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Social Security (Benefit Categories and Work Focus) Amendment Bill Government Bill As reported from the Social Services Committee Commentary Recommendation The Social Services Committee has examined the Social Security (Benefit Categories and Work Focus) Amendment Bill and recom- mends by majority that it be passed with the amendments shown.
Structure of the commentary This commentary covers the policy aims of the bill as introduced, the main amendments that we recommend, and issues raised by It also includes minority the Regulations Review Committee.

views from the New Zealand Labour Party, the Green Party of Aotearoa/New Zealand, and the New Zealand First Party.

A number of minor technical amendments and drafting improvements have also been proposed, but these are not detailed in the commentary.
Introduction The Social Security (Benefit Categories and Work Focus) Amend- ment Bill seeks to amend the Social Security Act 1964.

The second 67—2 2 Social Security (Benefit Categories and Work Focus) Amendment Bill Commentary part of a comprehensive package of welfare reform, it follows the Social Security (Youth Support and Work Focus) Amendment Act 2012.
The bill seeks to introduce a new system of main benefits to replace most of the benefits to which working-age people may be en- titled, to extend work test and work preparation obligations, and to introduce social obligations.

Three new main benefit categories would replace seven current cat- egories.
The new jobseeker support benefit would be available to those who were previously eligible for the unemployment or sick- ness benefit, domestic purposes benefit for women alone, or domes- tic purposes benefit for sole parents whose youngest dependent child is over 14 years old, or to recipients of the widow’s benefit with no children or whose youngest dependent child is over 14 years old.
The new sole parent support benefit would be available for sole parents with dependent children younger than 14; and the new supported liv- ing payment would be available to people previously eligible for the invalid’s benefit or the domestic purposes benefit for care of sick or infirm patients.
Pre-benefit activities could be required of applicants for the jobseeker support, sole parent support, and emergency benefits, and of spouses or partners of applicants for the jobseeker support benefit, emergency benefit, or supported living payment.

Applicants and their spouses or partners could also be required to interview for and accept any offer of suitable employment.
Work test obligations would be extended to include the requirement to undertake and pass a drug test where required by an employer as part of a job application, or as a condition of entry to a training programme.
This bill seeks to introduce new social obligations from 15 July 2013, including requiring dependent pre-school children from the age of 3 to attend an early childhood education service until they begin school, dependent children over six years old to be enrolled in and attend school, and dependent children to be enrolled in primary health care and up to date with core WellChild/Tamariki Ora checks.
The bill introduces sanctions for work-tested beneficiaries who refuse offers of suitable employment without good and sufficient reason, but ensures beneficiaries with dependent children would not lose more than 50 percent of a benefit.
Commentary Social Security (Benefit Categories and Work Focus) Amendment Bill 3 It would allow benefit payments to be stopped for beneficiaries sub- ject to an unresolved arrest warrant for criminal proceedings, but again, a parent with a dependent child would not lose more than 50 percent of a benefit, and spouses and partners will retain their portion of assistance.
This bill would also allow information sharing between the Ministry of Social Development, the Ministry of Justice, and the New Zealand Police, to facilitate the operation of the warrant to arrest policy.

The bill allows the Minister to determine the goods and services for which preferred suppliers can be contracted by the ministry.

These goods and services could be supplied to beneficiaries and non-bene- ficiaries in receipt of a main benefit, disability allowance, or hard- ship assistance.
Assistance could be paid directly to a supplier with- out consent by an affected beneficiary for disability allowance and hardship assistance.

However, consent is required to redirect a main benefit payment to a preferred supplier.

Jobseeker support eligibility We recommend amending clause 40, new section 88B(1), to allow a new ground of eligibility for the jobseeker support benefit.
Some people would not be eligible for the jobseeker support benefit because they cannot meet the work obligation criterion of being available for full-time work because, for example, they care full time for a disabled dependent child.

The amendment would allow such people to receive the jobseeker support benefit and then be exempted from some or all work obligations.
We also recommend amending clause 40, new section 88F(2), so that part-time work obligations could be applied to a person receiving the jobseeker support benefit on the ground of sickness, injury, or disability if they were later deemed able to work.

This reflects the current policy, which there was no intention to change.
Pre-benefit activities We recommend amending clause 9, new section 11E(1)(b), to exempt spouses or partners receiving or applying for New Zealand Super- annuation or the veteran’s pension from the requirement to comply with pre-benefit activities.
Recipients of these benefits are not work tested, so there is no reason to require pre-benefit activities just be- 4 Social Security (Benefit Categories and Work Focus) Amendment Bill Commentary cause their spouses or partners seek a benefit to which pre-benefit activities apply.
Work preparation obligations We recommend amending clause 24, which amends section 60Q of the Act, by inserting subsection (1B), to allow the chief executive to require a recipient of a supported living payment to attend an inter- view to determine their capacity to comply with work preparation activities.
Social obligations We recommend amending clause 25, new section 60RA(1), to clarify that social obligations would also apply to the spouses or partners of those in receipt of a benefit, except for young partners subject to youth activity obligations.

Our amendments would also make it clear that social obligations would apply irrespective of whether a benefit is paid at an individual or couple rate.

We recommend amending clause 25 by inserting new section 60RAB.
Subsection (1)(b) would allow a programme that met criteria set out in a ministerial direction and was approved by the chief executive to be designated a “recognised ECE programme”.

This would allow otherwise appropriate programmes that did not meet the criteria set out in the Education Act 1989 to be used to meet social obligations.

Subsection (1)(c) would allow recognised ECE programmes to include correspondence schools (such as Te Kura) already designated as such in the Education Act.
Subsection (3) would allow the minimum hours of attendance re- quired to meet the early childhood education social obligation to be set by regulation.

Our understanding is that fifteen hours’ attendance at early childhood education would be an aspirational target.

Subsection (4) sets out a definition of “core check”.

This amendment is intended to clarify that WellChild/Tamariki Ora checks must be up to date in order to meet social obligations.
We have been assured these checks do not include the requirement to immunise.

Commentary Social Security (Benefit Categories and Work Focus) Amendment Bill 5 Exemptions for home schooling Many submitters raised the right of parents to home school their chil- dren.

We wish to assure them that this bill does not propose changes to policies on home schooling school-age children.
The Ministry of Education currently issues a Certificate of Exemption from Enrol- ment at a Registered School to parents who have met the criteria for home schooling, and the Ministry of Social Development does not intervene in decisions regarding schooling exemptions made by the Ministry of Education.

However, because the legal requirement for school attendance begins at 6 years of age, the Ministry of Education does not currently provide exemptions to home school a child aged 5.
We recommend amending clause 25, new section 60RA(3) by in- serting paragraph (ab), to allow home schooling to meet the social obligation for school attendance by children aged 5 years until they turn 6 years old if the parent meets the additional criteria set out in regulations for an exemption from work test obligations for home schooling.
This would recognise that school attendance is not legally required during this year, and a Certificate of Exemption from Enrol- ment at a Registered School cannot be obtained until a child is 6.

However, once the child turned 6, an exemption certificate would still be required.

The proposed change should make it clear that it is not our intention to remove the ability for children aged from 5 to 6, or older, to be home schooled.
We also wish to note that a beneficiary can be exempt from meeting some or all of their work test obligations if they hold an exemption certificate and are home schooling a dependent or foster child who could not reasonably be expected to attend school because of, for example, learning or behavioural difficulties.

Sanctions for failure to comply with obligations We recommend amending clause 46 by inserting subsection (4).
Our amendments (to insert new section 119, subsections (1B) and (1C)) would ensure that the calculation of failure rates used to determine sanctions would be reset for a person moving from the young par- ent payment or youth payment to a working-age main benefit.
Be- cause the obligations and sanction regimes for these payments differ, 6 Social Security (Benefit Categories and Work Focus) Amendment Bill Commentary it would not be appropriate to include them in the calculation of sanc- tions for a working-age main benefit.

This is also current practice and was not intended to be changed.
Notification of failure to comply with obligations We recommend inserting new clause 43A, and amending clauses 45, 46, and 47, which amend or replace sections 113, 117, 119, and 122 in the Act, to specify that multiple failures by a beneficiary to comply with obligations can be notified in a single notice; that the failures included in the notification should be treated as a single failure for the purposes of imposing sanctions; and that all specified failures must be rectified for the beneficiary to re-comply.
Work test obligations Drug testing We recommend a number of amendments to provisions relating to drug testing in clauses 39, 43, and 44.

We recommend amending clause 39, to amend the definition of “drug test” in section 88A of the Act to make it explicit that the purpose of a drug test is to detect the presence of controlled drugs rather than to determine whether the person tested is impaired.

We also recommend amending clause 43, new section 102B.
The pro- posed amendments to subsection (1) would recognise that potential employers or training providers can request lawful drug tests, but cannot compel candidates to undertake such tests.

We recommend amending subsection (2) to specify that a screening drug test would be sufficient in the absence of an evidential drug test, which we recog- nise are rarely used because of their cost.
The amendment would al- low a screening test failure to be used to effect the sanctions proposed in the bill if the candidate did not choose to undertake a subsequent evidential drug test.
We recommend inserting subsections (2A) and (4) to allow a drug test undertaken at the request of a potential employer or training provider to be presumed lawful unless proven otherwise; and, in the absence of contrary information, to allow the chief executive to act on evidence given by the employer or training provider that a candidate has failed a drug test.
Commentary Social Security (Benefit Categories and Work Focus) Amendment Bill 7 We also recommend amending clause 43 by inserting new section 102D, to specify that where a candidate has failed a drug screening test, and no evidential drug test has been requested, and a candidate receives notification of a sanction, the candidate may dispute the re- sult of the screening test by request in writing within 5 working days.
We recommend amending clause 44, new section 116B, so that a per- son who indicated they would fail a drug test would be considered to have failed to apply for suitable employment without good and sufficient reason.
We also recommend amending clause 44, new sec- tion 116C, to state explicitly that a person has a good and sufficient reason for failing or refusing a drug test if he or she is undergoing or awaiting professional drug addiction or dependence assessment, or treatment approved by the chief executive.

This would establish some minimum safeguards for appropriate treatment, and recognise that treatment may not be immediately available.
We recommend amending clause 47, which would replace section 122 of the Act, to allow a beneficiary who has failed a drug test 25 working days to pass a drug test from the date on which they under- take to comply, and a further 5 working days to provide evidence that they have done so.

We consider this to be a sufficient amount of time.
Right of appeal on medical grounds We recommend amending Schedule 2 (new section 10B(1)) by in- serting paragraphs (ea) and (eb), to ensure that a decision on medical grounds to decline an application for, or revoke, a deferral of work test obligations could be appealed to a medical board.
Outstanding warrants to arrest We recommend amending clause 30, new section 75B, by inserting subsection (1A), to exclude from the operation of this policy bene- ficiaries who do not receive a main benefit (such as those receiving supplementary assistance), and any category of beneficiary specified in regulations.

There would still be an exception for those who posed a risk to public safety, for whom all assistance would be stopped.

We also recommend inserting subsections (2A) and (3)(ab).
Sub- section (2A) would allow a notification of sanction following an un- resolved warrant to arrest to be combined with a notice of adverse action as required by the Privacy Act 1993.

This would ensure that 8 Social Security (Benefit Categories and Work Focus) Amendment Bill Commentary natural justice and due notice periods applied, and increase adminis- trative efficiency.
Subsection (3)(ab) would exempt from sanction a beneficiary who had taken all reasonable steps to resolve the warrant within the notice period, but had not been able to do so for reasons beyond their control.

This amendment would ensure natural justice applied by giving people a reasonable time in which to dispute a war- rant to arrest.

Matters relating to warrants to arrest are discussed further in the Regulations Review Committee section below.
Transferring between benefit types We recommend a number of amendments regarding the transfer of people from one benefit to another.

We recommend amending Schedule 7, new Schedule 32, clause 11 by inserting subclauses (1A) and (3)(b) among others.
Subclause (1A) would ensure that any person transferred to the jobseeker support benefit from 15 July 2013 while undertaking full-time study would under transitional provisions be temporarily exempted from full-time student ineligibility and exempted from work preparation or work test obligations.

The transitional provisions allow two years for a person to complete a course of study or to make other arrangements.
Subclause (3)(b) would ensure the transitional provisions ceased to apply when such a person stopped studying or ceased to receive a benefit.

We recommend amending clause 11, new section 20H, by insert- ing subsections (2A) and (2B).

This would allow the chief executive to prevent the automatic transfer of a person from the sole parent support benefit to the jobseeker support benefit when their youngest dependent child turned 14 if that person would not be eligible for the jobseeker support benefit.
It would allow the affected person to be notified in advance of a scheduled transfer so suitable arrange- ments could be discussed.

It would also prevent a benefit from being stopped unexpectedly.

This amendment would also allow only those exemptions available under the jobseeker support benefit to continue for a person transferring from the sole parent support benefit.
We recommend amending Schedule 7 (new Schedule 32, clause 2(11)) so that a person receiving the domestic purposes benefit or widow’s benefit would have any exemption that is not available on Commentary Social Security (Benefit Categories and Work Focus) Amendment Bill 9 the jobseeker support benefit cancelled upon transfer; and clause 7(8) to make a similar provision in respect of exemptions associated with a sickness benefit.
We recommend inserting new clause 25A, which would amend sec- tion 61 of the Act so that people over 65 years old who were not eligible for New Zealand Superannuation would be transferred to the emergency benefit.

This would ensure that work test obligations re- quired by other benefit categories would not be inappropriately ap- plied to people past the age of retirement.

This provision would come into force after Royal assent and expire on 15 July 2013.
Expiry and reapplication requirements This bill would allow annual benefit expiry and reapplication require- ments to be applied to all recipients of the jobseeker support benefit.

Further to this, regulation-making powers would allow regulations to subject other benefit categories to expiry and reapplication provi- sions and to specify expiry dates for any specified benefit.
We recommend amending clause 36, new section 80BE, to allow benefits granted on particular eligibility grounds or to particular kinds of beneficiaries to be exempted from these expiry and reapplication provisions.

Amendments to new section 132M would allow regula- tions to be made declaring a stated benefit other than jobseeker sup- port not to be subject to these expiry and reapplication provisions.
We also recommend amending clause 54, new section 132M(2), to allow regulations to prescribe different expiry dates for a specified benefit.

The proposed amendment would allow expiry dates to be set individually, so that expiry and reapplication processes could be syn- chronized with annual income assessments for sole parents receiv- ing the jobseeker support benefit.

The proposed regulation-making powers are discussed further in the Regulations Review Committee section below.
Beneficiary’s absence overseas We recommend amendments to clause 31, which would amend sec- tion 77 of the Act.

The amendment to subsection (3AA) would re- move the requirement for the circumstances for a beneficiary’s travel to be “exceptional”.
This was not the intention of the policy, and would place unnecessary limits on the chief executive’s ability to ap- 10 Social Security (Benefit Categories and Work Focus) Amendment Bill Commentary prove benefit payments for travel absences of more than four weeks in a 52-week period.
The amendments to subsection (8)(a) would ensure that both reasons for travelling and reasons for non-notification of travel to the min- istry would have to be justified on humanitarian grounds, as may be defined in regulations under section 132 of the Act.

Residency requirements for a benefit paid under a social security agreement We recommend amending Schedule 7, new Schedule 32, by inserting new clause 11A.
Clause 29 of the bill as introduced seeks to amend section 74AA of the Act to correct an oversight whereby people or- dinarily resident in a country that operates a social security agreement with New Zealand are not required to meet the two-year residency requirement before receiving a benefit.

Our proposed amendment to Schedule 7 would ensure that people already receiving a benefit under such an agreement would not become ineligible as a result of this change.
Preferred supplier arrangements We recommend amending clause 50, new section 125AA by insert- ing subsection (5), which sets out transitional or savings provisions relating to preferred supplier arrangements.

This change would allow the Minister to specify by ministerial direction transitional arrange- ments where a preferred supplier arrangement had been introduced or the list of preferred suppliers changed.
This provision would allow beneficiaries to meet existing contractual arrangements before being transferred to a new preferred supplier.

We also recommend amending clause 28, which amends section 69C, by inserting a new subsection (7A)(c), to ensure that preferred sup- plier arrangements could only apply if the goods and services can be supplied to the area where the beneficiary or non-beneficiary lives.
Amendments for the same purpose are made to the provisions in- serted by clause 38, which inserts a new section 82(6AA)(b), and clause 49, which inserts new section 124(1BA)(b).

Commentary Social Security (Benefit Categories and Work Focus) Amendment Bill 11 Disability allowance We recommend making a number of amendments to clause 28, which would amend section 69C of the Act.
These amendments would en- sure that preferred supplier arrangements could be applied to a re- cipient of a disability allowance only if the supplier served the area where the beneficiary lived (subsection (7A)(c)); allow the chief ex- ecutive to decide the date on which a recipient of the disability al- lowance must start paying a preferred supplier, allowing the client time to accumulate sufficient funds (subsection (7B)(a)); allow the chief executive to change the preferred supplier to a recipient of a disability allowance (subsection (7BA)); allow the chief executive to not pay or to defer paying a person’s disability allowance to a pre- ferred supplier if that person’s total benefit payments are less than the amount needed to pay the supplier (subsection (7BB) and (7BC)); and to allow a person receiving the maximum disability allowance to choose which purchases to make through a preferred supplier and which from their own funds (subsection (7C)(a)).
We also recommend amending clause 53, new section 132AD, by inserting subsection (4).

This would allow the transfer of existing recipients of the disability allowance to preferred provider arrange- ments to be managed by the chief executive on a case-by-case basis under ministerial direction.

This would make it possible to transi- tion or “grandparent” existing beneficiaries so that the impact of any changes could be managed carefully.
Regulations Review Committee The Regulations Review Committee advised us that the regulation- making powers in the bill as introduced raised several issues.

The bill would allow regulations to be made that gave effect to sig- nificant policy decisions (clause 54, new sections 132L and 132M).

The concern is that substantive policy is more appropriate for Parlia- ment to determine and should be in primary legislation rather than in delegated legislation.
The bill would allow regulations to be made authorising information sharing between the Ministry of Social Development, the Ministry of Justice, and the New Zealand Police.
The power delegated by clause 54, new section 132L(1)(c) has the potential to contravene Standing Order 315(2)(b), in that it would authorise regulations that 12 Social Security (Benefit Categories and Work Focus) Amendment Bill Commentary could trespass unduly on personal rights and liberties, specifically beneficiaries’ right to privacy.

Under the sunset clause in clause 54, new section 132L(3)(c), the end date for regulations made under this power would be 14 July 2016.
This was considered an unnecessarily long timeframe, given that the Privacy (Information Sharing) Bill could be expected to be enacted before long.1 The bill would allow the making of transitional regulations that could amend, suspend, or override primary legislation (a Henry VIII power) (Schedule 7, inserting new Schedule 32, clause 14).

To address the issue of significant policy being effected by secondary legislation, we recommend amending clause 54, new section 132M, to include more policy detail.
However, we do not recommend amending the powers set out in section 132L, as we consider that they would allow administrative processes necessary to operate the warrants for arrest policy and specified exclusions from it.
Admin- istrative processes are not usually specified in legislation, but we consider it necessary in this instance because the Ministry of Social Development, the New Zealand Police, and the Ministry of Justice do not have operational experience on which to base decisions on the need for and terms of exclusions.

The regulation-making powers in the bill as introduced would allow the appropriate provisions to be made and added to in the light of experience.
We recommend deleting the provisions in clause 54, new section 132L that authorise information sharing, and inserting new clause 52A, new section 126AC, to authorise and require information matching under the Privacy Act 1993 between the Ministry of Justice and the administering department (currently the Ministry of Social Development) to give effect to the warrant to arrest policy.
We also recommend amending Schedule 7, new Schedule 32, to in- clude a statement of the purposes for which transitional and savings regulations may be made under new clause 14, and an objective test that the Minister would have to apply before recommending the mak- ing of regulations.

Other amendments make it clear that application provisions referred to in clause 14 are only transitional.
1 The Privacy (Information Sharing) Bill was divided into three bills and all three received the Royal assent on 26 February 2013.

Commentary Social Security (Benefit Categories and Work Focus) Amendment Bill 13 New Zealand Labour Party minority view Labour stands in strong opposition to this bill.
Introducing reforms such as these at a time of high unemployment, and without removing barriers to employment such as the high cost of child care and inad- equate training and education opportunities, will inevitably fail.

We believe the framework for this bill is wrong.

Rather than starting from the assumption that those who seek support from the state want to work, this bill assumes the opposite.
It is focused on a sanction- based regime, and moves away from service delivery that is focused on an individual’s circumstances and intensive case management.

Social obligations We believe the introduction of social obligations implies that a parent on government support is a poor parent.

This is both wrong and unfair.

An overwhelming number of submissions focused on this point, and the removal of choice for parents as a result of the social obligations.
While we support the principle that all children take part in early childhood education, we do not believe this should be enforced by cutting a parent’s benefit in half.

Decreasing the income into a child’s home will ultimately harm the child.

We also believe that there is a compelling case for parents to be given the flexibility (within reason) to enrol their child in courses that may not be covered by the bill as originally drafted, such as Hippy and approved home education programmes.
We are pleased this part of the bill has been amended.

We remain disappointed that the Government has put in place an obli- gation on parents to enrol children in early childhood education with- out fulfilling their obligation to parents by making sure there are ad- equate places available.

The Child Poverty Action Group informed the committee that their analysis found a large gap between the num- ber of children in low-income areas in particular, and early childhood education places.
If the Government truly wishes to address the bar- riers to education in a child’s critical years, the focus should be on availability, cost, and transport.

14 Social Security (Benefit Categories and Work Focus) Amendment Bill Commentary Work obligations and assessment We object to the underlying assumption in the bill, and in these pro- visions, that those on government support do not wish to work.
We heard compelling evidence from those working in the disability sec- tor in particular, that many sickness and invalid beneficiaries are des- perate to work, but the level of assistance and support is limited.

Or- ganisations representing the disability sector were also right to raise the difficulty many members of the disability community had finding work and welcoming work places.
As CCS Disability Action so eloquently stated “ [the bill] will not add one single more job for a disabled people… it does nothing about at- titudes of employers and workers.

It does nothing about the ability to make adjustments in the workplace.

Nothing about access to edu- cation or work experience.
If the bill wishes to provide opportunities for people with disabilities to move into the workforce, it doesn’t contribute.” We remain extremely concerned by the proposed new assessment regime to determine work obligations for those currently categorised as sickness or invalid beneficiaries.

We believe submitters were right to express their fears in this area given the lack of detail as to how this process will change.
We believe these fears are justified given that the Minister of Social Development signalled that the United Kingdom model was being looked at as part of Ministry of Social Development’s policy development.

There is little doubt that the United Kingdom medical assessment regime has been a disaster, and should not be replicated here.

Throughout the select committee process we sought information from the Ministry of Social Development as to the detail of the new assessment regime.
We were repeatedly told that the department was in the middle of consultation with the sector, but other than broad details, we were not privy to any final recommendations.

Given this area of reform has been a source of significant concern, we consider it unacceptable that the Minister did not give the public a genuine chance to submit on final proposals in this area, and in our view, left the select committee very much in the dark.
Labour urges the Minister to publicly release her plans for the assess- ment regime, and consult in a transparent manner.

This would enable her to take on the views within the disability sector, in particular the view that a more holistic, social model is required.
Commentary Social Security (Benefit Categories and Work Focus) Amendment Bill 15 We also support the suggestion made by the Council of Trade Unions that an independent expert be empowered by statute to review the effectiveness of the work availability assessments.

The use of sanctions We have seen a considerable increase in the use of sanctions since the National Government took office.
Labour is concerned that this increase has come with very little assessment of the impact on fam- ilies, and the relative success of reform so heavily centred around a punitive approach.
We agree with the Children’s Commissioner’s recommendation that we need to know more about the families who have sanctions applied to them, and for those families who are subjected to repeated sanc- tions, a full assessment of the families’ situation and intensive case management should be applied (as recommended by the Council of Trade Unions).
To ensure a greater focus on the overall impact of welfare reforms on children, we agree with the recommendation that the Work and Income Board should include an individual with a background in issues relating to child well-being.

Drug testing Labour is sceptical about the drug testing regime embedded in this bill.
The New Zealand Drug Foundation presented a sound argument that if the ultimate goal is to address drug dependency, a simple test- ing regime with sanctions attached is inadequate and could do more harm to our drug treatment system than good.

The foundation argued that a process that categorises users as de- pendent (when they may not be) and places them into treatment pro- grammes will put pressure on an already under-resourced service.
At the time of the foundation’s submission, there was a 5-week wait- ing list in Northland for treatment, 4 weeks in Auckland, and over 6 weeks in the Bay of Plenty.

It was the view of the foundation that even doubling services wouldn’t meet the need that this bill could create, a need that may not have any clinical basis.

While we agree with the need to address any substance abuse that acts as a barrier to work, we do not believe these measures will achieve this goal.
16 Social Security (Benefit Categories and Work Focus) Amendment Bill Commentary Labour does not support this bill.

Green Party minority view The Green Party opposes this bill.

We believe the paternalistic approach represents a widening breach of our fundamental social contract which unjustifiably compromises the human rights of many beneficiaries.
We believe the Government should focus on assisting those who are already desperate to work rather than spreading what are still scarce resources across a range of people who are not ready or able to work.

Coherence The Legislation Advisory Committee noted that the Social Security Act has been amended 131 times with 54 new sections since it was first written, and contains over 50 pieces of discretion.
The Green Party believes this bill makes an already complex and largely unin- telligible piece of legislation more complex and less intelligible.

This will make it harder to administer consistently and even more difficult for people to understand and claim their entitlements.

People receiv- ing income support are, almost by definition, our most vulnerable people and should be served by a system that is simple and transpar- ent.
New categories and increased work testing While the new categories purport to streamline the benefit system, the Green Party is concerned that in operation the opposite will be true.

By definition, job seekers are considered to be work able, yet we know that many will in fact be eligible for temporary exemptions for reasons of sickness or care responsibilities.

In our view this cre- ates a falseness to the system.
We are told the jobseeker category allows for part-time work and that the system will assess the extent to which each individual is able to train or work.

We believe this in- creased opaqueness will make it more difficult for users and increase stress for a significant number of people.

Of particular concern for us are people with stress-related disorders and mental or physical ill- nesses that can be exacerbated by stress.
While we absolutely sup- port rehabilitative services, we believe any attempt at tying these to Commentary Social Security (Benefit Categories and Work Focus) Amendment Bill 17 the delivery of income support will reduce their efficiency and create unnecessary stress.

We note with concern that the trigger for someone with cancer to move from jobseeker support benefit to the supported living payment is a terminal diagnosis.

Changing benefit at that time may well be physically and emotionally impossible.
While there is discretion to move over earlier, it can only be assumed that this would also be at a very difficult juncture in treatment.

We absolutely support renaming the invalid’s benefit to something more positive, but are disappointed the committee did not respond to the concerns raised by disabled people’s organisations that the sup- ported living payment is likely to cause confusion due to there being a district health board fund for people with disabilities with the same name.
The Green Party believes an increased work focus at a time of high unemployment will have a negative impact on low-wage workers’ ability to negotiate better conditions.

Further we question the economic sense of reducing people’s ability to do unpaid work.

Unpaid work is equivalent to over two million jobs per year at an estimated value of $40 billion in 1999.
Our whole society relies on the provision of these unpaid services, such as par- enting; reducing the core unpaid workforce risks further undermining our delicate social ecology.

We share many disabled people’s concern regarding the possibility of compulsory work testing for those receiving the new supported living payment, as well as their concern that those not being work tested, who may still desperately want to work, will not get the support they need to help get work.
Social obligations and sanctions The Green Party fundamentally disagrees with the social security system being used to address concerns outside the scope of the pro- vision of social security.
While we are pleased to see a relaxation of the requirement of a com- pulsory 15 hours early childhood education and an extension of the definition of early childhood education, we believe singling out par- ents receiving income support as needing sanctions to help them to meet parenting norms is likely to increase stigma.
18 Social Security (Benefit Categories and Work Focus) Amendment Bill Commentary We share the view of many, including the Human Rights Commis- sion, that there are less intrusive and more rational alternatives to the sanctions in this bill, and would have preferred to see more in- vestment in the provision of early childhood education in communi- ties with unmet need and having free, mobile, culturally appropriate health services.
We do not support the use of sanctions, especially in families with children, and note overseas evidence that has shown financial sanc- tions exacerbate poverty, reduce people’s long-term earning capabil- ity, and in operation lead to racial and area targeting.

Drug testing The Green Party opposes sanctions related to drug testing.

We are concerned this policy will create an incentive for people to declare a false drug dependency to avoid possible sanctions.
When we already have long waiting lists in many areas for treatment, we believe people with dependencies who want help should be pri- oritised for the limited resources.

There is also the potential for this policy to result in people switching to more harmful but less detectable drugs to avoid positive results.

Considering similar regimes overseas have not been successful, the Green Party questions the motives of this policy.
Warrants to arrest The foundation of our legal system is that someone is innocent until proven guilty.

To institute a financial sanction for failing to respond to a warrant to arrest is in our view unjustifiable.

The Green Party has heard too many stories of people being entirely unaware of warrants out against them due to a number of causes and of people not getting communications from Work and Income to be comfortable that this policy will not cause undue harm.
Medical assessments People with disabilities are chronically over-assessed already.

We believe the last thing they need is another assessment.

The Green Party strongly supports addressing the disabling environment as a priority to remove the barriers to employment for people with Commentary Social Security (Benefit Categories and Work Focus) Amendment Bill 19 disabilities.

It was noted by one submitter that making Work and Income counters and communication systems accessible would be a good start.
Focussing on individual medical assessments risks putting people with disabilities back into the medical model, and in our view runs counter to the Convention on the Rights of People with Disabilities.

The Green Party was disappointed that the medical assessments at the heart of the “investment approach” for people who are sick or disabled was not available to the committee.
While we have been assured that it will be a positive initiative and will not be a direct implementation of the United Kingdom model, which has caused so much harm, we have been alarmed at the use of the similar language and what can be described as at best contestable research from the United Kingdom to justify the changes.
Procurement and preferred suppliers The Green Party supports the view held by several submitters that limiting the choice of health-care providers that beneficiaries may use conflicts with Article 3 of the United Nations Convention on the Rights of People with Disabilities, and removes their autonomy.

Cost savings for the ministry are not enough of a justification for such action.
Disability allowance This bill would enable regulations to specify expenses that are not funded by the disability allowance, only partially funded, or subject to conditions.

The cited purpose is to help the ministry to manage expenditure on the disability-related needs of beneficiaries and non- beneficiaries.

The Green Party believes this is inconsistent with the convention and runs counter to an investment approach.
New Zealand First minority view New Zealand First supported this bill at its first reading and its refer- ral to the select committee in order to see what various organisations and the New Zealand public directly affected by this legislation had to say.

Various submissions shared our concerns about a number of changes proposed by the bill.
20 Social Security (Benefit Categories and Work Focus) Amendment Bill Commentary New benefit categories We are concerned that the bill overestimates the prospect of finding paid work.

A record of over 50,000 New Zealanders left perman- ently for Australia in 2012, which means 1,000 New Zealanders per week are finding paid work overseas in Australia.

The economy is currently not stimulated to create enough job opportunities to enable beneficiaries to come off the welfare benefit and into employment.
This bill is presumptuous in its approach to the job market.

The cur- rent Government’s favouritism of foreign companies taking prece- dence over New Zealanders having jobs is a barricade for this bill as there is no room for New Zealand businesses to employ New Zealand workers.

Drug testing We support drug testing in order to ensure a safer environment and secure more employment opportunities, but we are concerned at the costs involved for drug testing.
If drug testing is outsourced, there need to be strategies in place to ensure that testing is done in a timely and effective way.

Social obligations Social obligations of beneficiaries from non-compliance may be detrimental for families.

The proposed sanctions are dramatic and borderline intrusive in the way beneficiary parents raise children.

Beneficiary parents will be subjected to obligations that every other parent in New Zealand will not.
There are also concerns about how the Ministry of Social Develop- ment will monitor compliance.

The Government has accepted that there are not enough resources to test all beneficiaries.

Instead “at risk” families will be selected.

There are risks on how this minor- ity would be selected so as to not discern them from other benefi- ciaries.

Implementing such policies creates a double standard where only some beneficiaries will be monitored.
The obligations on beneficiaries to enrol children 3 years or older in early childhood education until they start school, and the availability and affordability of these institutions must be taken into consider- ation.

We understand that some families prefer home-based educa- tion, and in many cases this is more suited to a proportion of chil- Commentary Social Security (Benefit Categories and Work Focus) Amendment Bill 21 dren over early childhood education.
Many submitters were con- cerned about the social and emotional effects of separating children from their adult parents before the age of five.

We know that there is no proof to suggest that home education is not as beneficial as early childhood education.

There is lack of transparency where the Educa- tion Act does not require all children under six to attend early child- hood education, yet this bill will impose this unrealistic expectation on a small sector of society.
We consider the amalgamation of widow’s benefit recipients into the jobseeker support benefit an unfair expectation given to wid- ows considering their circumstances.

Not all widows will be or are “work-ready and available.” Beneficiaries with warrants to arrest While we appreciate the concern surrounding the number of bene- ficiaries who have outstanding warrants, there needs to be clarifica- tion around the costs and benefits to the taxpayer to administer such process.
We have little faith that this will decrease the number of arrest warrants, as people who have avoided detection are likely to continue to do so.

Conclusion New Zealand First supports the measures to protect the interest of children, but drastic reforms will be imposed on a vulnerable group in our society.

We do not believe that these welfare reforms will lead to less people on the benefit.
At the moment we face a job market crisis, and with these drastic sanctions and dramatic reforms to be introduced in this bill, there is no indication that beneficiaries will end up in paid employment.

This dog-whistle approach will feed the increasing poverty gap and develop a double standard New Zealand.

We support initiatives that will prove to decrease welfare depend- ency, but we are not convinced that this bill will in fact transpire the expected outcomes.
22 Social Security (Benefit Categories and Work Focus) Amendment Bill Commentary Appendix Committee process The Social Security (Benefit Categories and Work Focus) Amend- ment Bill was referred to the committee on 20 September 2012.

The closing date for submissions was 1 November 2012.

We received and considered 683 submissions from interested groups and individuals.

We heard 83 submissions from 35 organisations and 48 individuals, at hearings in Wellington and Auckland.
We received advice from the Ministry of Social Development.

