent youth benefit” with “youth payment, or young parent payment”.

Section 80C(1)(c) In section 80C(1)(c), after “section 117”, insert “, 173, or 174”.

20 Section 82(2A) In section 82(2A), replace “an independent youth benefit,” with “a youth payment, a young parent payment,”.

Section 84(1) In section 84(1), after “82”, insert “or 179(5)”.
25 57 Schedule 2 Social Security (Youth Support and Work Focus) Amendment Bill Part 1—continued Section 90(3) In section 90(3), replace paragraph (a) with: “(a) any of paragraphs (a) to (c) of section 159(2) ap- plies to the student; or”.

Section 115A Repeal section 115A.

Section 117(1) In section 117(1), delete “or section 115A”.

Section 119(2) In section 119(2), delete “or section 115A”.

Section 122 In section 122, delete “or section 115A”.

Repeal section 122(b).


5 10 Section 123 heading In the heading to section 123, delete “or obligations under section 15 60GAB”.

In the heading to section 123, after “work test” insert “or section 170 or 171”.

Section 123(1) In section 123(1)(a), after “117”, insert “or section 173 or 174” In section 123(1)(b)(ia), replace “section 60GAB” with “section 170 or 171”.

In section 123(1)(b)(ii), after “section 60HA”, insert “or section 170 or 171”.
20 Section 123B(1)(a) In section 123B(1)(a), after “section 117”, insert “or section 173 or 174” .

25 58 Social Security (Youth Support and Work Focus) Amendment Bill Schedule 2 Part 1—continued Section 123B(5) In section 123B(5)(a), replace “section 60GAB” with “section 170 or 171”.

In section 123B(5)(b), after “section 60HA”, insert “or section 170 or 171”.

5 Section 123C(1)(b) In section 123C(1)(b), delete “or a requirement under section 60GAB”.
Schedule 18 In Schedule 18, Part 1, clause 3, after “purposes benefit”, insert “or 10 a young parent payment”.

Part 2 Amendments to other enactments Education Act 1989 (1989 No 80) In section 226A(1), definition of benefit, delete “, or an independent 15 youth benefit under section 60F of that Act”.

In section 235F(1), definition of benefit, delete “, or an independent youth benefit under section 60F of that Act”.
In section 307B(2)(ab), replace “benefit debt” with “debt described in section 85A of the Social Security Act 1964”.

20 Part 3 Amendments to regulations Health Entitlement Cards Regulations 1993 (SR 1993/169) Revoke regulation 8(1)(a)(v).

After regulation 8(1)(a)(vii), insert: 25 “(viii) a youth payment: “(ix) a young parent payment.”.
59 Social Security (Youth Support and Work Focus) Amendment Bill Part 3—continued Social Security (Debt Recovery Suspension) Regulations 2007 (SR 2007/86) In regulation 3, definition of working age benefit, replace paragraph (e) with: a youth payment; or “(e) “(ea) a young parent payment; or”.

Social Security (Temporary Additional Support) Regulations 2005 (SR 2005/334 In regulation 4, replace paragraph (f) with: a youth payment; or “(e) “(ea) a young parent payment; or”.
Student Allowances Regulations 1998 (SR 1998/277) Revoke regulation 13(1)(d).
After regulation 13(1)(f), insert: “(g) “(h) a youth payment: a young parent payment.” 5 10 15 19 March 2012 27 March 2012 29 May 2012 12 June 2012 18 July 2012 Legislative history Introduction (Bill 10–1) First reading and referral to Social Services Committee Reported from Social Services Committee (Bill 10–2) Second reading Committee of the whole House 12 60 Published under the authority of the House of Representatives—2012 Wellington, New Zealand: