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Social Assistance (Future Focus) Bill Government Bill As reported from the Social Services Committee Commentary Recommendation The Social Services Committee has examined the Social Assistance (Future Focus) Bill and recommends by majority that it be passed with the amendments shown.
Introduction This bill seeks to amend the Children, Young Persons, and Their Families Act 1989, the Education Act 1989, the Income Tax Act 1976, the Income Tax Act 1994, the Income Tax Act 2004, the Income Tax Act 2007, the Social Security Act 1964, and the War Pensions Act 1954.

The bill is intended to make a number of changes to social welfare legislation, and is underpinned by two principles—fairness and an unrelenting focus on work.
The bill would not reduce the amount beneficiaries receive, but would place more stringent obligations on those in receipt of State welfare.

125—2 2 Social Assistance (Future Focus) Bill Commentary Title of the bill The majority of us recommend that the title of the bill be changed to the Social Assistance (New Work Tests, Incentives, and Obligations) Amendment Bill.
We are aware of concern about the vagueness of many of the titles given to New Zealand legislation, and agree that legislation should be titled to refer specifically to its intent.

We hope a more specific title will clarify the bill’s intent for those working with social welfare legislation.

Domestic purposes benefit work test start date The majority of us recommend inserting new clause 27A to repeal section 103 of the Social Security Act.
If the bill is enacted, the ef- fect of section 103 would be to delay the application of the work test requirements to parents on the domestic purposes benefit by four weeks after the youngest child’s sixth birthday.

If the bill as intro- duced became law, a parent whose child was aged 6 years or older would be work-tested immediately.

However, a parent whose child was younger than 6 at the time of enactment would benefit from this four-week grace period when their youngest child turned 6 years old.
The majority of us consider this differing treatment depending on the age of the child at enactment is unfair, and would dilute the bill’s focus on work.

We have been advised that a sole parent receiving the domestic purposes benefit would be advised in writing of the work test obligations four weeks in advance of their youngest child’s sixth birthday by their Work and Income case manager, so would be well aware of their obligations in advance.
Unemployment benefit expiry notification The majority of us recommend amending clause 25 so that the chief executive would not be required to notify a beneficiary before the expiry of their benefit if the benefit had been suspended temporar- ily.

Most of the people affected would have their benefits suspended because they were in temporary work.
We believe it would be prefer- able for the reapplication and comprehensive work assessment to be carried out if and when the people concerned needed to return to the unemployment benefit.

We think it unnecessary to require people to make an appointment for reapplication and a comprehensive work assessment while they are working and the department is aware of Commentary Social Assistance (Future Focus) Bill 3 their circumstances.
This proposed change would not affect people still in receipt of a benefit; they would still receive notice of the re- quirement to reapply and be subject to the assessment 20 working days before the expiry date of their benefit.

The majority of us also recommend replacing the term “anniversary date” with “expiry date” to refer to the date on which unemployment beneficiaries would have to reapply for their benefit.
The word “an- niversary” has connotations of commemoration and continuance, and we believe the term “expiry” is more appropriate and reflects the in- tent of the bill more accurately.

The bill as introduced is unclear as to whether the reapplication re- quirement would apply to both the applicant and their partner or just to the applicant.
We recommend that clause 25 make it clear the com- prehensive work assessment requirement for a re-grant of the benefit would also apply to the work-tested spouse or partner of an applicant.

The majority of us also recommend amending clause 25 to move some of the provisions currently in new section 99AA into a separate new section 99AB.
Requirement to carrying out budgeting activities The majority of us recommend amending clauses 23 and 37 to give the chief executive of the Ministry of Social Development the power to require a person applying for an advance payment of their bene- fit to undertake budgeting activities.
We consider that it would be more appropriate for powers that may affect people’s financial cir- cumstances (such as access to advance benefit payments) to be in- cluded in primary legislation, rather than in regulations as the bill currently provides.

At the same time, we recommend that details of the required budgeting activities remain in regulations, for the sake of flexibility.
Appeals to a medical Appeal Board The majority of us recommend that the consequential amendment to section 53A(1) of the Social Security Act (contained in Sched- ule 2) be amended, so that all decisions by the chief executive about a sickness beneficiary’s ability to look for part-time work could be appealed to a medical Appeal Board.
Under the bill as introduced, only the initial decision to require a sickness beneficiary to comply 4 Social Assistance (Future Focus) Bill Commentary with a work test could be appealed and not subsequent decisions to confirm the requirement.

Non-compliance with work test activities The bill seeks to restructure the penalties for people who fail to com- ply with their work test obligations.
Beneficiaries who did not meet work test requirements for a first time would incur a 50 percent re- duction of their main benefit until the obligations were met.

(Any supplementary assistance a person might be receiving, such as the accommodation supplement, would not be affected by the sanction).
The majority of us recommend that clause 31 be amended so that if a person did not re-comply with their work test obligations within four weeks of the initial penalty, then a further 50 percent reduction would be applied, until the person met their obligations.

This would prevent people from choosing to live indefinitely on a reduced benefit rather than comply with their work test requirements.
In the case of bene- ficiaries with young children, existing protections limiting sanctions to a 50 percent reduction would remain.

Recognition of nurse practitioners We recommend including a definition of “health practitioner” in clause 13, and inserting new clause 14A, in order to allow a wider range of health professionals (specified in regulations) to sign sickness benefit medical certificates.

Currently medical certificates can be signed by medical practitioners, midwives, or dentists.
Given the increasing role of nurse practitioners in primary health care, we believe it would be sensible for the bill to be amended to allow other health practitioners specified in regulations to sign sickness benefit medical certificates.

Consumers price index adjustments The bill legislates for benefits to be adjusted annually in line with upward movements in the consumers price index–all groups (CPI).
We recommend amending clauses 4, 6, and 22 of the bill and inserting new clause 37A, to replace consumers price index–all groups with the consumers price index–all groups excluding cigarettes and other tobacco products subgroup for the next three years.

This is because of the legislated increases on excise duty on tobacco and cigarettes Commentary Social Assistance (Future Focus) Bill 5 during the next three years.
Our proposed clause 37A would apply this change to CPI adjustments to the income-from-assets exemption in relation to long-term residential care.

Technical and consequential amendments The majority of us recommend a number of technical and consequen- tial amendments to the bill.

The majority of us recommend inserting new clauses 48A and 48B, to amend the Social Security (Application of Work Test Obligations) Regulations 2007.
This amendment would make it clear that the work test obligations, set out in clause 27 (new section 102A(1)(f) of the Social Security Act), would apply on every day of the week.

Currently the partners of people in receipt of the emergency benefit may be liable to work test requirements, even if they are aged 65 or older.

As emergency benefit recipients aged 65 and older are not subject to work testing, we do not believe their partners should be either.
The majority of us recommend inserting clauses 13(10A) and 20A so that partners of people on the emergency benefit would be treated consistently, and would be required to undergo work testing only if it were appropriate and reasonable to do so.

The majority of us also recommend amending Schedule 1 to include consequential amendments to the Social Security (Application of the Work Test Obligations) Regulations 1998 and the Social Security (Childcare Assistance) Regulations 2004.
These amendments reflect changes to work test obligations and the repeal of sections relating to job seeker agreements and job seeker development activities.