The Regulations Review Committee reported to the committee on the powers contained in clause 54, new sections 132L and 132M, and Schedule 7, inserting new Schedule 32, new clause 14.
Committee membership Peseta Sam Lotu-Iiga (Chairperson) Jacinda Ardern Hon Phil Heatley Melissa Lee Jan Logie Alfred Ngaro Dr Rajen Prasad Mike Sabin Le’aufa’amulia Asenati Lole-Taylor Phil Twyford Hon Michael Woodhouse Social Security (Benefit Categories and Work Focus) Amendment Bill Key to symbols used in reprinted bill As reported from a select committee text inserted by a majority text deleted by a majority Hon Paula Bennett Social Security (Benefit Categories and Work Focus) Amendment Bill Government Bill Contents Title Commencement Principal Act Part 1 Substantive amendments Overview Overview of Part Social obligations of certain beneficiaries with dependent children Section 1A amended (Purpose) Pre-benefit activities, work-test couple rate, and ordinarily resident in New Zealand Section 3 amended (Interpretation) Status of examples New section 3B inserted (Status of examples) 3B Status of examples Ministerial directions 7A Section 5 amended (Chief executive to comply with directions) 67—2 Page 12 12 13 13 14 14 15 15 15 1 Social Security (Benefit Categories and Work Focus) Amendment Bill Ordinarily resident in New Zealand Section 11D amended (Application process for benefits) Pre-benefit activities New sections 11E to 11H inserted 11E 11F Pre-benefit activities: requirements Pre-benefit activities: department must explain requirements Pre-benefit activities: consequences of non-compliance by applicant Pre-benefit activities: consequences of non-compliance by applicant’s spouse or partner
 11G 11H Rights of appeal: work test obligations: drug testing obligations Section 12J amended (Rights of appeal) Sole parent support New Part 1B inserted Part 1B Sole parent support 20A 20B 20C 20D 20E 20F 20G 20H Sole parent support: meaning of applicant Sole parent support: when dependent child may be regarded as applicant’s child Split custody Sole parent support: standard eligibility requirements Sole parent support: obligations on beneficiaries Sole parent support: payment Sole parent support: rate Sole
 parent support: expiry, and replacement with jobseeker support, when youngest dependent child 14 Sections 27A to 27D and 27H(1) and (2) and cross-heading above section 27A repealed Supported living payment Sections 27G and 27H repealed Section 39F renumbered and amended (Purpose of invalid’s benefit) Section 40 renumbered and amended (Invalid’s benefit) New sections 40C to 40HA inserted Social Security (Benefit Categories and Work Focus) Amendment Bill 40F 40E 40C 40D Supported living payment: on ground of sickness, injury, disability, or total blindness: medical examination Supported living payment: on ground of caring for patient requiring care: eligibility Supported living payment: on ground of caring for patient requiring care: medical examination Supported living payment: on ground of sickness, injury, disability, or total blindness: beneficiary’s obligations Supported living payment: on ground of sickness, injury, disability, or total blindness: spouse’s or partner’s obligations Supported living payment: on ground of caring for patient requiring care: beneficiary’s obligations 40HA Supported living payment: on ground of caring for patient requiring care: spouse’s or partner’s obligations 40H 40G Supported living payment: rates Sections 42 and 42A replaced 40I Section 43 renumbered and amended (Subsidy on earnings of blind beneficiaries) Sections 44 and
 44A replaced 40K Supported living payment: on ground of sickness, injury, or disability: encouraging open employment Sickness benefit abolished Sections 54, 54A, 54B, 54D, 54DA, 54E, and 54F and cross-heading above section 54 repealed Beneficiaries having additional dependent child: exempting people resident in certain overseas countries, and eligibility for sole parent support Section 60GAE amended (Beneficiaries having additional dependent child: general) Obligations to work with contracted service
 providers New section 60GAG inserted (Obligations to work with contracted service providers) 60GAG Obligations to work with contracted service providers 27 27 28 29 29 29 30 30 30 31 31 31 31 32 33 33 3 Social Security (Benefit Categories and Work Focus) Amendment Bill 23 Section 60HA repealed (Work preparation exercise) Work preparation exercise 24 25 Certain obligations may be placed on beneficiaries and their spouses and partners Section 60Q amended (Certain obligations may be placed on beneficiaries and their spouses and partners) Social obligations of certain beneficiaries with dependent children New sections 60RA to 60RC inserted 60RA Social obligations of certain beneficiaries with dependent children 60RAB Social obligations: definitions, work test obligations exemption grounds, and regulations 60RB Social obligations: department must explain requirements 60RC Social obligations: sanctions for failures to comply Transfer to emergency benefit of certain people 65 years old or older 25A Section 61 amended (Chief executive may grant emergency benefit in cases of hardship) Social obligations of certain beneficiaries with dependent children New section 61AA inserted (Social obligations of person granted emergency benefit) 61AA Social obligations of person granted emergency benefit Section 61A amended (Obligations of spouse or partner of person granted emergency benefit) Disability allowance: preferred supplier and funding of specified expenses Section 69C amended
 (Disability allowance) Residential requirements for certain benefits: people ordinarily resident overseas Section 74AA amended (Residential requirements for certain benefits) 26 27 28 29 4 34 34 35 36 38 39 39 40 41 41 41 42 44 Social Security (Benefit Categories and Work Focus) Amendment Bill Effect on benefit of warrant to arrest beneficiary 30 New section 75B inserted (Effect on benefit of warrant to arrest beneficiary) 75B Effect on benefit of warrant to arrest beneficiary 31 31A When beneficiaries can
 be paid benefit while overseas, and suspensions of benefits based on discrepancies arising from departure information Section 77 amended (Effect of absence of beneficiary from New Zealand) New section 77A inserted (Effect of absence of beneficiary from New Zealand: department must explain provisions) 77A Effect of absence of beneficiary from New Zealand: department must explain provisions 32 Privacy Act 1993 amended 33 34 35 36 Removing exemptions from jobseeker support benefit stand down period while person in approved training Section 80 amended (Commencement of benefits) Backdating benefits in specified circumstances Section 80BA amended (Calculation of stand down) Standardising benefit end dates Section 80BD amended (Ending of benefits) Expiry and re-grant of specified benefits New sections 80BE and 80BF inserted 80BE Expiry and re-grant of specified benefits 80BF Requirements for re-grant of specified benefits 37 Section 81 amended (Review of benefits) Review of benefits One-off hardship assistance and redirection using preferred supplier Section 82 amended (Payment of benefits) Work test obligations: drug testing obligations Section 88A amended (Interpretation) Jobseeker support (including deferral of work test obligations on ground of sickness, injury, or disability) Sections 89 to 99AB and cross-heading above section 89 replaced 38 39 40 45 45 48 51 51 51 51 52 52 53 53 55 57 57 59 61 5 Social Security (Benefit Categories and Work Focus) Amendment Bill
 Jobseeker support Jobseeker support: standard eligibility requirements Jobseeker support: grounds of hardship Jobseeker support: ineligibility Jobseeker support: on ground of sickness, injury, or disability: medical examination Jobseeker support: obligations on beneficiaries Jobseeker support: obligations of spouse or partner of person granted it Jobseeker support: application for deferral of work test obligations Jobseeker support: chief executive’s powers and duties to defer work test obligations Jobseeker
 support: effect of deferral Jobseeker support: deferred or exempted people must notify change of circumstances Jobseeker support: payment 88B 88C 88D 88E 88F 88G 88H 88I 88J 88K 88L 88M Jobseeker support: rates Work ability assessment 41 New sections 100B to 100D and cross-heading inserted 100B Chief executive may require person to undergo Work ability assessment assessment 100C Reassessment 100D Assessment or reassessment: department must explain requirements Work test obligations: drug testing obligations Section 102A amended (Work test obligations) New sections 102B to 102E inserted 102B Work test obligations: drug testing obligations 102C Work test obligations: drug testing obligations on referral to opportunity of suitable employment 102D Work test obligations: drug testing obligations: challenging sanction based solely on failing screening drug test 102E Work test obligations: drug testing obligations: use and communication of drug test results Sanctions Section 113 amended (Procedure for imposing sanctions) 42 43 43A 6 61 62 63 63 64 66 66 67 68 68 68 69 69 69 71 71 72 72 72 73 75 77 77 Social Security (Benefit Categories and Work Focus) Amendment Bill 44 45 46 47 48 49 Sections 115 and 116A replaced 116B Failures to comply with obligations 116C Good and sufficient reasons for specified failures to comply Section 117 amended (Sanctions that may be imposed for failures) Section 119 amended (Calculation of failure rate) Section 122 replaced (Meaning of
 recompliance) 122 Meaning of recompliance New section 122A inserted (Recomplying after second failure to comply with drug testing obligations) 122A Recomplying after second failure to comply with drug testing obligations Special assistance under welfare programme: use of preferred supplier Section 124 amended (Money payable out of Crown Bank Account) Preferred suppliers of goods or services for beneficiaries or others 50 New section 125AA and cross-heading inserted Preferred suppliers of goods or services for
 beneficiaries or others 125AA Preferred supply of goods or services for beneficiaries or others Contracts with administration service providers Section 125A amended (Chief executive may contract with service providers) Section 125C amended (Release of personal information to and by contracted service provider) Effect on benefit of warrant to arrest beneficiary: information matching New section 126AC inserted (Disclosure to department of warrant to arrest beneficiary for determining effect on benefit) 126AC Disclosure to department of warrant to arrest beneficiary for determining effect on benefit 51 52 52A 78 78 80 81 82 83 84 86 86 87 88 89 90 90 91 91 7 Social Security (Benefit Categories and Work Focus) Amendment Bill 53 Disability allowance: funding of specified expenses New section 132AD inserted (Regulations on use of disability allowance to fund specified expenses) 132AD Regulations on use of disability allowance to fund specified expenses Effect on benefit of warrant to arrest beneficiary, and expiry and re-grant of specified benefits 54 New sections 132L and 132M inserted 132L Regulations relating to effect on benefit of warrant to arrest beneficiary 132M Regulations relating to expiry and re-grant of specified benefits Jobseeker support 55 Schedule 9 amended References to main benefits Amendments to make clearer references to main benefits Reorganising headings and relocating section 53A Amendments to make clearer principal Act’s structure 55A 56 Part 2
 Consequential amendments, and transitional and savings provisions Overview Overview of Part Consequential amendments: work-test couple rate Consequential amendments to principal Act Consequential amendments to other enactments Consequential amendments: status of examples Consequential amendments to enactments made under principal Act Consequential amendments: pre-benefit activities Section 11D amended (Application process for benefits) Section 132J amended (Regulations stating pre-benefit activities) Social
 Security (Pre-benefit Activities) Regulations 2012 amended 57 58 59 60 61 62 63 8 92 92 93 93 95 96 97 99 99 100 100 100 101 101 101 Social Security (Benefit Categories and Work Focus) Amendment Bill Consequential amendments: Sole parent support Section 3 amended (Interpretation) Section 60GAE amended (Beneficiaries having additional dependent child: general) Section 60Q amended (Certain obligations may be placed on beneficiaries and their spouses and partners) Section 61 amended (Chief executive may grant emergency benefit in cases of hardship) Section 70A amended (Rates of benefits for sole parents may be reduced) Section 74AA amended (Residential requirements for certain benefits) Section 80B amended (Interpretation) Section 82 amended (Payment of benefits) Section 162 amended (Youth payment: continuation after age 18) Section 168 amended (Young parent payment: continuation after age 19) Schedule 3 amended New Schedule 3A inserted Schedule 10 amended Schedule 16 amended Schedule 18 amended Other consequential amendments to principal Act Consequential amendments to other enactments Consequential amendments: supported living payment benefit Section 3(1) amended (Interpretation) Section 39A amended (Child disability allowance) Section 43 amended (Subsidy on earnings of blind beneficiaries) Section 70A amended (Rates of benefits for sole parents may be reduced) Section 80 amended (Commencement of benefits) Section 80B amended (Interpretation) Section 157 amended
 (Interpretation) Schedule 6 amended Schedule 17 repealed Other consequential amendments to principal Act Consequential amendments to other enactments Social Security (Benefit Categories and Work Focus) Amendment Bill Consequential amendments: repeal of section 60HA Consequential amendments to principal Act and to
 regulations made under it Consequential amendments: sickness benefit abolished Section 3 amended (Interpretation) Section 12J amended (Rights of appeal) Section 60H amended (Voluntary unemployment or loss of employment through misconduct, etc) Section 61 amended (Chief executive may grant emergency benefit in cases of hardship) Section 66 amended (Exemption of income from friendly or like society) Section 70A amended (Rates of benefits for sole parents may be reduced) Section 72 amended (Limitation where applicant receiving another benefit or war pension) Section 80 amended (Commencement of benefits) Section 102 amended (Application of work test) Section 157 amended (Interpretation) Section 162 amended (Youth payment: continuation after age 18) Section 168 amended (Young parent payment: continuation after age 19) Schedule 9 amended Schedule 10 amended Other consequential amendments to principal Act Consequential amendments to other enactments 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 Consequential amendments: social obligations of certain beneficiaries with dependent children 108A Section 123 amended (Effect of ceasing to be subject to obligation to comply with work test or section 170 or 171) Section 132AC amended (Regulations relating to childcare assistance) Section 170 amended (Youth support payments: obligations) Consequential amendments: expiry and re-grant of specified benefits Section 117 amended (Sanctions that may be imposed for
 failures) Section 119 amended (Calculation of failure rate) 109 110 111 112 10 109 109 110 110 111 111 111 111 111 111 112 112 112 112 112 112 113 113 114 114 114 114 Social Security (Benefit Categories and Work Focus) Amendment Bill 114 115 116 117 118 119 120 121 122 123 Consequential amendments: jobseeker support Cross-headings above sections 58 and 59B repealed Section 61 amended (Chief executive may grant emergency benefit in cases of hardship) Section 80B amended (Interpretation) Section 82 amended
 (Payment of benefits) New cross-heading above section 88A inserted Section 99A repealed (Transfer from community wage to unemployment benefit on 1 July 2001) Section 105 amended (Exemption from obligations) Schedule 9 amended Other consequential amendments to principal Act Consequential amendments to other enactments Consequential amendments: review of benefits 115 115 115 115 115 115 115 116 116 117 123A Section 11D amended (Application process for benefits) 117 Consequential amendments: sanctions 124 125 126 127 128 Section 102A amended (Work test obligations) Section 117 amended (Sanctions that may be imposed for failures) Section 119 amended (Calculation of failure rate) Section 122 amended (Meaning of recompliance) Section 171 amended (Obligations of spouses and partners of specified beneficiaries) Effect on benefit of warrant to arrest beneficiary: information matching 128A Privacy Act 1993 amended 129 130 131 Consequential amendments: reorganising headings and relocating section 53A Consequential amendments to principal Act Consequential amendments to other enactments Transitional and savings provisions New section 3C inserted (Transitional and savings provisions relating to amendments to this Act) 3C Transitional and savings provisions relating to amendments to this Act 132 New Schedule 32 inserted Schedule 1 New Schedule 3A 117 117 117 117 118 118 118 118 118 118 118 119 11 cl 1 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 2
 Amendments reorganising headings and relocating section 53A Schedule 3 Consequential amendments to other enactments: Sole parent support Schedule 4 Consequential amendments to other enactments: Supported living payment Schedule 5 Consequential amendments to other enactments: Sickness benefit Schedule 6 Consequential amendments to other enactments: Jobseeker support Schedule 7 New Schedule 32 120 131 137 144 147 149 The Parliament of New Zealand enacts as follows: Title This Act is the Social Security
 (Benefit Categories and Work Focus) Amendment Act 2012.
Commencement The following come into force on 15 July 2013: (a) Part 1 (except sections 25A, 28, 38, 49, 50, and 53, on— (iaa) the transfer to an emergency benefit of certain people 65 years old or older; and the use of the disability allowance to fund speci- fied expenses; and preferred suppliers of goods or services for bene- ficiaries or others): (i) (ii) (b) (c) Part 2: Schedules 1 to 7.
5 10 15 1 2 (1) 12 (2) 3 4 (1) (2) Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 4 The rest of this Act comes into force on the day after the date on which this Act receives the Royal assent.

Principal Act This Act amends the Social Security Act 1964 (the principal Act).

5 Part 1 Substantive amendments Overview 15 (b) Overview of Part This Part contains substantive amendments to the principal 10 Act.
(Related consequential amendments to the principal Act and to other enactments, and transitional and savings provi- sions, are contained in Part 2.)
The substantive amendments in this Part are for purposes that include— (a) introducing new benefit categories (sole parent support, supported living payment, and jobseeker support); and providing for new obligations (obligations to work with contracted service providers, social obligations of certain beneficiaries with dependent children, and, for 20 work-tested beneficiaries, new work test obligations that are drug test obligations); and providing for, or adjusting provisions on, other matters (including the effect on a benefit of a warrant to arrest a beneficiary, when beneficiaries can be paid a benefit 25 while overseas, backdating benefits, benefit end dates, and expiry and re-grant of specified benefits); and (d) making clearer the principal Act’s structure (see sec- tion 56 and Part 1 of Schedule 2), by reorganising headings, and by relocating section 53A (which gives a 30 right of appeal to a medical board on medical grounds against specified decisions).
(c) (3) Some substantive amendments in this Part affect provisions of the principal Act that are inserted or amended on 15 Octo- ber 2012 by section 2(2) and Parts 3 and 4 of the Social Secur- 35 ity (Youth Support and Work Focus) Amendment Act 2012.
13 Part 1 cl 5 Social Security (Benefit Categories and Work Focus) Amendment Bill Social obligations of certain beneficiaries with dependent children Section 1A amended (Purpose) Replace section 1A(d) with: “(d) to impose, on the following specified people or young 5 persons, the following specified requirements or obli- gations: “(i) on people seeking or receiving financial support under this Act, administrative and, where appro- priate, work-related requirements; and 10 “(ii) on young persons who are seeking or receiving financial support under this Act, educational, budget management, and (where appropriate) parenting requirements; and “(iii) on people receiving certain financial support 15 under this Act, social obligations relating to the education and primary health care of their dependent children.” Pre-benefit activities, couple rate and work-test couple rate, and ordinarily resident in New Zealand 20 Section 3 amended (Interpretation) In section 3(1), insert in their its appropriate alphabetical order: “couple rate, in relation to New Zealand superannuation, 25 means the aggregate rate payable to a couple who are married, in a civil union, or in a de facto relationship, both of whom are entitled to receive New Zealand superannuation “main benefit under this Act means a benefit that is— “(a) “(b) sole parent support; or a supported living payment on the grounds of sick- ness, injury, disability, or total blindness, under sec- tion 40B; or a supported living payment on the grounds of caring for a patient requiring care, under section 40D; or jobseeker support; or an emergency benefit; or “(c) “(d) “(e) 35 30 5 6 (1) 14 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 7A (2) (3) (4) 7 a youth payment; or a young parent payment”.
“(f) “(g) In section 3(1), repeal the definition of married rate.

In section 3(1), definition of ordinarily resident, after “or- dinarily resident”, insert “in New Zealand”.

In section 3(1), definition of work-test married rate, replace “married” with “couple”.
5 Status of examples New section 3B inserted (Status of examples) After section 3 (but before section 3C inserted by sec- 10 tion 131), insert: “3B Status of examples “(1) An example used in an enactment in or made under this Act is only illustrative of the provisions to which it relates.

It does not limit those provisions.
If an example and a provision to which it relates are inconsist- ent, the provision prevails.” “(2) Ministerial directions 7A Section 5 amended (Chief executive to comply with directions) (1) After section 5(2), insert: “(3) A direction given under this section for the purposes of all or any of sections 60RAB(1)(b), 125AA(5), and 132AD(4)(c) (other than a direction of that kind that relates exclusively to an individual)— “(a) is a regulation for the purposes of the Regulations (Dis- allowance) Act 1989; but is not a regulation for the purposes of the Acts and Regulations Publication Act 1989.” “(b) 15 20 25 (2) (3) Subsection (3) takes effect on the repeal of the Acts and 30 Regulations Publication Act 1989 and the Regulations (Dis- allowance) Act 1989.
Replace section 5(3) (as inserted, on 15 July 2013, by sub- section (1)) with: 15 Part 1 cl 8 Social Security (Benefit Categories and Work Focus) Amendment Bill “(3) A direction given under this section for the purposes of all or any of sections 60RAB(1)(b), 125AA(5), and 132AD(4)(c) (other than a direction of that kind that relates exclusively to an individual)— “(a) “(b) is not a legislative instrument for the purposes of the 5 Legislation Act 2012; but is a disallowable instrument for the purposes of the Le- gislation Act 2012, and must be presented to the House of Representatives in accordance with section 41 of that Act.” 10 8 9 Ordinarily resident in New Zealand Section 11D amended (Application process for benefits) In section 11D(9), before “resident”, insert “ordinarily”.
Pre-benefit activities New sections 11E to 11H inserted After section 11D, insert: 15 “11E Pre-benefit activities: requirements “(1) This section applies to a person if the person is— jobseeker support; or sole parent support; or a person who contacts the department on or after 15 July 2013 requesting financial assistance under this 20 Act, if the chief executive considers that the appropriate financial assistance would be a benefit that is— “(i) “(ii) “(iii) an emergency benefit; or the spouse or partner (if, and only if, he or she is a spouse or partner who is not receiving or applying for a main benefit under this Act (as defined in section 3(1)), New Zealand superannuation, or a veteran’s pension, in his or her own right) of a person who contacts the de- 30 partment on or after 15 July 2013 requesting financial assistance under this Act, if the chief executive consid- ers that the appropriate financial assistance would be a benefit that is— “(i) jobseeker support; or 25 35 “(a) “(b) 16 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 9 “(ii) a supported living payment on the grounds of sickness, injury, disability, or total blindness; or “(iii) an emergency benefit.
“(2) The chief executive may (for the purpose stated in sec- tion 1A(a)(ii)) require a person to whom this section applies 5 (unless the chief executive has determined that the person has not the capacity to seek, undertake, and be available for part-time work), to do any or all of the following: “(a) “(b) undertake 1 or more stated pre-benefit activities: at any time before the benefit to which subsection 10 (1)(a) or (b) applies commences, attend and participate in any interview for an opportunity of suitable employ- ment to which the person is referred by the chief execu- tive: at any time before the benefit to which subsection 15 (1)(a) or (b) applies commences, accept any offer of suitable employment (whether or not the offer results from an interview of the kind described in paragraph (b)).
“(c) “(b) “(3) Pre-benefit activity, in this section and sections 11F to 20 11H, means an activity that is not an activity in the community (as defined in section 3(1)), but is all or any of the following: attending and participating in an employment related “(a) seminar provided by the department or by any other person approved by the chief executive for the purpose: 25 attending and participating in employment related train- ing approved by the chief executive for the purpose: attending and participating in any interview with an of- ficer of the department: completing any self-assessment or planning required by 30 the chief executive: any other activity stated in regulations under sec- tion 132J.
“(d) “(e) “(c) “(4) Suitable employment, for the purposes of subsection (2),— “(a) in relation to a person who has a dependent child aged 35 under 14 years, and to whom this section applies by virtue of subsection (1)(a)(ii) or (b), means employ- ment that would be suitable employment within the 17 Part 1 cl 9 Social Security (Benefit Categories and Work Focus) Amendment Bill “(b) meaning of section 3(1) if he or she were a part-time work-tested beneficiary: in relation to a person for whom the chief executive considers that the appropriate financial assistance under this Act would be jobseeker support on the ground of 5 sickness, injury, or disability, means employment that would be suitable employment within the meaning of section 3(1) if he or she were a part-time work-tested beneficiary: in relation to any other person, means employment that 10 would be suitable employment within the meaning of section 3(1) if he or she were a work-tested beneficiary.
“(5) A requirement under subsection (2) may be oral or writ- ten and, in the case only of a requirement under subsection (2)(a), may be revoked orally or in writing in accordance with 15 subsection (7).

“(c) “(6) A pre-benefit activity stated under subsection (2)(a) must be available for the person to undertake not later than 10 working days after the date of first contact.
“(7) The chief executive may revoke a requirement that the person 20 undertake a pre-benefit activity under subsection (2)(a) if, and only if, the chief executive considers the requirement is no longer reasonable.
“11F Pre-benefit activities: department must explain requirements The chief executive must take reasonable and appropriate steps to make every person on whom any requirements are placed under section 11E(2) aware of the following: “(a) the person’s obligations in relation to the requirements; and the consequences of failure to comply with the require- ments; and “(b) 25 30 “(c) when a requirement is to be, or has been, revoked, and when the revocation takes, or took, effect.
“11G Pre-benefit activities: consequences of non-compliance 35 by applicant In this section,— “(1) 18 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 9 “applicant, means a person to whom section 11E(1)(a) ap- plies “specified benefit means the benefit 11E(1)(a) applies.
to which section “(2) The chief executive is not required to investigate under sec- 5 tion 12 a claim for the specified benefit made by the applicant unless satisfied that the applicant has undertaken any required pre-benefit activities.

“(4) “(3) Subsection (2) applies whether or not the applicant has com- pleted the form of application for the specified benefit.
If the applicant fails to undertake any required pre-benefit ac- tivities within 20 working days after the date of first contact, any application for the specified benefit the applicant has made lapses.

10 15 “(5) Subsection (4) overrides section 11D(7).

“(6) This subsection applies to an applicant if the chief executive considers that the applicant has, without a good and sufficient reason, failed to comply with a requirement under section 11E(2)(b) or (c).
If subsection (6) applies to an applicant, the chief executive 20 must, as the case requires,— “(a) “(b) refuse to grant the applicant the specified benefit; or terminate any grant of the specified benefit already made to the applicant.
“(7) “11H Pre-benefit activities: consequences of non-compliance by 25 “(1) applicant’s spouse or partner In this section,— “applicant means a person who contacts the department in accordance with section 11E(1)(b) “applicant’s spouse or partner means an applicant’s spouse 30 or partner to whom section 11E(1)(b) applies “specified benefit means tion 11E(1)(b) applies.
to which sec- the benefit “(2) This subsection applies to an applicant’s spouse or partner if the chief executive considers that the applicant’s spouse or 35 partner— 19 Part 1 cl 10 Social Security (Benefit Categories and Work Focus) Amendment Bill “(a) has failed to undertake a required pre-benefit activity within 20 working days after the date of the applicant’s first contact; or “(b) has failed without a good and sufficient reason to com- ply with a requirement under section 11E(2)(b) or (c).
5 “(3) If subsection (2) applies to an applicant’s spouse or partner, the applicant receives the following (if all or any of them is granted) at the following rate or rates only: “(a) the specified benefit—half of the rate of that benefit payable to a beneficiary who is married or in a civil 10 union or in a de facto relationship whose spouse or part- ner is not granted a benefit in his or her own right: the accommodation supplement, temporary additional support, or both (if any), to which the applicant and the applicant’s spouse or partner would apart from this 15 subsection be entitled—half of the otherwise applicable rate or rates.
“(b) “(4) Subsection (3) overrides other provisions of this Act but does not preclude a review under section 81.” Rights of appeal: work test obligations: drug testing obligations 20 10 Section 12J amended (Rights of appeal) After Before section 12J(1A), insert: “(1AAB) No appeal lies under subsection (1)(a) against a decision under section 116C(2)(a) against which an appeal lies under 25 section 10B(1)(g) to the medical board.” Sole parent support New Part 1B inserted Replace sections 21, 21A (as inserted on 15 October 2012 by section 35 of the Social Security (Youth Support and Work 30 Focus) Amendment Act 2012), and 24 and the cross-heading above section 21 with: 11 20 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 11 “Part 1B “Sole parent support “20A Sole parent support: meaning of applicant Applicant, in this section and sections 20B to 20H and Schedule 3A, means a person who is any of the following: “(a) 5 “(b) “(c) “(d) a person who is the mother or father of 1 or more de- pendent children and who is living apart from, and has lost the support of or is being inadequately maintained by, the person’s spouse or partner: a single person who is the mother or father of 1 or more 10 dependent children: a person whose marriage or civil union has been dis- solved, and who is the mother or father of 1 or more dependent children: a person who is the mother or father of 1 or more de- 15 pendent children and who has lost the regular support of the person’s spouse or partner because that
 spouse or partner is subject to a sentence of imprisonment and is— “(i) serving the sentence in a prison (as defined in 20 section 3(1) of the Corrections Act 2004); or subject to release conditions (as defined in sec- tion 4(1) of the Parole Act 2002) that prevent him or her undertaking employment: “(ii) “(e) “(f) a person who is the mother or father of 1 or more de- 25 pendent children and who has lost the regular support of the person’s spouse or partner because that spouse or partner is subject to a
 sentence of supervision, intensive supervision, or home detention and is subject to condi- tions (including post-detention conditions of a sentence 30 of home detention) that prevent that spouse or partner from undertaking employment: a person who is the mother or father of 1 or more de- pendent children and whose spouse or partner has died.
“20B Sole parent support: when dependent child may be 35 regarded as applicant’s child The chief executive may, in his or her discretion, regard a de- pendent child as being a child of an applicant, and the applicant 21 Part 1 cl 11 Social Security (Benefit Categories and Work Focus) Amendment Bill as being the mother or father of the child, for the purposes of sections 20A and 20C to 20H and Schedule 3A, if— “(a) the child— “(i) “(ii) was at any time maintained by the applicant’s 5 is being maintained by the applicant; and spouse or partner; or “(b) neither an orphan’s benefit nor an unsupported child’s benefit is payable in respect of the child, but— “(i) section 28(a) is complied with for each of the child’s natural or adoptive parents; or section 29(b) is complied with for care for the child and full provision for the child’s support; or “(ii) 10 “(c) the child’s parents are unwilling to support the child because of circumstances the chief executive considers 15 exceptional.
“20C Split custody “(1) This section applies to the parents of 2 or more dependent chil- dren if,— “(a) “(b) “(c) the parents are living apart; and each parent is the principal caregiver of 1 or more of the children; and but for this section, both parents would be entitled to sole parent support.
20 “(2) Only 1 of the 2 parents is entitled to sole parent support, and 25 the parent who is entitled to sole parent support must be— “(a) the parent already receiving sole parent support in re- spect of any of the children; or the parent whom the chief executive considers was the principal caregiver in respect of the children immedi- 30 ately before the parents began living apart, if no parent is already receiving sole parent support in respect of any of the children; or the parent who is the principal caregiver in respect of the youngest child, if neither parent was the principal 35 caregiver in respect of the children before they began living apart, or the chief executive is unable to ascertain “(b) “(c) 22 5 10 15 20 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 11 which parent was the principal caregiver in respect of the children immediately before they began living apart.
“(3) This section does not apply if each parent has become the prin- cipal caregiver in respect of at least 1 child under 1 or more orders— “(a) made by a court of competent jurisdiction; and “(b) about the role of providing day-to-day care for children.

“(4) Child, in this section, means a dependent child of the par- ents— “(a) “(b) born of their relationship; or adopted by the parents or by one of the parents during their marriage or civil union or de facto relationship.
“20D Sole parent support: standard eligibility requirements “(1) An applicant is entitled to sole parent support if the chief ex- ecutive is satisfied that the applicant— “(a) meets the residential requirements in section 74AA; and “(b) “(c) is aged 19 years or over; and is caring for a dependent child who is, or dependent children 1 or more of whom is or are, aged under 14 years; and is either— “(i) “(d) a person in section 20A(a), (b), (c), or (f) who is not living together with his or her spouse or partner (if any), or the other parent (if any) of that dependent child or of all or any of those depend- 25 ent children; or a person in section 20A(d) or (e).
“(ii) “(2) Subsection (1) is subject to the other provisions of this Act.
“20E Sole parent support: obligations on beneficiaries A person who has been granted and receives sole parent sup- 30 port under section 20D must— “(a) comply with any obligation arising under section 60Q; and if he or she is a person to whom section 60RA applies, comply with the person’s social obligations under sec- 35 tion 60RA(3); and “(b) 23 Part 1 cl 11 Social Security (Benefit Categories and Work Focus) Amendment Bill “(c) if he or she is a work-tested sole parent support benefi- ciary, comply with the work test.
“20F Sole parent support: payment “(1) Sole parent support commences in accordance with section 80.

“(2) Sole parent support must be paid in weekly instalments, in 5 accordance with section 82.

“(3) Payment of sole parent support may be suspended or cancelled in accordance with sections 80 to 82.

“(4) Subsection (3) does not limit any other provision in this Act.

“20G Sole parent support: rate “(1) Sole parent support must be paid to a person granted that bene- 10 fit at the rate in Schedule 3A.
“(2) Subsection (1) is subject to the other provisions of this Act.

“20H Sole parent support: expiry, and replacement with jobseeker support, when youngest dependent child 14 “(1) An applicant’s sole parent support under section 20D expires on the date that the applicant’s youngest dependent child turns 14 years old.
“(2) But the applicant’s sole parent support is replaced with job- seeker support under section 88B that— commences on that date; and “(a) is deemed to be granted to him or her under sec- “(b) tion 88B as if he or she had applied for it.
“(2A) However, if the chief executive believes on reasonable 15 20 grounds that the applicant would not be eligible for jobseeker 25 support on the date that the applicant’s youngest dependent child turns 14 years old,— “(a) the applicant is not transferred by subsection (2) to jobseeker support; and the chief executive must instead invite the applicant 30 to apply for jobseeker support in accordance with sec- tion 11D.
“(b) “(2B) Obligations or exemptions that immediately before the expiry under this section of the applicant’s sole parent support under section 20D apply to the applicant continue after that expiry 35 24 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 14 in respect of jobseeker support to which the applicant is trans- ferred by subsection (2), but only if those obligations or ex- emptions are all or any of the following: “(a) obligations under sections 60GAG, 60RA, 60Q(2), 100B, 102, and 102A: exemptions under section 105 (other than any ex- emption that, under regulations made under sec- tion 123D(a), is not available to a person receiving jobseeker support).
“(b) 5 “(3) This section does not preclude a review under section 81 of 10 whether the applicant satisfies the conditions of entitlement for jobseekeer support under section 88B.” Sections 27A to 27D and 27H(1) and (2) and cross-heading above section 27A repealed Repeal sections 27A to 27D and 27H(1) and (2) and the cross- 15 heading above section 27A.

Supported living payment Sections 27G and 27H(1B) repealed Repeal sections 27G and 27H(1B).
Section 39F renumbered and amended (Purpose of invalid’s benefit) Section 39F is renumbered as section 40A.

Replace the heading to section 39F with “Supported living payment: purpose”.

In section 39F(1),— (a) replace “invalid’s benefit” with “supported living pay- ment”; and replace “people who—” with “people because they are people who fall within any 1 of the following 3 categor- ies:”.

(b) In section 39F(1)(a), before “have,”, insert “people who”, and replace “; or” with “:”.
In section 39F(1)(b), before “are”, insert “people who”, and replace “.” with “:”.
20 25 30 35 (6) After section 39F(1)(b), insert: 25 12 13 14 (1) (2) (3) (4) (5) Part 1 cl 15 Social Security (Benefit Categories and Work Focus) Amendment Bill “(c) people who are required to give full-time care and at- tention at home to some other person (other than their spouse or partner) who is a patient requiring care.” Replace section 39F(2) with: (7) “(2) The purpose in subsection (1) is to be considered in the context 5 of— “(a) “(b) the expectation that people of working age support themselves directly or indirectly through employment; and the fact that other measures are available for people who 10 are temporarily unable to support themselves.” 15 (1) (2) (3) (4) (5) (6) Section 40 renumbered and amended (Invalid’s benefit) Section 40 is renumbered as section 40B.
Replace the heading to section 40 with “Supported living payment: on grounds of sickness, injury, disability, or total 15 blindness: eligibility and ineligibility”.

In section 40(1), replace “who is aged 16 years or more is eligible for an invalid’s benefit if the chief executive is satisfied that—” with “is entitled to the supported living payment under this section if he or she satisfies the criteria in subsections 20 (1A) and (1B), and—”.

Repeal section 40(1)(aa).


In section 40(1)(b), after “disability”, insert “arising (in either case)”.

In section 40(1)(b), replace “congenital defect” with “existing 25 from birth”.

(7) After section 40(1), insert: “(1A) An applicant for the supported living payment under this sec- tion must be aged at least 16 years.
“(1B) An applicant for the supported living payment under this sec- 30 tion must meet the residential requirements in section 74AA.” In section 40(3A), replace “section 44A” with “section 40K”.

In section 40(4) and (5), replace “an invalid’s benefit” with “a supported living payment under this section”.

(8) (9) (10) Repeal section 40(6).
35 26 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 16 16 New sections 40C to 40HA inserted After section 40 (as renumbered by section 15(1)), insert: “40C Supported living payment: on grounds of sickness, injury, disability, or total blindness: medical examination “(1) This section applies to a person who is an applicant for, or a 5 person in receipt of, a supported living payment on the grounds of sickness, injury, disability, or total blindness.
“(2) The chief executive may require the applicant or beneficiary to submit himself or herself for examination by a medical practi- tioner or a psychologist.

The medical practitioner or psychol- 10 ogist must be agreed for the purpose between the applicant or beneficiary and the chief executive, or, failing agreement, must be nominated by the chief executive.
“(3) The medical practitioner or psychologist must certify whether, in the medical practitioner’s or psychologist’s opinion, the ap- 15 plicant or beneficiary is, or is not, or whether there is doubt about whether the applicant or beneficiary is or is not, (as the case may be)— “(a) permanently and severely restricted in his or her cap- acity for work; or totally blind.

“(b) 20 “(4) A certificate given under this section must state the grounds upon which the opinion is founded.
“(5) A certificate given under this section must, in the case of doubt referred to in subsection (3), and may, in any other case, 25 indicate a date for review of the permanency, severity, or both, of the applicant’s or beneficiary’s sickness, injury, or disability.
“40D Supported living payment: on grounds of caring for patient requiring care: eligibility “(1) A person is entitled to a supported living payment under this 30 section if he or she satisfies the criteria in subsections (2) and (3), and the chief executive is satisfied that the person is required to give full-time care and attention at home to some other person (other than the person’s spouse or partner) (in this section and section 40E called the patient) who would 35 otherwise have to receive care that is, or is equivalent to,— 27 Part 1 cl 16 Social Security (Benefit Categories and Work Focus) Amendment Bill “(a) “(b) hospital care, rest home care, or residential disability care, within the meaning of the Health and Disability Services (Safety) Act 2001; or care of the kind referred to in section 141 of the Chil- dren, Young Persons, and Their Families Act 1989 5 (which is a section relating to care of severely disabled children and young persons).
“(2) An applicant must not be granted a supported living payment under this section unless,— “(a) in the case of an applicant without a dependent child, he 10 or she is aged at least 18 years: in any other case, he or she is aged at least 19 years.

“(b) “(3) An applicant for a supported living payment under this section must meet the residential requirements in section 74AA.
“(4) A benefit granted under this section may, in the chief ex- 15 ecutive’s discretion, be continued for a period not exceeding 28 days even though the patient was not during that period in the full-time care of the beneficiary.
“40E Supported living payment: on grounds of caring for patient requiring care: medical examination 20 “(b) “(1) Every application for a supported living payment on the grounds of care at home for a patient requiring care must be supported by the certificate of a medical practitioner certify- ing— “(a) that the patient requires the applicant’s full-time care 25 and attention; and that, but for that care and attention, the patient would have to receive care that is, or that is equivalent to, care of a kind specified in section 40D(1)(a) or (b).
“(2) The chief executive may, in the chief executive’s discretion, 30 require that the patient be examined by a medical practitioner to be nominated for the purpose by the chief executive.

