Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698831420741.pdf (New Zealand)
Reprint as at 26 November 2018 Social Security (Long-term Residential Care) Amendment Act 2006 Public Act 2006 No 67 Date of assent 21 November 2006 Social Security (Long-term Residential Care) Amendment Act 2006: repealed, on 26 November 2018, pursuant to section 455(1) of the Social Security Act 2018 (2018 No 32).
Contents Title Commencement Principal Act amended Part 1 Amendments to principal Act Subpart 1—Amendments to Part 1 Disability allowance Subpart 2—Amendments to Part 4 New sections 136AA and 136AB inserted 136AA Purpose of this Part 136AB Overview of this Part Interpretation Effect of being assessed as requiring long-term residential care in hospital or rest home indefinitely Page 2 2 2 3 4 4 4 5 6 Note Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this eprint.
See the notes at the end of this eprint for further details.

This Act is administered by the Ministry of Social Development.
1 s 1 Social Security (Long-term Residential Care) Amendment Act 2006 Reprinted as at 26 November 2018 Personal obligation to pay for care Funder’s liability in respect of persons whose assets are equal to or below applicable asset threshold Funder’s liability in respect of exempt persons and elderly victims of crime Residents assessed as requiring care aged 50 to 64 not required to pay out of assets Date of means assessment Means assessment as to income New section 147A inserted 147A Obligation to advise change of circumstances and right to apply for review Review of means assessment Maximum contribution set by Gazette notice Regulations relating to this Part Deprivation of assets and income Subpart 3—Other amendments Amendment to Schedule 27 Further amendments to Schedule 27 Part 2 Consequential amendment Amendment to Social Security (Long-term Residential Care) Regulations 2005 Schedule Further Amendments to Schedule 27 6 6 6 7 7 7 7 7 8 8 8 9 9 9 9 10 The Parliament of New Zealand enacts as follows: Title This Act is the Social Security (Long-term Residential Care) Amendment Act 2006.
Commencement This Act comes into force on the day after the date on which it receives the Royal assent.

Principal Act amended This Act amends the Social Security Act 1964.
1 2 3 2 Reprinted as at 26 November 2018 Social Security (Long-term Residential Care) Amendment Act 2006 Part 1 s 4 Part 1 Amendments to principal Act Subpart 1—Amendments to Part 1 4 (1) Disability allowance Section 69C is amended by repealing subsection (2B) and substituting the fol- lowing subsections: (2B) A disability allowance is not payable under this section in respect of— (a) expenses arising from the disability of a person who is a resident assessed as requiring care (as defined in section 136) in respect of whom a funder (as defined in that section) is paying some or all of the cost of contracted care services (as defined in that section) under section 141 or section 142; or (b) expenses arising from the disability of a person that are costs of residen- tial care services supplied to the person if— (i) (ii) the person has a psychiatric, intellectual, physical, or sensory disa- bility; and the person’s accommodation costs (as defined in section 61E) or care (other than care in his or her own home) is wholly or partly funded under the New Zealand Public Health and Disability Act 2000.
(2C) For the avoidance of doubt, nothing in paragraph (b) of subsection (2B) pre- vents the payment of a disability allowance to a person to whom that paragraph applies for expenses that are not costs of residential care services supplied to that person.
(2) Any money received by a person by way of a disability allowance must be repaid as a debt due to the Crown if the disability allowance was granted in respect of an application that— (a) was made after 14 June 2006; and (b) was made in respect of expenses referred to in section 69C(2B)(a) of the principal Act (as inserted by this section).
(3) If, on an application made between 18 May 2006 and 18 May 2007, a disability allowance is granted to or on account of a person referred to in section 69C(2B)(b) of the principal Act (as inserted by this section) for expenses that are not costs of residential care services supplied to that person, then, despite section 80(1) of the principal Act, the disability allowance commences on the later of— (a) (b) the date the person became entitled to receive it; or 18 May 2006.
3 Part 1 s 5 Social Security (Long-term Residential Care) Amendment Act 2006 Reprinted as at 26 November 2018 Subpart 2—Amendments to Part 4 5 New sections 136AA and 136AB inserted The following sections are inserted immediately before section 136: 136AA Purpose of this Part The purpose of this Part is to— (a) (b) (c) (d) specify the circumstances in which certain older persons are required to pay for their own long-term residential care; and specify the circumstances in which a funder must contribute toward the cost of those persons’ long-term residential care; and provide for those persons to apply for a means assessment to determine if, and how much, a funder must contribute toward the cost of their long- term residential care; and provide that those persons are not required to pay more than the maxi- mum contribution (which amount is specified by Gazette notice) for their long-term residential care, if that care is provided by a provider who has a contract with a funder to provide long-term residential care to older persons.
136AB Overview of this Part (1) This Part sets out the regime for determining liability in respect of the cost of providing long-term residential care to an eligible person who— (a) (b) has been needs assessed as requiring long-term residential care in a hos- pital or rest home indefinitely; and receives that care in a hospital or rest home that is a hospital or rest home funded under the New Zealand Public Health and Disability Act 2000 to provide such care.
(2) This Part provides— (a) (b) (c) for the needs assessment of an eligible person to determine whether the person requires long-term residential care in a hospital or rest home indefinitely; and for the means assessment of an eligible person who has been needs assessed as requiring long-term residential care in a hospital or rest home indefinitely to determine the amount that the person is liable to pay for the cost of his or her care; and for a maximum contribution, which is the most that an eligible person who has been needs assessed as requiring long-term residential care indefinitely may be required to pay for the cost of his or her assessed care needs provided in a hospital or rest home that has a contract with a funder to provide long-term residential care to eligible persons; and 4 Reprinted as at 26 November 2018 Social Security (Long-term Residential Care) Amendment Act 2006 Part 1 s 6 (d) for determination of the extent to which a funder is liable to pay the cost of the long-term residential care provided to an eligible person who has been needs assessed as requiring long-term residential care indefinitely.
This section is by way of explanation only.