The bill would increase the threshold for the disability allowance by $14 so that couples did not become ineligible for the allowance as a result of the higher income threshold introduced on 1 April 2010.
However the bill as introduced lists the pre-April rate, before the allowance’s amendment by the Social Security (Rates of Benefits and Allowances) Order 2010.

We recommend that clause 39 be amended to increase the rate from $791.53 to $807.04 to correct this error.

We recommend inserting new Part 1AA into Schedule 1 of the bill to make a consequential amendment to the Social Security Act.
This would increase the abatement threshold for a totally blind invalid’s beneficiary from $312.20 to $332.20 per week and bring the abate- ment levels into line with the increases set out in clause 13(3)(a) of 6 Social Assistance (Future Focus) Bill Commentary the bill.

For cross-referencing purposes we also recommend amend- ing clause 40(1).
We recommend amending Schedule 3 to reflect recent changes made by the Social Security (Rates of Benefits and Allowances) Order 2010 to the rates of childcare assistance.

We recommend that all references in the bill to “the Department of Statistics” be changed to “Statistics New Zealand”, to reflect the cor- rect name of the department.
Minority views New Zealand Labour While there are some provisions of the Social Assistance (Future Fo- cus) Amendment Bill that Labour supports, such as increasing benefit abatement income thresholds and the annual CPI adjustment of cer- tain benefits, it is fundamentally opposed to the provisions on work testing, and the discriminatory nature of the Bill.

Also of consider- able concern is the Minister’s inability to adequately define welfare dependency, which is the underlying reason for this bill.
Labour agrees with the overwhelming majority of the submitters who believed that many of the provisions of the Bill are unwarranted.

Many submitters believed that the amendments were a modern form of “beneficiary bashing” such as had been seen in the policies of previous Governments.

One reputable submitter, a researcher, be- lieved that the Bill was so flawed that it had no redeeming features and should be withdrawn.
The Law Commission was also critical of the Bill believing that the primary Bill was in need of a major rewrite and should state citizen’s rights clearly.

Labour has serious concerns regarding the proposed changes to the sickness benefit and the invalid’s benefit.

Setting the limit on work hours at fifteen hours per week is an arbitrary distinction that will dis- advantage many beneficiaries.
For example, someone who is judged by a medical professional to be able to work slightly less than fifteen hours per week would be eligible for the invalid’s benefit.

Another person who was judged able to work slightly more than fifteen hours per week, however, would only be eligible to receive the sickness benefit and thus would have a much lower income.

Given the mini- mal difference in capability to work between the two examples, the proposed system would be obviously unfair.
Commentary Social Assistance (Future Focus) Bill 7 The proposed changes would also mean that someone with a newly acquired disability would be more likely to receive the sickness bene- fit than the invalid’s benefit, and with it face an increased pressure to work.
For someone struggling to deal with significant changes in their life, who may or may not yet have access to necessary equip- ment (such as a wheelchair) that would enable them to work, eligibil- ity to receive the invalid’s benefit would allow them to put their focus where it needs to be—adapting to life with a disability.

To be forced onto the sickness benefit rather than the invalid’s benefit would be an unnecessary hardship.
In their submission, IHC expressed their concern that people with intellectual disabilities, particularly young school leavers who are unable to find suitable employment, will find it more difficult to qualify for an invalid’s benefit.

They may instead find themselves on a sickness benefit and face unrealistic expectations about finding work.

Many intellectually disabled people who can work need the in- valid’s benefit as a “safety net” as they transition in and out of work.
Changing the criteria for re-applying for this benefit will discrimin- ate against intellectually disabled people, and place undue financial and psychological stress upon them.

Several of the major social service agencies who presented submis- sions to the Select Committee viewed most of the provisions of this Bill as unnecessary.

They believed that the Government’s concern about growing welfare dependency was not based on any evidence and that the current system was working well.
Labour, along with some of the submitters to this Bill, also believes that it makes little sense continuing with the changes proposed in this Bill before the Government’s Welfare Working Group on welfare dependency has reported back with their recommendations for reform.
Not one of the major agencies that work with domestic purposes beneficiaries and with those on unemployment benefits supports the underlying assumptions in the Bill that the changes will “create a fairer benefit system with an unrelenting focus on beneficiaries en- tering or returning to employment”.

Rather they believe the Bill will make matters worse for those on benefits and will drive even greater numbers to seek assistance from food banks and other voluntary ser- vice support organisations.
Labour believes that the provisions on work testing solo parents are fundamentally flawed.

They show little appreciation of the demands 8 Social Assistance (Future Focus) Bill Commentary of the parenting role on single parents and limit the ability of case workers to seriously consider individual circumstances on a case by case basis.

It shows little appreciation of the effect of having job responsibilities for single parents even when their children are at school.
Labour believes these pressures are not reduced because child care responsibilities on single parents are demanding and often require full time attention.

Single parents are compared to the model of a two parent household and on that basis the proposals in this Bill reflect the presumption that all single parents with school-age chil- dren should be expected to take on employment.
Labour believes the current provision of section 154(4) of the Social Security Act are sufficient to signal the importance of work if it can be reasonably fac- tored into the care responsibilities of single parents.

Labour agrees with submitters that the proposals in this Bill do not focus sufficiently on enabling single parents to prepare for the job market while they are single parents.
There is evidence that when single parents are able to use the time they have full-time parenting responsibilities to also prepare for the job market by taking up edu- cational opportunities they are able to come off the benefit and enter into sustainable and permanent jobs on reasonable pay.

The effect of repealing the current provisions for a personal development and employment plan is that educational opportunities will no longer be considered.
Labour is concerned that DPB recipients will only be supported if they choose to take on study at levels 1–3.

The changes to the Training Incentive Allowance already set about disadvantag- ing DPB recipients who opt to take on level 4 or higher qualifications and now this bill will further disadvantage the recipients by acting as deterrent to their enrolling in tertiary education programmes at levels 4 or higher.

This will also have a negative impact on the children of DPB recipients.
Furthermore, Labour is concerned that there is no recognition of vol- untary work undertaken by some beneficiaries.

In many cases this unpaid work provides a valuable service to schools and communi- ties.

Labour believes that these provisions demonstrate that the Govern- ment’s approach to single parents in this Bill is punitive.
No evidence has been presented on the Government’s belief that an unrelenting focus on work without taking into account the real demands of par- enting will produce better outcomes for children and for parents.

Commentary Social Assistance (Future Focus) Bill 9 Labour agrees with submitters who were concerned about the amount of power and discretion that is being placed in the hands of case managers.

The backgrounds of many beneficiaries are complicated and include abuse, violence, addictions and poverty.
The Bill only talks about an unrelenting focus on work and this ideology poten- tially empowers case managers to pay little attention on other factors and therefore could place the interests of beneficiaries at risk.

Labour is concerned that the select committee did not address the fun- damental rights issues raised by the Human Rights Commission and child advocates like Child Poverty Action group.
There are breaches of New Zealand’s domestic human rights legislation, as well as the UN Convention on the Rights of the Child.