“(3) A medical practitioner nominated under subsection (2) must determine whether the patient would, but for the applicant’s full-time care and attention, have to receive care that is, or is 35 equivalent to, care of a kind specified in section 40D(1)(a) or (b).
28 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 16 “40F Supported living payment: on grounds of sickness, injury, disability, or total blindness: beneficiary’s obligations A person who is granted a supported living payment on the grounds of sickness, injury, disability, or total blindness, must,— “(a) 5 if section 60Q(1)(bb) applies to the person, comply with any requirements under section 60Q(3); and if he or she is a person who has 1 or more dependent children to whom section 60RA applies, comply with the person’s social obligations under section 60RA(3).
10 “(b) “40G Supported living payment: on grounds of sickness, injury, disability, or total blindness: spouse’s or partner’s obligations “(1) This section applies to the spouse or partner of a person granted a supported living payment on the grounds of sick- 15 ness, injury, disability, or total blindness, at a work-test couple rate.
“(2) A person to whom this section applies— “(a) must comply with all obligations arising under section “(b) “(c) 60Q; and if he or she is a person who has 1 or more depend- ent children, to whom section 60RA applies, must comply with the person’s social obligations under section 60RA(3); and if he or she is a work-tested spouse or partner, must 25 comply with the work test.
20 “40H Supported living payment: on grounds of caring for patient requiring care: beneficiary’s obligations A person who is granted a supported living payment on the grounds of care at home for a patient requiring care, must,— 30 if section 60Q(1)(bc) applies to the person, comply “(a) with any requirements under section 60Q(3); and if he or she is a person who has 1 or more dependent children to whom section 60RA applies, comply with the person’s social obligations under section 60RA(3).
35 “(b) 29 Part 1 cl 17 Social Security (Benefit Categories and Work Focus) Amendment Bill “40HA Supported living payment: on ground of caring for patient requiring care: spouse’s or partner’s obligations A person must comply with the person’s social obligations under section 60RA(3) if the person— “(a) “(b) is a person with 1 or more dependent children; and is the spouse or partner of (whether or not receiving all or any of the benefit instead of, or as well as) the person who is granted a benefit that is a supported living payment on the ground of care at home for a patient requiring care; and is not a young person on whom obligations are placed under section 171(1) or (2).” “(c) 17 Sections 42 and 42A replaced Replace sections 42 and 42A with: “40I Supported living payment: rates “(1) A supported living payment must be paid to a person granted that benefit at the appropriate rate in Schedule 6.
“(2) Subsection (1) is subject to the provisions of this Act.

“(3) This subsection applies to a person who is married or in a civil “(b) union or in a de facto relationship and— “(a) has a psychiatric, intellectual, physical, or sensory dis- ability; and is receiving long-term residential care in a hospital or rest home because he or she has that disability; but has not been means assessed under Part 4.
“(4) A supported living payment payable to a person to whom sub- section (3) applies is not apportioned under section 83 and must be paid, despite subsection (1), at half of the appropri- ate rate in Schedule 6.
“(c) “(5) A supported living payment payable to the spouse or partner 30 of a person to whom subsection (3) applies (being a spouse or partner who is not receiving long-term residential care in a hospital or rest home) is not apportioned under section 83 and must be paid, despite subsection (1), at the rate in Schedule 6 that would be appropriate if he or she were entitled to a sup- 35 ported living payment in his or her own right and were single.” 30 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 20 Section 43 renumbered and amended (Subsidy on earnings of blind beneficiaries) Section 43 is renumbered as section 40J.
Replace the heading to section 43 with “Supported living payment: subsidy on totally blind beneficiaries’ earnings”.
5 Sections 44 and 44A replaced Replace sections 44 and 44A with: 18 (1) (2) 19 “40K Supported living payment: on grounds of sickness, injury, or disability: encouraging open employment “(1) The purpose of this section is to encourage specified recipients 10 of a supported living payment to undertake open employment in order to establish whether they can sustain that employment and cease receiving that benefit.
“(2) This section applies to a person who— “(a) “(b) is receiving a supported living payment granted on the 15 ground of permanent and severe restriction of capacity for work; but is with the chief executive’s agreement undertaking open employment for a period agreed with the chief executive in order to establish whether the person can 20 sustain open employment.
“(3) The period of open employment agreed with the chief execu- tive under subsection (2)(b) must not exceed 26 weeks (even if that employment is, or is expected to be, for a period that is longer than the agreed period).
“(4) A person to whom subsection (2) applies does not lose his or her entitlement to a supported living payment by reason only of working 15 or more hours a week in open employment during the agreed period.” Sickness benefit abolished 20 Sections 54, 54A, 54B, 54D, 54DA, 54E, and 54F and cross-heading above section 54 repealed Repeal sections 54, 54A, 54B, 54D, 54DA, 54E, and 54F and the cross-heading above section 54.
25 30 31 Part 1 cl 21 Social Security (Benefit Categories and Work Focus) Amendment Bill Beneficiaries having additional dependent child: exempting people resident in certain overseas countries, and eligibility for sole parent support 21 Section 60GAE amended (Beneficiaries having additional dependent child: general) 5 (1) After section 60GAE(1) (as inserted on 15 October 2012 by section 39 of the Social Security (Youth Support and Work Focus) Amendment Act 2012), insert: “(1A) Subsection (1) does not apply to a person at a time when— 10 (2) “(a) there is in force under section 19(1) of the Social Wel- fare (Transitional Provisions) Act 1990 an order declar- ing that the provisions contained in an agreement or convention with the government of another country set out in a schedule to the order have force and effect so 15 far as they relate to New Zealand; and “(b) he or she is ordinarily resident in that country.” In section 60GAE(2) (as so inserted), after “section 60Q(1)”, insert “or for the purposes of section 20D(1)(c) (which re- lates to eligibility for sole parent support)”.
(3) After section 60GAE(3) (as so inserted), insert: “(3A) In applying subsection (2) to a beneficiary of a kind speci- fied in 1 of the following paragraphs for the purposes only of section 20D(1)(c) (which relates to eligibility for sole parent support), ‘An additional dependent child aged 1 or over’ must 25 be read as ‘An additional dependent child at all times after that child is born’: “(a) 20 a beneficiary transferred to jobseeker support by clause 2(9) of Schedule 32: a beneficiary whose sole parent support under section 30 20D expired on the date that the beneficiary’s youngest dependent child turned 14 years old, and has been re- placed with jobseeker support, under section 20H.” “(b) 32 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 22 Obligations to work with contracted service providers 22 New section 60GAG inserted (Obligations to work with contracted service providers) After section 60GAF (as inserted on 15 October 2012 by sec- 5 tion 39 of the Social Security (Youth Support and Work Focus) Amendment Act 2012), insert: “60GAG Obligations to work with contracted service providers “(1) A person who is receiving in his or her own right, or as the spouse or partner of the person granted the benefit concerned, 10 an emergency benefit, sole parent support, supported living payment, or jobseeker support, is subject to the following obli- gations: “(a) when required by the chief executive, to attend and participate in any interview with a contracted service 15 provider
 specified by the chief executive: “(b) when required by the chief executive, to attend and par- ticipate in any assessment of the person undertaken on behalf of the chief executive by a contracted service provider specified by the chief executive: 20 “(c) when required by the chief executive, to co-operate with a contracted service provider specified by the chief ex- ecutive in facilitating the provision of the services that the provider has been contracted to provide in relation to the person’s obligations under
 all or any of the fol- 25 lowing: “(i) “(ii) section 60RA(3) (social obligations): “(iii) conditions (subject to which an emergency bene- section 60Q (work preparation obligations): fit is granted or continued) that the chief execu- 30 tive thinks fit to impose, or determines, under section 61(1) or (3): “(iv) section 102A (work test obligations): “(d) when required by the chief executive, to report to a con- tracted service provider specified by the chief executive 35 on the person’s compliance with the person’s obliga- tions under this Act as often as, and in the manner that, the provider reasonably requires.
33 Part 1 cl 23 Social Security (Benefit Categories and Work Focus) Amendment Bill “(2) The chief executive must take reasonable and appropriate steps to make every person on whom obligations are imposed under subsection (1) aware of— those obligations; and “(a) the consequences of failure to comply with those obli- 5 “(b) gations.
“(3) A person who fails without a good and sufficient reason to comply with an obligation imposed on the person under sub- section (1) is subject to the sanctions under section 117.” Work preparation exercise 10 23 Section 60HA repealed (Work preparation exercise) Repeal section 60HA.
24 (1) Certain obligations may be placed on beneficiaries and their spouses and partners Section 60Q amended (Certain obligations may be placed 15 on beneficiaries and their spouses and partners) Before section 60Q(1)(c) (as replaced on 15 October 2012 by section 40 of the Social Security (Youth Support and Work Focus) Amendment Act 2012), insert: “(ba) is a sole parent with a dependent child under the age 20 of 1 year, and is a recipient of a benefit under sec- tion 88B (jobseeker support) instead of a benefit under section 20D (sole parent support) solely because that child is an additional dependent child (within the mean- ing of section 60GAE(1)); or 25 “(bb) is the recipient of a benefit under section 40B (sup- ported living payment on the grounds of sickness, in- jury, disability, or total blindness) if the chief executive is satisfied that the person has the capacity to comply with obligations under subsection (3); or “(bc) is the recipient of a benefit under section 40D (sup- ported living payment on the grounds of caring for pa- tient requiring care) if the chief executive is satisfied that the person has the capacity to comply with require- ments under subsection (3); or”.
30 35 (2) After section 60Q(1) (as so replaced), insert: 34 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 25 “(1A) This section also applies (despite subsection (1)) to a person who— “(a) is a work-tested beneficiary (other than one to whom subsection (1)(ba) applies); and “(b) has been granted under section 88I a deferral of the 5 person’s work test obligations.
“(1B) The chief executive may require a recipient of a benefit under section 40B or 40D to attend and participate in an interview with an officer of the department, or other person on behalf of the chief executive, for the purpose of helping the chief execu- 10 tive to determine under subsection (1)(bb) or (bc) whether the recipient has the capacity to comply with obligations under subsection (3).” In section 60Q(2) (as so replaced), after “A person to whom this section applies”, insert “(other than a person to whom sub- 15 section (1)(bb) or (bc) applies)”.
In section 60Q(3) (as so replaced), after “a person to whom this section applies”, insert “(including, without limitation, a person to whom subsection (1)(bb) or (bc) applies)”.
(3) (4) (5) After section 60Q(3)(a) (as so replaced), insert: “(aa) when required by the chief executive, to attend and par- ticipate in an interview (other than one for the purpose specified in subsection (1B)) with an officer of the de- partment or other person on behalf of the chief execu- tive: 20 25 “(ab) when required by the chief executive, to report to the department or to any other person acting on behalf of the chief executive on the person’s compliance with the person’s obligations under this section as often as, and in the manner that, the chief executive reasonably re- 30 quires:”.
Social obligations of certain beneficiaries with dependent children 25 New sections 60RA to 60RC inserted After section 60R (as replaced on 15 October 2012 by sec- 35 tion 40 of the Social Security (Youth Support and Work Focus) Amendment Act 2012), insert: 35 Part 1 cl 25 Social Security (Benefit Categories and Work Focus) Amendment Bill “60RA Social obligations of certain beneficiaries with dependent children “(1) This section applies to a person if the person— “(a) “(b) “(c) is a person with 1 or more dependent children; and is receiving (either as the person granted the benefit, 5 or as the spouse or partner of the person granted the benefit) a benefit that is jobseeker support, sole parent support, a supported living payment, or an emergency benefit., or is the spouse or partner of (whether or not receiving all or any of the benefit instead of, or as well 10 as) that person; and is not a young person on whom obligations are placed under section 171(1) or (2).
“(2) A dependent child (as defined in section 3(1)) of a person re- ceiving granted a benefit described in subsection (1)(b) is 15 (despite section 3) for the purposes of this section and of all related provisions in this Act (for example, for the purposes of section 60RC) also a dependent child of that person’s spouse or partner (if any).
“(3) A person to whom this section applies has the following social 20 obligations: “(a) to take all reasonable steps to ensure that every depend- ent child aged 3 years or more but less than 6 years 5 years and who is not enrolled at and regularly attend- ing a registered school (as defined in section 2(1) of the 25 Education Act 1989) is— “(i) enrolled in an approved a recognised early child- hood education programme (as defined for the purposes of this subsection in regulations made under section 132AC in section 60RAB(1)); 30 and attending that programme to the minimum ex- tent prescribed, and otherwise or otherwise in the manner prescribed, for the purposes of this subparagraph by regulations made under sec- 35 tion 132; and “(ii) “(ab) to take all reasonable steps to ensure that every depend- ent child aged 5 years or more but less than 6 years, and who is not a dependent child in respect of whom the per- 36 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 25 10 “(ii) son would qualify for an exemption from some or all of the person’s work test obligations on the active teaching out of school grounds in section 60RAB(2), is— “(i) enrolled in a recognised early childhood edu- cation programme (as defined in section 5 60RAB(1)) and attending that programme to the minimum extent prescribed, or otherwise in the manner prescribed, for the purposes of this subparagraph by regulations made under section 132; or enrolled at a registered school (as defined in sec- tion 2(1) of the
 Education Act 1989) and regu- larly attending that registered school; and to take all reasonable steps to ensure that every depend- ent child aged 6 years or more but less than 16 years, 15 or aged 5 years or more but less than 6 years and who is not enrolled in and regularly attending an approved early childhood education programme, is (except inso- far as the child is aged 6 years or more and is excepted or exempted from the requirements of sections 20 and 20 25 of the Education Act 1989)— “(i) enrolled at a
 registered school (as defined in sec- tion 2(1) of that Act); and “(ii) regularly attending that registered school; and to take all reasonable steps to ensure that every depend- 25 ent child is enrolled with a primary health care provider (for example, a primary health organisation, or a med- ical practitioner whose scope of practice is or includes general practice); and to take all reasonable steps to ensure that every depend- 30 ent child under the age of 5 years is up to date with core checks (as defined in section 60RAB(4)) under— “(i) the that 15 July 2013 was known as Well Child; or any similar programme established in its place; 35 and immediately programme before “(ii) “(b) “(c) “(d) “(e) when required by the chief executive, to attend and par- ticipate in any interview with an officer of the depart- 37 Part 1 cl 25 Social Security (Benefit Categories and Work Focus) Amendment Bill ment or other person on behalf of the chief executive; and “(f) when required by the chief executive, to report to the department or to any other person acting on behalf of the chief executive on the person’s compliance with the 5 person’s social obligations as often as, and in the man- ner that, the chief executive reasonably requires.
“60RAB Social obligations: definitions, work test obligations exemption grounds, and regulations “(1) Recognised early childhood education programme, in sec- 10 tion 60RA and this section, means— “(a) “(b) “(c) an approved early childhood education programme (as defined for the purposes of section 60RA(3) in regu- lations made under section 132AC); or an early childhood education programme approved by 15 the chief executive having regard to all relevant ap- proval criteria (if any) prescribed for the purposes of this paragraph in any general or special directions given to the chief executive in writing by the Minister under section 5; or a programme of early childhood education provided by a school that is currently designated under sec- tion 152(1) of the Education Act 1989 as a correspond- ence school.
20 “(2) The active teaching out of school grounds mentioned in sec- 25 tion 60RA(3)(ab) on which a person to whom section 60RA applies would qualify for an exemption from some or all of the person’s work test obligations in respect of a dependent child (aged 5 years or more but less than 6 years) of the person, are the grounds specified in— “(a) regulation 6(2)(c) of the Social Security (Exemptions under Section 105) Regulations 1998; or an enactment that, with or without modification, re- places, or that corresponds to, that enactment.
“(3) Regulations made under section 132 that prescribe, for the pur- 35 poses of section 60RA(3)(a)(ii) and (ab)(i), the minimum extent of, or other required manner of, attending a recognised “(b) 30 38 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 25 early childhood education programme may, without limita- tion,— “(a) prescribe, for all or any recognised early childhood pro- grammes, target numbers of hours of attendance: “(b) prescribe different minimum numbers of hours of at- 5 tendance for all or any different recognised early child- hood programmes.
“(4) Core check, for a child and a programme to which section of the child’s health and well-being; and 60RA(3)(d) applies, means a check— “(a) “(b) done under, and identified in contract or funding ar- rangements as an essential part of, the programme; and funded, directly or indirectly, through Vote Health.
“(c) “60RB Social obligations: department must explain requirements The chief executive must take reasonable and appropriate steps to make every beneficiary who has social obligations under section 60RA(3) aware of— “(a) the beneficiary’s social obligations under section 60RA(3); and the consequences of failure to comply with them.
“(b) 10 15 20 “60RC Social obligations: sanctions for failures to comply “(1) A beneficiary who fails without good and sufficient reason to comply with a social obligation is, except as provided in sub- sections (2) and (3), subject to the sanctions in section 117.
25 “(2) A beneficiary’s failure to comply with the social obligation in section 60RA(3)(b) (which relates to specified dependent children being enrolled at and regularly attending a registered school) cannot be the subject of sanctions under section 117 if that failure is the subject of a prosecution commenced against 30 the beneficiary, and not withdrawn before it is finally deter- mined, for an offence against— “(a) section 24(1) of the Education Act 1989 (failure to en- rol); or (as the case requires); or section 29(1) of the Education Act 1989 (irregular at- 35 tendance).
“(b) 39 Part 1 cl 25A Social Security (Benefit Categories and Work Focus) Amendment Bill “(3) Before giving the beneficiary a notice under section 113, and imposing a sanction under section 117, for a bene- ficiary’s failure to comply with a social obligation under section 60RA(3), the chief executive must first be satisfied that, on at least 3 previous occasions, the department has had 5 communication (of any kind, and in any manner) with the beneficiary in respect of the beneficiary’s compliance with, or an actual or potential failure of the beneficiary to comply with, any social obligation of the beneficiary.
“(4) This subsection applies to a beneficiary on whom sanctions in 10 section 117 have been imposed in respect of a failure by the beneficiary without good and sufficient reason to comply with a social obligation.

“(5) The chief executive may give a beneficiary to whom subsec- tion (4) applies a notice (to be delivered in accordance with 15 section 86J) to the effect that the department is to intensify its case management support in respect of the beneficiary.
“(6) A beneficiary to whom a notice under subsection (5) has been delivered in accordance with section 86J must, when re- quired by the chief executive, attend and participate in any 20 interview with an officer of the department.” Transfer to emergency benefit of certain people 65 years old or older 25A Section 61 amended (Chief executive may grant emergency benefit in cases of hardship) (1) After section 61(1A), insert: “(1B) This subsection applies to a person if, after the commence- ment of this subsection and before 15 July 2013, the person is aged 65 years old or older and is receiving a benefit under this Act that is not— “(a) a domestic purposes benefit for care of the sick or in- firm; or an emergency benefit; or an invalid’s benefit; or temporary additional support.
“(b) “(c) “(d) “(1C) The chief executive may cancel the benefit being received by a person to whom subsection (1B) applies and grant the per- 40 25 30 35 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 27 son instead an emergency benefit payable at the same rate of benefit as the benefit the person was receiving.
“(1D) In exercising the power given by subsection (1C), the chief exercise discretion; or executive is not required to— “(a) “(b) determine whether the person would meet the require- ments in subsection (1) for an emergency benefit.” Section 61(1B) to (1D) (as inserted by subsection (1)) are repealed on 15 July 2013.
Social obligations of certain beneficiaries with dependent children New section 61AA inserted (Social obligations of person receiving granted emergency benefit) After section 61, insert: 5 10 (2) 26 “61AA Social obligations of person receiving granted 15 emergency benefit A person who is receiving an emergency benefit, and who is a person with 1 or more dependent children, must comply with the person’s social obligations under section 60RA(3).
if the person— “(a) “(b) is a person with 1 or more dependent children; and is a person granted a benefit that is an emergency bene- fit; and is not a young person on whom obligations are placed under section 171(1) or (2).” “(c) 20 25 27 Section 61A amended (Obligations of spouse or partner of person granted emergency benefit) In section 61A(1A)(a), replace “aged 6” with “aged 5”.
(1) (2) After section 61A(2), insert: “(3) A person with 1 or more dependent children, and who is re- 30 ceiving an emergency benefit as the spouse or partner of an- other person granted that benefit, must comply with the per- son’s social obligations under section 60RA(3).
if the per- son— “(a) is a person with 1 or more dependent children; and 35 41 Part 1 cl 28 Social Security (Benefit Categories and Work Focus) Amendment Bill “(b) “(c) is the spouse or partner of (whether or not receiving all or any of the benefit instead of, or as well as) a person granted a benefit that is an emergency benefit; and is not a young person on whom obligations are placed under section 171(1) or (2).” 5 Disability allowance: preferred supplier and funding of specified expenses 28 (1) Section 69C amended (Disability allowance) In section 69C(1), replace “Subject to subsections (2) to (4), the” with “The”.
10 (2) After section 69C(1), insert: “(1A) Subsection (1) is subject to subsections (2) to (4) and (7A) to (7E) of this section, and to regulations under sec- tion 132AD.” (3) After section 69C(7), insert: “(7A) This subsection applies to a person if— 15 “(a) “(b) “(c) any additional expenses arising from a disability relate to the supply of any goods or services to the person or a member of the person’s family; and all or a specified part of a disability allowance is granted 20 in respect of the supply of the goods or services and is not under section 82(3) wholly directed to be paid for any other purpose; and those goods or services are of a class, description, or kind supplied by a preferred supplier (being a preferred 25 supplier to, or in respect of, the area in which the per- son resides) under a contract entered into with the chief executive under section 125AA.
“(7B) If subsection (7A) applies to a person,— “(a) the person must, for every supply of the goods or ser- 30 vices after a nomination given to the person by the chief executive has come into force and while it remains in force, purchase the goods or services from a preferred supplier nominated in writing by the chief executive specified in that nomination and at the price determined 35 by the contract under section 125AA with that sup- plier; and 42 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 28 “(b) the chief executive must, despite subsections (1) to (7), pay all, or the specified part, of the disability allowance that is granted in respect of the supply of the goods or services to that supplier in consideration of the supply of the goods or services to the person or the person’s 5 family member.
“(7BA) A nomination under subsection (7B)(a)— “(a) may be given orally or in writing (but, if given orally, must as soon as practicable be confirmed in writing); and “(b) may from time to time be amended, revoked, or re- voked and replaced by the chief executive, to recognise changes in preferred suppliers or preferred supply con- tracts ending without also being replaced.
10 “(7BB) However, if the person’s net total benefit payments due to 15 be paid on a pay day (after deducting any redirection under section 82(3) or reduction or deduction required to be made from the person’s benefit payments for another purpose (for example, under an attachment order or a deduction notice)) are less than the amount required to pay the preferred supplier 20 on that pay day, the chief executive— “(a) is not required by subsection (7B)(b) to pay to the preferred supplier on that pay day all, or the specified part, of the person’s disability allowance due on that pay day; but 25 “(b) may pay the amount due to the preferred supplier on 1 or more later pay days from amounts of disability al- lowance or other benefit payments due to the person on those 1 or more later pay days.
“(7BC) Non-payment, or deferred payment, subsection (7BB) 30 does not reduce any amounts due to the preferred supplier from the person under, or make the chief executive or the Crown liable for breaching, the person’s contract of purchase.
“(7C) However, if the disability allowance granted to the person to whom subsection (7A) applies is granted at the maximum 35 appropriate rate specified in Schedule 19, the chief executive may, in the chief executive’s discretion, determine in writing that, despite subsection (7B),— 43 Part 1 cl 29 Social Security (Benefit Categories and Work Focus) Amendment Bill “(a) “(b) all, or the specified part, of the disability allowance that is granted in respect of the supply of the goods or ser- vices must be paid to the person for use only to purchase any 1 or more of the goods or services that the person chooses and that are goods or services in respect of the 5 supply of which the disability allowance is granted; and if the goods or services that the person chooses and pur- chases under paragraph (a) are goods or services sup- plied by the nominated preferred supplier under the con- tract entered into with the chief executive under sec- 10 tion 125AA, then the person must purchase them from that supplier at the price determined by that contract.
“(7D) No appeal under this Act lies against any chief executive’s decision under subsections (7B) or to (7C).
“(7E) Subsections (7A) to (7D) are subject to (preferred supplier 15 transitional provisions) directions under section 125AA(5).” Residential requirements for certain benefits: people ordinarily resident overseas 20 Section 74AA amended (Residential requirements for certain benefits) Replace section 74AA(1)(c) with: “(c) except in the case of a person who is recognised as a refugee or a protected person in New Zealand under the Immigration Act 2009, has resided continuously in New Zealand for a period of at least 2 years at any one 25 time,— “(i) if subsection (1A) applies to the person,— “(A) before he or she applies for the benefit; or “(B) before a decision on his or her claim for the benefit is made under section 12; and in any other case, after the day on which para- graph (a) first applied to him or her.” In section 74AA(1A), replace “Subsection (1) does” with “Subsection (1)(a) and (b) do”.
“(ii) 30 29 (1) (2) 44 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 30 Effect on benefit of warrant to arrest beneficiary 30 New section 75B inserted (Effect on benefit of warrant to arrest beneficiary) After section 75A, insert: 5 “75B Effect on benefit of warrant to arrest beneficiary “(1) This section applies to a beneficiary who is not a young person (as defined in section 2(1) of the Children, Young Persons, and Their Families Act 1989), and who does not fall within a class, description, or kind of beneficiary excluded from the operation of this section by regulations made under section 132L an 10 excluded beneficiary (as defined in subsection (1A)), if the chief executive is satisfied (based on information available to the chief executive) that— “(a) criminal proceedings have been commenced against the beneficiary in a New Zealand court for an offence 15 (other than an offence of a class, description, or kind excluded from the operation of this paragraph by regu- lations made under section 132L); and a New Zealand court has (or 1 or more of the court’s Judges or Registrars has or have) in, or in connection 20 with, those criminal proceedings, issued a warrant for the beneficiary’s arrest; and at least 28 days have elapsed since the date on which the warrant was issued.
“(b) “(c) “(1A) Excluded beneficiary, in subsection (1), means,— 25 “(a) for the purposes of subsections (2) to (4), a benefi- ciary who is— “(i) a young person (as defined in section 2(1) of the Children, Young Persons, and Their Families Act 1989); or a beneficiary who is not receiving a main benefit under this Act, New Zealand superannuation, or a veteran’s pension; or “(ii) 30 “(iii) a beneficiary (for example, one who is receiving a main benefit under this Act, New Zealand super- 35 annuation, or a veteran’s pension, but) who falls within a class, description, or kind of beneficiary excluded from the operation of all of the provi- 45 Part 1 cl 30 Social Security (Benefit Categories and Work Focus) Amendment Bill sions of this section by regulations made under section 132L; and “(b) for the purposes of subsections (5) and (6), a benefi- ciary who is— “(i) a young person (as defined in section 2(1) of the 5 Children, Young Persons, and Their Families Act 1989); or a beneficiary who falls within a class, descrip- tion, or kind of beneficiary excluded from the op- eration of all of the provisions of this section by 10 regulations made under section 132L.
“(ii) “(2) The chief executive must as soon as practicable give the bene- ficiary a notice (to be delivered in accordance with section 86J) that— “(a) allows a period of 10 working days within which the 15 beneficiary may dispute that he or she is the person to whom the warrant to arrest applies or take steps to re- solve the warrant; and specifies the steps that the beneficiary may take to dis- pute that he or she is the person to whom the warrant to 20 arrest applies or to resolve the warrant; and specifies the consequences of the beneficiary’s not re- solving the warrant within that 10-working-day period.
“(2A) A notice under subsection (2) involving information sup- “(b) “(c) plied by the Ministry of Justice under section 126AC may be 25 combined with a notice of adverse action given under section 103(1) of the Privacy Act 1993.
“(3) This subsection applies to the beneficiary unless, at the end of the 10-working-day period specified in the notice, the chief executive is satisfied (based on evidence provided by the bene- 30 ficiary, or other information available to the chief executive, or both) of 1 of the following: “(a) that the beneficiary is not the person to whom the war- rant applies; or “(ab) that the beneficiary has taken all reasonable steps to re- 35 solve the warrant, but the warrant has for reasons be- yond the beneficiary’s control not been resolved; or that the warrant has been resolved.
“(b) 46 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 30 “(4) The benefit of a beneficiary to whom subsection (3) applies is not payable until the chief executive is satisfied (based on information provided by the beneficiary, otherwise available to the chief executive, or both) of 1 of the following: “(a) that the beneficiary is not the person to whom the war- 5 rant applies; or that the warrant has been resolved.
“(b) “(5) Despite subsections (1)(c) and (2) to (4), the chief execu- tive may suspend immediately the benefit of a beneficiary to whom subsection (1)(a) and (b) apply if satisfied that— “(a) the department has received from the New Zealand Po- lice a written request to suspend the beneficiary’s bene- fit on the ground that the Commissioner of Police on reasonable grounds considers the beneficiary to be a risk to public safety; and that request is signed by the Commissioner of Police or a constable who is of or above the level of position of inspector.
“(b) 10 15 “(6) As soon as is reasonably practicable after a suspension under subsection (5) of the benefit of a beneficiary, the chief ex- 20 ecutive must give the beneficiary a notice (to be delivered in accordance with section 86J) that— “(a) communicates the fact of, and reason for, the suspen- sion; and specifies the steps that the beneficiary may take to dis- 25 pute that he or she is the person to whom the warrant applies or to resolve the warrant.
“(b) “(7) The following apply to a benefit that is not payable under sub- section (4), or that is suspended under subsection (5), as if the benefit had been suspended under section 117: “(a) 30 section 80C (effect of sections 60H to 60M and section 80BA work test on entitlement to supplementary bene- fits and on spouses or partners): section 120 (modified effect in some cases of sanctions on rate of benefit for people married or in civil union or 35 de facto relationship): section 121 (effect of sanctions on benefit of sole par- ent).
“(b) “(c) 47 Part 1 cl 31 Social Security (Benefit Categories and Work Focus) Amendment Bill “(8) However, section 120(1) (which protects a spouse or partner), but no other provision of section 120, ceases to apply under subsection (7)(b) of this section to the benefit at the close of the 28th day after the date on which it becomes not payable under subsection (4) or, as the case requires, is suspended 5 under subsection (5).” When beneficiaries can be paid benefit while overseas, and suspensions of benefits based on discrepancies arising from departure information 31 Section 77 amended (Effect of absence of beneficiary from 10 New Zealand) (1AAA) In the heading to section 77, after “New Zealand”, insert “: provisions”.
Replace section 77(1), (2), (3), and (3A) with: (1) “(1) A benefit is not payable while a beneficiary is absent from New 15 Zealand unless the benefit is so payable under— “(a) “(b) the other provisions of this section; or any agreement or convention adopted under section 19 of the Social Welfare (Transitional Provisions) Act 1990; or sections 21 to 35 of the New Zealand Superannuation and Retirement Income Act 2001; or sections 74E to 74T of the War Pensions Act 1954.
“(c) “(d) 20 “(2) A benefit is payable to a beneficiary in respect of any 1 or more absences of the beneficiary from New Zealand equal to 25 or shorter than 4 weeks in total in any 52-week period if— “(a) the benefit is not a benefit of a kind specified in sub- section (2A); and the benefit would, but for those 1 or more absences, be payable to the beneficiary; and the chief executive is satisfied that the 1 or more ab- sences do not affect the beneficiary’s eligibility for the benefit.
“(b) “(c) “(2A) The kinds of benefits referred to in subsections (2)(a) and (3)(a) are— “(a) sole parent support for a work-tested beneficiary: 48 30 35 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 31 “(b) “(c) “(d) “(ab) supported living payment on the ground of sickness, injury, disability, or total blindness, under section 40B, for a work-tested spouse or partner: jobseeker support (other than jobseeker support for a spouse or partner who is not a work-tested spouse or 5 partner): an emergency benefit: any benefit that, but for the 1 or more absences referred to in subsection (2) or (3), would be payable to a beneficiary who is subject to 1 or more requirements 10 made under section 60Q(3): a youth payment or young parent payment.
“(3) The chief executive may, in the chief executive’s discretion, pay a benefit to a beneficiary in respect of any 1 or more ab- sences of the beneficiary from New Zealand equal to or shorter 15 than 4 weeks in total in any 52-week period if— “(a) “(e) “(b) “(c) the benefit is a benefit of a kind specified in subsection (2A); and the benefit would, but for those 1 or more absences, be payable to the beneficiary; and the chief executive is satisfied that the payment of the benefit complies with any applicable criteria prescribed for the purposes of this subsection by regulations made under section 132.
20 “(3AA) If satisfied that exceptional relevant qualifying circum- 25 stances (as defined for the purposes of this subsection by regulations made under section 132) apply to or in respect of a beneficiary, the chief executive may, in the chief executive’s discretion, determine that a benefit may be paid under sub- section (2) or (3) in respect of any 1 or more absences of the 30 beneficiary from New Zealand longer than 4 weeks in total in any 52-week period.
“(3A) The chief executive may, in the chief executive’s discretion, pay a supported living payment on the grounds of sickness, injury, disability, or total blindness for a period (not exceeding 35 6 weeks) in which a beneficiary (not being a work-tested spouse or partner of a supported living payment beneficiary) is absent from New Zealand for the sole or predominant purpose of competing in any overseas multinational or international 49 Part 1 cl 31 Social Security (Benefit Categories and Work Focus) Amendment Bill Special Olympic or Paralympic Games competition, if the chief executive is satisfied that the beneficiary would, but for his or her absence from New Zealand, continue to be eligible for the supported living payment.” 5 (2) After section 77(5), insert: “(6) A beneficiary who proposes to be absent from New Zealand has a duty imposed by this subsection to notify an officer of the department, before that absence, of the beneficiary’s forth- coming absence from New Zealand.
No beneficiary has any entitlement under subsection (2), (3), (3AA), (3A), or (4) to be 10 paid a benefit while overseas unless that beneficiary has per- formed that duty, and therefore notified an officer of the de- partment, before that absence, of the beneficiary’s forthcom- ing absence.
In particular, if the beneficiary fails to perform his or her duty 15 to notify under subsection (6), and after departing from New Zealand notifies an officer of the department of the benefi- ciary’s current absence from New Zealand, the beneficiary’s entitlement under subsection (2), (3), (3AA), (3A), or (4) to be paid a benefit while overseas (if the beneficiary is other- 20 wise qualified to be paid that benefit) commences no earlier than the date of the notification.
“(7) “(8) Despite subsections (6) and (7), the chief executive may, in his or her discretion, authorise the beneficiary’s entitlement under subsection (2), (3), (3AA), (3A), or (4) to commence 25 on or after the beneficiary’s departure if the chief executive is satisfied that— “(a) both the beneficiary’s absence from New Zealand, and the beneficiary’s failure to notify an officer of the de- partment, before that absence, of the beneficiary’s forth- 30 coming absence is from New Zealand, are justified for 1 or more good and sufficient humanitarian reasons (as defined for the purposes of this paragraph by regulations made under section 132); and the beneficiary after departing from New Zealand no- 35 tified an officer of the department of the beneficiary’s current absence from New Zealand as soon as was rea- sonably practicable in the circumstances.
“(9) Nothing in subsections (2) to (8) applies to the following: “(b) 50 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 33 “(a) New Zealand superannuation payable under the New Zealand Superannuation and Retirement Income Act 2001: “(b) veterans’ pensions payable under Part 6 of the War Pen- “(c) sions Act 1954: entitlements pursuant to an agreement or convention that is given effect in relation to New Zealand by an Order in Council made pursuant to section 19 of the So- cial Welfare (Transitional Provisions) Act 1990.” 5 31A New section 77A inserted (Effect of absence of beneficiary 10 from New Zealand: department must explain provisions) After section 77, insert: “77A Effect of absence of beneficiary from New Zealand: department must explain provisions The chief executive must take reasonable and appropriate 15 steps to make every person who is, or appears to the chief executive to be likely to be, affected by a provision of sec- tion 77, aware of— “(a) “(b) the existence, and substance of, the provision; and the consequences or possible consequences of the oper- 20 ation of the provision.” 32 (1) (2) Privacy Act 1993 amended This section amends the Privacy Act 1993.
In section 103(1A), replace “a sickness, training, unemploy- ment, independent youth, or emergency benefit, or a job search 25 allowance,” with “sole parent support, the supported living payment, an emergency benefit, jobseeker support, a young parent payment, or a youth payment,”.
Removing exemptions from jobseeker support benefit stand down period while person in approved training 30 33 Section 80 amended (Commencement of benefits) In section 80(5)(a), replace “an unemployment benefit, a youth payment,” with “a youth payment”.
51 Part 1 cl 34 Social Security (Benefit Categories and Work Focus) Amendment Bill Backdating benefits in specified circumstances Section 80BA amended (Calculation of stand down) Replace section 80BA(4)(b) with: “(b) a benefit commences on the day on which the stand down period ends if the application for the benefit is 5 received within 28 days after the date on which the per- son becomes entitled to the benefit, and the benefit is— “(i) “(ii) “(iii) jobseeker support granted on the grounds of sick- 10 sole parent support; or a supported living payment; or “(iv) “(v) ness, injury, or disability; or jobseeker support granted to a sole parent; or jobseeker support granted to a person who has recently lost the financial support of his or her spouse or partner by reason of death, the spouses 15 or partners commencing to live apart, or the end- ing of a de facto relationship; or “(vi) a youth payment; or “(vii) a young parent payment.” Standardising benefit end dates 20 Section 80BD amended (Ending of benefits) In section 80BD(2), replace “(7)” with “(8)”.
In section 80BD(3), replace “a widow’s, domestic purposes, invalid’s, or youth payment, or young parent payment, or an unemployment benefit or a sickness benefit,” with “sole par- 25 ent support, a supported living payment, jobseeker support, a youth payment, or a young parent payment”.
Replace section 80BD(5) with: In all other cases, every benefit ends on a date set by the chief executive (being a date no later than 28 days after the date of 30 the beneficiary’s death).” In section 80BD(6) and (6A), replace “8 weeks” with “28 days”.
In section 80BD(6A),— (a) replace “domestic purposes benefit under section 27G” 35 with “supported living payment under section 40D”; and 34 35 (1) (2) (3) “(5) (4) (5) 52 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 36 (b) replace “sick or infirm person concerned if the benefi- ciary stops caring for the sick or infirm person because the person” with “patient requiring care concerned if the beneficiary stops caring for that patient because that pa- tient”.
5 (6) After section 80BD(7), insert: “(8) A supported living payment on the grounds of sickness, injury, disability, or total blindness and that is cancelled on medical grounds ends on a date set by the chief executive (being a date no later than 28 days after that cancellation of that benefit) if—.
10 the person is, by reason of that cancellation, in hardship; “(a) or that cancellation of that benefit is a decision subject to an appeal under section 10B (being an appeal that has not yet been either withdrawn by the person, or finally 15 determined by the medical board under that section).” “(b) Expiry and re-grant of specified benefits 36 New sections 80BE and 80BF inserted After section 80BD, insert: “80BE Expiry and re-grant of specified benefits “(1) If it has not ceased earlier, a beneficiary’s entitlement to a spe- cified benefit ceases on the expiry date for that specified benefit (as those terms are defined in subsection (5)), and that benefit expires on that date.
The specified benefit may be re-granted if that beneficiary reapplies for it in accordance with require- 25 ments in this Act or in regulations under section 132M for re-grant of it.
20 “(2) The chief executive must, not less than 20 working days before the expiry date for the specified benefit, give notice to that beneficiary stating— “(a) that entitlement to that benefit will cease unless the beneficiary reapplies for that benefit and it is re-granted; and the date on which entitlement to that benefit will cease; and “(b) 30 35 “(c) what the beneficiary must do to reapply for that benefit and the period within which he or she must do so.
53 Part 1 cl 36 Social Security (Benefit Categories and Work Focus) Amendment Bill “(3) Subsection (2) does not apply if, at the time the chief execu- tive is required to give notice under that subsection, the speci- fied benefit— “(a) is suspended because the beneficiary is undertaking temporary employment; or is not for the time being payable under this Act (for example, under section 76 or 77); or is suspended under any provision of this Act other than section 117.
“(b) “(c) 5 15 “(5) “(4) However, if at any time before the expiry date for that bene- 10 fit any of the circumstances described in subsection (3) no longer exist, then the chief executive must, as soon as prac- ticable, take reasonable steps to advise the beneficiary of the matters set out in subsection (2)(a) to (c).
In this section and section 80BF,— “expiry date, in relation to a specified benefit, means the ex- piry date prescribed for that specified benefit by regulations under section 132M “specified benefit means a benefit that is— “(a) “(b) jobseeker support; or any other benefit that sole parent support, supported liv- ing payment, or emergency benefit, unless that benefit is for the time being declared not to be a specified bene- fit for the purposes of this section and section 80BF by regulations under section 132M(1)(a).
“(5A) Regulations under section 132M(1)(a) that declare a bene- fit referred to in subsection (5)(b) of this section not to be a specified benefit for the purposes of this section and sec- tion 80BF may, without limitation, declare not to be a speci- fied benefit for those purposes either or both of the following: 30 that benefit as granted on only 1 or more specified avail- “(a) able eligibility grounds: that benefit as granted to only 1 or more specified cat- egories, classes, or kinds of beneficiaries.
“(b) 25 20 “(6) However, a specified benefit that expires under this section 35 in the week that is, or is the week immediately before, the week that includes 26 December in a year must (despite sec- tion 80BD(1) and the rest of this section) continue to be paid 54 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 36 until the first Monday after 2 January in the immediately fol- lowing year.
“(7) However, the chief executive may, in any circumstances in which an exemption from expiry may be considered that are specified for the purposes of this section by regulations under 5 section 132M, and by notice in writing copied as soon as practicable to every beneficiary concerned, exempt from ex- piry under this section, until an identified event or situation or time, and on identified conditions (if any), all or any specified benefits of an identified beneficiary or of all beneficiaries who 10 fall within an identified class or description.
“80BF Requirements for re-grant of specified benefits “(1) No specified benefit may be re-granted under this section to a person to whom section 80BE applies unless— “(a) the department has received— “(i) a reapplication form (provided by the chief ex- ecutive for the purpose) completed by or on be- half of the beneficiary and his or her spouse or partner (if any) to the chief executive’s satisfac- tion; and any supporting evidence reasonably required by the chief executive; and “(ii) 15 20 “(b) the beneficiary and the beneficiary’s work-tested spouse or partner (if any) have participated, to the satisfaction of the chief executive, in a comprehensive work assess- 25 ment of a kind specified by the chief executive.
“(2) Subsection (1)(b) is subject to subsection (8).