If a provision of this or any other Act is inconsistent with this section, the other provision prevails.
Interpretation Section 136 is amended by repealing the definitions of contracted care ser- vices and cost of contracted care services and substituting the following defi- nitions: (3) 6 (1) contracted care services means services that are— (a) (b) (c) provided by a contracted care provider; and provided to an eligible person who has been needs assessed as requiring long- term residential care in a hospital or rest home indefinitely; and in relation to a particular person, the services necessary to meet the person’s assessed long-term residential care needs cost of contracted care services means, in relation to a resident assessed as requiring care, the amount that— (a) (b) is the cost of the contracted care services provided by a contracted care pro- vider to meet the resident’s assessed long-term residential care needs; and is specified in the service agreement or section 88 notice that applies to the contracted care provider as the price payable for those services, whether or not the services provided to the resident are wholly or partly funded under that agreement or notice (2) Section 136 is amended by inserting the following definitions in their appropri- ate alphabetical order: contracted care provider means a provider that— (a) (b) has a service agreement; or accepts payment under a section 88 notice personal allowance means an amount of benefit, specified in regulations made under section 155, that a person is not required to contribute to the cost of contracted care services provided to the person section 88 notice means a notice given under section 88 of the New Zealand Public Health and Disability Act 2000 in respect of the provision of long-term residential care to eligible persons service agreement means a service agreement entered into between a funder and pro- vider under section 25 of the New Zealand Public Health and Disability Act 2000 in respect of the provision of long-term residential care to eligible persons.
5 Part 1 s 7 Social Security (Long-term Residential Care) Amendment Act 2006 Reprinted as at 26 November 2018 (3) 7 (a) (b) (c) Paragraph (b) of the definition of resident assessed as requiring care in sec- tion 136 is amended by adding “irrespective of whether a funder has any liabil- ity to pay for any of the cost of his or her care”.
Effect of being assessed as requiring long-term residential care in hospital or rest home indefinitely Section 138(1) is amended by repealing paragraphs (a) and (b) and substituting the following paragraphs: receives contracted care services if he or she is receiving long-term residential care from a contracted care provider, irrespective of whether a funder has any liability to pay for any of the cost of his or her care; and is, or becomes, a resident assessed as requiring care as soon as he or she receives contracted care services and sections 139 to 142 therefore apply; and is entitled, under section 144, to apply for a means assessment in accordance with Schedule 27.
8 Personal obligation to pay for care Section 139 is amended by repealing subsection (1) and substituting the fol- lowing subsection: (1) The following people are liable to pay the cost of long-term residential care provided to them in a hospital or rest home: (a) (b) a resident assessed as requiring care; and any other eligible person receiving long-term residential care from a pro- vider.
9 Funder’s liability in respect of persons whose assets are equal to or below applicable asset threshold Section 141(4) is amended by omitting “28” in each place where it appears and substituting “90” in each case.