This is a discriminatory piece of legislation and has been identified as such by the Attor- ney-General.
Labour believes that the Government’s not having any targets for reducing the number on benefits through the provisions in this Bill shows that it is proceeding from an ideological base rather than one based on good evidence and a real desire to improve the lives of children in single parent households and to enable single parents to prepare for a well-paying job when they enter the labour market.
Green Party The Green Party believes that this Bill will hurt New Zealand’s most vulnerable families, increase their housing and food insecurity, en- courage discrimination against beneficiary families, and exacerbate the growing gap between wealthy and poor families.

Of the 71 submissions to the Social Services Select Committee on the Bill, only four were in support of it proceeding.
The Green Party shares the concerns of many of the submitters that the Bill is ideo- logically inspired faith-based legislation that lacks evidential support for its most significant provisions.

That concern is also reflected in comment in the Ministry of Social Development’s Regulatory Impact Statement on the Bill: “There is no research currently available which accurately quantifies the size of the behavioural response from these changes in policies.
This prevents estimates, with the de- gree of accuracy required, from being made of the number of people who will move from benefit to work over a year, as a result of the proposed changes.” 10 Social Assistance (Future Focus) Bill Commentary The Green Party does not share the “Work First” ideology that un- derpins this Bill.
The ideology—that any paid work, however me- nial and at whatever conditions and pay rates, is better than no paid work—risks causing real financial and social harm to some of New Zealand’s most vulnerable citizens and fails to recognise the value of the unpaid work that beneficiaries undertake caring for children or disabled and elderly adults and providing voluntary contributions to their communities.
Work testing domestic purposes benefit The Green Party believes that parents themselves are the people best qualified to make the decision as to how, or if, they balance their childcare responsibilities with paid employment.

The Bill will deny parents that choice if they are in receipt of a domestic purposes bene- fit and their youngest child is aged 6 or over.

They will be required to work 15 hours a week, if such work is available, whether or not they consider this is in the interest of their children.
Many parents will find it difficult to obtain quality and affordable childcare, particularly during school holidays when they will still be expected to be working but their children will not be at school.

There are significant risks to child welfare of children being left “home alone” under the policy that were identified in a 2002 evaluation of the 1999 reforms that previously imposed a work test on sole parent beneficiaries.
That evaluation recommended that further research be undertaken on this risk, but no such further research was done.

The “Work First” approach, coupled with the abolition of the Train- ing Incentive Allowance for tertiary education, risks parents being moved off domestic purposes benefit into lowly paid, temporary, and/or casual employment to satisfy the work test.
The Green Party fears this is likely to increase labour market churn, with negative im- plications for both employers and the individuals concerned who are forced into such employment.

The Green Party also asserts that there is no evidence from the previ- ous occasion when domestic purposes benefit was work tested subse- quent to the 1999 reforms that supports the view that a work testing regime has any significant impact in moving domestic purposes bene- ficiaries into paid work.
This is exacerbated by limited availability of part-time work during a recession.

Commentary Social Assistance (Future Focus) Bill 11 Benefit abatement Prior to the 2008 election the National Party pledged to relax the income tests for benefits so that all income less than $100 a week was exempt from income testing.

That was a proposal that the Green Party supported.

However, the Bill retains the current income testing threshold of $80 for unemployment and sickness beneficiaries.
The result is that all unemployment beneficiaries who earn $100 a week or more will be $14 a week worse off than if the Government had fully implemented the National Party’s pre-election pledge in this regard.

This will not only impact negatively on the personal finances of unemployment and sickness beneficiaries who work part-time, but will act as a disincentive for them to undertake additional part-time work.
Work testing sickness benefit The proposals in the Bill to work test sickness beneficiaries appears to be a knee-jerk response to increasing numbers of sickness bene- ficiaries, but the Green Party is concerned that the Social Services Committee was provided with no evidence that it is likely to be suc- cessful in stopping the growth in sickness benefit numbers.
Several submitters referred to a similar approach, taken in Australia in 2006, to an evaluation of that policy that revealed that it was spec- tacularly unsuccessful in reducing Australian disability support pen- sion numbers, and to comments earlier this year from Australian Min- ister for Families and Community Services, Jenny Macklin, that “The big stick approach had no impact on the number of people on dis- ability support pensions.

In fact, the numbers kept going up.


It was a simplistic approach to a complex problem.” The Green Party believes the Australian experience would suggest that work testing sickness beneficiaries is unlikely to achieve its ob- jective of reducing the growth in sickness benefit numbers.
Furthermore, the Green Party is concerned work-testing of sickness beneficiaries could have significant negative impacts, including the added stress of an expectation to look for work, under threat of sanc- tions such as reduction or loss of benefit, being likely to be detrimen- tal to the health of beneficiaries, particularly those suffering from mental illness.
12 Social Assistance (Future Focus) Bill Commentary The Green Party is also concerned that there will be reluctance among employers to employ people with poor employment records due to ill health or disability.

Many of those who are employed are likely to get only casual and/or temporary work, so their work test obligations, and the stress they cause, will be ongoing.
Commentary Social Assistance (Future Focus) Bill 13 Appendix Committee process The Social Assistance (Future Focus) Bill was referred to us on 30 March 2010.

The closing date for submissions was 14 May 2010.

We received and considered 71 submissions from interested groups and individuals.

We heard 33 submissions.