“(3) If, in relation to a person, the requirements of subsection (1) are completed on or before the expiry date (as defined in section 80BE) for the person’s specified benefit,— “(a) 30 the chief executive must re-grant the person’s specified benefit if the chief executive is satisfied that the person meets or continues to meet the eligibility criteria for that benefit; and if re-granted, that benefit commences on that expiry 35 date.
“(b) “(4) If, in relation to a person, the requirements of subsection (1) are completed after, but within 20 working days after, the ex- 55 Part 1 cl 36 Social Security (Benefit Categories and Work Focus) Amendment Bill piry date for the person’s specified benefit, and the chief ex- ecutive is satisfied that there were exceptional circumstances that prevented those requirements from being completed on or before that expiry date,— “(a) the chief executive must re-grant the person’s specified 5 benefit if the chief executive is satisfied that— “(i) the person meets the eligibility criteria for that benefit set out in section 88B; and after that expiry date, and unless exceptional cir- cumstances prevented the person from doing so, 10 the person continued to meet the eligibility cri- teria for that benefit; and “(ii) “(5) “(b) if re-granted, that benefit commences on that expiry date.
If a person intending to reapply for the specified benefit con- 15 tacts the department on or before the expiry date for the per- son’s specified benefit,— “(a) the chief executive may set a time (being a time within 10 working days after that expiry date) before which the requirements of subsection (1) are to be completed; 20 and if those requirements are completed before that time, the chief executive may re-grant that benefit under sub- section (4).
“(b) “(6) Subsections (1) to (5) override section 11D(1).
“(7) The specified benefit must not be re-granted under this section to a person, and any reapplication form received from or on behalf of that person must be treated as an application form for the purposes of section 11D(2), if the requirements of sub- section (1)— “(a) are not completed within 20 working days after the ex- piry date for the person’s specified benefit; or 25 30 “(b) were completed within that time but after that expiry date, and the chief executive is satisfied that there were no exceptional circumstances that prevented those re- 35 quirements from being completed on or before that ex- piry date.
“(8) For the purposes of this section, a failure of a beneficiary’s work-tested spouse or partner to participate in a compre- 56 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 38 hensive work assessment in accordance with subsection (1)(b)— “(a) must not be treated as a failure to complete the require- ments of subsection (1); but “(b) must be treated as a failure by that spouse or partner to 5 comply with his or her work test obligations.” Review of benefits 37 Section 81 amended (Review of benefits) After section 81(3), insert: “(5) “(4) This subsection applies to a benefit granted, or entitlement to 10 which arises, on a stated ground if, after reviewing that bene- fit under subsection (1), the chief executive considers that the beneficiary is more appropriately entitled to receive that bene- fit on another ground.
If subsection (4) applies to a benefit, the chief executive may 15 cancel that benefit on the stated ground and grant it instead on the other ground.
If, after reviewing under subsection (1) a benefit granted on a stated eligibility ground for that benefit, the chief executive considers that the beneficiary is more appropriately entitled 20 to receive that benefit on another eligibility ground for that benefit, the chief executive may— “(a) cancel that benefit on the stated eligibility ground; and “(b) grant that benefit instead on the other eligibility ground “(4) commencing from the date of cancellation.” 25 One-off hardship assistance and redirection using preferred supplier Section 82 amended (Payment of benefits) 38 (1) After section 82(6A), insert: “(6AA) This subsection applies to the beneficiary if— 30 “(a) “(b) the immediate needs of the beneficiary relate to the sup- ply of any goods or services to the beneficiary or a mem- ber of the beneficiary’s family; and the goods or services are of a class, description, or kind supplied by a preferred supplier (being a preferred sup- 35 plier to, or in respect of, the area in which the bene- 57 Part 1 cl 38 Social Security (Benefit Categories and Work Focus) Amendment Bill ficiary resides) under a contract entered into with the chief executive under section 125AA.
“(6AB) If subsection (6AA) applies to the beneficiary, the bene- ficiary must purchase the goods or services from a preferred supplier nominated in writing by the chief executive at the 5 price determined by the contract under section 125AA with that supplier, and— “(a) the amount of the advance payment of benefit for pur- chasing the goods or services is the lesser of— “(i) “(ii) the price so determined; and the maximum amount of advance payment of benefit that is available to the beneficiary for that purpose; and 10 “(b) the chief executive must, despite subsections (3), (6), and (6A), pay the advance payment of the benefit to that 15 supplier in consideration of the supply of the goods or services to the beneficiary or the beneficiary’s family member.
“(6AC) A nomination under subsection (6AB) of a preferred sup- plier— “(a) may be given orally or in writing (but, if given orally, must as soon as practicable be confirmed in writing); and “(b) may from time to time be amended, revoked, or re- 20 voked and replaced by the chief executive, to recognise 25 changes in preferred suppliers or preferred supply con- tracts ending without also being replaced.” (2) After section 82(6E), insert: “(6F) This subsection applies to a beneficiary if— “(a) “(b) the chief executive has under section 125AA entered 30 into a contract with a preferred supplier for the supply of goods or services (for example, electricity, gas, or telecommunications); and the beneficiary to obtain the advantage of that supply at the price determined by that contract requests the chief 35 executive in writing to pay, for a period identified by the chief executive, an agreed amount or agreed portion of the benefit payments payable to the beneficiary to the preferred supplier in consideration of the supply of 58 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 39 those goods or services to the beneficiary or a member of the beneficiary’s family.
“(6G) If subsection (6F) applies to a beneficiary,— (3) 39 “(a) “(b) the chief executive may, despite subsection (3), act on the beneficiary’s written request under subsec- 5 tion (6F), and accordingly pay the preferred supplier for the identified period the agreed amount or agreed portion of the benefit payments payable to the benefi- ciary in consideration of the supply of those goods or services to the beneficiary or the beneficiary’s family 10 member; and the beneficiary cannot withdraw from the redirection ar- rangement arising from that request unless the chief ex- ecutive, in his or her discretion, considers a withdrawal during the identified period is justified by special cir- 15 cumstances established to the chief executive’s satisfac- tion.” In section 82(8), after “section 179”, insert “and subsections (6) to (6AB) and (6F) and (6G) are subject to (preferred supplier tion 125AA(5)”.
transitional provisions) directions under sec- 20 Work test obligations: drug testing obligations Section 88A amended (Interpretation) In section 88A, insert in their appropriate alphabetical order: “controlled drug has the same meaning as in section 2(1) of 25 the Misuse of Drugs Act 1975 “drug test, for a person, means a test to determine whether the person’s capacity to work, or be trained for employment, is impaired, by detecting to detect the presence in the person’s body of 1 or more controlled drugs “evidential drug test, for a person, means a drug test that, when undertaken by the person, complies with a standard that is— “(a) “(b) a standard for drug tests for evidential purposes; and a New Zealand standard, joint Australian/New Zealand 35 standard, or other national or international standard; and 30 59 Part 1 cl 39 Social Security (Benefit Categories and Work Focus) Amendment Bill “(c) prescribed (whether under sections 22 to 25 of the Standards Act 1988, or otherwise) in regulations made under section 132 “(b) “fail, for a person and a drug test, means— “(a) if the drug test is a screening drug test or an evidential 5 drug test, not to pass the drug test; or if the drug test is an evidential drug test, to waive in the situation specified in section 102B(3) waive, and so under that section be taken for the purposes of this Act to have failed, that evidential drug test 10 “pass, for a person and a drug test, means to undertake the drug test with the consequence that the drug test produces a valid
 result that— “(a) if the drug test is a screening drug test, does not indi- cate the presence in the person’s body of 1 or more con- 15 trolled drugs at or above the minimum level identified in the standard (prescribed in regulations made under section 132) with which the test complies; and if the drug test is an evidential drug test, does not de- tect for evidential purposes the presence in the person’s 20 body of 1 or more controlled drugs at or above the minimum level identified in the standard (prescribed in
 regulations made under section 132) with which the test complies “(b) “screening drug test, for a person, means a drug test that— 25 “(a) may indicate the presence in the person’s body of 1 or more controlled drugs; and is quicker, less formal, and less expensive than, and is designed for use in conjunction with, a drug test for evidential purposes; and complies with a standard that is— “(i) a standard for drug tests for screening purposes; and a New Zealand standard, joint Australian/New Zealand standard, or other national or inter- 35 national standard; and “(ii) 30 “(iii) prescribed (whether under sections 22 to 25 of the Standards Act 1988, or otherwise) in regulations made under section 132”.
“(b) “(c) 60 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 40 Jobseeker support (including deferral of work test obligations on grounds of sickness, injury, or disability) 40 Sections 89 to 99AB and cross-heading above section 89 replaced Replace sections 89 to 99AB and the cross-heading above sec- tion 89 with: 5 “Jobseeker support “88B Jobseeker support: standard eligibility requirements “(1) A person is entitled to jobseeker support if he or she satisfies 10 the criteria in subsections (2), (3), and (4), and— is not in full-time employment, but— “(a) “(i) “(ii) “(iii) is willing and able to undertake it; and “(iv) has taken reasonable steps to find it; or is seeking it; and is available for it; and 15 “(b) “(ab) is not in full-time employment, but would comply with subparagraphs (i) to (iv) of paragraph (a) but for circumstances that would qualify the person for an ex- emption under section 105 from some or all work test 20 obligations; or is not in full-time employment and is willing to under- take it but, because of sickness, injury, or disability, is limited in his or her capacity to seek, undertake, or be available for it; or is losing earnings because, is in employment, but through sickness or injury, he or she is not working at all, or is working only at a reduced level.
“(c) 25 “(2) An applicant for jobseeker support— “(a) must be aged at least 18 years, in the case of an applicant 30 without a dependent child: “(b) must be aged at least 19 years, in any other case.

“(3) An applicant for jobseeker support must meet the residential requirements in section 74AA.

“(4) An applicant for jobseeker support must have— 35 “(a) “(b) no income; or an income of less than the amount that would fully abate that benefit.
61 Part 1 cl 40 Social Security (Benefit Categories and Work Focus) Amendment Bill “(5) Nothing in subsection (4) affects the entitlement of a person to receive jobseeker support if, during a temporary period, the person has income sufficient to fully abate that benefit but the person otherwise fulfils the conditions of entitlement to that benefit.
5 “(6) Nothing in subsection (1)(a) or (4) affects the entitle- ment of a person receiving jobseeker support at the rate in clause 1(ab) or (ba) of Schedule 9 to receive jobseeker support if, during a temporary period, the person engages in full-time employment, and the income from that employ- 10 ment and the person’s other income when calculated over a 52-week period under section 64(2A) is less than the amount that would fully abate the benefit.
“(7) A sick or injured person (A) may treat as a loss of A’s earnings for the purposes of subsection (1)(c) a payment A makes 15 to any other person (B) who acts as A’s substitute during A’s sickness or injury.
“88C Jobseeker support: grounds of hardship “(1) The chief executive may grant jobseeker support under section 88B to a person who meets the criteria in section 20 88B(1) and (2) but who does not meet the other criteria in section 88B if— “(a) “(b) the person is suffering hardship; and the person is not qualified to receive any other benefit; and the person is unable to earn sufficient income to support the person and his or her spouse or partner and any de- pendent children.
“(c) 25 “(2) The chief executive may, under the exception in section 88D(a), during the period between the end of one academic 30 year and the start of the next, grant jobseeker support under section 88B to a full-time student.
“(3) The chief executive may, under the exception in section 88D(a), during the period between the end of one academic year and the start of the next, grant jobseeker support under 35 section 88B to a full-time student who is aged 16 years or 17 years if the chief executive is satisfied that— 62 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 40 “(a) “(b) any of paragraphs (a) to (c) of section 159(2) applies to the student; or the student is married or in a civil union or in a de facto relationship.
“88D Jobseeker support: ineligibility 5 No person is eligible to be granted jobseeker support if he or she— “(a) is a full-time student (other than in the situation de- scribed in section 88C(2) or (3)); or is unemployed because of a strike undertaken by him- 10 self or herself, or by fellow members of the same union at the same place of employment; or became unemployed or took leave with or without pay from the person’s employment for the purpose, in the opinion of the chief executive, of undertaking employ- 15 ment-related training.
“(b) “(c) “88E Jobseeker support: on grounds of sickness, injury, or disability: medical examination “(1) A person making an application for jobseeker support on the ground of sickness, injury, or disability (the applicant) must 20 include in the application a certificate that complies with sub- sections (2) and (3).
“(2) A certificate complies with this subsection only if it is given— by a medical practitioner in respect of any condition; or “(a) “(b) by a dentist and in respect of a condition that is within 25 “(c) the ambit of his or her profession; or by a midwife in respect of a pregnancy, childbirth, or any related condition that is within the ambit of his or her profession; or “(d) by a health practitioner of a kind specified for the pur- 30 poses of this paragraph in regulations made under sec- tion 132 and in respect of a condition within the ambit of his or her scope of practice.
“(3) A certificate complies with this subsection only if it— “(a) certifies that the applicant’s capacity for work is affected 35 by sickness, injury, or disability; and 63 Part 1 cl 40 Social Security (Benefit Categories and Work Focus) Amendment Bill “(b) “(c) indicates the nature of the sickness, injury, or disability concerned, the extent to which the applicant’s capacity for work is affected by it, and the length of time that effect is likely to last; and contains any other particulars the chief executive may 5 under this paragraph require.
“(4) The chief executive may at any time require the applicant or a jobseeker support beneficiary to submit himself or herself for examination by a medical practitioner or psychologist.

The medical practitioner or psychologist must be agreed for the 10 purpose between the applicant or beneficiary and the chief ex- ecutive or, failing agreement, must be nominated by the chief executive.
“(5) The medical practitioner or psychologist must prepare, and must send the chief executive a copy of, a report that indi- 15 cates— “(a) whether the applicant’s or beneficiary’s capacity for “(b) work is affected by sickness, injury, or disability; and the extent to which the applicant’s or beneficiary’s cap- acity for work is affected by the sickness, injury, or dis- 20 ability concerned; and “(c) whether and, if so, for how long, that capacity is likely to continue to be affected by the sickness, injury, or disability concerned.
“88F Jobseeker support: obligations on beneficiaries “(1) A person granted jobseeker support (other than jobseeker sup- port granted on the ground of sickness, injury, or disability) must (subject to sections 88J and 105) comply with the work test from the time that payment of jobseeker support com- mences.
“(2) The chief executive must after granting a person jobseeker support on the ground of sickness, injury, or disability, and may at any later time, determine whether the person has, while receiving that benefit, the capacity to seek, undertake, and be available for part-time work (as defined in section 3(1)).
“(3) A determination under subsection (2) must be made after 25 30 35 having had regard to— 64 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 40 “(a) “(b) the relevant certificate, and any relevant report ob- tained, under section 88E; and any relevant work ability assessment under sections 100B and 100C.
“(4) A determination under subsection (2) that the person granted 5 jobseeker support on the ground of sickness, injury, or dis- ability has, while receiving that benefit, the capacity to seek, undertake, and be available for part-time work has the conse- quence that the person is required to comply with the work test on and after a date specified in a written notice (of the deter- 10 mination’s making and effects) that the chief executive must give the person.
“(a) “(5) The date specified in a written notice under subsection (4),— in the case of a new grant of jobseeker support, may be the date on which that benefit is first paid; but in any case, must not be a date before the date on which the chief executive reasonably considers the person will receive the notice.
“(b) 15 “(6) The chief executive may at any time, whether on the applica- tion of the person or otherwise, review a determination under 20 subsection (2), and may confirm, amend, revoke, or revoke and replace it and any related written notice under subsec- tion (4).
“(7) A determination under subsection (2) that the person granted jobseeker support on the ground of sickness, injury, or disabil- 25 ity has not, while receiving that benefit, the capacity to seek, undertake, and be available for part-time work has the conse- quence that the person is entitled to (even if he or she has not sought one) a deferral under section 88I(6) of all of the per- son’s work test obligations under section 88I(6).
30 “(8) A person must comply with the person’s social obligations under section 60RA(3) if the person— “(a) “(b) is a person with 1 or more dependent children; and is the person granted a benefit that is jobseeker support; and is not a young person on whom obligations are placed under section 171(1) or (2).
“(c) 35 65 Part 1 cl 40 Social Security (Benefit Categories and Work Focus) Amendment Bill “88G Jobseeker support: obligations of spouse or partner of person granted it at work-test couple rate From the time that payment of the jobseeker support com- mences, the spouse or partner of a person granted jobseeker support at a work-test couple rate,— “(a) if the benefit is granted at a work-test couple rate, must comply with a requirement under section 60Q; and if he or she is a person to whom section 60RA applies, must comply with his or her spouse’s or partner’s social obligations under section 60RA(3); and if he or she is a work-tested spouse or partner, must comply with the work test.
“(b) “(c) 5 10 “88H Jobseeker support: application for deferral of work test obligations “(1) A person granted jobseeker support (other than jobseeker sup- 15 port granted on the ground of sickness, injury, or disability) may apply to the chief executive for a deferral of all or any of the person’s work test obligations on the grounds that he or she— “(a) is a sole parent with a dependent child under the age of 20 1 year; and is a recipient of jobseeker support instead of sole parent support under section 20D solely because that child is an additional dependent child (within the meaning of section 60GAE(1)).
25 “(b) “(2) A person granted jobseeker support (other than jobseeker sup- port granted on the ground of sickness, injury, or disability) may apply to the chief executive for a deferral of all or any of the person’s work test obligations on the grounds that he or she has, because of his or her sickness, injury, or disability (being 30 a sickness, injury, or disability that arose or became apparent only after he or she was granted jobseeker support), either— “(a) “(b) no capacity for work; or capacity only for work that is less than part-time work (as defined in section 3(1)).
35 “(3) The chief executive may require an applicant to verify any par- ticulars relevant to an application under this section in such 66 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 40 manner as the chief executive specifies either generally or spe- cifically.
“88I Jobseeker support: chief executive’s powers and duties to defer work test obligations “(1) The chief executive may defer all of the beneficiary’s work 5 test obligations if satisfied, on an application under sec- tion 88H(1) or in accordance with subsection (4) of this section, that the beneficiary complies with both of para- graphs (a) and (b) of section 88H(1).
“(2) The chief executive may defer all of the beneficiary’s work 10 obligations if satisfied, on an application by the beneficiary under section 88H(2) or in accordance with subsection (4) of this section, that the beneficiary has, because of his or her sickness, injury, or disability, either— no capacity for work; or “(a) capacity only for work that is less than part-time work “(b) (as defined in section 3(1)).
15 “(3) A deferral under this section must be in writing and may be for a time set by the chief executive; or granted— “(a) “(b) on conditions set by the chief executive; or “(c) for both a time and on conditions set by the chief execu- tive.
20 “(4) The chief executive may grant to a beneficiary granted job- seeker support (other than jobseeker support granted on the 25 ground of sickness, injury, or disability) a deferral under this section on the ground set out in (as the case may be) section 88H(1) or (2) whether or not a formal application is made by or on behalf of the beneficiary to whom it relates.
“(5) A determination under subsection (1) or (2) must be made 30 after having had regard to— “(a) the relevant certificate, and any relevant report ob- tained, under section 88E; and any relevant work ability assessment under sections 100B and 100C.
35 “(b) “(6) The chief executive must grant a deferral under this section to a person who is the subject of a determination of the kind re- 67 Part 1 cl 40 Social Security (Benefit Categories and Work Focus) Amendment Bill ferred to in section 88F(7) (even if the person has not applied for, or otherwise sought, the deferral).

“(7) The chief executive may from time to time review a deferral granted under this section, and may extend, vary, or revoke it.
“88J Jobseeker support: effect of deferral 5 While a deferral under section 88I is in force,— “(a) the work test obligations of the beneficiary concerned are deferred for the time specified in the deferral; and sections 60P, 60Q, and 60R apply to the beneficiary con- cerned as if he or she were not a work-tested beneficiary.
10 “(b) “88K Jobseeker support: deferred or exempted people must notify change of circumstances “(1) This section applies to a person who is, or is deemed to have been, granted a deferral under section 88I.

“(2) A person to whom this section applies must notify the chief 15 executive as soon as practicable of any change in the person’s circumstances that may affect his or her entitlement to the de- ferral.
“(3) This section does not limit or affect the obligation under sec- tion 105(5A) of a person who is, or is deemed to have been, 20 granted an exemption under section 105 (for example, an ex- emption under section 105 from work test obligations) to no- tify the chief executive as soon as practicable of any change in the person’s circumstances that may affect his or her entitle- ment to the exemption.
25 “88L Jobseeker support: payment “(1) Payment of jobseeker support commences in accordance with “(2) section 80.

Jobseeker support must be paid in weekly instalments, in ac- cordance with section 82.

30 “(3) Payment of jobseeker support may be suspended or cancelled in accordance with sections 80 to 82.

“(4) Subsection (3) does not limit any other provision in this Act.
68 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 41 “88M Jobseeker support: rates “(1) “(2) Jobseeker support must be paid to a person granted that benefit at the appropriate rate in Schedule 9.
If no payment is made under this section in respect of the spouse or partner of a person granted jobseeker support, the 5 chief executive may increase the rate of jobseeker support payable to a beneficiary by an amount not exceeding the amount specified in clause 2 of Schedule 9 in respect of any person who for the time being has the care of the home of that beneficiary.
10 “(b) “(3) Subsection (4) applies to an applicant for jobseeker support who has a spouse or partner who is ineligible for a benefit for a period because of— “(a) the application of section 60H (which relates to volun- tary unemployment or loss of employment through mis- 15 conduct, etc); or the application of section 117 (which relates to sanc- tions that may be imposed for failures to comply with work test or other obligations and work preparation in- terviews and exercises); or a strike, either by himself or herself, or by fellow mem- bers of the same union at the same place of employment.
“(4) The rate of jobseeker support that an applicant to whom this subsection applies under subsection (3) is entitled to receive during the period of non-entitlement of his or her spouse or 25 partner is the appropriate rate in clause 5 of Schedule 9.” “(c) 20 Work ability assessment 41 New sections 100B and 100C to 100D and cross-heading inserted Before the heading above section 101, insert: “Work ability assessment “100B Chief executive may require person to undergo assessment “(1) This subsection applies to a person who is, or who is the spouse or partner of, a beneficiary in receipt of— “(a) sole parent support; or 30 35 69 Part 1 cl 41 Social Security (Benefit Categories and Work Focus) Amendment Bill “(b) “(c) “(d) a supported living payment (except as provided in sub- section (2)); or an emergency benefit; or jobseeker support.
“(2) Subsection (1)(b) does not apply to a person receiving a sup- 5 porting living payment on the ground of sickness, injury, or disability if, in the chief executive’s opinion,— “(a) “(b) the person is terminally ill; or the person has little or no capacity for work, and the per- son’s condition is deteriorating or not likely to improve.
10 “(3) The chief executive may at any time require a person to whom subsection (1) applies to attend and participate in a work ability assessment made to determine, or help to determine, all or any of the following matters: “(a) whether the person is entitled to a benefit and, if so, what 15 “(b) “(b) kind of benefit: if the person is in receipt of jobseeker support on the grounds of sickness, injury, or disability, whether the person— “(i) is entitled on an application under section 88H, 20 or under section 88I(4), to deferral of work test obligations under section 88I: “(ii) has for the purposes of section 88F(2) the cap- acity to seek, undertake, and be available for part-time work: 25 if the person is in receipt of jobseeker support (other than jobseeker support granted on the ground of sick- ness, injury, or disability), whether the person is entitled on an application under section 88H, or under sec- tion 88I(4), to a deferral of work test obligations under 30 section 88I: “(ba) if the person is in receipt of jobseeker support granted on the ground of sickness, injury, or disability, whether the person has for the purposes of section 88F(2) the capacity to seek, undertake, and be available for part- 35 time work: “(c) whether the person is entitled on an application under section 105 on the grounds of capacity to an exemption 70 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 41 from work test obligations or work preparation obliga- tions under section 60Q: “(ca) whether the
 person, being a person who is subject to work test obligations or work preparation obligations under section 60Q, has the capacity to meet those obli- 5 gations: “(d) what is suitable employment for the person for the pur- poses of section 102A(1)(a), (b), or (c): “(e) what are suitable activities for the person for the pur- poses of section 60Q(3) or 102A(1)(f): “(f) what assistance and supports the person needs to obtain employment.
“(4) An assessment under subsection (3) must be undertaken in accordance with a procedure determined by the chief execu- tive.

10 15 “(5) After an assessment under subsection (3) is made, the chief executive may determine the matter or matters in subsection (3) for which that assessment was made— “(a) “(b) having regard to the assessment and to any alternative 20 in reliance on that assessment; or assessment under subsection (3).
“100C Reassessment “(1) The chief executive may from time to time reassess under sec- tion 100B a person to whom section 100B(1) applies and who has earlier been assessed under section 100B.

25 “(2) A reassessment may be at a time, or after an interval, the chief executive thinks appropriate.