10 Funder’s liability in respect of exempt persons and elderly victims of crime Section 142 is amended by repealing subsection (1) and substituting the fol- lowing subsections: (1) In the case of an exempt person, the funder must pay the amount determined in accordance with the following formula: p = c − (b − a) where p c b a 6 is the amount the funder must pay is the cost of contracted care services provided to the exempt person is the amount of any benefit received by the exempt person is the personal allowance.
Reprinted as at 26 November 2018 Social Security (Long-term Residential Care) Amendment Act 2006 Part 1 s 14 (1A) By way of explanation, the effect of subsection (1) is that the funder pays the cost of contracted care services provided to an exempt person, but the exempt person contributes the amount of any benefit that he or she receives, less the amount of the personal allowance.
11 Residents assessed as requiring care aged 50 to 64 not required to pay out of assets Section 143(2) is amended by omitting “section 141 as if the person were a resident assessed as requiring care whose assets are” and substituting “Part 4 as if the person were a resident assessed as requiring care who has been means assessed and found to have assets”.
12 Date of means assessment Section 145 is amended by adding the following paragraph: (f) in the case of a review under section 150(2A)— (i) (ii) (iii) conducted by the chief executive in the event of a general adjustment of rates of benefits or allowances, the date of that general adjustment; or conducted as a result of advice received by the Department under section 149(1), the date on which that advice was received; or conducted by the chief executive in any other case, the date on which the chief executive initiated the review.
13 Means assessment as to income Section 147(4) is amended by omitting “28” in each place where it appears and substituting “90” in each case.
14 New section 147A inserted The following section is inserted after section 147: 147A Deprivation of assets and income (1) (2) If the chief executive is satisfied that a person who has applied for a means assessment, or the spouse or partner of that person, has directly or indirectly deprived himself or herself of any income or property (other than an exempt asset), the chief executive may in his or her discretion conduct the means assessment as if the deprivation had not occurred.
If the chief executive is satisfied that a person who has been means assessed, or the spouse or partner of that person, has directly or indirectly deprived himself or herself of any income or property (other than an exempt asset), the chief executive may in his or her discretion include that income or property in a review of the person’s means assessment under section 150 as at the date of means assessment as if the deprivation had not occurred.
7 Part 1 s 15 Social Security (Long-term Residential Care) Amendment Act 2006 Reprinted as at 26 November 2018 15 Obligation to advise change of circumstances and right to apply for review Section 149 is amended by inserting the following section after subsection (1): (1A) However, subsection (1) does not apply if— (a) (b) a funder has no liability under section 140 or section 142 in respect of the cost of contracted care services provided to the person who has been means assessed; or the person who has been means assessed has been found to have assets equal to or less than the applicable asset threshold and the change relates to the value of that person’s assets, or to the value of the assets of that person’s spouse or partner.
16 (1) (2A) Review of means assessment Section 150 is amended by inserting the following subsection after subsection (2): In the case only of a person who has been means assessed and been found to have assets equal to or less than the applicable asset threshold, the chief execu- tive— (a) may review the person’s means assessment annually; and (b) may, if the chief executive considers that the person’s annual income has changed or is about to change, review the person’s means assessment at any time.
(2) (3) Section 150(3) is amended by inserting “or subsection (2A)” after “subsection (2)”.