We received advice from the Ministry of Social Development.
Committee membership Katrina Shanks (Chairperson) Chester Borrows Hon Annette King (until 21 July 2010) Tim Macindoe Todd McClay Hekia Parata Dr Rajen Prasad Carmel Sepuloni (from 21 July 2010) Su’a William Sio Metiria Turei Carmel Sepuloni replaced Su’a William Sio for this item of business until she became a member of the committee on 21 July 2010.
Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) 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 Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Government Bill Contents Title Commencement Part 1 Amendments to Children, Young Persons, and Their Families Act 1989 Principal Act amended Payment to person or organisation providing care Part 2 Amendment to Education Act 1989 Principal Act amended Student allowances Part 3 Amendments to Income Tax Act 1976, Income Tax Act 1994, Income Tax Act 2004, and Income Tax Act 2007 Purpose Amendment to Income Tax Act 1976 Interpretation Amendment to Income Tax Act 1994 Definitions 125—2 Page 4 4 4 4 6 6 7 7 8 1 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Amendment to Income Tax Act 2004 Definitions Amendment to Income Tax Act 2007 Definitions Part 4 Amendments to Social Security Act 1964 Principal Act amended Interpretation Domestic purposes benefits for solo parents Sickness benefit: medical examinations Rates of sickness benefit New section 54DA inserted 54DA Sickness beneficiary may be required to comply with work test Independent youth benefits: obligations Interpretation Purpose of sections 60Q to 60Z Personal development and employment plans Obligations of spouse or partner of person granted emergency benefit Interpretation
 New section 61HA inserted 61HA Annual CPI adjustment of rates of certain benefits Payment of benefits New section 86K inserted 86K Validation of benefit payments and other payments in respect of certain children in care New sections 99AA and 99AB inserted 99AA Unemployment benefit: expiry 99AB Unemployment benefit: requirements for re-grant New section 101 inserted 101 Purpose of sections 102 to 123D New sections 102 and 102A substituted 102 Application of work test 102A Work test obligations Section 103
 repealed Exemption from obligations Sections 105A, 105B, and 105D and heading above section 105A repealed Section 110 and heading above section 110 repealed 14A 20A 26 27 27A 28 29 30 2 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill 31 32 33 34 35 36 37 Sanctions that may be imposed for failures Calculation of failure rate Modified effect in some cases of sanctions on rate of benefit for people married or in civil union or de facto relationship Meaning of recompliance Regulations Regulations relating to childcare assistance New section 132K inserted 132K Regulations relating to advance payments of benefit 37A 38 39 40 Regulations relating to this Part Schedule 8 repealed Schedule 31 amended Consequential amendments 41 42 43 44 45 46 47 48 Transitional provisions Transitional provision relating to personal development and employment plans Transitional provisions relating to job seeker agreements and job seeker development activities Transitional provisions relating to sanctions under former section 117(1)(a) Transitional provision relating to exemptions from the work test Amendments to Social Security (Childcare Assistance) Regulations 2004 Social Security (Childcare Assistance) Regulations 2004 amended Rate of childcare subsidy New regulation 24 substituted 24 New Schedules 1 and 2
 substituted Rate of OSCAR subsidy Amendment to Social Security (Application of Work Test Obligations) Regulations 2007 48A 48B Social Security (Application of Work Test Obligations) Regulations 2007 amended Application of work test obligations Part 5 Amendments to War Pensions Act 1954 49 Principal Act amended 26 27 27 28 28 28 28 28 29 30 30 30 30 30 31 31 31 31 32 32 32 32 32 33 3 cl 1 50 51 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Interpretation
 Abatement Schedule 1 Consequential amendments Schedule 2 Consequential amendments to Social Security Act 1964 relating to work-testing of sickness beneficiaries Schedule 3 New Schedules 1 and 2 of Social Security (Childcare Assistance) Regulations 2004 33 33 34 43 45 The Parliament of New Zealand enacts as follows: 1 2 (1) (2) (3) 3 Title This Act is the Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Act 2010.
Commencement Sections 1 to 3, 4(1), 7 to 12, 13(1), 21, 24, 36, and 37 5 come into force on the day after the date on which this Act receives the Royal assent.

Sections 13(11) to (14) and 16 and Schedule 2 come into force on 2 May 2011.

The rest of this Act comes into force on 27 September 2010.

10 Part 1 Amendments to Children, Young Persons, and Their Families Act 1989 Principal Act amended This Part amends the Children, Young Persons, and Their 15 Families Act 1989.
4 (1) Payment to person or organisation providing care Section 363 is amended by adding the following subsection: 4 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 1 cl 4 “(4) Subsections (1) to (3) do not apply, and must be treated as never having applied, in respect of a child’s or young per- son’s placement with his or her parent (before or after the com- mencement of this subsection) if— “(a) the child or young person is or was a child or young 5 person to whom section 361 applies or applied; and “(b) under section 362, the child or young person is or was placed in the charge of the parent.” (2) Section 363 is further amended by adding the following sub- sections: 10 “(5) The minimum rates of payment determined under subsection (1) in respect of the board and lodgings of children and young persons must be adjusted, by Order in Council, as at 1 April each year so that in each case the new rate is the rate as at that date adjusted by any percentage movement upwards in the 15 CPI between the CPI for the quarter ended with 31 December 1 year before the immediately preceding 31 December and the CPI for the quarter ended with the immediately preceding 31 December.
“(5A) The adjustments (by any percentage movement upwards 20 in the CPI) required under subsection (5) as at 1 April 2011, 1 April 2012, and 1 April 2013 must, despite subsec- tions (5) and (8), be calculated,— “(a) if, and insofar as, they relate to movements during quar- ters that end before 29 April 2010, using index num- 25 bers for those quarters of the consumers price index-all groups published by Statistics New Zealand; and if, and insofar as, they relate to movements during quar- ters that end after 28 April 2010, using index num- bers for those quarters of the consumers price index-all 30 groups excluding cigarettes and other tobacco products published by Statistics New Zealand.
“(b) “(6) An adjustment under subsection (5) must not reduce the weekly amounts payable under subsection (1) in respect of the board and lodgings of children and young persons.
35 “(7) Every Order in Council made under subsection (5) comes into force or is considered to have come into force on 1 April of the calendar year in which it is made, and applies to the rates 5 Part 2 cl 5 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill “(8) payable in respect of the board and lodgings of children and young persons on and after that date.
In this section, CPI means the consumers price index-all groups published by the Department of Statistics Statistics New Zealand.” 5 5 6 Part 2 Amendment to Education Act 1989 Principal Act amended This Part amends the Education Act 1989.
Student allowances Section 303 is amended by inserting the following subsections after subsection (3A): 10 “(3B) The rates of student allowances set under this section (except the rates of allowances provided in respect of accommodation expenses) must be adjusted, by regulations made under sub- 15 section (1), as at 1 April each year so that in each case the new rate (after the deduction of standard tax) is the rate at that date (after the deduction of standard tax and before the adjust- ment under this section is made) adjusted by an amount equal to the percentage movement upwards in the CPI between the 20 CPI for the quarter ended with 31 December 1 year before the immediately preceding 31 December and the CPI for the quar- ter ended with the immediately preceding 31 December.
“(3BA) The adjustments (by any percentage movement upwards in the CPI) required under subsection (3B) as at 1 April 25 2011, 1 April 2012, and 1 April 2013 must, despite subsec- tions (3B) and (3E), be calculated,— “(a) if, and insofar as, they relate to movements during quar- ters that end before 29 April 2010, using index num- bers for those quarters of the consumers price index-all 30 groups published by Statistics New Zealand; and if, and insofar as, they relate to movements during quar- ters that end after 28 April 2010, using index num- bers for those quarters of the consumers price index-all groups excluding cigarettes and other tobacco products 35 published by Statistics New Zealand.
“(b) 6 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 3 cl 8 “(3C) An adjustment under subsection (3B) must not reduce the weekly amounts of student allowances payable.