“(3) After a reassessment, the chief executive may determine the matter or matters in section 100B(3) for which that reassess- ment was made.
30 “100D Assessment or reassessment: department must explain requirements The chief executive must take reasonable and appropriate steps to make every person on whom requirements are im- posed under section 100B, or under sections 100B and 35 100C, aware of— 71 Part 1 cl 42 Social Security (Benefit Categories and Work Focus) Amendment Bill “(a) “(b) those requirements; and the consequences of failure to comply with those re- quirements.” Work test obligations: drug testing obligations 42 Section 102A amended (Work test obligations) After section 102A(1), insert: 5 “(1A) The drug testing obligations under section 102B(1) are in- cluded in, and form part of, each of the work test obligations under subsection (1)(a), (c), and (f)(ii) and (iv) (each of which obligations is extended, and not limited, by this subsection).” 10 43 New sections 102B and 102C to 102E inserted After section 102A, insert: “102B Work test obligations: drug testing obligations “(1) The drug testing obligations referred to in section 102A(1A) are to undertake, and to pass, a drug test that a potential em- 15 ployer or a training provider requires requests candidates for employment or training to undertake, and to pass, by a spe- cified time., and recognised by this Act because it is a drug test— “(a) “(b) of a kind described in subsection (2); and requested, and undertaken, lawfully (in particular, for a lawful health or safety purpose, or other lawful pur- pose), even though the employer or provider is not au- thorised or required by or under this Act to compel the candidate to undertake it.
20 “(2) A drug test that a potential employer or a training provider requires a candidate for employment or training to undertake, and to pass, by a specified time, may be is of a kind described in this subsection for the purposes of subsection (1)(a) if the drug test is— “(a) a screening drug test of the candidate and, if the candi- date fails that screening drug test, an undertaken with- out any associated later evidential drug test of the can- didate; or 72 25 30 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 43 “(ab) an evidential drug test of the candidate if he or she has failed any associated prior screening drug test under paragraph (a); or an evidential drug test of the candidate undertaken with- out any associated prior screening drug test of the can- 5 didate.
“(b) “(2A) A drug test undertaken by a candidate for employment or training on a request by the potential employer or training provider is for the purposes of subsection (1)(b) presumed to be requested, and undertaken, lawfully, unless the contrary 10 is proved.
“(3) A candidate for employment or training is taken for the pur- poses of this Act to have failed an evidential drug test required requested by a potential employer or a training provider if the candidate— “(a) fails an associated prior screening drug test required re- quested by the employer or provider; and “(b) waives (in any manner) the evidential drug test.
“(4) For the purposes of subsection (1) the chief executive may, 15 in the absence of evidence available to the chief executive and 20 to the contrary effect, act on information given by the potential employer or training provider to the effect that a candidate has failed a screening drug test, an evidential drug test, or both.
“102C Work test obligations: drug testing obligations on referral to opportunity of suitable employment 25 “(1) This section applies to a work-tested beneficiary who has a work test obligation— “(a) under section 102A(1)(c), to attend and participate in an interview for any opportunity of suitable employment to which the beneficiary is referred by the chief executive; 30 and that, under section 102A(1A), includes the drug test- ing obligations under section 102B(1).
“(2) The employer providing the opportunity of suitable employ- “(b) ment may, or may authorise the appropriate drug testing 35 provider to, provide to the department (with or without the beneficiary’s consent) a copy of the results of the a screening drug test, the an evidential drug test, or both if— 73 Part 1 cl 43 Social Security (Benefit Categories and Work Focus) Amendment Bill “(a) “(b) that employer under section 102B(2)(a) or (b) re- quires has (in accordance with section 102B(1) to (2A)) requested the beneficiary to undergo, and to pass, by a specified time, a screening drug test, an evidential drug test, or both; and the beneficiary has by the specified time failed that drug test, or both of those drug tests.
5 “(3) The chief executive may reimburse the employer for the actual and reasonable costs (if, or insofar as, they do not exceed the maximum reimbursement amount prescribed for the purposes 10 of this subsection by regulations made under section 132) of a screening drug test, an evidential drug test, or both that the employer under section 102B(2)(a) or (b) required has (in accordance with section 102B(1) to (2A)) requested in re- spect of a work-tested beneficiary, if the chief executive— “(a) 15 is provided under subsection (2) with the results of that drug test or those drug tests; and is satisfied that those results relate to the beneficiary, and that the beneficiary has failed that drug test or those drug tests.
“(b) “(3A) Regulations made under section 132 prescribing maximum reimbursement amounts for the purposes of subsection (3) may, without limitation, prescribe different amounts of that kind based on either or both of the following: “(a) “(b) different kinds of drug tests: the same or different kinds of drug tests having been provided by different providers or by different agents or employees of the same or different providers.
“(4) Costs of a screening drug test required requested (in accord- ance with section 102B(1) to (2A)) by an employer in re- 30 spect of, and failed by, a work-tested beneficiary cannot be re- imbursed under subsection (3) if the beneficiary has under- taken, and passed, an associated later evidential drug test re- quired requested (in accordance with section 102B(1) to (2A)) by that employer.
35 “(5) Costs reimbursed under subsection (3) are a debt due to the Crown from the beneficiary for the purpose of section 85A(e).
“(6) Drug test results provided under subsection (2)— 74 20 25 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 43 “(a) may be used by the chief executive or the department for the purposes of, or for the purposes of a review or appeal against a decision under, all or any of this section and sections 116B, 116C, 117, 119, and 122; but “(b) must not be used by the chief executive or the depart- 5 ment for any other purposes.
“102D Work test obligations: drug testing obligations: challenging sanction based solely on failing screening drug test “(1) This section applies to a beneficiary if— 10 “(a) “(b) “(c) “(d) an employer or a training provider has (in accordance with section 102B(1) to (2A)) requested the benefi- ciary to undertake a screening drug test; and the beneficiary has failed that screening drug test; and that employer or training provider has not (in accord- 15 ance with section 102B(1) to (2A)) requested the beneficiary to undertake an associated later evidential drug test because the beneficiary has failed that screen- ing drug test; and a sanction is to be imposed on the beneficiary (the bene- 20 ficiary’s benefit is to be reduced, suspended, or can- celled), under section 117, based on the beneficiary hav- ing failed that screening drug test.
“(2) The beneficiary may dispute the sanction to be imposed under section 117 by making to the department a request that the 25 sample taken from the beneficiary for the screening drug test be subjected to an evidential drug test.
“(3) A request under subsection (2) must be made by the benefi- ciary in writing in a form approved by the chief executive, and must be made— “(a) 30 after the beneficiary is given under section 113 a written notice relating to the sanction to be imposed; and after the beneficiary disputes the reduction, suspension or cancellation (within the period for that purpose, of 5 working days from the giving of that written notice, 35 that section 113(2)(e) requires to be stated in that written notice); and “(b) 75 Part 1 cl 43 Social Security (Benefit Categories and Work Focus) Amendment Bill “(c) within a period that starts when the beneficiary disputes the reduction, suspension, or cancellation, and is a rea- sonable period specified by the department for the pur- pose.
“(4) A request under subsection (2) must include the benefi- 5 ciary’s consent to the department contacting the employer or training provider and a drug testing provider to arrange for the evidential drug test of the sample, and must authorise the drug testing provider that does the evidential drug test of the sample to provide to the department the results of that 10 evidential drug test.
“(5) The department may proceed to impose the appropriate sanc- tion as if the beneficiary had not disputed the sanction if— “(a) a request under subsection (2) does not include the consent and authorisation required by subsection (4); 15 and that consent and authorisation is not provided in the period specified under subsection (3)(c).
“(b) “(6) If a request under subsection (2) is made to the department and includes the consent and authorisation required by sub- 20 section (4), then until the department is advised of the results of an evidential drug test of the beneficiary arranged by the department in accordance with the request,— “(a) any sanction imposed under section 117, and based on the beneficiary’s having failed the associated earlier 25 screening drug test, is suspended: any failure for the purposes of sections 119 and 122(2), and based on the beneficiary’s having failed the associ- ated earlier screening drug test, is suspended: the beneficiary is not liable under section 102C(5) for 30 the actual and reasonable costs (if any) reimbursed to the employer under section 102C(3) of the benefi- ciary’s associated earlier screening drug test.
“(b) “(c) “(7) The actual and reasonable costs incurred by a drug testing provider in doing an evidential drug test arranged by the de- 35 partment in accordance with a request under subsection (2) are payable by the department.
If the beneficiary fails an evidential drug test arranged by the department in accordance with a request under subsection “(8) 76 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 43A “(9) (2), that failure is for the purposes of section 116B(1)(e) treated as a new failure of the beneficiary’s work test and drug test obligations.
If the beneficiary fails an evidential drug test arranged by the department in accordance with a request under subsection 5 (2), the following are a debt due to the Crown from the bene- ficiary for the purpose of section 85A(e): “(a) the actual and reasonable costs incurred by a drug test- ing provider in doing that evidential drug test: the actual and reasonable costs (if any) reimbursed to 10 the employer under section 102C(3) of the benefi- ciary’s associated earlier screening drug test.
“(b) “102E Work test obligations: drug testing obligations: use and communication of drug test results Drug test results provided under, or under an authorisation 15 given under, section 102B, 102C, or 102D,— “(a) may be used by the chief executive or the department for the purposes of, or for the purposes of a review or appeal against a decision under, that section and all or any of sections 116B, 116C, 117, 119, and 122; but 20 “(b) must not be used or communicated by the chief execu- tive or the department for any other purposes.” Sanctions 43A Section 113 amended (Procedure for imposing sanctions) After section 113(2), insert: “(2A) A notice given under this section to a beneficiary who on 2 or more occasions has failed to comply with 1 or more (whether the same or different) specified obligations under this Act may relate to and include those 2 or more failures, but for the pur- poses of sections 117 and 119— “(a) all the 2 or more failures included in the notice (so long as at least 2 of them are not disputed by the beneficiary) are treated as 1 failure; and the beneficiary must be sanctioned on that basis of that 1 failure (as a first, second, or third failure).” “(b) 25 30 35 77 Part 1 cl 44 Social Security (Benefit Categories and Work Focus) Amendment Bill 44 Sections 115 and 116A replaced Replace sections 115 and 116A (section 116A having been in- serted on 15 October 2012 by section 43 of the Social Security (Youth Support and Work Focus) Amendment Act 2012) with: “116B Failures to comply with
 obligations “(1) The sanctions stated in section 117 must be imposed on a per- son when any of the following paragraphs applies to the per- son: 5 “(a) “(b) “(c) “(d) “(e) “Obligations related to contracted service providers the chief executive considers that the person has, with- 10 out a good and sufficient reason, failed to comply with an obligation under section 60GAG(1) to comply with a requirement under section 60GAG(1)(a) to (d); or “Social obligations of certain beneficiaries with dependent children the
 chief executive considers that the person has, with- out a good and sufficient reason, failed to comply with a social obligation that the person has under section 60RA(3), and that the person’s failure to comply with that social obligation is a failure in respect of which 20 section 60RC(3) permits the chief executive to impose a sanction under section 117; or 15 “Obligations related to work preparation or to work ability assessment the chief executive considers that the person has, with- 25 out a good and sufficient reason, failed to comply with a general obligation under section 60Q(2) or an obliga- tion under section 60Q(2) to comply with a requirement under section 60Q(3); or the chief executive considers that the person has, with- 30 out a good and sufficient reason, failed to undergo an assessment that the person is required to undergo under section 100B; or “Work test obligations (including drug testing obligations) and work-tested beneficiaries the person is a work-tested beneficiary, and the chief executive considers that the person has, without a good and sufficient reason, failed to comply with any of the 35 78 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 44 “(f) “(g) “(h) 5 work test obligations as set out in section 102A (in- cluding, without limitation, any drug testing obligations under section 102B(1) that, under section 102A(1A), are included in, and form part of, a work test obligation under section 102A(1)(a),
 (c), or (f)(ii) or (iv)); or the person is required by this paragraph to be treated as a person to whom paragraph (e) applies because the person fails, without good and sufficient reason, to apply for suitable employment that requires candidates to undertake drug tests; or the person is required by this paragraph to be treated as a person to whom paragraph (e) applies because the per- son is a full-time work-tested beneficiary who leaves, without good and sufficient reason, or is dismissed for misconduct
 from, part-time work or employment aver- 15 aging less than 15 hours a week; or the person is required by this paragraph to be treated as a person to whom paragraph (e) applies because the per- son is a part-time work-tested beneficiary who leaves, without good and sufficient reason, or is dismissed for 20 misconduct from, employment averaging less than 15 hours a week; or 10 “(i) “Interview obligation of beneficiary exempted from work test the person is a beneficiary granted an exemption from 25 the work test, and the chief executive considers that the person has, without a good and sufficient reason, failed to attend an interview as required under section 105(5).
“(2) Section 60H(6) and (7) (which relate to dealing with volun- tary unemployment or loss of employment through miscon- 30 duct, etc) apply with all necessary modifications to a person to whom subsection (1)(g) or (h) of this section applies.
“(3) A work-tested beneficiary who indicates that he or she would fail a drug test that an employer would require for an oppor- tunity of suitable employment is for the purposes of subsec- 35 tion (1)(f) taken to be a person who fails, without good and sufficient reason, to apply for suitable employment that re- quires candidates to undertake drug tests (and therefore to be a 79 Part 1 cl 44 Social Security (Benefit Categories and Work Focus) Amendment Bill person required by subsection (1)(f) to be treated as a person to whom subsection (1)(e) applies).
“(4) Subsection (3) does not limit the generality of subsections (1)(e) and (f).
“116C Good and sufficient reasons for specified failures to 5 comply “(1) A beneficiary has for the purposes of section 116B a good and sufficient reason for not undertaking or completing an ac- tivity if— “(a) doing so was dependent upon the provision by the de- 10 partment of any assistance specified by the department; and that assistance was either not supplied, or not supplied to the extent, or in the manner, specified by the depart- ment.
15 “(b) “(2) A beneficiary has for the purposes of section 116B a good and sufficient reason for not complying with a drug testing obligation under section 102B(1), or for failing to apply for suitable employment that requires candidates to undertake drug tests, or for both, if the chief executive is satisfied— “(a) 20 that the person is addicted to, or dependent on, 1 or more controlled drugs; or that the person is undertaking treatment for addiction to, or dependence on, 1 or more controlled drugs; or— “(i) for addiction to, or dependence on, 1 or more 25 controlled drugs; and “(b) “(ii) provided by a health practitioner, or other person, who is professionally engaged in the treatment or rehabilitation of people using, or who have used, controlled drugs; and “(iii) of a kind approved by the chief executive; or “(ba) that the person should be treated as one to whom para- graph (b) applies because he or she is awaiting assess- ment for, or an opportunity to undertake, treatment of the kind specified in paragraph (b); or that, insofar as the person is using a particular controlled drug of a kind the presence of which in the person’s body can be or may be detected by an evidential drug “(c) 30 35 80 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 45 test, that particular controlled drug has been lawfully prescribed, and the person is using only the dosage of that particular controlled drug lawfully prescribed, for the person by a health practitioner; or that the person falls within, or the person’s circum- 5 stances fall within, another ground or other grounds spe- cified for the purposes of this paragraph by regulations made under section 132.
“(d) “(3) A beneficiary who has 1 or more dependent children has for the purposes of section 116B a good and sufficient reason for 10 not participating in or completing any activity required under section 102A(1)(f) if the activity involves participation during hours when it would be unreasonable to expect any dependent child of the person to be without that person’s supervision.
“(4) This section does not limit the generality of section 116B.” 15 45 Section 117 amended (Sanctions that may be imposed for failures) Before section 117(1), insert: (1) “(1AA) If 2 or more failures of a beneficiary to comply with 1 or more specified obligations under this Act are under sec- 20 tion 113(2A) included by the chief executive in a notice given to the beneficiary under section 113,— “(a) all the 2 or more failures included in the notice (so long as at least 2 of them are not disputed by the beneficiary) are treated as 1 failure for the purposes of this section 25 and section 119; and the beneficiary must be sanctioned on that basis of that 1 failure (as a first, second, or third failure).” “(b) (2) After section 117(1), insert: “(1A) Subsection (1) is subject to subsections (1B) and (1C).
“(1B) Cancellation of the person’s benefit under subsection (1)(c) of the person’s benefit (unless it is not a main benefit under this Act) is the sanction that the chief executive must apply if any failure referred to in subsection (1) is a failure under section 116B(1)(e) to comply with the obligation in sec- 35 tion 102A(1)(b) (the work test obligation to accept any offer of suitable employment).
30 81 Part 1 cl 46 Social Security (Benefit Categories and Work Focus) Amendment Bill “(1C) Subsection (1B) applies whether the failure under sec- tion 116B(1)(e) and that is mentioned in subsection (1B) is for the purposes of subsection (1) a first, a second, or a third failure.” 46 (1) (2) (3) Section 119 amended (Calculation of failure rate) In section 119(1)(a), replace “while the same benefit has been continuously paid in respect of the beneficiary” with “during a period of continuous payment in respect of the beneficiary of the same benefit or of 2 or more different benefits”.
In section 119(1)(ab), delete “work-tested” in each place.
Replace section 119(1)(b) with: “(b) must not count a failure if— 5 10 “(i) “(ii) it is not a failure of a kind to which section 117 applies under section 116B(1); or it occurred more than 12 months before the fail- 15 ure for which the calculation is made if, during that period, that beneficiary has not incurred a failure of a kind in section 116B(1) to which section 117 applies.” (4) Before section 119(2) (and after the section 119(1A) inserted 20 by section 55A(13) of this Act), insert: “(1B) For the purposes of subsection (1)(a), 2 or more different benefits paid to a beneficiary do not give rise to a period of continuous payment in respect of the beneficiary of those 2 or more different benefits if— “(a) 25 one of those 2 or more different benefits is a youth pay- ment or a young parent payment; and the other of, or (as the case may be) the rest of, those 2 or more different benefits is any 1 or more or all of sole par- ent support, supported living payment, jobseeker sup- 30 port, and emergency benefit.
“(b) “(1C) Subsection (1B) does not limit or affect subsection (1)(a) ap- plying (under section 176(2)) with all necessary modifications to the imposition of sanctions under sections 173 and 174 in respect of failures— “(a) by a young person receiving a youth payment or a young parent payment; and 35 82 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 47 “(b) “(c) that are failures, without good and sufficient reason, to comply with an obligation placed on him or her by sec- tion 170; and during a period of continuous payment in respect of the young person of the same benefit (being a youth pay- 5 ment or a young parent payment) or of 2 or more differ- ent benefits (being a youth payment and a young parent payment, in whatever sequence paid).” (5) After section 119(5), insert: “(6) This section is subject to sections 113(2A) and 117(1AA) 10 (which relate to 2 or more failures of a person to comply with 1 or more specified obligations under this Act being— “(a) included in a notice given to the person under sec- tion 113; and treated for the purposes of section 117 and this section 15 as 1 failure).” “(b) 47 (1) Section 122 amended replaced (Meaning of recompliance) In section 122,— (a) (b) (c) after “a failure”, insert “(or, as the case may be, to 2 or more failures)”; and after “the relevant failure”, insert “(or, if the person has failed to comply with 2 or more obligations of a kind referred to in section 116B(1), the person remedies all of the relevant failures)”; and replace “the failure,” with “any 1 or more of the relevant 25 failures, for each relevant failure it is not possible to remedy”.
20 In section 122, insert as subsections (2) to (4): (2) “(2) Despite subsection (1), in relation to a failure under sec- tion 116B(1)(e) to comply with any drug testing obligations 30 under section 102B(1), a person recomplies (for the purpose of section 117) if,— “(a) in the case of a first failure of that kind in a 12-month period, the person undertakes in a manner that is sat- isfactory to the chief executive that the person will not 35 use controlled drugs (except any use of a particular con- trolled drug that is lawfully prescribed, and only the 83 Part 1 cl 47 Social Security (Benefit Categories and Work Focus) Amendment Bill “(b) dosage of that particular controlled drug that is lawfully prescribed, for the person by a health practitioner): in the case of a second failure of that kind in a 12-month period, the person undertakes in a manner that is satis- factory to the chief executive to do both of the following 5 within 30 days after the date of the person’s undertak- ing: “(i) to pass a drug test of the kind stated in section 122A(2)(a) or (b); and to provide evidence that satisfies the chief execu- 10 tive that the person has passed a drug test of that kind.
“(ii) “(3) The calculation of the number of failures for the purposes of subsection (2) is independent and separate from, and there- fore does not affect, the calculation (in accordance with sec- 15 tion 119) of the number of failures for the purposes of sec- tion 117.
“(4) The department must take reasonable and appropriate steps to make a person who has given an undertaking in accordance with subsection (2)(b) aware of the following matters: “(a) “(b) “(c) the consequences of failing to comply with the under- taking; and the location of a drug testing provider that the person can use to undertake a drug test of the kind stated in section 122A(2)(a) or (b); and that the actual and reasonable costs charged by the provider for performing, on one occasion only within the period, a drug test of the kind stated in section 122A(2)(a) or (b) are paid by the department, but are also recoverable from the person.” 20 25 30 Replace section 122 with: “122 Meaning of recompliance “(1) A person recomplies (for the purpose of section 117) in rela- tion to a failure (or, as the case may be, to 2 or more failures) under section 116B and that has (or have) been included in a 35 notice given to the person under section 113 (the relevant fail- ure or failures) if the person remedies the relevant failure (or, if the person has failed to comply with 2 or more obligations 84 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 47 of a kind referred to in section 116B(1), the person remedies all the relevant failures) included in the notice.
“(2) Despite subsection (1), a person who is a work-tested benefi- ciary recomplies (for the purpose of section 117) in relation to each relevant failure it is not possible to remedy if the person 5 undertakes to the chief executive’s satisfaction an activity that is the same as, or substantially similar to, the activity that the person failed to comply with under the applicable work test obligation.
“(3) Despite subsection (1), a person recomplies (for the pur- 10 pose of section 117) in relation to a relevant failure under sec- tion 116B(1)(e) to comply with any drug testing obligations under section 102B(1) if,— “(a) “(b) in the case of a first failure of that kind in a 12-month period, the person undertakes in a manner that is sat- 15 isfactory to the chief executive that the person will not use controlled drugs (except any use of a particular con- trolled drug that is lawfully prescribed, and only the dosage of that particular controlled drug that is lawfully prescribed, for the person by a health practitioner): in the case of a second failure of that kind in a 12-month period, the person undertakes in a manner that is satis- factory to the chief executive to do both of the follow- ing: “(i) 20 to pass a drug test of the kind stated in section 25 122A(2)(a) or (b), and to do so within 25 work- ing days after the date of the person’s undertak- ing; and to provide evidence that satisfies the chief execu- tive that the person has passed a drug test of that 30 kind, and to do so within 30 working days after the date of the person’s undertaking.
“(ii) “(4) The calculation of the number of failures for the purposes of subsection (3) is independent and separate from, and there- fore does not affect, the calculation (in accordance with sec- 35 tion 119) of the number of failures for the purposes of sec- tion 117.
85 Part 1 cl 48 Social Security (Benefit Categories and Work Focus) Amendment Bill “(5) The department must take reasonable and appropriate steps to make a person who has given an undertaking in accordance with subsection (3)(b) aware of the following matters: “(a) “(b) “(c) 5 the consequences of failing to comply with the under- taking; and the location of a drug testing provider that the person can use to undertake a drug test of the kind stated in section 122A(2)(a) or (b); and that the actual and reasonable costs charged by the provider for performing, on one occasion only within 10 the period, a drug test of the kind stated in section 122A(2)(a) or (b) are paid by the department, but are also recoverable from the person as a debt due to the Crown for the purposes of section 85A(e).” 48 New section 122A inserted (Recomplying after second failure to comply with drug testing obligations) After section 122, insert: 15 “122A Recomplying after second failure to comply with drug testing obligations “(b) “(1) This section applies to a work-tested beneficiary who has 20 undertaken under section 122(2)(b) to do both of the fol- lowing within 30 days after the date of the beneficiary’s undertaking (the period): “(a) to pass a drug test of the kind stated in subsection (2)(a) or (b) of this section, and to do so within the 25 25-working-day period in section 122(3)(b)(i) (the testing period); and to provide evidence that satisfies the chief executive that the person has passed a drug test of that kind, and to do so within the 30-working-day period in sec- 30 tion 122(3)(b)(ii) (the results period).
“(2) The beneficiary must at a time that is within the testing period attend at the location of a drug testing provider for the purpose of undertaking a drug test that is— “(a) a screening drug test of the beneficiary and, if the bene- 35 ficiary fails that screening drug test, an evidential drug test of the beneficiary; or 86 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 49 “(b) an evidential drug test of the beneficiary undertaken without any associated prior screening drug test of the beneficiary.
“(3) The actual and reasonable costs charged by the provider for performing, on 1 occasion only within the testing period, a 5 drug test in accordance with subsection (2)(a) or (b), are— “(a) “(b) payable by the department; but also a debt due to the Crown from the beneficiary for the purpose of section 85A(e).
“(4) A beneficiary who fails a screening drug test or an evidential 10 drug test or both performed within the testing period may (in order to try to comply with the beneficiary’s undertaking de- spite that failure) undertake, at the beneficiary’s expense, fur- ther drug testing within the testing period.
“(5) A beneficiary who does not pass a drug test of the kind stated 15 in subsection (2)(a) or (b) within the testing period must for the purpose of section 117(1)(c) be treated as a person who has failed a third time within a 12-month period to comply with any drug testing obligations in section 102B(1).” Special assistance under welfare programme: use of preferred supplier 20 49 Section 124 amended (Money payable out of Crown Bank Account) After section 124(1B), insert: “(1BA) This subsection applies to an applicant for special assistance 25 under a welfare programme approved by the Minister under subsection (1)(d) if— “(a) any special assistance under the programme relates to the supply of any goods or services to the applicant or a member of the applicant’s family; and the goods or services are of a class, description, or kind supplied by a preferred supplier (being a preferred sup- plier to, or in respect of, the area in which the applicant resides) under a contract entered into with the chief ex- ecutive under section 125AA.
30 35 “(b) “(1BB) If subsection (1BA) applies to an applicant for special as- sistance under a welfare programme approved by the Minis- 87 Part 1 cl 50 Social Security (Benefit Categories and Work Focus) Amendment Bill ter under subsection (1)(d), the applicant must purchase the goods or services from a preferred supplier nominated in writ- ing by the chief executive at the price determined by the con- tract under section 125AA with that supplier, and— “(a) the amount of the special assistance granted under sub- 5 section (1)(d) for purchasing those goods or services is the lesser of— “(i) “(ii) the price so determined; and the maximum amount goods or services available under the welfare 10 programme concerned; and for purchasing those “(b) the chief executive must pay that special assistance to that supplier in consideration of the supply of the goods or services to the applicant or the applicant’s family member.
“(1BBA) A nomination under subsection (11B) of a preferred sup- plier— “(a) may be given orally or in writing (but, if given orally, must as soon as practicable be confirmed in writing); and “(b) may from time to time be amended, revoked, or re- voked and replaced by the chief executive, to recognise changes in preferred suppliers or preferred supply con- tracts ending without also being replaced.
15 20 “(1BC) No appeal under this Act lies against any chief executive’s 25 decision under subsection (1BB)(b).
“(1BD) Subsections (1BA) to (1BC) are subject to (preferred transitional provisions) directions under sec- supplier tion 125AA(5).” Preferred suppliers of goods or services for beneficiaries or others 30 50 New section 125AA and cross-heading inserted After section 124, insert: 88 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 50 “Preferred suppliers of goods or services for beneficiaries or others “125AA Preferred supply of goods or services for beneficiaries or others “(1) The Minister may from time to time, by written direction, de- 5 termine the goods or services, or classes, descriptions, or kinds of goods or services, contracts for the supply of which may be entered into under subsection (3) (specified goods or ser- vices).
“(2) A determination under subsection (1) must be in respect of 10 goods or services, or classes, descriptions, or kinds of goods or services, for all or any of the following (and for no other) purposes: “(a) “(b) “(c) “(d) to meet additional expenses arising from a disability by way of a disability allowance, under section 69C(7B): 15 to satisfy the immediate needs of a beneficiary by way of an advance payment of a benefit under section 82(6) and (6A): for supply of goods or services to a beneficiary by way of a redirection of some of the beneficiary’s benefit pay- 20 ments, under section 82(6G): to meet particular needs of a person by way of spe- cial assistance under a welfare programme under sec- tion 124(1)(d), under section 124(1BB).
“(3) The chief executive may from time to time, on behalf of the 25 Crown, enter into a contract with any person, body, or or- ganisation (a preferred supplier) for the supply of specified goods or services (as defined in subsection (1))— “(a) “(b) by the preferred supplier; and to for purchase by beneficiaries, other persons identified 30 by the department, or both.

“(4) Goods or services, in this section and in section 69C(7B), 82(6AB) and (6G), and 124(1BB), includes goods and ser- vices.
“(5) The Minister may, from time to time, give to the chief execu- 35 tive under section 5 general or special directions setting out transitional or savings provisions that apply— “(a) to persons receiving assistance under this Act in respect of goods or services that would be affected by a contract 89 Part 1 cl 51 Social Security (Benefit Categories and Work Focus) Amendment Bill “(b) with a preferred supplier in respect of those goods or services; and at, or within a specified period after, the time or times when a contract under subsection (3) (including, with- out limitation, one that varies or replaces all or any of 5 an earlier contract of that kind) takes effect.
“(6) Directions under subsection (5)— “(a) override sections 69C(7A) to (7D), 82(6) to (6AB), 82(6F) and (6G), and 124(1BA) to (1BC); and “(b) must, in accordance with section 5(1), be complied with 10 by the chief executive.” Contracts with administration service providers 51 (1) Section 125A amended (Chief executive may contract with service providers) In section 125A(1)(a), after “that”, insert “, in relation to 15 young persons,”.
(2) After section 125A(1)(a), insert: “(ab) that, in relation to persons other than young persons, are services in relation to all or any of Parts 1, 1A, 1B, 1C, 1D, 1E, 1F, 1G, 1H, 1I, to 1P and 2; and”.

20 In section 125A(2)(b), replace “young persons” with “persons to whom the services relate”.

Repeal section 125(3).

Section 125C amended (Release of personal information to and by contracted service provider) In section 125C(1)(a), delete “young”.
In section 125C(1)(b), replace “Part 5 and section 123E(a)” with “the provisions specified in section 125A(1)(a) or, as the case requires, 125A(1)(ab)”.

In section 125C(2), delete “young” in each place.
25 30 (3) (4) 52 (1) (2) (3) 90 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 52A Effect on benefit of warrant to arrest beneficiary: information matching 52A New section 126AC inserted (Disclosure to department of warrant to arrest beneficiary for determining effect on benefit) After section 126AB, insert: 5 “126AC Disclosure to department of warrant to arrest beneficiary for determining effect on benefit “(1) The purpose of this section is to authorise and require the dis- closure of information by the Ministry of Justice to the depart- 10 ment for the purpose of enabling the department to implement effectively section 75B (which relates to the effect on a bene- fit of a warrant to arrest the beneficiary).
“(2) For the purpose of this section, the chief executive of the Min- istry of Justice must from time to time, in accordance with ar- 15 rangements made with the chief executive of the department for the time being responsible for the administration of this Act, provide the latter chief executive with information about individuals for whose arrest a New Zealand court has (or 1 or more of the court’s Judges or Registrars has or have) at least 20 28 days before the provision of the information issued a war- rant to arrest in criminal proceedings against the individual for an offence (being a warrant of that kind that has not been exe- cuted or withdrawn).
“(3) The information must be provided unless provision of the in- 25 formation is limited or prohibited by any enactment or by any order or direction of the court.

“(4) The information provided must, without limitation, include the individual’s name (including any alias), date of birth, and last known address, and the nature of the offence charged.
“(5) The chief executive of the department responsible for the ad- ministration of this Act may supply the information received to any officer or employee who is— “(a) “(b) an officer or employee of the department; and authorised by that chief executive to receive it.
“(6) The information must be provided in a form determined by 30 35 agreement between the 2 chief executives.” 91 Part 1 cl 53 Social Security (Benefit Categories and Work Focus) Amendment Bill Disability allowance: funding of specified expenses 53 New section 132AD inserted (Regulations on use of disability allowance to fund specified expenses) After section 132AC, insert: “132AD Regulations on use of disability allowance to fund 5 specified expenses “(1) The Governor-General may, by Order in Council, make regu- lations relating to the use of a disability allowance to fund spe- cified expenses.
10 “(2) Any such regulations may (without limiting subsection (1)) do either or both all or any of the following: “(a) “(b) “(c) specify classes, descriptions, or kinds of expenses that must not be funded by way of a disability allowance: specify classes, descriptions, or kinds of expenses that 15 may be funded by way of a disability allowance only to an extent specified in the regulations, or only subject to compliance with conditions specified in the regulations, or both: provide for transitional and savings provisions relating 20 to use of a disability allowance to fund specified ex- penses.
“(3) Any such regulations that do what is stated in subsection (2)(b) may specify the maximum extent to which expenses may be funded by way of a disability allowance in ways that 25 are or include using all or any of the following: “(a) maximum funded proportions of all or any of the ex- penses concerned: “(b) maximum funded amounts for all or any specified ex- penses, specified periods, or both: 30 “(c) maximum numbers, frequencies, or both, of grants for all or any specified expenses.
“(4) Transitional or savings provisions under subsection (2)(c) may, without limitation, provide for all or any of the following: “(a) separate transitional or savings provisions for all or any 35 specified people to or on account of whom a disabil- ity allowance is payable immediately before the com- mencement of this section: 92 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 54 “(b) “(c) separate transitional or savings provisions for all or any specified expenses to which the regulations apply (when they, or any regulations amending them or made under subsection (2)(c), come into force): specified transitional or savings provisions to have ef- 5 fect at a time, or on the occurrence of an event (for ex- ample, at the end of any existing contractual arrange- ments), specified in any general or special directions given to the chief executive in writing by the Minister under section 5.” 10 Effect on benefit of warrant to arrest beneficiary, and expiry and re-grant of specified benefits 54 New sections 132L and 132M inserted After section 132K, insert: “132L Regulations relating to effect on benefit of warrant to 15 arrest beneficiary “(1) The Governor-General may, by Order in Council and on a rec- ommendation by the Minister, make regulations for the pur- pose of section 75B (which relates to the effect on a benefit of a warrant to arrest a beneficiary), including, without limita- 20 tion,— “(a) the purposes of sec- for provisions prescribing, tion 75B(1), classes, descriptions, or
 kinds of benefi- ciary excluded from the operation of section 75B: “(b) provisions prescribing classes, descriptions, or kinds 25 of offences excluded from the operation of sec- tion 75B(1)(a): “(ba) provisions prescribing for the purposes of section 75B(1A)(a)(iii) or, as the case requires, section 75B(1A)(b)(ii), classes, descriptions, or kinds of 30 beneficiary excluded from the operation of all of the provisions of section 75B, and who are therefore excluded beneficiaries for the purposes of section
 75B(2) to (4) or, as the case requires, section 75B(5) and (6): provisions that, to assist the department to exercise and perform powers and functions under section 75B, au- thorise (but do not require) the department, the Ministry “(c) 35 93 Part 1 cl 54 Social Security (Benefit Categories and Work Focus) Amendment Bill of Justice, and the New Zealand Police, to disclose to one another relevant personal information about bene- ficiaries to whom section 75B applies or could apply: “(d) provisions for any other matters contemplated by sec- tion 75B, necessary for its administration, or necessary 5 for giving it full effect.
“(2) Subsection (1)(c) applies only to personal information that is— “(a) about beneficiaries to whom section 75B applies or could apply; and 10 “(b) necessary or desirable for giving full effect to, or for the due administration of, section 75B.
“(3) Regulations under subsection (1)(c)— “(a) may state the circumstances in which the Ministry of Justice, the New Zealand Police, or officers or employ- 15 ees of either of them, may release or disclose to the chief executive and employees of the department information to which subsection (1)(c) applies held by the Min- istry of Justice or the New Zealand Police, and the con- ditions with which the chief executive and employees 20 of the department must comply in dealing with the in- formation; and “(b) may state the circumstances in which the chief execu- tive and employees of the department may release or disclose to the Ministry of Justice, to the New Zealand 25 Police, or to officers or employees of either of them, in- formation to which subsection (1)(c) applies held by the department, and the conditions with which the Min- istry of Justice, the New Zealand Police, or officers or employees of either of them, must comply in dealing 30 with the information; and cannot be made, or continue in force, after the close of 14 July 2016.
“(c) “(4) The Minister must not recommend the making of proposed regulations under subsection (1)(c) unless satisfied that the 35 chief executive has consulted the Privacy Commissioner, and persons or organisations representing the interests of people whose information the sharing of which is to be authorised by the proposed regulations, on the proposed regulations.
94 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 54 “(5) In this section, held includes deemed for the purposes of the Official Information Act 1982 (in accordance with section 2(4), (4A), and (5) of that Act) to be held.

“(6) Nothing in this section limits section 132.
“132M Regulations relating to expiry and re-grant of specified 5 benefits “(1) The Governor-General may, by Order in Council and on a rec- ommendation by the Minister, make regulations for the pur- pose of sections 80BE and 80BF (which relate to expiry and re-grant of specified benefits), including, without limita- 10 tion, provisions that— “(a) declare a benefit other than jobseeker support that is sole parent support, supported living payment, or emer- gency benefit (including, without limitation, that benefit as granted in either or both of the ways specified in sec- 15 tion 80BE(5A)(a) and (b)) not to be a specified benefit for the purposes of sections 80BE and 80BF: “(b) prescribe the expiry date or expiry dates for every bene- fit that is a specified benefit for the purposes of sec- tions 80BE and 80BF: specify circumstances in which the chief executive may under section 80BE(7) consider an exemption from expiry under section 80BE.
“(c) 20 “(2) The Minister must not recommend the making of regulations under subsection (1)(a) declaring a benefit other than job- 25 seeker support to be a specified benefit for the purposes of sections 80BE and 80BF unless satisfied that those regula- tions are necessary or desirable for all or any of the following purposes: “(a) to help to ensure that beneficiaries in receipt of that 30 benefit are receiving the correct benefit: to reduce incorrect payments, debts due to the Crown (within the meaning of section 85A), or fraud: to help all or any beneficiaries in receipt of that benefit to move from dependence on a benefit to self-support.
“(2) Regulations under subsection (1)(b) may, without limitation, prescribe the same expiry date, or 2 or more different expiry dates, for all or any combination of the following: “(b) “(c) 35 95 Part 1 cl 55 Social Security (Benefit Categories and Work Focus) Amendment Bill “(a) “(b) “(c) for the purposes of sec- each specified benefit tions 80BE and 80BF: each specified benefit the purposes of sec- for tions 80BE and 80BF insofar as that benefit is granted on each of 2 or more different specified eligibility 5 grounds: each specified benefit the purposes of sec- for tions 80BE and 80BF insofar as that benefit is (on all, or any specified, eligibility grounds) granted to a spe- cified category, class, or kind of applicants, recipients, 10 or beneficiaries.
“(3) Nothing in this section limits section 132.” Jobseeker support 55 (1) Schedule 9 amended In Schedule 9, after clause 1(a), insert: 15 $213.49214.79 a week, subject to Income Test 1 (ab) To any other single bene- ficiary without dependent children and who was on 15 July 2013 transferred to jobseeker support— (i) by clause 2(8) and (9) of Schedule 32; or (ii) by clause 9(6) and (7) of Schedule 32 (2) In Schedule 9, after clause 1(b), insert: $293.58295.37 a week, subject to Income Test 1 (ba) To any single beneficiary whose youngest dependent child is aged at least 14 years (including, without limita- tion, any such beneficiary who is a beneficiary of a kind specified in clause 5A(a), (b), or (c), and see also the chief executive’s discretion (to disregard specified in- come used to meet the cost of childcare) under clause 5B) In Schedule 9, clause 1(c),— (a) (b) replace “a” with “any other”; and replace “Income Test 3” with “Income Test 1”.
(3) 96 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1 cl 55A (4) In Schedule 9, after clause 5, insert: 5A A single beneficiary whose youngest dependent child is aged at least 14 years, referred to in clause 1(ba), includes, without limi- tation, any such beneficiary who is— (a) a beneficiary who (as a person with a dependent child aged under 14 years) was on 15 July 2013 transferred by clause 2(6) and (7) of Schedule 32 to sole parent support that after 14 July 2013 and under section 20H(1) and (2) expired, and was replaced with jobseeker support that commenced, on the date that the beneficiary’s youngest dependent child turned 14 years old; or a beneficiary who (as a person without a dependent child aged under 14 years) was on 15 July 2013 transferred to jobseeker support by clause 2(8) and (9) of Schedule 32; or a beneficiary whose entitlement to jobseeker support arose from applying for it, and being granted it, after 14 July 2013.
(b) (c) 5B For the purposes of clause 1(ba) and of clause 1(c), the chief executive may, in his or her discretion, disregard up to $20 a week of the beneficiary’s personal earnings used to meet the cost of childcare for any of the beneficiary’s dependent children.

References to main benefits 55A Amendments to make clearer references to main benefits In section 61(1)(b), replace “any benefit” with “a main benefit (1) under this Act, New Zealand superannuation, or a veteran’s 5 pension”.
In section 75(2),— (a) (2) replace “Notwithstanding anything to the contrary in this Act or in the Social Welfare (Transitional Provi- sions) Act 1990 or Part 6 of the War Pensions Act 1954, 10 if” with “If”; and replace “a benefit (other than an unsupported child’s benefit or an orphan’s benefit)” with “a main benefit under this Act”; and replace “shall not be affected” with “is, despite anything 15 to the contrary in this Act, unaffected”.
(b) (c) (3) In section 75(3), delete “(other than a person in receipt of, or entitled to receive, a veteran’s pension or a person who is a resident assessed as requiring care (as defined in section 136) 97 Part 1 cl 55A Social Security (Benefit Categories and Work Focus) Amendment Bill 5 in respect of whom a funder (as defined in that section) is pay- ing some or all of the cost of contracted care services (as de- fined in that section) under section 141 or section 142)”.
In section 75(5), replace “any benefit” with “a main benefit under this Act”.

Repeal section 75(8).

In section 117(1)(a)(i), after “the person’s benefit”, insert “(un- less it is not a main benefit under this Act)”.

In section 117(1)(a)(ii), after “the person’s benefit”, insert “(unless it is not a main benefit under this Act)”.

In section 117(1)(b), after “the person’s benefit”, insert “(un- less it is not a main benefit under this Act)”.
In section 117(1)(c), replace “benefit” with “person’s benefit (unless it is not a main benefit under this Act)”.

In section 117(2), replace “benefit” with “main benefit under 15 this Act”.

In section 117(2)(a), replace “benefit” with “main benefit under this Act”.

In section 117(2)(b), replace “a benefit” with “a main benefit under this Act”.
20 10 (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) After section 119(1), insert: “(1A) Subsections (1)(a) and (ab) and (3) apply only to 1 or more 25 main benefits under this Act.” In section 121, replace “a benefit” with “a main benefit under this Act”.

In section 123(1)(a), replace “a benefit” with “a main benefit under this Act”.

In section 123(3), replace “a benefit” with “a main benefit under this Act”.

In section 123A(1), replace “a benefit” with “a main benefit 30 under this Act”.
In section 123B(2)(b), replace “a benefit” with “a main benefit under this Act”.