Section 150 is amended by repealing subsection (4) and substituting the fol- lowing subsections: (4) A review must review the person’s means assessment as to assets and, if neces- sary, the person’s means assessment as to income unless subsection (4A) applies.
(4A) A review must review the person’s means assessment as to income only (and not the person’s means assessment as to assets) if the review is conducted under— (a) subsection (1)(a) and the person has been means assessed and found to have assets equal to or less than the applicable asset threshold; or (b) subsection (2A).

(4B) A review under this section is conducted as at the date of means assessment.
17 Maximum contribution set by Gazette notice Section 152 is amended by repealing subsection (2) and substituting the fol- lowing subsection: 8 Reprinted as at 26 November 2018 Social Security (Long-term Residential Care) Amendment Act 2006 Part 2 s 21 (2) 18 (1) (2) By way of explanation, the amount of the maximum contribution set for a region is the amount agreed at a national level between funder representatives and provider representatives as being the amount that funders in that region are to pay to providers in that region for providing rest-home-level care services.
Regulations relating to this Part Section 155(1)(e) is amended by omitting “means assessment” and substituting “section 147A”.

Section 155(1)(k) is amended by omitting “, as defined in Part 3 of Schedule 27”.

(3) Section 155(2) is amended by omitting “2006”, and substituting “2007”.
Subpart 3—Other amendments 19 (1) Amendment to Schedule 27 Clause 5 of Schedule 27 is amended by repealing the definition of income- from-assets exemption and substituting the following definition: income-from-assets exemption means the amount of income derived from assets each year not exceeding the following (or such other amount or amounts as may be prescribed by regulations made under section 155) (a) (b) (c) (2) $805, if the person is single; or $1,610, if the person’s spouse or partner is a resident assessed as requiring care; or $2,415 if the person’s spouse or partner is not a resident assessed as requiring care Regulation 5 of the Social Security (Long-term Residential Care) Amendment Regulations 2006 is revoked.
20 Further amendments to Schedule 27 Schedule 27 is amended in the manner set out in the Schedule.
Part 2 Consequential amendment 21 Amendment to Social Security (Long-term Residential Care) Regulations 2005 Regulation 9B of the Social Security (Long-term Residential Care) Regulations 2005 is amended by omitting all the words occurring before paragraph (a) and substituting “For the purposes of section 147A of the Act, instances of depriva- tion of property or income include, but are not limited to, the following:”.
9 Schedule Social Security (Long-term Residential Care) Amendment Act 2006 Reprinted as at 26 November 2018 Schedule Further Amendments to Schedule 27 s 20 Clause 4 Definition of assets: omit “tested” and substitute “assessed”.

Paragraph (c) of the definition of assets: repeal.

Clause 5 Paragraph (a) of the definition of income: omit “and” and substitute “or”.
Paragraph (c) of the definition of income: repeal and substitute: (c) 50% of any amount received by the person or by his or her spouse or partner by way of a pension that— (i) (ii) (iii) is from any superannuation scheme, whether or not that scheme is con- stituted in New Zealand; and is not New Zealand superannuation; and is not an overseas pension: Paragraph (d) of the definition of income: repeal and substitute: (d) 50% of any amount received by the person or by his or her spouse or partner under an annuity paid in respect of a policy of life insurance (whether or not issued in New Zealand): Paragraph (e) of the definition of income: repeal.
Paragraph (i) of the definition of income: omit “, and the income-from-assets exemp- tion of the person’s spouse or partner”.

Definition of personal allowance: repeal.

Clause 8 Add “(as defined in section 136)”.


10 Reprinted as at 26 November 2018 Social Security (Long-term Residential Care) Amendment Act 2006 Notes Eprint notes 1 General This is an eprint of the Social Security (Long-term Residential Care) Amend- ment Act 2006 that incorporates all the amendments to that Act as at the date of the last amendment to it.

About this eprint This eprint is not an official version of the legislation under section 18 of the Legislation Act 2012.
Amendments incorporated in this eprint Social Security Act 2018 (2018 No 32): section 455(1) 2 3 Wellington, New Zealand: Published under the authority of the New Zealand Government—2019 11