“(3D) Every adjustment made under subsection (3B) comes into force, or is considered to have come into force, on 1 April of the calendar year in which it is made, and applies to student 5 allowances payable on and after that date.
“(3E) In this section,— “CPI means the consumers price index-all groups published by the Department of Statistics Statistics New Zealand “standard tax means the amount of tax reckoned on a weekly 10 basis that would be withholdable in accordance with tax code ‘M’ stated in section 24B of the Tax Administration Act 1994.” 7 8 (1) Part 3 Amendments to Income Tax Act 1976, Income Tax Act 1994, Income Tax Act 2004, and Income Tax Act 2007 15 Purpose The purpose of this Part is to make amendments to the def- initions of dependent child in the Income Tax Act 1976, In- come Tax Act 1994, Income Tax Act 2004, and Income Tax 20 Act 2007.
Amendment to Income Tax Act 1976 Interpretation In section 374A, in the definition of dependent child, the fol- lowing is inserted after paragraph (d): “(da) despite paragraph (d), who is a child or a young person (as defined in section 2(1) of the Children, Young Per- sons, and Their Families Act 1989)— “(i) of whom the person is a parent within the mean- ing of that Act; and to whom section 361 of that Act applies; and “(ii) “(iii) who, under section 362 of that Act, is placed in 25 30 the charge of the person; and”.
(2) Subsection (1) applies for the 1991–92 and subsequent in- come years and only for the purpose of validating payments 35 7 Part 3 cl 9 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill of family support credits of tax made under Part 11A of the Income Tax Act 1976 in relation to any of those income years.
Amendment to Income Tax Act 1994 Definitions In section OB 1, in the definition of dependent child, the fol- 5 lowing is inserted after paragraph (d): “(da) despite paragraph (d), who is a child or a young person (as defined in section 2(1) of the Children, Young Per- sons, and Their Families Act 1989)— “(i) of whom the person is a parent within the mean- 10 ing of that Act; and to whom section 361 of that Act applies; and “(ii) “(iii) who, under section 362 of that Act, is placed in the charge of the person; and”.
Subsection (1) applies for the 1995–96 and subsequent in- 15 come years and only for the purpose of validating payments of any credits of tax made under subpart KD of the Income Tax Act 1994 in relation to any of those income years.
Amendment to Income Tax Act 2004 Definitions In section OB 1, in the definition of dependent child, the fol- lowing is inserted after paragraph (d): “(da) despite paragraph (d), who is a child or a young person (as defined in section 2(1) of the Children, Young Per- sons, and Their Families Act 1989)— “(i) of whom the person is a parent within the mean- ing of that Act; and to whom section 361 of that Act applies; and “(ii) “(iii) who, under section 362 of that Act, is placed in the charge of the person; and”.
Subsection (1) applies for the 2005–06 and later income years and only for the purpose of validating payments of credits of tax made under subpart KD of the Income Tax Act 2004 made in relation to any of those income years.
20 25 30 9 (1) (2) 10 (1) (2) 8 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 4 cl 13 Amendment to Income Tax Act 2007 11 (1) Definitions In section YA 1, the definition of dependent child is replaced by the following: “dependent child, for a child and a person,— “(a) means a child— “(i) whose care is primarily the responsibility of the person; and “(ii) who is maintained as a member of that person’s family; and “(iii) who is financially dependent on that person: “(b) does not include a child in relation to whom— “(i) “(ii) a payment is made under section 363 of the Chil- dren, Young Persons, and Their Families Act 1989: a benefit is being paid under section 28 or 29 of the Social Security Act 1964: “(c) despite paragraph (b)(i), includes a child or a young person, as defined in section 2(1) of the Children, Young Persons, and Their Families Act 1989,— “(i) of whom the person is a parent within the mean- ing of that Act; and to whom section 361 of that Act applies; and “(ii) “(iii) who, under section 362 of that Act, is placed in the charge of the person”.
(2) Subsection (1) applies for the 2008–09 and later income years.

12 13 (1) Part 4 Amendments to Social Security Act 1964 Principal Act amended This Part amends the Social Security Act 1964.
Interpretation The definition of dependent child in section 3(1) is repealed and the following definition substituted: “dependent child, in relation to any person,— “(a) means a child— 9 Part 4 cl 13 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill “(i) whose care is primarily the responsibility of the person; and “(ii) who is being maintained as a member of that per- son’s family; and 5 “(c) “(iii) who is financially dependent on that person: “(b) does not include a child in respect of whom payments are being made under section 363 of the Children, Young Persons, and Their Families Act 1989: despite paragraph (b), includes a child or a young per- son (as defined in section 2(1) of the Children, Young 10 Persons, and Their Families Act 1989)— “(i) of whom the person is a parent within the mean- ing of that Act; and “(ii) to whom section 361 of that Act applies; and “(iii) who, under section 362 of that Act, is placed in 15 the charge of the person: “(d) for the purposes only of Schedules 3, 6, 9, 16, 17, and 18 of this Act, does not include a child in respect of whom an orphan’s benefit or an unsupported child’s benefit is being paid”.
20 Section 3(1) is amended by inserting the following definitions in their appropriate alphabetical order: “employment plan has the meaning specified in section 60O “health practitioner means a person who is, or is deemed to be, registered with an authority as a practitioner of a particular 25 health profession under the Health Practitioners Competence Assurance Act 2003 “work-tested domestic purposes beneficiary means a per- son— “(a) who has been granted a domestic purposes benefit under 30 section 27B; and “(b) whose youngest dependent child is aged 6 years or older, but under 18 years, or is aged 18 years and is a child in respect of whom that benefit is paid, or continues to be paid, under section 63A”.
35 The definition of Income Test 1 in section 3(1) is amended by— (a) omitting “$80” and substituting “$100”: (2) (3) 10 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 4 cl 13 (b) omitting “$180” in each place where it appears and sub- stituting in each case “$200”.
The definition of Income Test 2 in section 3(1) is amended— (a) (b) by omitting “$80” and substituting “$100”: by omitting “$180” in each place where it appears and 5 substituting in each case “$200”.
The definition of Income Test 3 in section 3(1) is repealed and the following definition substituted: “Income Test 3 means that the applicable rate of benefit must be reduced by 70 cents for every $1 of total income of the 10 beneficiary and his or her spouse or partner which is more than,— “(a) if the rate of benefit is a rate of New Zealand super- annuation stated in clause 2 of Schedule 1 of the New Zealand Superannuation and Retirement Income Act 15 2001, $100 a week; or in any other case, $80 a week”.
is amended by inserting 20 “(b) The definition of Income Test 5 in section 3(1) is repealed.

Paragraph (a) of the definition of part-time work-tested beneficiary in section 3(1) “or a work-tested domestic purposes beneficiary” after “work-tested spouse or partner”.

The definition of personal development and employment plan in section 3(1) is repealed.
The definition of work-tested beneficiary in section 3(1) is 25 amended by adding the following paragraph: “(f) a work-tested domestic purposes beneficiary”.
(4) (5) (6) (7) (8) (9) (10) The definition of work-tested benefit in section 3(1) is amended by repealing paragraph (e) and substituting the following paragraphs: “(e) a sickness benefit; or an emergency benefit; or in relation to a work-tested spouse or partner— “(i) “(ii) “(iii) an invalid’s benefit; or in relation to a work-tested domestic purposes benefi- 35 ciary, a domestic purposes benefit under section 27B”.
(10A) Paragraph (b) of the definition of work-tested spouse or partner in section 3(1) is amended by omitting “either”.

“(f) 30 11 Part 4 cl 14 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill (10B) Paragraph (c) of the definition of work-tested spouse or partner in section 3(1) is amended by omitting “or an emer- gency benefit”.
(10C) The definition of work-tested spouse or partner in section 3(1) is amended by inserting the following paragraph after 5 paragraph (c): “(ca) the spouse or partner of a person granted an emergency benefit at a work-tested married rate if the chief execu- tive has, under section 61A(1A), required that spouse or partner to comply with the work test; or”.
10 (11) Section 3(1) is amended by inserting the following definition in its appropriate alphabetical order: “work-tested sickness beneficiary means a person granted a sickness benefit who is required under section 54DA(1) to comply with the work test”.
15 (12) Section 3(1) is amended by repealing the definition of part- time work-tested beneficiary and substituting the following definition: “part-time work-tested beneficiary means— “(a) a person with a youngest dependent child aged 6 or 20 older, but under 18 years, and who is— “(i) “(ii) a person who is a work-tested sickness beneficiary”.
a work-tested spouse or partner; or a work-tested domestic purposes beneficiary; or “(b) (13) The definition of work-tested beneficiary in section 3(1) is 25 amended by adding “; or” and also by adding the following paragraph: “(g) a work-tested sickness beneficiary”.