In section 123B(3), replace “a benefit” with “a main benefit under this Act” in each place.

In section 173(2)(a) and (b), replace “a benefit” with “a main benefit under this Act” in each place.
35 (14) (15) (16) (17) (18) (19) (20) 98 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 2 cl 57 (21) (22) (23) In section 174(2)(a) and (b), replace “a benefit” with “a main benefit under this Act” in each place.

In Schedule 18, Part 1, clause 1, definition of base rate, para- graphs (a), (b), (c), (d), and (da), replace “of benefit” with “of a main benefit under this Act”.

In Schedule 22, repeal clause 2.


5 Reorganising headings and relocating section 53A 56 Amendments to make clearer principal Act’s structure The principal Act is amended in the manner indicated in Part 1 10 of Schedule 2.
57 (1) (2) (3) Part 2 Consequential amendments, and transitional and savings provisions Overview 15 20 Overview of Part This Part contains consequential amendments to the principal Act and to other enactments, and transitional and savings pro- visions, related to the substantive amendments to the principal Act contained in Part 1.
In particular, this Part,— (a) changes legislative references to reflect the new benefit categories; and provides for transfers from existing benefits to new benefits (see sections 131 and 132 inserting sec- 25 tion 3C and Schedule 32 of the principal Act); and (b) (c) makes consequential amendments related to substantive amendments making clearer the principal Act’s struc- ture (see sections 129 and 130 and Parts 2 and 3 of Schedule 2).
Some amendments or provisions in this Part relate to pro- visions of the principal Act that are inserted or amended on 15 October 2012 by section 2(2) and Parts 3 and 4 of the So- cial Security (Youth Support and Work Focus) Amendment Act 2012.
30 35 99 Part 2 cl 58 Social Security (Benefit Categories and Work Focus) Amendment Bill Consequential amendments: Couple rate and work-test couple rate Consequential amendments to principal Act In section 3(1), definition of work-tested spouse or partner, paragraph (b)(i), replace “married” with “couple”.

In section 3(1), definition of work-tested spouse or part- ner, paragraph (b)(ii)(A), replace “work-tested married” with “work-test couple”.

In section 3(5), replace “married” with “couple”.


In section 60H(2)(b), replace “married” with “couple”.

In section 61A(1)(a) and (1A), replace “married” with “cou- ple”.

In section 120(1), (1A), and (2), replace “married” with “cou- ple”.

5 10 15 Consequential amendments to other enactments In the Accident Compensation Act 2001, section 252(5), re- place “married” with “couple”.

In the Child Support Act 1991, section 30(3) and (4)(a), re- place “married” with “couple”.
In the Child Support Act 1991, section 30(5), definition of 20 gross married rate of invalid’s benefit, replace “married” with “couple”.

In the Child Support Act 1991, section 30(5), definition of gross married rate of unemployment benefit, replace “mar- ried” with “couple”.
25 Consequential amendments: status of examples Consequential amendments to enactments made under principal Act The following are consequentially revoked: (a) regulation 3A of the Social Security (Long-term Resi- 30 dential Care) Regulations 2005: regulation 5 of the Social Security (Temporary Addi- tional Support) Regulations 2005.
(b) 58 (1) (2) (3) (4) (5) (6) 59 (1) (2) (3) (4) 60 100 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 2 cl 64 Consequential amendments: pre-benefit activities Section 11D amended (Application process for benefits) In section 11D(12), replace “section 96A” with “sections 11E, 11G, and 11H”.

5 Section 132J amended (Regulations stating pre-benefit activities) In section 132J(1), replace “section 96A” with “sections 11E, 11G, and 11H”.
Social Security (Pre-benefit Activities) Regulations 2012 amended This section amends the Social Security (Pre-benefit Activ- ities) Regulations 2012.

In regulation 3, tion 11E(3)”.

replace “section 96A(13)” with “sec- 10 15 Consequential amendments: Sole parent support Section 3 amended (Interpretation) In section 3(1), definition of income-tested benefit, repeal paragraph (j).

In section 3(1), definition of part-time work-tested benefi- 20 ciary, repeal paragraph (a)(iii).
In section 3(1), definition of work-tested beneficiary (as re- placed on 15 October 2012 by section 33(2) of the Social Security (Youth Support and Work Focus) Amendment Act 2012), repeal paragraph (b)(iii).

In section 3(1), definition of work-tested benefit (as so re- placed), paragraph (a),— (a) replace “a work-tested domestic purposes beneficiary,” with “a work-tested sole parent support beneficiary,”; and (b) delete “or a work-tested widow’s beneficiary,”.
In section 3(1), definition of work-tested benefit (as so re- placed), paragraph (c), replace “a domestic purposes benefit 30 25 61 62 63 (1) (2) 64 (1) (2) (3) (3A) (4) 101 Part 2 cl 65 Social Security (Benefit Categories and Work Focus) Amendment Bill under section 27B or 27C” with “sole parent support under section 20D”.

In section 3(1), definition of work-tested benefit (as so re- placed), repeal paragraph (e).
In section 3(1), repeal the definition of work-tested domestic 5 purposes beneficiary (as so replaced).

In section 3(1), insert in its appropriate alphabetical order: “work-tested sole parent support beneficiary means a per- son— “(a) who has been granted sole parent support under sec- 10 tion 20D; and “(b) whose youngest dependent child is aged 5 years or older”.
In section 3(1), repeal the definition of work-tested widow’s beneficiary (as replaced inserted on 15 October 2012 by sec- 15 tion 33(5) of the Social Security (Youth Support and Work Fo- cus) Amendment Act 2012).

Section 60GAE amended (Beneficiaries having additional dependent child: general) In section 60GAE(1)(a) (as inserted on 15 October 2012 by 20 section 39 of the Social Security (Youth Support and Work Focus) Amendment Act 2012), delete “a widow’s benefit,”.
In section 60GAE(2) (as so inserted), replace “work-tested domestic purposes beneficiary,” with “work-tested sole parent support beneficiary, and”.

In section 60GAE(2) (as so inserted), delete “, and work- tested widow’s beneficiary”.
25 Section 60Q amended (Certain obligations may be placed on beneficiaries and their spouses and partners) In section 60Q(1)(a) (as replaced on 15 October 2012 by sec- 30 tion 40 of the Social Security (Youth Support and Work Fo- cus) Amendment Act 2012), replace “a benefit under section 21 (the widow’s benefit)” with “a benefit under section 20D (sole parent support)”.

Repeal section 60Q(1)(b) (as so replaced).


35 (5) (6) (7) (8) 65 (1) (2) (3) 66 (1) (2) 102 67 68 69 70 71 72 73 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 2 cl 73 Section 61 amended (Chief executive may grant emergency benefit in cases of hardship) In section 61(1), first and second provisos, replace “a domes- tic purposes benefit, a widow’s benefit,” with “sole parent sup- port,” in each place.
5 Section 70A amended (Rates of benefits for sole parents may be reduced) Replace section 70A(1)(b)(i) and (ii) with: “(i) sole parent support under section 20D; or”.

Section 74AA amended (Residential requirements for certain benefits) In section 74AA(2),— (a) (b) delete “a domestic purposes benefit,”; and replace “a widow’s benefit” with “sole parent support”.
Section 80B amended (Interpretation) In section 80B, definition of income, insert in its appropriate alphabetical order: “(ac) the amount of any sole parent support received by the person:”.

Section 82 amended (Payment of benefits) In section 82(2A), delete “, and a widow’s benefit”.

Section 162 amended (Youth payment: continuation after age 18) Replace section 162(2)(a) and (b) with: “(a) sole parent support:”.
10 15 20 25 Section 168 amended (Young parent payment: continuation after age 19) Replace section 168(2)(a) and (b) with: “(a) sole parent support:”.

103 Part 2 cl 74 Social Security (Benefit Categories and Work Focus) Amendment Bill 74 (1) (2) Schedule 3 amended In the Schedule 3 heading, replace “ss 21, 24” with “s 3C”.
In the Schedule 3 heading, replace “Rates of widows’ bene- fits” with “Rates of generally abolished former widows’ benefits under section 21 as saved by clause 3 of Sched- 5 ule 32 for reciprocity agreement applicants or recipients”.

New Schedule 3A inserted 75 (1) After Schedule 3, insert the Schedule 3A set out in Sched- ule 1 of this Act.

In section 3(1), definition of dependent child, paragraph (d), 10 after “3,” insert “3A,”.

In section 61H(1)(d), after “3,” insert “3A,”.


In section 61HA(2), after “3,” insert “3A,”.

Schedule 10 amended In the heading to Schedule 10, replace “New Zealand Super- 15 annuation payable under section 16, invalids’, widows’, domestic purposes, and sickness” with “stated”.
In Schedule 10, item specifying maximum rate, replace “in any other case” with “in the case of New Zealand Superannuation, supported living payment on the ground of sickness, injury, 20 disability, or total blindness, or sole parent support”.

Schedule 16 amended In the Schedule 16 heading, replace “ss 27B, 27C, 27H” with “s 3C”.
In the Schedule 16 heading, replace “Rates of domestic pur- 25 poses benefits” with “Rates of generally abolished former DPB for solo parents under section 27B as saved by clause 3 of Schedule 32 for reciprocity agreement applicants or re- cipients”.

Schedule 18 amended In Schedule 18, Part 1, clause 3, replace “a widow’s benefit or a domestic purposes benefit” with “sole parent support”.
30 (2) (3) (4) 76 (1) (2) 77 (1) (2) 78 104 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 2 cl 80 79 (1) (2) (2A) (3) (4) 80 (b) Other consequential amendments to principal Act In the following provisions, replace “a domestic purposes benefit” with “sole parent support”: (a) section 3(1), definition of income-tested benefit, para- graph (b): section 60GAE(1)(a) (as inserted on 15 October 2012 by section 39 of the Social Security (Youth Support and Work Focus) Amendment Act 2012): section 80(5)(b): section 82(2A).
(c) (d) In the following provisions, replace “domestic purposes bene- ficiary” with “sole parent support beneficiary”: (a) section 3(1), definition of part-time work-tested bene- ficiary, paragraph (a)(ii): section 3(1), definition of work-tested beneficiary (as 15 replaced on 15 October 2012 by section 33(2) of the So- cial Security (Youth Support and Work Focus) Amend- ment Act 2012), paragraph (b)(ii): section 3(1), definition of work tested benefit, para- graphs (a) and (c).
20 (b) (c) 5 10 In section 3(1), definition of work-tested beneficiary (as re- placed on 15 October 2012 by section 33(2) of the Social Security (Youth Support and Work Focus) Amendment Act 2012), paragraph (b)(ii), replace “domestic purposes benefi- ciary; or” with “sole parent support beneficiary”.
In the following provisions, replace “a widow’s benefit, a do- mestic purposes benefit,” with “sole parent support,”: (a) (b) (c) (d) In section 80(14)(a), replace “a widow’s benefit, a domestic purposes benefit,” with “sole parent support”.

section 61E(1), definition of beneficiary, paragraph (a): section 66(1): section 69C(1)(a): section 80(2)(b).

25 30 Consequential amendments to other enactments The enactments specified in Schedule 3 are amended in the 35 manner indicated in that schedule.
105 Part 2 cl 81 Social Security (Benefit Categories and Work Focus) Amendment Bill Consequential amendments: supported living payment benefit Section 3(1) amended (Interpretation) In section 3(1), definition of work-test married rate, para- graph (b)(ii), replace “42(2)” with “40I(5)”.

In section 3(1), definition of work-tested spouse or partner, paragraph (b)(iii)(C), replace “42(2)” with “40I(5)”.

5 Section 39A amended (Child disability allowance) In section 39A(1), replace “39F” with “39E”.
Section 43 amended (Subsidy on earnings of blind beneficiaries) In section 43, replace “section 42” with “section 40I”.

Section 70A amended (Rates of benefits for sole parents may be reduced) Replace section 70A(1)(b)(iii) with: “(iii) a supported living payment on the grounds of injury, disability, or total blindness, sickness, under section 40B; or”.

10 15 Section 80 amended (Commencement of benefits) In section 80(5)(ca)(i), replace “congenital defect” with “exist- 20 ing from birth”.
Section 80B amended (Interpretation) In section 80B, definition of income, insert in its appropriate alphabetical order: “(ad) the amount of any supported living payment received 25 by the person:”.

Section 157 amended (Interpretation) In section 157, definition of specified beneficiary, paragraph (a), replace “domestic purposes benefit under section 27G” with “supported living payment under section 40D”.
30 81 (1) (2) 82 83 84 85 86 87 (1) 106 (1) (2) 88 (1) (2) (3) (4) (5) 3 89 (1) (2) (3) 90 (1) Social Security (Benefit Categories and Work Focus) Amendment Bill Part 2 cl 90 In section 157, definition of specified beneficiary, repeal para- graph (a).

In section 157, definition of specified beneficiary, paragraph (b), replace “invalid’s benefit” with “supported living pay- ment”.

Schedule 6 amended In the Schedule 6 heading, replace “invalids’” with “sup- ported living payment”.
In the Schedule 6 heading, replace “ss 42, 43” with “ss 40I, 40J”.

In Schedule 6, clause 1(f), after “children)”, insert “receiving a supported living payment under section 40B on the grounds of sickness, injury, disability, or total blindness”.
In Schedule 6, after clause 1(g), insert: 5 10 $213.49214.79 a week, sub- ject to Income Test 1 (h) To a beneficiary (with or without de- pendent children) receiving a supported living payment under section 40D on the grounds of caring for a patient requiring care, if the beneficiary is married or in a civil union, or in a de facto relationship, and the beneficiary’s spouse or partner is not granted a bene- fit in his or her own right In Schedule 6, after clause 2, insert: Despite paragraphs (e), (g), and (h) of clause 1, the rate of a supported living payment on the grounds of caring for a patient requiring care under any of those paragraphs must not be less than the rates that would be payable if the beneficiary and the spouse or partner of the beneficiary were both entitled to receive the benefit on those grounds; but the rate of benefit payable by virtue of this clause must not exceed $214.79 a week.
15 Schedule 17 repealed Repeal Schedule 17.

In section 61H(1)(d), replace “17 to” with “18,”.

In section 61HA(2), delete “17,”.
Other consequential amendments to principal Act In the following provisions, replace “an invalid’s benefit” with “a supported living payment” in each place: 20 107 Part 2 cl 91 Social Security (Benefit Categories and Work Focus) Amendment Bill 10 (a) (b) (c) (d) (e) (f) (g) section 3(1), definition of income-tested benefit, para- graph (e): section 3(1), definition of work-test married rate, paragraph (b): section 3(1), definition of work-tested benefit (as re- 5 placed on 15 October 2012 by section 33(2) of the So- cial Security (Youth Support and Work Focus) Amend- ment Act 2012), paragraph (b): section 3(1), definition of work-tested spouse or part- ner, paragraph (b)(i) and (iii)(C): section 43(1): section 60GAE(1)(a) (as inserted on 15 October 2012 by section 39 of the Social Security (Youth Support and Work Focus) Amendment Act 2012): section 60Q(1)(c)(i) (as replaced on 15 October 2012 15 by section 40 of the Social Security (Youth Support and Work Focus) Amendment Act 2012): section 61(1), first and second provisos: section 61E(1), definition of beneficiary, paragraph (a): section 66(1): section 69C(1)(a) and (5)(a): section 74AA(2): section 77(4)(b): section 80(2)(b), (5)(b), (5)(ca), and (14)(b): section 82(2A): Schedule 30, clause 1, paragraph (a).
(h) (i) (j) (k) (l) (m) (n) (o) (p) In the following provisions, replace “an invalid’s benefit” with “a supported living payment on the grounds of sickness, injury, disability, or total blindness” in each place: (aaa) section 69C(5)(a): (aab) section 80(5)(ca): section 12J(2)(a): (a) section 72(b), proviso that begins “provided further (b) that”.

20 30 25 Consequential amendments to other enactments The enactments specified in Schedule 4 are amended in the manner indicated in that schedule.
35 (2) 91 108 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 2 cl 93 Consequential amendments: repeal of section 60HA Consequential amendments to principal Act and to regulations made under it In section 3(1), repeal the definition of work preparation ex- 5 ercise.

In section 105(1), delete “or from complying with sec- tion 60HA”.

In the heading to section 123, delete “section 60HA or”.

In section 123(1)(b)(ia), delete “a request under section 60HA 10 or”.
In section 123(1)(b)(ii), delete “or an exemption from comply- ing with section 60HA”.

In section 123B(5)(a), delete “or a beneficiary required to com- ply with a request under section 60HA or”.

In section 123B(5)(b), delete “or an exemption from comply- ing with section 60HA or”.

In section 123D(a), delete “or the obligation to comply with section 60HA”.

In the Social Security (Exemptions under Section 105) Regu- 20 lations 1998, revoke regulation 3.
15 Consequential amendments: sickness benefit abolished Section 3 amended (Interpretation) In section 3(1), definition of income-tested benefit, repeal 25 paragraph (aa).

In section 3(1), definition of part-time work-tested benefi- ciary, replace paragraph (b) with: “(b) a person who is granted jobseeker support on the ground of sickness, injury, or disability and who, under sec- 30 tion 88F(4), must comply with the work test”.
In section 3(1), definition of work-tested beneficiary (as re- placed on 15 October 2012 by section 33(2) of the Social Security (Youth Support and Work Focus) Amendment Act 2012), replace paragraph (a) with: 35 92 (1) (2) (3) (4) (5) (6) (7) (8) (9) 93 (1) (2) (3) 109 Part 2 cl 94 Social Security (Benefit Categories and Work Focus) Amendment Bill “(a) who is granted jobseeker support (other than jobseeker support on the ground of sickness, injury, or disability); or “(aa) who is granted jobseeker support on the ground of sickness, injury, or disability, and who, under sec- 5 tion 88F(4), must comply with the work test; or”.
In section 3(1), definition of work-tested beneficiary (as so replaced), repeal paragraph (b)(iv).

In section 3(1), definition of work-tested benefit (as so re- placed), paragraph (a), delete “, a work-tested sickness bene- 10 ficiary,”.
In section 3(1), definition of work-tested benefit (as so re- placed), paragraph (a), replace “, a work-tested sickness bene- ficiary,” with “or a beneficiary receiving jobseeker support on the ground of sickness, injury, or disability who is not, under 15 section 88F(4), required to comply with the work test,”.

In section 3(1), definition of work-tested benefit (as so re- placed), paragraph (b), replace “a sickness benefit, an emer- gency benefit, and” with “an emergency benefit and”.
In section 3(1), definition of work-tested benefit (as so re- 20 placed), repeal paragraph (d).

In section 3(1), repeal the definition of work-tested sickness beneficiary.

In section 3(1), definition of work-tested spouse or partner, paragraph (b)(i), delete “, a sickness benefit,”.

25 Section 12J amended (Rights of appeal) In section 12J(2)(e), replace “a sickness benefit” with “job- seeker support on the grounds of sickness, injury, or disabil- ity”.
Section 60H amended (Voluntary unemployment or loss of employment through misconduct, etc) Repeal section 60H(2)(ab).
Replace section 60H(2)(ab) with: “(ab) a person who is an applicant for jobseeker support on 30 the ground of sickness, injury, or disability if, on the 35 grant of that benefit, the chief executive would be able to (4) (5) (5) (6) (7) (8) (9) 94 95 110 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 2 cl 101 determine, under section 88F(2), that the person has, while receiving that benefit, the capacity to seek, under- take, and be available for part-time work (as defined in section 3(1)); or”.
96 97 98 99 Section 61 amended (Chief executive may grant emergency benefit in cases of hardship) In section 61(1A), delete “a sickness benefit under section 54A or”.

5 Section 66 amended (Exemption of income from friendly or like society) In section 66(1), replace “a sickness benefit” with “jobseeker support on the grounds of sickness, injury, or disability”.

Section 70A amended (Rates of benefits for sole parents may be reduced) Repeal section 70A(1)(b)(iv).
Section 72 amended (Limitation where applicant receiving another benefit or war pension) In section 72(b), second proviso, replace “a sickness benefit” with “jobseeker support on the grounds of sickness, injury, or disability”.

10 15 20 100 Section 80 amended (Commencement of benefits) (1) In section 80(5)(c), replace “the benefit is a sickness benefit” with “the benefit is jobseeker support on the grounds of sick- ness, injury, or disability”.
In section 80(5)(c)(ii), after “a community wage”, insert “or 25 jobseeker support (in either case)”.

In section 80(14)(a), replace “a sickness benefit” with “job- seeker support on the grounds of sickness, injury, or disabil- ity”.
(2) (3) 101 Section 102 amended (Application of work test) 30 Replace section 102(1) with: 111 Part 2 cl 102 Social Security (Benefit Categories and Work Focus) Amendment Bill “(1) The work test applies to a person while he or she is a work- tested beneficiary, and unless subsection (2) applies, the per- son is subject to the obligations of the work test set out in sec- tion 102A from,— “(a) in the case of a person granted jobseeker support on 5 the grounds of sickness, injury, or disability, the date specified in the chief executive’s notice under sec- tion 88F(4); and in any other case, the date on which the work-tested benefit is first paid.” 10 “(b) 102 Section 157 amended (Interpretation) In section 157, definition of specified beneficiary, paragraph (b), delete “sickness benefit,”.
103 Section 162 amended (Youth payment: continuation after age 18) Repeal section 162(2)(c).

104 Section 168 amended (Young parent payment: continuation after age 19) Repeal section 168(2)(c).

105 Schedule 9 amended In the Schedule 9 heading, delete “and sickness benefits”.

15 20 106 Schedule 10 amended In Schedule 10, item relating to the maximum rate, replace “a sickness benefit” with “jobseeker support on the grounds of sickness, injury, or disability”.
25 107 Other consequential amendments to principal Act (1) In the following provisions, delete “or a sickness benefit” in each place: (a) section 3(1), definition of work-test married rate, paragraph (a): section 61(1), first and second provisos: section 61E(1), definition of beneficiary, paragraph (a): (b) (c) 112 30 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 2 cl 108A (2) (3) (b) section 69C(1)(a) and (5)(a).
(d) In the following provisions, delete “a sickness benefit,”: (a) section 60GAE(1)(a) (as inserted on 15 October 2012 by section 39 of the Social Security (Youth Support and Work Focus) Amendment Act 2012): section 60Q(1)(c)(i) (as replaced on 15 October 2012 by section 40 of the Social Security (Youth Support and Work Focus) Amendment Act 2012): section 74AA(2): section 80(2)(b) and (5)(b): section 82(2A).
(c) (d) (e) In section 80(2)(b), replace “a sickness benefit” with “job- seeker support on the ground of sickness, injury, or disabil- ity”.

5 10 108 Consequential amendments to other enactments The enactments specified in Schedule 5 are amended in the 15 manner indicated in that schedule.
Consequential amendments: social obligations of certain beneficiaries with dependent children 108A Section 123 amended (Effect of ceasing to be subject to 20 (1) obligation to comply with work test or section 170 or 171) In the heading to section 123, after “171”, insert “, social obli- gation, or work preparation obligation”.

In section 123(1)(a), after “suspended”, insert “or reduced”.

In section 123(2)(a), after “suspension”, insert “or reduction”.
25 (2) (3) (4) After section 123(3), insert: “(3A) A sanction imposed on a person under section 117 (as applied by sections 60RC(1) and 116B(1)(b)) in respect of a social obligation that the person had under section 60RA(3) ceases to apply to the person on the person ceasing to have that social 30 obligation under section 60RA(3).
“(3B) A sanction imposed on a person under section 117 (as applied by section 116B(1)(c)) in respect of either a general obliga- tion of the person under section 60Q(2), or an obligation of the person under section 60Q(2) or (3) to comply with a require- 35 113 Part 2 cl 109 Social Security (Benefit Categories and Work Focus) Amendment Bill ment under section 60Q(3), ceases to apply to the person on the person ceasing to have that obligation.” 109 Section 132AC amended (Regulations relating to childcare assistance) After section 132AC(1), insert: “(5) Regulations under this section that define the term approved early childhood education programme for the purposes of all or specified provisions of those regulations also define that term for the purposes of sections 60RA(3) and 170(2)(c).” 110 Section 170 amended (Youth support payments: obligations) In section 170(2)(c), replace “in regulations under this Act” with “for the purposes of this paragraph in regulations under section 132AC”.
Consequential amendments: expiry and re-grant of specified benefits 5 10 15 Section 117 amended (Sanctions that may be imposed for failures) Replace section 117(4) with: If a person’s specified benefit (as defined in section 80BE(5)) 20 is reduced or suspended under subsection (1) of this section and the person is re-granted a specified benefit under section 80BF, the reduction or suspension continues to apply to the re-granted specified benefit on and after its commencement until the person recomplies.” 25 Section 119 amended (Calculation of failure rate) In section 119(3A),— (a) replace “an unemployment” with “a specified” in each place; and replace “section 99AA” with “section 80BE”; and replace “section 99AB” with “section 80BF”.
(b) (c) 30 111 “(4) 112 114 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 2 cl 120 Consequential amendments: jobseeker support 113 Section 11D amended (Application process for benefits) In section 11D(12), replace “section 96A” with “sections 11E and 11G”.

114 Cross-headings above sections 58 and 59B repealed Repeal the cross-headings above sections 58 and 59B.
5 115 116 Section 61 amended (Chief executive may grant emergency benefit in cases of hardship) In section 61(1A), replace “section 90” with “section 88C”.

Section 80B amended (Interpretation) In section 80B, definition of income, insert in its appropriate alphabetical order: “(ae) the amount of any jobseeker support received by the 10 person:”.

117 Section 82 amended (Payment of benefits) In section 82(2A), replace “, an unemployment benefit” with “and jobseeker support”.
15 118 New cross-heading above section 88A inserted After the Part 2 heading, insert: “Definitions of terms in this Part”.

20 119 Section 99A repealed (Transfer from community wage to unemployment benefit on 1 July 2001) Repeal section 99A.

120 Section 105 amended (Exemption from obligations) In section 105(5A), replace “granted an exemption” with “who 25 is, or is deemed to be, granted an exemption under this sec- tion”.
115 Part 2 cl 121 Social Security (Benefit Categories and Work Focus) Amendment Bill 121 Schedule 9 amended (1) In the Schedule 9 heading, replace “unemployment benefits” with “jobseeker support”.

In the Schedule 9 heading, replace “ss 60JA, 99” with “ss 3C, 88M”.

In Schedule 9, clause 5, replace “section 99(4)” with “sec- tion 88M(4)”.
(2) (3) 122 Other consequential amendments to principal Act (1) 5 10 (b) (c) (d) (e) (f) In the following provisions, replace “an unemployment bene- fit” with “jobseeker support” in each place: (a) section 3(1), definition of income-tested benefit, para- graph (a): section 3(1), definition of work-test married rate, paragraph (a): section 3(1), definition of work-tested benefit (as re- 15 placed on 15 October 2012 by section 33(2) of the So- cial Security (Youth Support and Work Focus) Amend- ment Act 2012), paragraph (a): section 3(1), definition of work-tested spouse or part- ner, paragraph (b)(i): section 60GAE(1)(a) (as inserted on 15 October 2012 by section 39 of the Social Security (Youth Support and Work Focus) Amendment Act 2012): section 60Q(1)(c)(i) (as replaced on 15 October 2012 by section 40 of the Social Security (Youth Support and 25 Work Focus) Amendment Act 2012): section 61(1), first and second provisos: section 61(1A): section 61E(1), definition of beneficiary, paragraph (a): section 69C(1)(a) and (5)(a): section 70A(1)(b)(v): section 74AA(2): section 80(5)(b): section 162(2)(e): section 168(2)(e): Schedule 18, Part 1, clause 2(b).
(g) (h) (i) (j) (k) (l) (m) (n) (o) (p) In the following provisions, replace “unemployment benefit” with “jobseeker support” in each place: 30 20 35 (2) 116 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 2 cl 127 (a) (b) section 157, definition of specified beneficiary, para- graph (b): Schedule 18, Part 1, clause 1, definition of base rate, paragraphs (e)(i), (f), (g)(i) and (iii).
123 Consequential amendments to other enactments 5 The enactments specified in Schedule 6 are amended in the manner indicated in that schedule.

Consequential amendments: review of benefits 123A Section 11D amended (Application process for benefits) In section 11D(6), after “section 81(3)”, insert “and (4)”.

10 Consequential amendments: sanctions 124 Section 102A amended (Work test obligations) (1) In section 102A(4), replace “section 115(1)(a)” with “section 116B(1)(e)”.

Repeal section 102A(1)(h).


In section 102A(3), delete “(whether or not it is included in a job seeker agreement that continues to apply to him or her under subsection (1)(h))”.

Repeal section 102A(4).

(2) (3) (4) 15 125 Section 117 amended (Sanctions that may be imposed 20 for failures) In section 117(1), replace “section 115 or section 116A” with “section 116B”.

126 Section 119 amended (Calculation of failure rate) In section 119(2), replace “section 115 or section 116A” with 25 “section 116B”.
127 Section 122 amended (Meaning of recompliance) In section 122, replace “section 115, or section 116A” with “section 116B”.

117 Part 2 cl 128 Social Security (Benefit Categories and Work Focus) Amendment Bill 128 Section 171 amended (Obligations of spouses and partners of specified beneficiaries) In section 171(3)(b), replace “section 116A” with “section 116B”.
Effect on benefit of warrant to arrest beneficiary: information matching 128A Privacy Act 1993 amended (1) (2) This section amends the Privacy Act 1993.

In Schedule 3, item relating to the Social Security Act 1964, replace “and 126AB” with “, 126AB, and 126AC”.

5 10 Consequential amendments: reorganising headings and relocating section 53A 129 Consequential amendments to principal Act The principal Act is amended in the manner indicated in Part 2 of Schedule 2.
15 130 Consequential amendments to other enactments The enactments specified in Part 3 of Schedule 2 are amended in the manner indicated in that Part.
Transitional and savings provisions 131 New section 3C inserted (Application of Transitional and 20 savings provisions relating to amendments to this Act) After section 3 (and the section 3B inserted by section 7), insert: “3C Application of Transitional and savings provisions relating to amendments to this Act Schedule 32 contains application, transitional, and savings provisions that affect this Act’s other provisions as from time to time amended, repealed, or repealed and replaced.” 25 132 New Schedule 32 inserted After Schedule 31, insert the Schedule 32 set out in Sched- 30 ule 7 of this Act.
118 1 2 3 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 1 Schedule 1 New Schedule 3A Schedule 3A Rate of sole parent support s 75(1) s 20G To a beneficiary with 1 or more dependent children: 5 $293.58295.37 a week, subject to Income Test 1.

For the purposes of clause 1, the chief executive may, in his or her discretion, disregard up to $20 a week of the beneficiary’s personal earnings used to meet the cost of child care for any of the beneficiary’s dependent children.
10 For the purposes of clause 1, the chief executive may, in his or her discretion, treat all or any part of the income (including, without limitation, any pension or allowance under the War Pensions Act 1954) of the spouse or partner of an applicant to whom section 20A(d) or (f) applies as if it were income 15 derived by that applicant if the chief executive— (a) has had regard to its nature and the means by which it was derived; and considers that treatment of it to be reasonable in the circumstances.
(b) 20 119 Schedule 2 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 2 Amendments reorganising headings and relocating section 53A Part 1 Substantive amendments to principal Act ss 56, 129, 130 New Part 1 heading Above section 1A, insert: “Part 1 “Purpose, principles, general definitions, examples, and application of transitional and savings provisions relating to amendments to this Act”.

Part 1 heading Repeal the Part 1 heading.


5 10 Cross-heading above section 5 Replace the cross-heading above section 5 (which reads “Adminis- tration”) with: 15 “Part 1A “Administration: Ministerial directions, reviews, and appeals “Ministerial directions”.

New cross-heading above section 10A Above section 10A, insert: “Reviews by benefits review committee”.
New section 10B and cross-heading After section 10A, insert: “Appeals to medical board “10B Right of appeal on medical grounds “(1) Any applicant or beneficiary affected may appeal to the Board against a decision of the chief executive that is— “(a) a decision that a claim for a child disability allowance is declined, or that any such allowance is cancelled, in either case on the grounds that the child is not a child 120 20 25 30 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 2 New section 10B and cross-heading—continued Part 1—continued “(b) with a serious disability (within the meaning of section 39A(1) and (2)); or a decision that a claim for a supported living payment on the grounds of sickness, injury, disability, or total blind- ness is declined, or that any such benefit is cancelled, in 5 either case on medical grounds; or “(ba) a decision under section 60Q(1)(bb) that a person in receipt of a supported living payment on the ground of sickness, injury, disability, or total blindness has the capacity to comply with obligations under sec- 10 tion 60Q(3); or 15 “(c) “(bb) a decision under section 60Q(1)(bc) that a person in receipt of a supported living payment on the ground of caring for a patient requiring care has the capacity to comply with obligations under section 60Q(3); or a decision that a claim for jobseeker support on the ground of sickness, injury, or disability is declined on medical grounds or on grounds relating to a person’s capacity for work, or that a person’s
 jobseeker support on the ground of sickness, injury, or disability is can- 20 celled on medical grounds or on grounds relating to the person’s capacity for work; or a determination under section 88F(2) that a jobseeker support beneficiary on the ground of sickness, injury, or disability has, while receiving that benefit, the capacity 25 to seek, undertake, and be available for part-time work, and so is required to comply with the work test on and after a date specified in a notice under section 88F(4); or a
 confirmation, amendment, or replacement under sec- 30 tion 88F(6) of a determination, and that results in a de- termination of the kind specified in paragraph (d) of this subsection; or “(d) “(e) “(ea) a decision on medical grounds under section 88I(2) to decline an application under section 88H(2) by a 35 beneficiary granted jobseeker support (other than job- seeker support granted on the ground of sickness, in- 121 Schedule 2 Social Security (Benefit Categories and Work Focus) Amendment Bill New section 10B and cross-heading—continued Part 1—continued jury, or disability) for deferral of all or any of the bene- ficiary’s work test obligations; or “(eb) a decision on medical grounds under section 88I(7) to revoke a deferral granted under section 88I of all or any work test obligations of a beneficiary granted— “(i) jobseeker support (other than jobseeker support granted on the ground of sickness, injury, or dis- ability); or jobseeker support granted on the ground of sick- ness, injury, or disability; or “(ii) 5 10 “(f) any of the following made in reliance on any work ability assessment by a health practitioner under sec- tion 100B: “(i) “(ii) a determination whether the person assessed is entitled to a benefit and, if so, what kind of bene- 15 fit: a determination whether the person assessed, be- ing a person in receipt of jobseeker support (other than jobseeker support granted on the grounds of sickness, injury, or disability), is entitled on an 20
 application under section 88H, or under sec- tion 88I(4), to deferral of work test obligations under section 88I: “(iii) a determination whether the person assessed, be- ing a person in receipt of jobseeker support on 25 the grounds of sickness, injury, or disability, has for the purposes of section 88F(2) the capacity to seek, undertake, and be available for part-time work: “(iv) a determination whether the person assessed, be- 30 ing a person who is subject to work test obliga- tions or work preparation
 obligations under sec- tion 60Q, has the capacity to meet those obliga- tions; or “(g) a decision under section 116C(2)(a) to the effect that a 35 beneficiary does not have a good and sufficient reason, 122 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 2 New section 10B and cross-heading—continued Part 1—continued “(ii) on the grounds that the beneficiary is addicted to, or dependent on, controlled drugs, for either or both: “(i) not complying with a drug testing obligation under section 102B(1): failing to apply for suitable employment that re- 5 quires candidates to undertake drug tests; or a decision to decline a claim for a veteran’s pension under section 70 of the War Pensions Act 1954, or to cancel any such pension, in either case on the grounds of the applicant’s or beneficiary’s mental or physical 10 infirmity.
“(h) “(2) An appeal under this section must be made within— “(a) “(b) 3 months after the decision has been communicated to that person; or any further period the Board may (if it considers there 15 is good reason for the delay) allow on application made before or after the end of that 3-month period.

“(3) The chief executive is bound by the Board’s decision on an appeal under this section.
“(4) The Board is to comprise 3 members to be appointed by the 20 chief executive for the particular purpose, being medical prac- titioners, rehabilitation professionals (as defined in subsec- tion (5)), or other persons having appropriate expertise in the fields of vocational training or vocational support for persons with sickness, injury, or disability.
25 “(5) Rehabilitation professional, in subsection (4), means a per- son who is— “(a) a person professionally engaged in the rehabilitation of persons from sickness or accident or with disabilities; or a nurse; or an occupational therapist; or a physiotherapist; or a psychologist.” “(b) “(c) “(d) “(e) 30 123 Schedule 2 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1—continued New cross-heading above section 11 Above section 11, insert: “Information and information-matching”.
New cross-heading above section 11D Above section 11D, insert: “Applications, Application process, pre-benefit activities, and investigation of claims for and grants of benefits”.

New cross-heading above section 12J Above section 12J, insert: “Appeals to Appeal Authority”.