(14) The definition of work-tested benefit in section 3(1) is amended by adding “; or” and also by adding the following 30 paragraph: “(g) in relation to a work-tested sickness beneficiary, a sick- ness benefit”.
14 Domestic purposes benefits for solo parents Section 27B is amended by repealing subsection (2A) and sub- 35 stituting the following subsection: “(2A) A person who receives a benefit under this section must— 12 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 4 cl 16 “(a) comply with— “(i) “(ii) a requirement under section 60Q; and any other obligation arising under any of sections 60Q to 60S; or “(b) comply with the work test if that person is a work-tested 5 domestic purposes beneficiary.” 14A Sickness benefit: medical examinations Section 54B(1) is amended by adding “; or” and also by adding the following paragraph: “(d) a health practitioner of a kind specified in regulations 10 made under section 132 (in respect of a condition within the ambit of his or her scope of practice).” 15 (1) (2) Rates of sickness benefit Section 54D(1) is amended by omitting “, unless subsection (2) applies”.
Section 54D(2) is repealed.
New section 54DA inserted 16 (1) The following section is inserted after section 54D: “54DA Sickness beneficiary may be required to comply with work test 15 20 “(1) The chief executive may, by notice in writing, require a person who is granted a sickness benefit under section 54 to comply with the work test from a date specified in the notice if the chief executive, having regard to the certificate and any report obtained under section 54B, is satisfied that the person has, 25 while receiving that benefit, the capacity to seek, undertake, and be available for part-time work.
“(2) The date specified in a notice under subsection (1),— “(a) “(b) in the case of a new grant of the benefit, may be the date on which the 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.
30 13 Part 4 cl 17 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill “(3) The chief executive may at any time, whether on the applica- tion of the person or otherwise, review a requirement under subsection (1) and may confirm or revoke it.” The principal Act is consequentially amended in the manner set out in Schedule 2 of this Act.
(2) 5 10 15 Independent youth benefits: obligations Section 60GAB(2)(a) is amended by omitting “the person has previously agreed in writing to undertake”.

Section 60GAB(2)(b) is amended by inserting “when required by the chief executive,” before “to be”.

Interpretation The definition of personal development and employment plan or plan in section 60O is repealed.
Section 60O is amended by inserting the following definition in its appropriate alphabetical order: “employment plan means a plan that— “(a) “(b) “(c) “(d) has goals to assist the beneficiary to move towards em- ployment: sets out a plan of action designed to meet the goals re- ferred to in paragraph (a), including the activities that 20 will be undertaken by the beneficiary to facilitate the achievement of those goals: includes a statement of the information the department will provide to assist the beneficiary to do 1 or more of the following: “(i) “(ii) “(iii) obtain employment: includes, if agreed to by the chief executive, a statement of the assistance that the department will provide to as- 30 sist the beneficiary to do 1 or more of the things de- scribed in paragraph (c)(i) to (iii)”.
achieve the goals referred to in paragraph (a): improve his or her employment capabilities: 25 17 (1) (2) 18 (1) (2) 14 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 4 cl 21 19 20 Purpose of sections 60Q to 60Z Section 60P(a) is amended by inserting “(other than work- tested domestic purposes beneficiaries)” after “domestic pur- poses beneficiaries”.
Personal development and employment plans Section 60Q(6)(a) is amended by repealing subparagraph (ii) and substituting the following subparagraph: 5 “(ii) a benefit under section 27B (the domestic pur- poses benefit for solo parents) if the recipient has a dependent child under the age of 6 years; or”.
10 20A Obligations of spouse or partner of person granted emergency benefit Section 61A is amended by inserting the following subsection after subsection (1): “(1A) The chief executive may, by notice in writing, require the 15 spouse or partner of a person granted an emergency benefit at a work-test married rate to comply with the work test if the chief executive is satisfied that it is appropriate and reason- able to require that spouse or partner to seek, undertake, and be available for— “(a) 20 part-time work, in the case of a spouse or partner whose youngest dependent child is aged 6 or older but under 18 years; or full-time employment, in any other case.” “(b) 21 (1) Interpretation The definition of accommodation costs in section 61E(1) is amended by repealing paragraph (a) and substituting the fol- lowing paragraph: “(a) in relation to premises rented by the person, the amount payable by the person for rent of the premises, exclud- 30 ing any service costs included in that rent and any ar- rears:”.
25 (2) Paragraph (b) of the definition of accommodation costs in section 61E(1) is amended by inserting “any service costs and” after “excluding”.
35 15 Part 4 cl 22 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill (3) Section 61E(1) is amended by inserting the following defin- ition in its appropriate alphabetical order: “service costs, in relation to any premises,— “(a) means the cost as reasonably determined by the chief executive of any services (for example, electricity 5 supply, gas supply, telephone network connection, or broadband Internet connection) provided to or in connection with the premises for consumption or use by the occupants of the premises; but “(b) does not include the cost of water supplied to the 10 premises”.
22 New section 61HA inserted The following section is inserted after section 61H: “61HA Annual CPI adjustment of rates of certain benefits “(1) In this section, CPI means the consumers price index-all 15 groups published by the Department of Statistics Statistics New Zealand.
“(2) The rates of benefits set out in Schedules 3, 4, 6, 9, 16, 17, and 26, and in clause 1 of Schedule 22 must be adjusted, by Order in Council, as at 1 April each year so that in each case 20 the new rate is the rate at that date adjusted by any percentage movement upwards in the CPI between the CPI for the quarter ended with 31 December 1 year before the immediately pre- ceding 31 December and the CPI for the quarter ended with the immediately preceding 31 December.
25 “(2A) The adjustments (by any percentage movement upwards in the CPI) required under subsection (2) as at 1 April 2011, 1 April 2012, and 1 April 2013 must, despite subsec- tions (1) and (2), be calculated,— “(a) if, and insofar as, they relate to movements during quar- 30 ters that end before 29 April 2010, using index num- bers for those quarters of the consumers price index-all groups published by Statistics New Zealand; and if, and insofar as, they relate to movements during quar- ters that end after 28 April 2010, using index num- 35 bers for those quarters of the consumers price index-all groups excluding cigarettes and other tobacco products published by Statistics New Zealand.
“(b) 16 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 4 cl 23 “(3) An adjustment under subsection (2) must not reduce the weekly amounts of benefits payable under those schedules.