New cross-heading above section 12Q Above section 12Q, insert: “Appeals to courts”.

5 10 Cross-heading above section 13 Repeal the cross-heading above section 13 (which reads “National superannuation”).
15 Cross-heading above section 28 Replace the cross-heading above section 28 (which reads “Orphans’ benefits”) with: 20 “Part 1C “Orphans’ benefits, and unsupported child’s benefits”.

124 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 2 Part 1—continued Cross-heading above section 39A Replace the cross-heading above section 39A (which reads “Child disability allowance”) with: “Part 1D “Child disability allowance”.
Cross-heading above section 39F Replace the cross-heading above section 39F (which reads “Invalids’ benefits”) with: “Part 1E “Supported living payment”.

Section 53A and cross-heading Repeal section 53A and the cross-heading above section 53A (which reads “Appeals”).
5 10 Cross-heading above section 60GAD Replace the cross-heading (which reads “Further conditions of bene- 15 fits”, and was inserted on 1 April 1997 by section 16 of the Social Se- curity Amendment Act 1996) above section 60GAD (as inserted on 15 October 2012 by section 39 of the Social Security (Youth Support and Work Focus) Amendment Act 2012) with: “Part 1F “Administration: further conditions of benefits, and obligations on beneficiaries”.
Cross-heading above section 61 Replace the cross-heading above section 61 (which reads “Emer- gency benefits”) with: “Part 1G “Emergency benefits”.

New Part 1H heading Above section 61C, insert: “Part 1H “Administration: maintenance proceedings, and maintenance payable to the Crown”.
20 25 30 125 Schedule 2 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1—continued Cross-heading above section 61CB Replace the cross-heading above section 61CB (which reads “Epi- demics”) with: “Part 1I “Administration: epidemics Epidemics”.

Cross-heading above section 61D Replace the cross-heading above section 61D (which reads “Lump sum payments after death”) with: “Part 1J “Funeral grants”.
Cross-heading above section 61DH Replace the cross-heading above section 61DH (which reads “Ac- commodation supplement”) with: “Part 1K “Accommodation supplement”.

Cross-heading above section 61G Replace the cross-heading above section 61G (which reads “Tempor- ary additional support”) with: “Part 1L “Temporary additional support”.

Cross-heading above section 61GA Replace the cross-heading above section 61GA (which reads “Child- care assistance”) with: “Part 1M “Childcare assistance”.
New Part 1N heading Above the cross-heading above section 61H (which reads “Alteration of rates of benefits”), insert: “Part 1N “Administration: rates of benefits, and other provisions on monetary benefits”.

5 10 15 20 25 30 126 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 2 Part 1—continued New Part 1O heading Above section 69C, insert: “Part 1O “Disability provisions”.
New Part 1P heading Above the cross-heading above section 69G (which reads “Overseas pensions”), insert: 5 “Part 1P “Administration: overseas pensions, other conditions of benefits, reviews, and payments, debts, and deductions”.

New cross-heading above section 70A Above section 70A, insert: “Other conditions of benefits”.

New cross-heading above section 81 Above section 81, insert: “Reviews, payments, debts, and deductions”.
Part 2 heading Replace the Part 2 heading with: “Part 2 “Jobseeker support, and administration: assessing work ability, work-testing, and sanctions”.
10 15 20 127 Schedule 2 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1—continued Part 3 heading Replace the Part 3 heading with: “Part 3 “Administration: young persons services, welfare programmes and other money payable, preferred suppliers, contracts with administration service providers, artificial limbs, information disclosure, application of Human Rights Act 1993, and offences and general penalty “Young persons services”.
New cross-heading above section 124 Above section 124, insert: “Welfare programmes and other money payable” New cross-heading above section 125A Above section 125A, insert: “Contracts with administration service providers” New cross-heading above section 126 Above section 126, insert: “Artificial limbs” New cross-heading above section 126A Above section 126A, insert: “Information disclosure” New cross-heading above section 126B Above section 126B, insert: “Application of Human Rights Act 1993” 128 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 2 Part 1—continued New cross-heading above section 127 Above section 127, insert: “Offences and general penalty” New Part 3A heading Above section 132, insert: “Part 3A “Administration: regulations and rules, annual reports, and repeals and savings”.
Part 2 Consequential amendments to principal Act Section 3(1) In the definition of benefit, paragraph (a), replace “this Part” with “any of Parts 1A to 1P”.

Section 12J(1) In paragraph (a), replace “Part 1” with “Parts 1A to 1P”.
Section 12J After section 12J(1), insert: “(1AA) No appeal lies under subsection (1)(a) against a decision under section 88I(2) or (7) against which an appeal lies under section 10B(1)(ea) or (eb) to the medical board.” Section 124 In subsection (2)(a)(ii), replace “Part 1” with “this Act”.

In subsection (2A)(a), replace “Part 1” with “Parts 1A to 1P”.
Part 3 Consequential amendments to other Acts Income Tax Act 2007 (2007 No 97) In section YA 1, definition of financially independent, paragraph (c), replace “Part 1” with “any of Parts 1A to 1P”.

129 Schedule 2 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 3—continued Legal Services Act 2011 (2011 No 4) In Schedule 1, clause 2(1)(c), replace “Part 1” with “any of Parts 1A to 1P”.
130 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 3 s 80 Schedule 3 Consequential amendments to other enactments: Sole parent support Part 1 Acts amended Child Support Act 1991 (1991 No 142) In section 2(1), definition of social security benefit, paragraph (a), replace “a domestic purposes benefit granted under section 27B” with “sole parent support granted under section 20D”.

In section 2(1), definition of social security benefit, repeal paragraph 10 (c)(i).
5 Income Tax Act 2007 (2007 No 97) In section YA 1, definition of income-tested benefit, paragraph (a), replace “domestic purposes benefit” with “sole parent support”.

In section YA 1, definition of income-tested benefit, repeal para- 15 graph (g).

Rates Rebate Act 1973 (1973 No 5) In section 2(1), definition of income, paragraph (d)(vii), delete “a widow’s,”.

In section 2(1), definition of income, paragraph (d)(vii), replace “do- 20 mestic purposes,” with “sole parent support,”.
Part 2 Regulations amended Health Entitlement Cards Regulations 1993 (SR 1993/169) Replace regulation 8(1)(a)(i) and (ii) with: “(i) sole parent support:”.

In regulation 8(1)(a)(vi), after “instead of”, insert “sole parent sup- port or”.

Social Security (Debt Recovery Suspension) Regulations 2007 (SR 2007/86) In regulation 3, definition of working-age benefit, paragraph (c), replace “a domestic purposes benefit” with “sole parent support”.
25 30 131 Schedule 3 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 2—continued Social Security (Debt Recovery Suspension) Regulations 2007 (SR 2007/86)—continued In regulation 3, definition of working-age benefit, revoke paragraph (g).

Social Security (Exemptions under Section 105) Regulations 1998 (SR 1998/270) In the heading to regulation 7, replace “domestic purposes” with 5 “sole parent support”.

In regulation 7(1), replace “domestic purposes” with “sole parent support”.
Social Security (Period of Income Assessment) Regulations 1996 (SR 1996/128) In the Schedule, clause 1, delete “Widow’s benefit”.

In the Schedule, clause 1, replace “Domestic purposes benefit” with “Sole parent support”.

In the Schedule, clause 1, above the item relating to New Zealand Superannuation or veteran’s pension, insert: 10 15 “Jobseeker support paid at the rate in clause 1(ab) or (ba) of Schedule 9 of the Social Security Act 1964”.
Social Security (Temporary Additional Support) Regulations 2005 (SR 2005/334) In regulation 4, definition of specified benefits, revoke paragraph (c).

20 In regulation 4, definition of specified benefits, paragraph (d), re- place “a domestic purposes benefit” with “sole parent support”.
Social Welfare (Reciprocity with Canada) Order 1996 (SR 1996/178) After clause 3(2), insert: “(3) A reference (however expressed) in either of the following to a widow’s benefit, or a domestic purposes benefit paid to a wid- ower, under the Social Security Act 1964 in relation to New Zealand must on and after 15 July 2013 (unless the savings provisions in clause 3 of Schedule 32 of the Social Security 30 25 132 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 3 Social Welfare (Reciprocity with Canada) Order 1996 (SR 1996/178)—continued Part 2—continued Act 1964 apply) be read as a reference to sole parent support under the Social Security Act 1964 for a woman or, as the case requires, a man, whose spouse or partner has died: “(a) “(b) a provision of the agreement set out in Schedule 1: a provision of a document related to the operation on or 5 after 15 July 2013 of this order.” Social Welfare (Reciprocity with Denmark) Order 1997 (SR 1997/135) After clause 3(2), insert: “(3) A reference (however expressed) in either of the following to a 10 widow’s benefit, or a domestic purposes benefit paid to a wid- ower, under the Social Security Act 1964 in relation to New Zealand must on and after 15 July 2013 (unless the savings provisions in clause 3 of Schedule 32 of the Social Security Act 1964 apply) be read as a reference to sole parent support 15 under the Social Security Act 1964 for a woman or, as the case requires, a man, whose spouse or partner has died: “(a) “(b) a provision of the
 agreement set out in the Schedule: a provision of a document related to the operation on or after 15 July 2013 of this order.” 20 Social Welfare (Reciprocity with Ireland) Order 1993 (SR 1993/251) After clause 2(2), insert: “(3) A reference (however expressed) in either of the following to a widow’s benefit, or a domestic purposes benefit paid to a wid- 25 ower, under the Social Security Act 1964 in relation to New Zealand must on and after 15 July 2013 (unless the savings provisions in clause 3 of Schedule
 32 of the Social Security Act 1964 apply) be read as a reference to sole parent support under the Social Security Act 1964 for a woman or, as the case 30 requires, a man, whose spouse or partner has died: “(a) a provision of the agreement set out in the Schedule: 133 Schedule 3 Social Security (Benefit Categories and Work Focus) Amendment Bill Social Welfare (Reciprocity with Ireland) Order 1993 (SR 1993/251)—continued Part 2—continued “(b) a provision of a document related to the operation on or after 15 July 2013 of this order.” 5 Social Welfare (Reciprocity with Jersey and Guernsey) Order 1995 (SR 1995/44) After clause 2(2), insert: “(3) A reference (however expressed) in either of the following to a widow’s benefit, or a domestic purposes benefit paid to a wid- ower, under the Social Security Act 1964 in relation to New Zealand must on and after 15 July 2013 (unless the savings provisions in clause 3 of Schedule 32 of the Social Security 10 Act 1964 apply) be read as a reference to sole parent support under the Social Security Act 1964 for a woman or, as the case requires, a man, whose spouse or partner has died: “(a) “(b) a provision of the agreement set out in the Schedule: a provision of a document related to the operation on or 15 after 15 July 2013 of this order.” Social Welfare (Reciprocity with the Hellenic Republic) Order 1993 (SR 1993/347) After clause 2(2), insert: “(3) A reference (however expressed) in either of the following to a 20 widow’s
 benefit, or a domestic purposes benefit paid to a wid- ower, under the Social Security Act 1964 in relation to New Zealand must on and after 15 July 2013 (unless the savings provisions in clause 3 of Schedule 32 of the Social Security Act 1964 apply) be read as a reference to sole parent support 25 under the Social Security Act 1964 for a woman or, as the case requires, a man, whose spouse or partner has died: “(a) “(b) a provision of the agreement set out in the Schedule: a provision of a document related to the
 operation on or after 15 July 2013 of this order.” 30 134 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 3 Part 2—continued Social Welfare (Reciprocity with the Netherlands) Order 2003 (SR 2003/216) After clause 3(4), insert: “(5) A reference (however expressed) in either of the following to a widow’s benefit, or a domestic purposes benefit paid to a wid- 5 ower, under the Social Security Act 1964 in relation to New Zealand must on and after 15 July 2013 (unless the savings provisions in clause 3 of Schedule 32 of the Social Security Act 1964 apply) be read as a reference to sole parent support under the Social Security Act 1964 for a woman or, as the case 10 requires, a man, whose spouse or partner has died: “(a) a provision of a document set out in any of Schedules 1 to 4: a provision of a document related to the operation on or after 15 July 2013 of this order.” “(b) 15 Social Welfare (Reciprocity with the United Kingdom) Order 1990 (SR 1990/85) After clause 2(2), insert: “(3) A reference (however expressed) in either of the following to a widow’s benefit under the Social Security Act 1964 in relation 20 to New Zealand must on and after 15 July 2013 (unless the savings provisions in clause 3 of Schedule 32 of the Social Security Act 1964 apply) be read as a reference to sole parent support under the Social Security Act 1964 for a woman whose spouse or partner has died: “(a) “(b) a provision of the Convention set out in the Schedule: a
 provision of a document related to the operation on or after 15 July 2013 of this order.” 25 Student Allowances Regulations 1998 (SR 1998/277) In regulation 2(1), definition of supported child, paragraph (c)(ii), 30 replace “a domestic purposes benefit” with “sole parent support”.
In regulation 2(1), definition of supported child, paragraph (c)(ii), delete “or a widow’s benefit”.

135 Schedule 3 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 2—continued Student Allowances Regulations 1998 (SR 1998/277)—continued In regulation 13(1)(b), replace “a domestic purposes benefit” with “sole parent support”.

In regulation 13(1), revoke paragraph (f).


136 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 4 Schedule 4 Consequential amendments to other enactments: Supported living payment Part 1 Acts amended s 91 Accident Compensation Act 2001 (2001 No 49) In Schedule 1, clause 42(3)(a)(ii), replace “of invalid’s benefit” with “and without dependent children of supported living payment”.
In Schedule 1, clause 42(3)(b)(ii), replace “of invalid’s benefit” with “and without dependent children of supported living payment”.

5 10 15 Child Support Act 1991 (1991 No 142) In section 2(1), definition of social security benefit, paragraph (c)(ii), replace “an invalid’s benefit granted under section 40” with “a supported living payment granted under section 40B on the grounds of sickness, injury, disability, or total blindness”.
In section 30(2), replace “invalid’s benefit” with “supported living payment”.

In section 30(4)(a), replace “invalid’s benefit” with “supported living payment”.

In section 30(5), definition of gross married rate of invalid’s bene- 20 fit, replace “invalid’s benefit” with “supported living payment”.

In section 30(5), definition of gross married rate of invalid’s bene- fit, replace “paragraph (f)” with “clause 1(f)”.
In section 30(5), definition of gross married rate of invalid’s bene- fit, replace “invalid’s benefit” with “supported living payment”.

In section 30(5), definition of gross single rate of invalid’s benefit, replace “invalid’s benefit” with “supported living payment”.

In section 30(5), definition of gross single rate of invalid’s benefit, replace “paragraph (b)” with “clause 1(b)”.
In section 30(5), definition of gross single rate of invalid’s benefit, 30 replace “invalid’s benefit” with “supported living payment”.

25 Income Tax Act 2007 (2007 No 97) In section YA 1, definition of income-tested benefit, paragraph (d), replace “invalids’ benefit” with “supported living payment”.
137 Schedule 4 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 1—continued New Zealand Superannuation and Retirement Income Act 2001 (2001 No 84) In section 17(2)(c), replace “an invalid’s benefit” with “a supported living payment”.

Rates Rebate Act 1973 (1973 No 5) In section 2(1), definition of income, paragraph (d)(vii), replace “in- valid’s,” with “any supported living payment,”.
5 Part 2 Regulations amended Health Entitlement Cards Regulations 1993 (SR 1993/169) Replace regulation 8(1)(a)(iii) with: 10 “(ii) supported living payment:”.

Social Security (Debt Recovery Suspension) Regulations 2007 (SR 2007/86) In regulation 3, definition of working-age benefit, paragraph (f), re- 15 place “an invalid’s benefit” with “a supported living payment”.
Social Security (Exemptions under Section 105) Regulations 1998 (SR 1998/270) In regulation 5(2)(a)(ii), replace “an invalid’s benefit under” with “a supported living payment on the grounds of sickness, injury, disabil- 20 ity, or total blindness under section 40B of”.

In regulation 6(2)(a)(ii), replace “an invalid’s benefit under” with “a supported living payment on the grounds of sickness, injury, disabil- ity, or total blindness under section 40B of”.
Social Security (Invalid’s Benefit) Regulations 1998 (SR 1998/241) In regulation 1(1), replace “Invalid’s” with “Supported Living Pay- ments”.
25 138 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 4 Social Security (Invalid’s Benefit) Regulations 1998 (SR 1998/241)—continued Part 2—continued After regulation 1, insert: “1A Renaming of these regulations, and references to their previous name “(1) These regulations are the Social Security (Invalid’s Benefit) Regulations 1998 as renamed on 15 July 2013 by the Social 5 Security (Benefit Categories and Work Focus) Amend- ment Act 2012.
“(2) After 14 July 2013 a reference in an enactment or in a docu- ment to the Social Security (Invalid’s Benefit) Regulations 1998 must, unless the context otherwise requires, be read as a 10 reference to the Social Security (Supported Living Payments Benefit) Regulations 1998.” In regulation 2, replace “40(2)(a)” with “40B(2)(a)”.

Social Security (Period of Income Assessment) Regulations 1996 (SR 1996/128) In the Schedule, clause 1, replace “Invalid’s benefit” with “Supported living payment”.
15 Social Security (Temporary Additional Support) Regulations 2005 (SR 2005/334) In regulation 4, definition of specified benefits, paragraph (e), re- 20 place “an invalid’s benefit” with “a supported living payment”.
Social Welfare (Reciprocity with Australia) Order 2002 (SR 2002/119) In clause 4, insert as subclause (2): “(2) A reference (however expressed) in either of the following to 25 an invalid’s benefit under the Social Security Act 1964 in rela- tion to New Zealand must on and after 15 July 2013 be read as a reference to a supported living payment on the grounds of sickness, injury, disability, or total blindness under the Social Security Act 1964: “(a) a provision of the agreement, or of the notes, referred to in clause 3: 30 139 Schedule 4 Social Security (Benefit Categories and Work Focus) Amendment Bill Social Welfare (Reciprocity with Australia) Order 2002 (SR 2002/119)—continued Part 2—continued “(b) a provision of a document related to the operation on or after 15 July 2013 of this order.” Social Welfare (Reciprocity with Canada) Order 1996 (SR 1996/178) In clause 3, insert in its appropriate numerical order: “(4) A reference (however expressed) in either of the following to an invalid’s benefit under the Social Security Act 1964 in rela- tion to New Zealand must on and after 15 July 2013 be read as a reference to a supported living payment on the grounds of sickness, injury, disability, or total blindness under the Social 10 Security Act 1964: “(a) “(b) a provision of the agreement set out in Schedule 1: a provision of a document related to the operation on or after 15 July 2013 of this order.” 5 15 Social Welfare (Reciprocity with Denmark) Order 1997 (SR 1997/135) In clause 3, insert in its appropriate
 numerical order: “(4) A reference (however expressed) in either of the following to an invalid’s benefit under the Social Security Act 1964 in rela- tion to New Zealand must on and after 15 July 2013 be read 20 as a reference to a supported living payment on the grounds of sickness, injury, disability, or total blindness under the Social Security Act 1964: “(a) “(b) a provision of the agreement set out in the Schedule: a provision of a document related to the operation on or 25 after 15 July 2013 of this
 order.” Social Welfare (Reciprocity with the Hellenic Republic) Order 1993 (SR 1993/347) In clause 2, insert in its appropriate numerical order: “(4) A reference (however expressed) in either of the following to 30 an invalid’s benefit under the Social Security Act 1964 in rela- tion to New Zealand must on and after 15 July 2013 be read 140 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 4 Part 2—continued Social Welfare (Reciprocity with the Hellenic Republic) Order 1993 (SR 1993/347)—continued as a reference to a supported living payment on the grounds of sickness, injury, disability, or total blindness under the Social Security Act 1964: “(a) “(b) a provision of the agreement set out in the Schedule: a provision of a document related to the operation on or 5 after 15 July 2013 of this order.” Social Welfare (Reciprocity with Ireland) Order 1993 (SR 1993/251) In clause 2, insert in its appropriate numerical order: “(4) A reference (however expressed) in either of the following to 10 an invalid’s benefit under the Social Security Act 1964 in rela- tion to New Zealand must on and after 15 July 2013 be read as a reference to a supported living payment on the grounds of sickness, injury, disability, or total blindness under the Social Security Act 1964: “(a) “(b) a provision of the agreement set out in the Schedule: a provision of a document related to the operation on or after 15 July 2013 of this order.” 15 20 Social Welfare
 (Reciprocity with Jersey and Guernsey) Order 1995 (SR 1995/44) In clause 2, insert in its appropriate numerical order: “(4) A reference (however expressed) in either of the following to an invalid’s benefit under the Social Security Act 1964 in rela- tion to New Zealand must on and after 15 July 2013 be read as a reference to a supported living payment on the grounds of 25 sickness, injury, disability, or total blindness under the Social Security Act 1964: “(a) “(b) a provision of the agreement set out in the
 Schedule: a provision of a document related to the operation on or after 15 July 2013 of this order.” 30 141 Schedule 4 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 2—continued Social Welfare (Reciprocity with the Netherlands) Order 2003 (SR 2003/216) In clause 3, insert in its appropriate numerical order: “(6) A reference (however expressed) in either of the following to an invalid’s benefit under the Social Security Act 1964 in rela- 5 tion to New Zealand must on and after 15 July 2013 be read as a reference to a supported living payment on the grounds of sickness, injury, disability, or total blindness under the Social Security Act 1964: “(a) a provision of a document set out in any of Schedules 1 10 to 4: a provision of a document related to the operation on or after 15 July 2013 of this order.” “(b) 15 Social Welfare (Reciprocity with the United Kingdom) Order 1990 (SR 1990/85) In clause 2, insert in its appropriate numerical order: “(4) A reference (however expressed) in either of the following to an invalid’s benefit under the Social Security Act 1964 in rela- tion to New Zealand must on and after 15 July 2013 be read as a reference to a supported living payment on the grounds of 20 sickness, injury, disability, or total blindness under the Social Security Act 1964: “(a) “(b) a provision of the Convention set out in the Schedule: a provision of a document related to the operation on or after 15 July 2013 of this order.” Student Allowances Regulations 1998 (SR 1998/277) In regulation 2(1), definition of supported child, paragraph (c)(ii), replace “an invalid’s benefit,” with “or a supported living payment”.
In regulation 13(1)(e), replace “an invalid’s benefit” with “a sup- ported living payment”.

142 25 30 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 4 Part 2—continued Taxation (Abated Interim Payments of subparts MA to MF and MZ Credit) Regulations 2002 (SR 2002/52) In regulation 3(1)(a), replace “an invalids’ benefit” with “a supported living payment on the grounds of sickness, injury, disability, or total blindness”.
In regulation 3(1)(b), replace “an invalid’s benefit” with “a supported living payment on the grounds of sickness, injury, disability, or total blindness”.

5 143 Schedule 5 Social Security (Benefit Categories and Work Focus) Amendment Bill s 108 Schedule 5 Consequential amendments to other enactments: Sickness benefit Part 1 Acts amended Child Support Act 1991 (1991 No 142) In section 2(1), definition of social security benefit, repeal paragraph (c)(iv).
5 Education Act 1989 (1989 No 80) In section 226A(1), definition of benefit, delete “or a sickness bene- 10 fit”.

In section 235F(1), definition of benefit, delete “or a sickness bene- fit”.

Income Tax Act 2007 (2007 No 97) In section YA 1, definition of income-tested benefit, repeal para- 15 graph (e).

Part 2 Regulations amended Social Security (Debt Recovery Suspension) Regulations 2007 (SR 2007/86) In regulation 3, definition of working-age benefit, revoke paragraph (b).
Social Security (Exemptions under Section 105) Regulations 1998 (SR 1998/270) Replace regulation 5(2)(g) with: “(g) the person meets the criteria for jobseeker support on the sickness, injury, or disability ground in sec- tion 88B(1)(b) or (c) of the Act.” Replace regulation 6(2)(e) with: 20 25 “(e) the person meets the criteria for jobseeker support 30 on the sickness, injury, or disability ground in sec- tion 88B(1)(b) or (c) of the Act.” 144 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 5 Part 2—continued Social Security (Sickness Benefit—Medical Examinations) Regulations 2010 (SR 2010/259) In regulation 1, replace “Sickness Benefit” with “Jobseeker Support”.
After regulation 1, insert: “1A Renaming of these regulations, and references to their previous name “(1) These regulations are the Social Security (Sickness Bene- fit—Medical Examinations) Regulations 2010 as renamed on 15 July 2013 by the Social Security (Benefit Categories and Work Focus) Amendment Act 2012.
5 10 “(2) After 14 July 2013 a reference in an enactment or in a document to the Social Security (Sickness Benefit—Medical Examinations) Regulations 2010 must, unless the context otherwise requires, be read as a reference to the Social Secur- ity (Jobseeker Support—Medical Examinations) Regulations 15 2010.” In the heading to regulation 4, replace “54B(1)(d)” with “88E(2)(d)”.

In regulation 4, replace “54B(1)(d)” with “88E(2)(d)”.
Social Security (Temporary Additional Support) Regulations 2005 (SR 2005/334) In regulation 4, definition of specified benefits, revoke paragraph (b).
20 Social Welfare (Reciprocity with Jersey and Guernsey) Order 1995 (SR 1995/44) In clause 2, insert in its appropriate numerical order: “(5) A reference (however expressed) in either of the following to a 25 sickness benefit under the Social Security Act 1964 in relation to New Zealand must on and after 15 July 2013 be read as a reference to jobseeker support on the grounds of sickness, injury, or disability under the Social Security Act 1964: “(a) “(b) a provision of the agreement set out in the Schedule: a provision of a document related to the operation on or after 15 July 2013 of this order.” 30 145 Schedule 5 Social Security (Benefit Categories and Work Focus) Amendment Bill Part 2—continued Social Welfare (Reciprocity with the United Kingdom) Order 1990 (SR 1990/85) In clause 2, insert in its appropriate numerical order: “(5) A reference (however expressed) in either of the following to a sickness benefit under the legislation of New Zealand must 5 on and after 15 July 2013 be read as a reference to jobseeker support on the grounds of sickness, injury, or disability under the legislation of New Zealand: “(a) “(b) a provision of the Convention set out in the Schedule: a provision of a document related to the operation on or 10 after 15 July 2013 of this order.” Student Allowances Regulations 1998 (SR 1998/277) In regulation 2(1), definition of supported child, paragraph (c)(ii), delete “a sickness benefit,”.
Revoke regulation 13(1)(a).

15 146 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 6 s 123 Schedule 6 Consequential amendments to other enactments: Jobseeker support Part 1 Acts amended Child Support Act 1991 (1991 No 142) In section 2(1), definition of social security benefit, paragraph (c)(iii), replace “an unemployment benefit” with “jobseeker sup- port”.

In section 30(3), replace “unemployment benefit” with “jobseeker 10 support”.
In section 30(5), definition of gross married rate of unemploy- ment benefit, replace “unemployment benefit” with “jobseeker support”.

5 Education Act 1989 (1989 No 80) In section 226A(1), definition of benefit, replace “an unemployment benefit” with “jobseeker support”.

In section 235F(1), definition of benefit, replace “an unemployment benefit” with “jobseeker support”.
15 Income Tax Act 2007 (2007 No 97) In section YA 1, definition of income-tested benefit, paragraph (f), replace “unemployment benefit” with “jobseeker support”.

20 Part 2 Regulations amended Social Security (Debt Recovery Suspension) Regulations 2007 (SR 2007/86) In regulation 3, definition of working-age benefit, paragraph (a), replace “an unemployment benefit” with “jobseeker support”.
Social Security (Temporary Additional Support) Regulations 2005 (SR 2005/334) In regulation 4, definition of specified benefits, paragraph (a), re- place “an unemployment benefit” with “jobseeker support”.

25 30 147 Schedule 6 Social Security (Benefit Categories and Work Focus) Amendment Bill Social Security (Temporary Additional Support) Regulations 2005 (SR 2005/334)—continued Part 2—continued In regulation 10(3)(b), replace “an unemployment benefit” with “job- seeker support”.
In regulation 13, headings to examples 1, 2, and 3, replace “unem- ployment beneficiary” with “jobseeker support beneficiary”.

In regulation 13, examples 1, 2, and 3, replace “unemployment bene- 5 ficiary” with “jobseeker support beneficiary”.

In regulation 13, examples 1, 2, and 3, replace “unemployment bene- fit” with “jobseeker support” in each place.

In Schedule 3, clause 2, replace “an unemployment benefit” with “jobseeker support”.
10 Social Welfare (Reciprocity with the United Kingdom) Order 1990 (SR 1990/85) In clause 2, insert in its appropriate numerical order: “(6) A reference (however expressed) in either of the following to an unemployment benefit under the legislation of New 15 Zealand must on and after 15 July 2013 be read as a reference to jobseeker support under the legislation of New Zealand: “(a) “(b) a provision of the Convention set out in the Schedule: a provision of a document related to the operation on or after 15 July 2013 of this order.” Student Allowances Regulations 1998 (SR 1998/277) In regulation 2(1), definition of supported child, paragraph (c)(ii), replace “an unemployment benefit” with “jobseeker support”.
In regulation 13(1)(ab), replace “an unemployment benefit” with “jobseeker support”.
148 20 25 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 7 Schedule 7 New Schedule 32 Schedule 32 Application, tTransitional, and savings provisions related to amendments to this Act Contents 5A 11A Social Security Amendment Act 2001 Transfer from community wage to unemployment benefit on 1 July 2001 Social Security (Benefit Categories and Work Focus) Amendment Act 2012 Transfer from DPBs for solo parents and widows’ benefits to sole parent support or jobseeker support on 15 July 2013 Reciprocity agreement applicants for, or recipients of, certain DPBs for solo parents or widows’ benefits Transfer from invalids’ benefits and DPBs for care of sick or infirm to supported living payment on 15 July 2013 Social Security (Supported Living Payments Benefit) Regulations 1998 Transfer to emergency benefit of certain people 65 years old or older Transfer from unemployment benefit to jobseeker support on 15 July 2013 Transfer from sickness benefit to jobseeker support on 15 July 2013 Social Security (Jobseeker Support—Medical Examinations) Regulations 2010 Transfer from DPBs for women alone to jobseeker support on 15 July 2013 Appeals, and appeal boards, under section 53A Temporary exemption from full-time student ineligiblity for certain transferees to jobseeker support Residential requirements: overseas residents’ entitlements under reciprocity agreements unaffected by section 74AA(1)(c) s 132 s 3C Page 150 5 151 155 157 162 162 162 165 167 168 170 170 173 149
 Schedule 7 Social Security (Benefit Categories and Work Focus) Amendment Bill 12 13 14 1 (1) When beneficiaries can be paid benefit while overseas: travel booked before, but occurring after, 15 July 2013 Saving of failures and sanctions not saved by other clauses Regulations for transitional and savings purposes 173 173 174 Social Security Amendment Act 2001 Transfer from community wage to unemployment benefit on 1 July 2001 This clause applies to a person who, immediately before 1 July 2001, was— (a) in receipt of a community wage on a ground other than the person’s sickness, injury, or disability; and either— (i) (b) fulfilling the conditions of entitlement to the community wage; or eligible to be granted a community wage under former section 90.
(ii) 5 10 (3) (2) On 1 July 2001, in relation to a person to whom this clause ap- plies, the community wage becomes an unemployment bene- fit as if it were granted under section 89 (as in force before 15 15 July 2013 on 1 July 2001).
For the avoidance of doubt, the operation of subclause (2) does not affect, in relation to a person to whom this clause applies and his or her spouse (if any),— the rate of benefit paid; and (a) the obligations under section 97 (as in force before (b) 15 July 2013 on 1 July 2001); and any requirement to undertake an organised activity under former section 111; and any exemption from the work test under section 105; 25 and a sanction applying under any of former sections 115 to 118.
(d) (e) (c) 20 (4) In this clause, former section means a section of this Act as it was before 1 July 2001.
30 150 2 (1) (2) (3) Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 7 Social Security (Benefit Categories and Work Focus) Amendment Act 2012 Transfer from DPBs for solo parents and widows’ benefits to sole parent support or jobseeker support on 15 July 2013 Widows’ benefits and DPBs for solo parents abolished The following are (subject to the savings in clause 3) abol- ished on 15 July 2013: (a) (b) widows’ benefits under section 21. domestic purposes benefits under section 27B: 5 10 Applications made, but not determined, before 15 July 2013, or made after 14 July 2013 but before 15 August 2013 The chief executive must after 14 July 2013 determine under this subclause, in accordance with the applicant’s entitlement immediately before 15 July 2013 to the abolished benefit, an 15 application that is either— (a) an application for a domestic purposes benefit under section 27B or for a widow’s benefit under section 21, and that is made, but is not decided or determined by the chief executive, before 15 July 2013; or an application for a domestic purposes benefit under section 27B or for a widow’s benefit under section 21, and that is made after 14 July 2013 but before 15 Au- gust 2013.
(b) 20 If it is determined under subclause (2) that the applicant had 25 an entitlement to the abolished benefit,— (a) he or she must be treated as a person to whom sub- clause (6)(a) applies if, at the close of 14 July 2013, he or she was a person with a dependent child aged under 14 years; and he or she must be treated as a person to whom sub- clause (8)(a) applies if, at the close of 14 July 2013, he or she was a person without a dependent child aged under 14 years; but he or she must be granted the abolished benefit in re- 35 spect of a period before 15 July 2013 for which he or she had entitlement to the abolished benefit unless (be- cause of a stand down or otherwise) it would not have 30 (b) (c) 151 Schedule 7 Social Security (Benefit Categories and Work Focus) Amendment Bill (4) commenced until after 14 July 2013, and no new bene- fit to which he or she is transferred by this clause com- mences before the abolished benefit would have.
If it is determined under subclause (2) that the applicant had no entitlement to the abolished benefit, the applicant’s appli- 5 cation must may be treated,— (a) if made in respect of a person with a dependent child aged under 14 years, as an application for sole parent support; and if made in respect of a person without a dependent child 10 aged under 14 years, as an application for jobseeker support.
(b) (5) Despite subclause (4), Requirements or consequences of failures that apply to the applicant under section 21A or 27CA at the close of 14 July 2013 continue to apply to the 15 applicant after 14 July 2013 as if they could be, and had been, imposed under sections 11E to 11G in respect of the deemed an application that under subclause (4) is treated as an application for sole parent support or, as the case requires, jobseeker support.
20 (6) Transfer to sole parent support of beneficiaries with dependent child aged under 14 years This subclause applies to a person with a dependent child aged under 14 years who, immediately before 15 July 2013,— (a) was receiving, or had been granted and was entitled to 25 receive, a domestic purposes benefit under section 27B or a widow’s benefit under section 21; or had been granted a domestic purposes benefit under sec- tion 27B, or a widow’s benefit under section 21, that was subject to a stand down period under sections 80 to 30 80BA.
(b) (6A) Subclause (6) applies to a person even if the benefit in sub- clause (6)(a) or (b) was, immediately before 15 July 2013, 100% reduced or suspended under section 117 or another pro- vision of this Act, but in that case no sole parent support to 35 which the person is transferred by subclause (7) commences until the suspension or reduction would have ended, or the 152 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 7 benefit in subclause (6)(a) or (b) would otherwise have be- come payable again.
(7) A person to whom subclause (6) applies is, subject to sub- clauses (6A) and (10) to (15) and to a review under sec- tion 81, entitled to sole parent support at the appropriate rate 5 in Schedule 3A (until that benefit ends or expires, or is for any reason cancelled or terminated) as if the person had ap- plied for it, and commencing— (a) on 15 July 2013, if subclause (6)(a) applies to the person; or at the end of the stand down period referred to in sub- clause (6)(b).
(b) 10 (8) Transfer to jobseeker support of beneficiaries without dependent child aged under 14 years This subclause applies to a person without a depend- 15 ent child aged under 14 years who, 15 July 2013,— (a) immediately before was receiving, or had been granted and was entitled to receive, a domestic purposes benefit under section 27B or a widow’s benefit under section 21; or had been granted a domestic purposes benefit under sec- tion 27B, or a widow’s benefit under section 21, that was subject to a stand down period under sections 80 to 80BA.
(b) 20 (8A) Subclause (8) applies to a person even if the benefit in sub- 25 clause (8)(a) or (b) was, immediately before 15 July 2013, 100% reduced or suspended under section 117 or another pro- vision of this Act, but in that case no jobseeker support to which the person is transferred by subclause (9) commences until the suspension or reduction would have ended, or the 30 benefit in subclause (8)(a) or (b) would otherwise have be- come payable again.
(9) A person to whom subclause (8) applies is, subject to sub- clauses (8A) and (10AA) to (15) and to a review under sec- tion 81, entitled to jobseeker support at the appropriate rate in 35 Schedule 9 (until that benefit ends or expires, or is for any rea- son cancelled or terminated) as if the person had applied for it, and commencing— 153 Schedule 7 Social Security (Benefit Categories and Work Focus) Amendment Bill (a) (b) on 15 July 2013, if subclause (8)(a) applies to the person; or at the end of the stand down period referred to in sub- clause (8)(b).
Savings relating to transfer to sole parent or jobseeker support 5 (10AA) If a person to whom subclause (8) applies is, immediately before 15 July 2013 and under section 80BD(6), continuing to receive a domestic purposes benefit under section 27B or a widow’s benefit under section 21(1)(a) for 8 weeks after the 10 person stops caring for the child because of a sudden change of circumstances beyond the person’s control,— (a) the person is after transferring to jobseeker support not entitled to the rate of jobseeker support in clause 1(ab) of Schedule 9 unless immediately before 15 July 2013 15 he or she would have been entitled to a domestic pur- poses benefit for women alone under section 27C, or to a widow’s benefit on a ground specified in section 21(1)(b), (c), or (d); and the person’s jobseeker support commences at the end of 20 that 8-week period.
(b) (10) Despite section 80BE(5), the expiry date of jobseeker sup- port to which a person to whom subclause (8) applies is en- titled under subclause (9) is the 12-month anniversary of the date on which the person’s domestic purposes benefit under 25 section 27B, or widow’s benefit under section 21, commenced or, as the case may be, last commenced.
(11) Obligations under sections 60Q(2), 102, and 102A, and exemptions from the work test under section 105 (other than any exemption that, under regulations made under sec- 30 tion 123D(a), is not available to a person receiving jobseeker support), that immediately before 15 July 2013 apply to a person to whom subclause (6)(a) or (8)(a) applies con- tinue after 14 July 2013 in respect of sole parent support or jobseeker support to which the person is entitled under 35 subclause (7) or (9).
(12) A person to whom subclause (6) applies who at the close of 14 July 2013 is subject to an exemption under section 105 154 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 7 from some or all of his or her work test obligations on the ground in regulation 6(2)(d) or (e) of the Social Security (Ex- emptions under Section 105) Regulations 1998 is deemed to have all of his or her work test obligations deferred under sec- tion 88I for a period that is the same as the period for which 5 the exemption was granted under section 105.
(13) Failures under section 115 or 116A by a person to whom subclause (6)(a) or (8)(a) applies, and sanctions for those failures under section 117(1)(a) or (b), continue after 14 July 2013 and are failures or sanctions in respect of sole 10 parent support or jobseeker support to which the person is entitled under subclause (7) or (9).
(14) A person whose domestic purposes benefit under section 27B, or widow’s benefit under section 21, was cancelled before 15 July 2013 under section 117(1)(c) is not entitled to receive 15 sole parent support or jobseeker support for 13 weeks from the date of cancellation.