“(4) Every Order in Council made under subsection (2) comes into force or is considered to come into force on 1 April of the calendar year in which it is made, and applies to benefits 5 payable on and after that date.
“(5) Section 61H(3) to (6) apply to every Order in Council made under subsection (2) as if that order were made under that section.” 23 Payment of benefits Section 82 is amended by inserting the following subsections after subsection (6): 10 “(6A) Despite subsection (3), if the immediate needs of the benefi- ciary relate to the supply of any goods or services to the bene- ficiary or a member of the beneficiary’s family, the chief ex- 15 ecutive may pay the whole or any part of an advance payment of a benefit under subsection (6) to the supplier of the goods or services.
“(6AB) The chief executive may, in circumstances prescribed by regulations made under section 132K, require a beneficiary 20 who applies for an advance payment of a benefit under sub- section (6), or the beneficiary’s spouse or partner, or both, to undertake to the satisfaction of the chief executive a budgeting activity of a kind specified in regulations made under section 132K.
25 “(6B) Subsection (6C) applies in respect of an applicant for an advance payment of a benefit under subsection (6) if the chief executive is satisfied that— “(a) the applicant or the applicant’s spouse or partner has failed to take reasonable steps to reduce his or her costs 30 or increase his or her income or better manage his or her finances; or the applicant or the applicant’s spouse or partner has failed to take all necessary steps to obtain any assistance towards his or her costs from any other source from 35 which he or she may be entitled to assistance; or “(b) 17 Part 4 cl 24 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill “(c) the applicant or the applicant’s spouse or partner has failed to comply with any requirement of the chief ex- ecutive to undertake a budgeting activity under regula- tions made under section 132K subsection (6AB).
“(6C) If this subsection applies, the chief executive may refuse to 5 make an advance payment of a benefit under subsection (6), or any subsequent advance payment of a benefit, to or in respect of the applicant.” 24 New section 86K inserted The following section is inserted after section 86J: “86K Validation of benefit payments and other payments in 10 respect of certain children in care “(1) This section applies to any payment before the commencement of this section of a benefit or other assistance under this Act to a person in respect of a child who is a dependent child within 15 the meaning of paragraph (c) of the definition of that term in section 3(1) (as that definition was substituted by section 13(1) of the Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Act 2010).
“(2) The payment must be taken to be, and to always have been, 20 as valid and authorised as if that definition were in force, and applied in respect of the payment, when it was made.” 25 New section sections 99AA and 99AB inserted The following section is sections are inserted after section 99: “99AA Unemployment benefit: expiry and requirements for 25 “(1) re-grant If it has not ceased earlier, an unemployment beneficiary’s en- titlement to the unemployment benefit ceases on the benefi- ciary’s anniversary date expiry date for that benefit (as defined in subsection (9)), and the benefit expires on that date, but 30 the (but an unemployment benefit may be re-granted under section 99AB if the beneficiary reapplies for the benefit in accordance with subsection (3) that section).
“(2) The chief executive must, not less than 20 working days before the expiry date for an unemployment beneficiary’s anniversary 35 date benefit, give notice to the beneficiary stating— 18 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 4 cl 25 “(a) “(b) that entitlement to the benefit will cease unless the bene- ficiary reapplies for the benefit and it is re-granted; and the date on which entitlement to the benefit will cease; and “(c) what the beneficiary must do to reapply for the benefit 5 and the time within which he or she must do so.
“(2A) Subsection (2) does not apply if, at the time the chief ex- ecutive is required to give notice under that subsection, the unemployment benefit— “(a) is suspended because the beneficiary is undertaking 10 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.
15 “(b) “(c) “(2B) However, if at any time before the expiry date for the bene- fit any of the circumstances described in subsection (2A) 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 paragraphs (a) to (c) of subsection (2).
20 “(3) No unemployment benefit may be re-granted under this sec- tion unless— “(a) the department has received— “(i) a reapplication form (provided by the chief ex- ecutive for the purpose) completed by or on be- 25 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 30 “(ii) “(4) “(b) the beneficiary has participated, to the satisfaction of the chief executive, in a comprehensive work assessment of a kind specified by the chief executive.
If, in relation to a person, the requirements of subsection (3) are completed on or before the anniversary date ,— “(a) the chief executive must re-grant the person’s unem- ployment benefit if the chief executive is satisfied that the person meets or continues to meet the eligibility cri- teria for the benefit set out in section 89: 35 19 Part 4 cl 25 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill “(b) if re-granted, the benefit commences on the person’s anniversary date.
“(5) “(6) If, in relation to a person, the requirements of subsection (3) are completed after, but within 20 working days after, the per- son’s anniversary date and the chief executive is satisfied that 5 there were exceptional circumstances why those requirements could not have been completed on or before that date,— “(a) the chief executive must re-grant the person’s unem- ployment benefit if the chief executive is satisfied that— “(i) the person meets the eligibility criteria for the 10 benefit set out in section 89; and after the person’s anniversary date, and unless exceptional circumstances prevented the person from doing so, the person continued to— “(A) seek, and be available for, full-time em- 15 “(ii) ployment; and “(B) be willing and able to undertake it; and take reasonable steps to find it: “(C) if re-granted, the benefit commences on the person’s anniversary date.
20 “(b) If a person intending to reapply for an unemployment benefit contacts the department on or before the person’s anniversary date,— “(a) the chief executive may set a time (not later than 10 working days after the person’s anniversary date) for 25 completing the requirements of subsection (3); and if those requirements are completed within that time, the chief executive may re-grant the benefit under sub- section (5).

“(b) “(7) Subsections (4) to (6) override section 11D(1).
“(8) An unemployment benefit must not be re-granted under this section to a person, and any reapplication form received from or on behalf of the person must be treated as an application form for the purposes of section 11D(2), if the requirements of subsection (3)— “(a) are not completed within 20 working days after the per- son’s anniversary date; or 30 35 “(b) were completed within that time but after the person’s anniversary date, and the chief executive is satisfied that 20 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 4 cl 25 there were no exceptional circumstances why those re- quirements could not have been completed on or before that anniversary date.
“(9) “(9) In this section, anniversary date, in relation to a person to whom this section applies, means the day that is the 12-month 5 anniversary of the date on which the person’s unemployment benefit commenced.
In this section and in section 99AB,— “expiry date, in relation to an unemployment benefit, means the day that is the 12-month anniversary of the date on which 10 the benefit commenced or last commenced, as the case may be “unemployment beneficiary means— “(a) a person who has been granted an unemployment bene- fit under section 89; or a person who has been re-granted an unemployment 15 benefit under section 99AB.
“(b) “99AB Unemployment benefit: requirements for re-grant “(1) No unemployment benefit may be re-granted under this sec- tion to a person to whom section 99AA 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) 20 25 “(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- 30 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 for the person’s unemployment benefit,— “(a) the chief executive must re-grant the person’s unem- ployment benefit if the chief executive is satisfied that 35 21 Part 4 cl 25 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill “(4) “(5) the person meets or continues to meet the eligibility cri- teria for the benefit set out in section 89: “(b) if re-granted, the benefit commences on that expiry date.
If, in relation to a person, the requirements of subsection (1) are completed after, but within 20 working days after, the 5 expiry date for the person’s unemployment benefit, and the chief executive is satisfied that there were exceptional circum- stances why those requirements could not have been com- pleted on or before that date,— “(a) the chief executive must re-grant the person’s unem- 10 ployment benefit if the chief executive is satisfied that— the person meets the eligibility criteria for the “(i) benefit set out in section 89; and after that expiry date, and unless exceptional cir- cumstances prevented the person from doing so, 15 the person continued to— “(A) seek, and be available for, full-time em- “(ii) ployment; and 20 “(B) be willing and able to undertake it; and take reasonable steps to find it: “(C) “(b) if re-granted, the benefit commences on that expiry date.
If a person intending to reapply for an unemployment benefit contacts the department on or before the expiry date for the person’s unemployment benefit,— “(a) the chief executive may set a time (not later than 10 25 working days after that expiry date) for completing the requirements of subsection (1); and if those requirements are completed within that time, the chief executive may re-grant the benefit under sub- section (4).