(15) Subclause (14) does not limit section 117(2)(a).

Clause does not apply to reciprocity agreement applicants or recipients 20 (16) Subclauses (2) to (15) do not apply to a person to whom clause 3(1) or (3) applies.
3 Reciprocity agreement applicants for, or recipients of, certain DPBs for solo parents or widows’ benefits (1) 25 Reciprocity agreement applicants may be granted former benefit as if it had not been abolished This subclause applies to a widow or widower who, imme- diately before 15 July 2013, was ordinarily resident in New Zealand or an overseas country, and had made an application pursuant to an agreement or convention given effect in rela- 30 tion to New Zealand by an Order in Council made pursuant to section 19 of the Social Welfare (Transitional Provisions) Act 1990 for, and had entitlement to, but had not yet in response to the application been granted,— (a) (b) a widow’s benefit under section 21; or a domestic purposes benefit under section 27B for an applicant as defined in section 27B(1)(f).
35 155 Schedule 7 Social Security (Benefit Categories and Work Focus) Amendment Bill (2) A widow or widower to whom subclause (1) applies may be granted the benefit in subclause (1)(a) or (b) (as the case requires) as if that benefit had not been abolished and as if the provisions on that benefit had not been repealed, and if granted to the widow or widower that benefit commences as it 5 would have done had those provisions not been repealed, and continues so long as— (a) (b) (c) the widow or widower continues to meet the conditions of entitlement to that benefit in those provisions; and the agreement or convention, or any replacement agree- 10 ment or convention, continues in force in relation to New Zealand.
; and the widow or widower continues to be ordinarily resi- dent in New Zealand or the overseas country to which that agreement or convention applies.
15 (3) Reciprocity agreement recipients’ entitlement continues as if former benefits not abolished This subclause applies to a person who, immediately before 15 July 2013, was ordinarily resident in an overseas country, and was receiving, or granted and entitled to receive, pursuant 20 to an agreement or convention given effect in relation to New Zealand by an Order in Council made pursuant to section 19 of the Social Welfare (Transitional Provisions) Act 1990,— (a) (b) a widow’s benefit under section 21; or a domestic purposes benefit under section 27B for an 25 applicant as defined in section 27B(1)(f).
(3A) Subclause (3) applies to a person even if the benefit in sub- clause (3)(a) or (b) was, immediately before 15 July 2013, 100% reduced or suspended under section 117 or another pro- vision of this Act, but in that case no benefit of the person 30 that is continued by subclause (4) commences until the sus- pension or reduction would have ended, or the benefit in sub- clause (3)(a) or (b) would otherwise have become payable again.
(4) A person to whom subclause (3) applies is, subject to sub- 35 clause (3A) and to a review under section 81, entitled to the benefit in subclause (3)(a) or (b) (as the case requires) as if that benefit had not been abolished and as if the provisions on 156 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 7 that benefit had not been repealed, and that benefit continues so long as— (a) the person continues to meet the conditions of entitle- ment to that benefit in those provisions; and the agreement or convention, or any replacement agree- 5 ment or convention, continues in force in relation to New Zealand.
; and the person continues to be ordinarily resident in New Zealand or the overseas country to which that agree- ment or convention applies.

(b) (c) 10 (5) Alteration, and annual CPI adjustment, of rates of saved former benefits Sections 61H and 61HA must for the purposes of subclauses (2) and (4) be treated as continuing to authorise amendments and require adjustments to Schedules 3 and 16 on and after 15 15 July 2013.
4 Transfer from invalids’ benefits and DPBs for care of sick or infirm to supported living payment on 15 July 2013 Invalids’ benefits renamed, and DPBs under section 27G abolished 20 (1) On 15 July 2013,— (a) (b) invalids’ benefits under section 40 are renamed as the supported living payment under section 40B: domestic purposes benefits under section 27G are abol- ished and replaced with the supported living payment 25 under section 40D.
(2) Applications made, but not determined, before 15 July 2013, or made after 14 July 2013 but before 15 August 2013 The chief executive must after 14 July 2013 determine under this subclause, in accordance with the applicant’s entitlement 30 immediately before 15 July 2013 to the invalids’ benefit, an application that is either— (a) an application for an invalid’s benefit, and that is made, but not decided or determined by the chief executive, before 15 July 2013; or an application for an invalid’s benefit, and that is made after 14 July 2013 but before 15 August 2013.
(b) 35 157 Schedule 7 Social Security (Benefit Categories and Work Focus) Amendment Bill (3) (4) If it is determined under subclause (2) that the applicant had an entitlement to the invalids’ benefit before it was re- named, he or she must be treated as a person to whom sub- clause (8)(a) applies, but he or she must be granted the in- valids’ benefit in respect of a period before 15 July 2013 for 5 which he or she had entitlement to the invalids’ benefit unless (because of a stand down or otherwise) it would not have com- menced until after 14 July 2013, and no new benefit to which he or she is transferred by this clause commences before the invalids’ benefit would have.
If it is determined under subclause (2) that the applicant had no entitlement to the invalids’ benefit before it was renamed, the applicant’s application must may (without limiting sec- tion 11D(4)) be treated as an application for a supported living payment under section 40B on the grounds of sickness, in- 15 jury, disability, or total blindness.
10 (6) (5) An application for a domestic purposes benefit under sec- tion 27G made, but not decided or determined by the chief executive, before 15 July 2013, must after 14 July 2013 be determined under this subclause in accordance with the 20 applicant’s entitlement immediately before 15 July 2013 to the abolished benefit.
If it is determined under subclause (5) that the applicant had an entitlement to the abolished benefit, he or she must be treated as a person to whom subclause (14)(a) applies, but 25 he or she must be granted the abolished benefit in respect of a period before 15 July 2013 for which he or she had en- titlement to the abolished benefit unless (because of a stand down or otherwise) it would not have commenced until after 14 July 2013, and no new benefit to which he or she is trans- 30 ferred by this clause commences before the abolished benefit would have.
If it is determined under subclause (5) that the applicant had no entitlement to the abolished benefit, the applicant’s appli- cation must may (without limiting section 11D(4)) be treated 35 as an application for a supported living payment under sec- tion 40D on the grounds of caring for a patient requiring care.
(7) 158 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 7 (8) Transfer from invalid’s benefit to supported living payment under section 40B This subclause applies to a person who, immediately before 15 July 2013,— (a) was receiving, or had been granted and was entitled to 5 receive, an invalid’s benefit; or had been granted an invalid’s benefit that was subject to a stand down period under sections 80 to 80BA.
(b) (8A) Subclause (8) applies to a person even if the benefit in sub- clause (8)(a) or (b) was, immediately before 15 July 2013, 10 100% reduced or suspended under section 117 or another pro- vision of this Act, but in that case no supported living payment to which the person is transferred by subclause (9) com- mences until the suspension or reduction would have ended, or the benefit in subclause (8)(a) or (b) would otherwise have 15 become payable again.
(9) A person to whom subclause (8) applies is, subject to sub- clauses (8A) and (10) to (13) and to a review under sec- tion 81, entitled to a supported living payment under sec- tion 40B at the appropriate rate in Schedule 6 (until that bene- 20 fit ends or expires, or is for any reason cancelled or terminated) as if the person had applied for it, and commencing— (a) on 15 July 2013, if subclause (8)(a) applies to the person; or at the end of the stand down period referred to in sub- 25 clause (8)(b).
(b) Transitional and savings provisions related to transfer to supported living payment under section 40B (10) Obligations under section 60Q(2), and exemptions from that immediately before 30 the work test under section 105, 15 July 2013 apply to the spouse or partner (if any) of a person to whom subclause (8)(a) applies continue after 14 July 2013 in respect of a supported living payment under section 40B to which the person is entitled under subclause (9).
35 (11) Failures under section 116A by the spouse or partner (if any) of a person to whom subclause (8)(a) applies, and sanctions for those failures under section 117(1)(a) or (b), continue after 159 Schedule 7 Social Security (Benefit Categories and Work Focus) Amendment Bill 14 July 2013 and are failures or sanctions in respect of a supported living payment under section 40B to which the person is entitled under subclause (9).
(12) A person whose invalid’s benefit was cancelled before 15 July 2013 under section 117(1)(c) is not entitled to receive 5 a supported living payment under section 40B for 13 weeks from the date of cancellation.

(13) Subclause (12) does not limit section 117(2)(a).
Transfer from DPB for care of sick or infirm to supported living payment under section 40D (14) This subclause applies to a person who, immediately before 15 July 2013,— (a) was receiving, or had been granted and was entitled to receive, a domestic purposes benefit under section 27G; or had been granted a domestic purposes benefit under sec- tion 27G that was subject to a stand down period under sections 80 to 80BA.
(b) 10 15 (15) Subclause (14)(a) applies, without limitation, to a domestic purposes benefit under section 27G that the person is entitled 20 to continue to receive under the savings provision that is sec- tion 30(2) of the Social Security (Youth Support and Work Fo- cus) Amendment Act 2012.
(15A) Subclause (14) applies to a person even if the benefit in sub- clause (14)(a) or (b) was, immediately before 15 July 2013, 25 100% reduced or suspended under section 117 or another pro- vision of this Act, but in that case no supported living payment to which the person is transferred by subclause (16) com- mences until the suspension or reduction would have ended, or the benefit in subclause (14)(a) or (b) would otherwise 30 have become payable again.
(16) A person to whom subclause (14) applies is, subject to sub- clauses (15A) and (17) to (21) and to a review under sec- tion 81, entitled to a supported living payment under sec- tion 40D at the appropriate rate in Schedule 6 as if the person 35 had applied for it, and commencing— (a) on 15 July 2013, if subclause (14)(a) applies to the person; or 160 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 7 (b) at the end of the stand down period referred to in sub- clause (14)(b).
Transitional and savings provisions related to transfer to supported living payment under section 40D (17) The following so far as they relate to a person to whom sub- 5 clause (14) applies cease to exist on 15 July 2013, but the person may if considered to have the capacity to do so be re- quired to comply with section 60Q(3): (a) 60HA made section before under 10 requests 15 July 2013: applications under section 105 to be exempted from complying with any such requests: exemptions under section 105 arising from applications of that kind: the imposition or effects of sanctions imposed under 15 section 60U (as repealed on 15 October 2012 by sec- tion 40 of the Social Security (Youth Support and Work Focus) Amendment Act 2012) because of failures to comply with any such requests.
(b) (c) (d) (18) Obligations under sections 97(1) and (2)(b), 102, and 102A, 20 and exemptions from the work test under section 105, that im- mediately before 15 July 2013 apply to a person to whom subclause (14)(a) applies or to his or her spouse or partner (if any) continue after 14 July 2013 in respect of a supported living payment under section 40D to which the person is en- 25 titled under subclause (16).
(19) Failures under section 115 by a person to whom sub- clause (14)(a) applies or by his or her spouse or partner (if any), and sanctions for those failures under section 117(1)(a) or (b), continue after 14 July 2013 and are failures or 30 sanctions in respect of a supported living payment under section 40D to which the person is entitled under sub- clause (16).
(20) A person whose domestic purposes benefit under section 27G was cancelled before 15 July 2013 under section 117(1)(c) is 35 not entitled to receive a supported living payment under sec- tion 40D for 13 weeks from the date of cancellation.

(21) Subclause (20) does not limit section 117(2)(a).
161 Schedule 7 Social Security (Benefit Categories and Work Focus) Amendment Bill 5 Social Security (Supported Living Payments Benefit) Regulations 1998 The Social Security (Supported Living Payments Benefit) Regulations 1998, as renamed and amended on 15 July 2013 by the Social Security (Benefit Categories and Work 5 Focus) Amendment Act 2012, after 14 July 2014— (a) must be treated as if they set out a period for the pur- poses of section 40B(2)(a); and (b) may be further amended, revoked, or revoked and re- placed, accordingly.
10 5A Transfer to emergency benefit of certain people 65 years old or older The repeal of subsections (1B) to (1D) of section 61 (ef- fected on 15 July 2013 by section 25A(2) of the Social Security (Benefit Categories and Work Focus) Amend- 15 ment Act 2012) does not limit or affect any transfer, or en- titlement arising from a transfer, under those subsections be- fore their repeal.
Transfer from unemployment benefit to jobseeker support on 15 July 2013 20 Unemployment benefit abolished The unemployment benefit is abolished on 15 July 2013.
Applications made, but not determined, before 15 July 2013, or made after 14 July 2013 but before 15 August 2013 The chief executive must after 14 July 2013 determine under 25 this subclause, in accordance with the applicant’s entitlement immediately before 15 July 2013 to the abolished benefit, an application that is either— (a) an application for the unemployment benefit, and that is made, but not decided or determined by the chief 30 executive, before 15 July 2013; or an application for the unemployment benefit, and that is made after 14 July 2013 but before 15 August 2013.
If it is determined under subclause (2) that the applicant had an entitlement to the abolished benefit, he or she must be 35 treated as a person to whom subclause (6)(a) applies, but (b) 6 (1) (2) (3) 162 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 7 he or she must be granted the abolished benefit in respect of a period before 15 July 2013 for which he or she had en- titlement to the abolished benefit unless (because of a stand down or otherwise) it would not have commenced until after 14 July 2013, and no new benefit to which he or she is trans- 5 ferred by this clause commences before the abolished benefit would have.
If it is determined under subclause (2) that the applicant had no entitlement to the abolished benefit, the applicant’s appli- cation must may (without limiting section 11D(4)) be treated 10 as an application for jobseeker support.
Requirements or consequences of failures that apply to the applicant under section 96A at the close of 14 July 2013 continue to apply to the applicant after 14 July 2013 as if they could be, and had been, imposed under sections 11E to 15 11G in respect of the deemed an application that under sub- clause (4) is treated as an application for jobseeker support under subclause (4).
Transfer from unemployment benefit to jobseeker support This subclause applies to a person who, immediately before 20 15 July 2013,— (a) was receiving, or had been granted and was entitled to receive, an unemployment benefit; or had been granted an unemployment benefit that was subject to 80BA.
to a stand down period under sections 80 25 (b) (4) (5) (6) (6A) Subclause (6) applies to a person even if the benefit in sub- clause (6)(a) or (b) was, immediately before 15 July 2013, 100% reduced or suspended under section 117 or another pro- vision of this Act, but in that case no jobseeker support to 30 which the person is transferred by subclause (7) commences until the suspension or reduction would have ended, or the benefit in subclause (6)(a) or (b) would otherwise have be- come payable again.
(7) A person to whom subclause (6) applies is, subject to sub- 35 clauses (6A) and (8A) to (12) and to a review under sec- tion 81, entitled to jobseeker support at the appropriate rate in Schedule 9 (until that benefit ends or expires, or is for any rea- 163 Schedule 7 Social Security (Benefit Categories and Work Focus) Amendment Bill son cancelled or terminated) as if the person had applied for it, and commencing— (a) on 15 July 2013, if subclause (6)(a) applies to the person; or at the end of the stand down period referred to in sub- 5 clause (6)(b).
(b) Savings relating to transfer to jobseeker support (8A) A notice given to a person under section 99AA(2) before 15 July 2013, and stating that the person’s entitlement to the unemployment benefit will cease unless the person reapplies 10 for that benefit and it is re-granted, continues in force after 14 July 2013 as if given under section 80BE(2) in respect of the jobseeker support to which the person is entitled under subclause (7).
(8) Despite section 80BE(5), the expiry date of jobseeker sup- 15 port to which a person to whom subclause (6) of this clause applies is entitled under subclause (7) of this clause is the 12-month anniversary of the date on which the person’s un- employment benefit commenced or, as the case may be, last commenced.
20 (9) Obligations under sections 60Q(2), 97(1) and (2)(b), 102, and 102A, and exemptions from the work test under section 105, that immediately before 15 July 2013 apply to a person to whom subclause (6)(a) applies or to his or her spouse or part- ner (if any) continue after 14 July 2013 in respect of jobseeker 25 support to which the person is entitled under subclause (7).
(10) Failures under section 115 or 116A by a person to whom sub- clause (6)(a) applies or by his or her spouse or partner (if any), and sanctions for those failures under section 117(1)(a) or (b), continue after 14 July 2013 and are failures or sanc- 30 tions in respect of jobseeker support to which the person is entitled under subclause (7).
(11) A person whose unemployment benefit was cancelled before 15 July 2013 under section 117(1)(c) is not entitled to receive jobseeker support for 13 weeks from the date of cancellation.

35 (12) Subclause (11) does not limit section 117(2)(a).

164 7 (1) (2) (3) (4) (5) Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 7 Transfer from sickness benefit to jobseeker support on 15 July 2013 Sickness benefit abolished The sickness benefit is abolished on 15 July 2013.
(b) 5 10 Applications made, but not determined, before 15 July 2013, or made after 14 July 2013 but before 15 August 2013 The chief executive must after 14 July 2013 determine under this subclause, in accordance with the applicant’s entitlement immediately before 15 July 2013 to the abolished benefit, an application that is either— (a) an application for a sickness benefit, and that is made, but not decided or determined by the chief executive, before 15 July 2013; or an application for a sickness benefit, and that is made after 14 July 2013 but before 15 August 2013.
If it is determined under subclause (2) that the applicant had an entitlement to the abolished benefit, he or she must be treated as a person to whom subclause (5)(a) applies, but he or she must be granted the abolished benefit in respect of a period before 15 July 2013 for which he or she had en- 20 titlement to the abolished benefit unless (because of a stand down or otherwise) it would not have commenced until after 14 July 2013, and no new benefit to which he or she is trans- ferred by this clause commences before the abolished benefit would have.
If it is determined under subclause (2) that the applicant had no entitlement to the abolished benefit, the applicant’s appli- cation must may (without limiting section 11D(4)) be treated as an application for jobseeker support on the grounds of sick- ness, injury, or disability.
30 15 25 Transfer from sickness benefit to jobseeker support This subclause applies to a person who, immediately before 15 July 2013,— (a) was receiving, or had been granted and was entitled to receive, a sickness benefit under section 54 or 54A; or had been granted a sickness benefit that was subject to a stand down period under sections 80 to 80BA.
(b) 35 165 Schedule 7 Social Security (Benefit Categories and Work Focus) Amendment Bill (5A) Subclause (5) applies to a person even if the benefit in sub- clause (5)(a) or (b) was, immediately before 15 July 2013, 100% reduced or suspended under section 117 or another pro- vision of this Act, but in that case no jobseeker support to which the person is transferred by subclause (6) commences 5 until the suspension or reduction would have ended, or the benefit in subclause (5)(a) or (b) would otherwise have be- come payable again.
(6) A person to whom subclause (5) applies is, subject to sub- clauses (5A) and (7) to (13) and to a review under sec- 10 tion 81, entitled to jobseeker support on the grounds of sick- ness, injury, or disability at the appropriate rate in Schedule 9 (until that benefit ends or expires, or is for any reason can- celled or terminated) as if the person had applied for it, and commencing— (a) on 15 July 2013, if subclause (5)(a) applies to the person; or at the end of the stand down period referred to in sub- clause (5)(b).
(b) 15 Savings relating to transfer to jobseeker support (7) Despite section 80BE(5), the expiry date of jobseeker sup- port to which a person to whom subclause (5) applies is en- titled under subclause (5) is the 12-month anniversary of the date on which the person’s sickness benefit commenced or, as the case may be, last commenced.
20 25 (8) Obligations under sections 54(7), 54E, 60Q(2), 102, and 102A, and exemptions from the work test under section 105 (other than any exemption that, under regulations made under section 123D(a), is not available to a person receiving jobseeker support), that immediately before 15 July 2013 30 apply to a person to whom subclause (5)(a) applies or to his or her spouse or partner (if any) continue after 14 July 2013 in respect of jobseeker support to which the person is entitled under subclause (6).
(9) A determination, and a requirement to comply with the work 35 test, that are made under section 54DA(1) in respect of a per- son to whom subclause (5) applies are, after 14 July 2013, 166 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 7 deemed to be a determination under section 88F(2) and no- tice under section 88F(4) in respect of that person.
(10) A person to whom subclause (5) applies, and in respect of whom no determination and requirement under section 54DA(1) have been made before 15 July 2013, is deemed 5 to have been granted on 15 July 2013 a deferral under sec- tion 88I(2) of all his or her work test obligations for the rest of the period (which the chief executive must identify by ref- erence to the medical evidence supplied to the chief executive before 15 July 2013) of the beneficiary’s limited capacity to 10 engage in full-time employment because of sickness, injury, or disability.
(11) Failures under section 115 or 116A by a person to whom sub- clause (5)(a) applies, and sanctions for those failures under section 117(1)(a) or (b), continue after 14 July 2013 and are 15 failures or sanctions in respect of jobseeker support to which the person is entitled under subclause (6).

(12) A person whose sickness benefit was cancelled before 15 July 2013 under section 117(1)(c) is not entitled to receive jobseeker support for 13 weeks from the date of cancellation.
20 (13) Subclause (12) does not limit section 117(2)(a).
8 Social Security (Jobseeker Support—Medical Examinations) Regulations 2010 The Social Security (Jobseeker Support—Medical Exam- inations) Regulations 2010, as renamed and amended on 25 15 July 2013 by the Social Security (Benefit Cat- egories and Work Focus) Amendment Act 2012, after 14 July 2013— (a) must be treated as if they specify a kind of health prac- titioner for the purposes of section 88E(2)(d); and 30 (b) may be further amended, revoked, or revoked and re- placed, accordingly.
167 Schedule 7 Social Security (Benefit Categories and Work Focus) Amendment Bill 9 Transfer from DPBs for women alone to jobseeker support on 15 July 2013 DPBs for women alone abolished (1) Domestic purposes benefits under section 27C are abolished on 15 July 2013.
5 Applications made, but not determined, before 15 July 2013, or made after 14 July 2013 but before 15 August 2013 The chief executive must after 14 July 2013 determine under this subclause, in accordance with the applicant’s entitlement immediately before 15 July 2013 to the abolished benefit, an 10 application that is either— (a) an application for a domestic purposes benefit under section 27C, and that is made, but not decided or de- termined by the chief executive, before 15 July 2013; or an application for a domestic purposes benefit under section 27C, and that is made after 14 July 2013 but before 15 August 2013.
(b) 15 If it is determined under subclause (2) that the applicant had an entitlement to the abolished benefit, he or she must be 20 treated as a person to whom subclause (6)(a) applies, but he or she must be granted the abolished benefit in respect of a period before 15 July 2013 for which he or she had en- titlement to the abolished benefit unless (because of a stand down or otherwise) it would not have commenced until after 25 14 July 2013, and no new benefit to which he or she is trans- ferred by this clause commences before the abolished benefit would have.
If it is determined under subclause (2) that the applicant had no entitlement to the abolished benefit, the applicant’s appli- 30 cation must may (without limiting section 11D(4)) be treated as an application for jobseeker support.
Requirements or consequences of failures that apply to the applicant under section 27CA at the close of 14 July 2013 continue to apply to the applicant after 14 July 2013 as if 35 they could be, and had been, imposed under sections 11E to 11G in respect of the deemed an application that under sub- (2) (3) (4) (5) 168 (6) Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 7 clause (4) is treated as an application for jobseeker support under subclause (4).
Transfer from DPBs for women alone to jobseeker support This subclause applies to a person who, immediately before 15 July 2013,— (a) was receiving, or had been granted and was entitled to receive, a domestic purposes benefit under section 27C; or had been granted a domestic purposes benefit under sec- tion 27C that was subject to a stand down period under 10 sections 80 to 80BA.
(b) 5 (6A) Subclause (6) applies to a person even if the benefit in sub- clause (6)(a) or (b) was, immediately before 15 July 2013, 100% reduced or suspended under section 117 or another pro- vision of this Act, but in that case no jobseeker support to 15 which the person is transferred by subclause (7) commences until the suspension or reduction would have ended, or the benefit in subclause (6)(a) or (b) would otherwise have be- come payable again.
(7) A person to whom subclause (6) applies is, subject to sub- 20 clauses (6A) and (8) to (13) and to a review under sec- tion 81, entitled to jobseeker support at the appropriate rate in Schedule 9 (until that benefit ends or expires, or is for any reason cancelled or terminated) as if the person had applied for it, and commencing— (a) 25 on 15 July 2013, if subclause (6)(a) applies to the person; or at the end of the stand down period referred to in sub- clause (6)(b).
(b) Savings relating to transfer to jobseeker support 30 (8) Despite section 80BE(5), the expiry date of jobseeker sup- port to which a person to whom subclause (6) applies is en- titled under subclause (7) is the 12-month anniversary of the date on which the person’s domestic purposes benefit under section 27C commenced or, as the case may be, last com- 35 menced.
(9) Obligations under sections 102 and 102A, and exemptions from the work test under section 105, that immediately before 169 Schedule 7 Social Security (Benefit Categories and Work Focus) Amendment Bill 15 July 2013 apply to a person to whom subclause (6)(a) applies continue after 14 July 2013 in respect of jobseeker support to which the person is entitled under subclause (7).
(10) A person to whom subclause (6) applies who at the close of 14 July 2013 is subject to an exemption under section 105 5 from some or all of his or her work test obligations on the ground in regulation 6(2)(d) or (e) of the Social Security (Ex- emptions under Section 105) Regulations 1998 is deemed to have all of his or her work test obligations deferred under sec- tion 88I for a period that is the same as the period for which 10 the exemption was granted under section 105.
(11) Failures under section 115 by a person to whom sub- clause (6)(a) applies, and sanctions for those failures under section 117(1)(a) or (b), continue after 14 July 2013 and are failures or sanctions in respect of jobseeker support to which 15 the person is entitled under subclause (7).

(12) A person whose domestic purposes benefit under section 27C was cancelled before 15 July 2013 under section 117(1)(c) is not entitled to receive jobseeker support for 13 weeks from the date of cancellation.
20 (13) Subclause (12) does not limit section 117(2)(a).

10 Appeals, and appeal boards, under section 53A Appeals made, but not decided, before 15 July 2013 (1) An appeal made under section 53A but not decided before 15 July 2013 continues, and must be decided under section 25 10B, after 14 July 2013, as if it had been made under sec- tion 10B.
Boards appointed under section 53A Every Board appointed under section 53A for an appeal to which subclause (1) applies continues after 14 July 2013 30 as if it had been appointed, and the appeal had been made, under section 10B.
Temporary exemption from full-time student ineligiblity for certain transferees to jobseeker support This subclause applies to a person who is a full-time student 35 (as defined in section 3(1)) at the close of 14 July 2013, is (2) 11 (1) 170 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 7 receiving a main benefit under this Act (as defined in sub- clause (1B)) at the close of 14 July 2013, and is transferred to jobseeker support on 15 July 2013— (a) under clause 2(9) in respect of a domestic purposes benefit under section 27B or 27C; or under clause 2(9) in respect of a widow’s benefit under section 21; or under clause 7(6) in respect of a sickness benefit under section 54 or 54A.
(b) (c) 5 (1A) This subclause applies to a person who is a full-time student 10 (as defined in section 3(1)) at the close of 14 July 2013, is receiving a main benefit under this Act (as defined in sub- clause (1B)) at the close of 14 July 2013, and is transferred to jobseeker support at any time after 14 July 2013— (a) from that main benefit (either directly, or via 1 or more 15 other benefits); and under section 20H, or after a review under sec- tion 81(1) and under section 81(3).
(b) (1B) Main benefit under this Act, in subclauses (1) and (1A), means a benefit that is— (a) (b) a widow’s benefit under section 21; or a domestic purposes benefit under section 27B, 27C, or 27G; or an invalid’s benefit under section 40; or a sickness benefit under section 54 or 54A; or unemployment benefit under section 89 or 90; or an emergency benefit under section 61; or a youth payment (under Part 5); or a young parent payment (under Part 5).
20 25 (2) A person to whom subclause (1) or (1A) applies is, for the 30 period in subclause (3),— (a) excepted from the application of the jobseeker support ineligibility ground in section 88D(a); and deemed to have been exempted under section 105, sub- ject to the exception in subclause (4), from all his or 35 her work test obligations or, as the case may be, work preparation obligations under section 60Q.
(3) The period referred to in subclause (2) begins on 15 July 2013, and ends at the earlier of— 171 (c) (a) (d) (e) (f) (g) (b) Schedule 7 Social Security (Benefit Categories and Work Focus) Amendment Bill (a) (b) (a) (b) the close of 14 July 2015: the time when the person’s exception and exemption under this clause end under subclause (5).
begins,— (i) for a person to whom subclause (1) applies, on 5 15 July 2013: for a person to whom subclause (1A) applies, on the date on which the person transfers to job- seeker support under section 20H or 81(3); and ends (whether subclause (1) or (1A) applies to the 10 person) at the earliest of the following times: (i) (ii) (ii) the close of 14 July 2015: the time when the person’s jobseeker support ends: the time when the person ceases to be a full-time 15 student (as defined in section 3(1)): the time when the person’s exception and exemp- tion under this clause end under subclause (5).
(3A) Despite subclause (3)(b), the chief executive may, in his or (iii) (iv) her discretion, decide that the period referred to in subclause 20 (2) does not end at the time specified in subclause (3)(b)(ii) or (iii).

(5) (4) A person to whom subclause (1) applies can use the sub- clause (2)(b) exemption for the period between the end of one academic year and the start of the next only if actually en- 25 gaged in study during that period.
The exception and exemption under subclause (2)(a) and (b) of a person to whom subclause (1) or (1A) applies end under this subclause if the chief executive is satisfied at a time before 15 July 2015 that the amount of work (if any) passed by the 30 person in any period (for example, a semester) in a course in which the person was enrolled was equivalent to half of, or less than half of, a full-time course.
Full-time course, in subclause (5), has the same meaning as in regulation 2(1) of the Student Allowance Regulations 1998.
35 (6) 172 Social Security (Benefit Categories and Work Focus) Amendment Bill Schedule 7 11A Residential requirements: overseas residents’ in on (as section replaced entitlements under reciprocity agreements unaffected by section 74AA(1)(c) Nothing 74AA(1)(c) 15 July 2013) applies on or after 15 July 2013 to a benefit 5 granted to a person pursuant to an agreement or convention with the government of another country and at a time before 15 July 2013 when— (a) there is in force under section 19(1) of the Social Wel- fare (Transitional Provisions) Act 1990 an order declar- 10 ing that the provisions contained in the agreement or convention set out in a schedule of the order had force and effect so far as they relate to New Zealand; and the person is ordinarily resident in that country.
(b) 15 (1) occurs on or after 15 July 2013; but 12 When beneficiaries can be paid benefit while overseas: travel booked before, but occurring after, 15 July 2013 This clause applies to a beneficiary’s absence overseas, but only if that absence involves travel from New Zealand that— (a) (b) was booked before 15 July 2013.
The chief executive may, for the purpose of avoiding any net adverse effects on the beneficiary of section 77 (as amended on 15 July 2013), and in the chief executive’s discretion, determine the beneficiary’s entitlements in respect of the absence under section 77 (as in force immediately before 25 15 July 2013).
(2) 20 13 (1) Saving of failures and sanctions not saved by other clauses This clause applies to a person’s failure before 15 July 2013 if it is— (a) a failure under section 115(1)(a) (to comply with work 30 test obligations in sections 102 and 102A); or a failure under section 115(1)(b) (for a beneficiary granted an exemption from the work test, to attend an interview as required under section 105(5)); or a failure before 20 August 2012 under section 115A 35 (to comply with independent youth benefits obligations under section 60GAB); or (b) (c) 173 Schedule 7 Social Security (Benefit Categories and Work Focus) Amendment Bill (d) (e) (f) a failure under section 116A (to comply with work prep- aration obligations under section 60Q(2) (as replaced on 15 October 2012)); or a failure that, under section 171(3)(a), is a failure to comply with the work test for the purposes of section 5 117 because it is a failure by a young person (as defined in section 157) who is the spouse or partner of specified beneficiary (as so defined) to comply with obligations placed on that young person under section 171; or a failure that, under section 171(3)(b), is a failure to 10 comply with section 60Q(2) (as replaced on 15 Octo- ber 2012) for the purposes of section 116A because it is a failure by a young person (as defined in section 157) who is the spouse or partner of specified beneficiary (as so defined) to comply with obligations placed on that 15 young person under section 171.
The failure and any related sanction under section 117 before 15 July 2013 both continue to count for determining the num- ber of failures of the person, and every appropriate related sanction under section 117, after 14 July 2013.

This clause does not limit any other provisions of this Sched- ule that save or transfer obligations, failures, or sanctions that applied to a person immediately before 15 July 2013.
20 Regulations providing for for transitional and savings matterspurposes The Governor-General may, by Order in Council made on the Minister’s recommendation, make regulations prescribing ap- plication, transitional, andprovisions, savings provisions re- lated to the amendments made by the Social Security (Bene- fit Categories and Work Focus) Amendment Act 2012., 30 or both, for either or both of the following purposes: (a) 25 facilitating or ensuring the orderliness of the transition to the amendments made to this Act by the Social Security (Benefit Categories and Work Focus) Amendment Act 2012: ensuring that existing rights or obligations continue as part of, or despite, that transition.
(b) 35 (2) (3) 14 (1) 174 Social Security (Benefit Categories and Work Focus) Amendment Bill (2) (3) The Minister must not recommend the making of regulations under subclause (1) unless satisfied that those regulations are necessary or desirable for, or in connection with, the imple- mentation of the relevant amendments.— (a) are reasonably necessary for either or both of the pur- 5 poses in subsection (1)(a) and (b); and are consistent with the purposes of this Act.
(b) The application, transitional, provisions or savings provisions prescribed by regulations under subclause (1) may be provi- sions in addition to or instead of clauses 2 to 13., and may— 10 provide that, for a transitional period, in any circum- (a) stances, or subject to any conditions, specified in the regulations, 1 or more provisions (including definitions) of those amendments to this Act do not apply, or apply with modifications or additions: provide that, for a transitional period, in any circum- stances, or subject to any conditions, specified in the regulations, 1 or more provisions repealed, amended, or revoked by those amendments to this Act are to con- tinue to apply, or apply with modifications or additions, 20 as if they had not been repealed, amended, or revoked: provide for any other matter necessary for either or both of the purposes in subsection (1)(a) and (b).
(b) (c) 15 (4) No regulations made under this clause may be made, or con- tinue in force, after the close of 14 July 2016.

25 Legislative history Introduction (Bill 67–1) First reading and referral to Social Services Committee Reported from Social Services Committee (Bill 67–2) 17 September 2012 20 September 2012 13 March 2013 12 Published under the authority of the House of Representatives—2013 Wellington, New Zealand: 175