30 “(b) “(6) Subsections (1) to (5) override section 11D(1).
“(7) An unemployment 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 35 of subsection (1)— “(a) are not completed within 20 working days after the ex- piry date for the person’s unemployment benefit; or 22 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 4 cl 27 “(b) were completed within that time but after that expiry date, and the chief executive is satisfied that there were no exceptional circumstances why those requirements could not have been completed on or before that expiry date.
5 “(8) For the purposes of this section, a failure of a beneficiary’s work-tested spouse or partner to participate in a compre- hensive work assessment in accordance with subsection (1)(b)— “(a) must not be treated as a failure to complete the require- 10 ments of subsection (1); but “(b) must be treated as a failure by that spouse or partner to comply with his or her work test obligations.” 26 New section 101 inserted The following section is inserted before section 102: 15 “101 Purpose of sections 102 to 123D The purpose of sections 102 to 123D is— “(a) 20 to ensure that work-tested beneficiaries maintain an un- relenting focus on entering, or returning to, employ- ment: to reinforce the continuing obligation of work-tested beneficiaries to take reasonable steps to support them- selves and their families: to identify the activities that work-tested beneficiaries may be required to undertake to meet their obligations 25 arising from work-tested benefits being paid in respect of them: to provide a work test structure applying to all work- tested beneficiaries that is sufficiently flexible to take account of an individual beneficiary’s circumstances.” 30 “(b) “(c) “(d) 27 New sections 102 and 102A substituted Section 102 is repealed and the following sections are substi- tuted: “102 Application of work test “(1) The work test applies to a person while he or she is a work- 35 tested beneficiary, and unless subsection (2) applies, the per- son is subject to the obligations of the work test set out in sec- 23 Part 4 cl 27 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill tion 102A from the date on which the work-tested benefit is first paid.
“(2) The work test does not apply to a work-tested beneficiary if the chief executive is satisfied that the beneficiary is undertaking employment of the kind required to satisfy the work test for 5 that beneficiary.

“(a) “(3) A work test obligation set out in section 102A applies on— a day that is a day between Monday and Friday (inclu- sive); or a day of the week on which regulations under this Act 10 provide (in relation to the obligation, obligations that include it, or all obligations) that it applies.
“(b) “102A Work test obligations “(1) The work test obligations are— “(a) “(b) “(c) to be available for, and take reasonable steps to obtain, 15 suitable employment; and to accept any offer of suitable employment, including temporary employment or employment that is seasonal or subsidised; and to attend and participate in an interview for any oppor- 20 tunity of suitable employment to which the beneficiary is referred by the chief executive; and “(d) when required by the chief executive, to attend and par- ticipate in any interview with an officer of the depart- ment or other person on behalf of the chief executive; 25 and “(e) when required by the chief executive, to undertake plan- ning for employment; and “(f) when required by the chief executive, to participate in or, as the case requires, undertake any of the following 30 activities that the chief executive considers suitable for the beneficiary to improve the beneficiary’s work-readi- ness or prospects for employment: “(i) any work assessment specified by the chief ex- ecutive: any programme or seminar specified by the chief executive to increase particular skills or enhance motivation: 35 “(ii) 24 “(g) “(h) Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 4 cl 27 “(iii) a work experience or work exploration activity specified by the chief executive: “(iv) employment-related training specified by the “(v) chief executive: any other activity specified by the chief executive 5 (including rehabilitation but not
 medical treat- ment); and to report to the department on his or her compliance with his or her work test obligations as often, and in the manner, as the chief executive from time to time 10 reasonably requires; and in the case of a person in respect of whom a job seeker agreement was in force immediately before the com- mencement of section 29 of the Social Assistance (Fu- ture Focus New Work Tests, Incentives, and Obliga- 15 tions) Amendment Act 2010, and until directed other- wise by the chief
 executive,— “(i) to undertake the job-search activities set out in the agreement; and to undertake and complete any job seeker de- 20 velopment activity or recognised community ac- tivity described in the agreement (subject to the chief executive’s taking reasonable steps to ar- range for the person to undertake the activity); and 25 “(ii) “(iii) to undertake and complete any other activities set out in the agreement.” “(2) Subsection (1)(f) applies whether or not a beneficiary is sub- ject to a sanction for failing to comply with the work test.
“(3) A person cannot be required under subsection (1) to under- 30 take activity in the community (whether or not it is included in a job seeker agreement that continues to apply to him or her under subsection (1)(h)).
“(4) The failure by a beneficiary to undertake or complete a recog- nised community activity or activity in the community, as set 35 out in a job seeker agreement that continues to apply to him or her, is not a failure to comply with a work test obligation for the purpose of section 115(1)(a).
25 Part 4 cl 27A Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill “(5) If the chief executive requires a beneficiary to undertake an ac- tivity under subsection (1)(f), the chief executive must take reasonable steps to arrange for the beneficiary to undertake that activity.” 27A Section 103 repealed Section 103 is repealed.
5 Exemption from obligations Section 105(1) is amended by omitting “the work test” and substituting “some or all of his or her work test obligations”.

Section 105(5) is amended by omitting “the work test” and 10 substituting “all of his or her work test obligations”.

Sections 105A, 105B, and 105D and heading above section 105A repealed Sections 105A, 105B, and 105D and the heading above section 105A are repealed.
15 Section 110 and heading above section 110 repealed Section 110 and the heading above section 110 are repealed.
Sanctions that may be imposed for failures Section 117(1) is amended by repealing paragraph (a) and sub- stituting the following paragraph: “(a) for a first failure, the person’s benefit must be reduced by 50% until the person recomplies: for a first failure,— “(i) “(a) the person’s benefit must be reduced by 50% until the person recomplies; and if the person has not recomplied within 4 weeks after the date on which the reduction took effect, the person’s benefit must be reduced by a further 50% (so that the total reduction is 100%) until the person recomplies:”.
“(ii) Section 117 is amended by adding the following subsection: If a person’s unemployment benefit is reduced or suspended under subsection (1) and the person is re-granted an unem- 20 25 30 28 (1) (2) 29 30 31 (1) (2) “(4) 26 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 4 cl 33 ployment benefit under section 99AA 99AB, the reduction or suspension continues to apply to the re-granted unemploy- ment benefit on and after its commencement until the person recomplies.” 32 (1) (2) 5 Calculation of failure rate Section 119(1)(a) is amended by omitting “but” and substitut- ing “and”.
Section 119(1) is amended by inserting the following para- graph after paragraph (a): “(ab) if the benefit being paid in respect of the beneficiary is 10 a work-tested benefit (benefit A), may count applicable failures incurred while another work-tested benefit was earlier paid in respect of the beneficiary (benefit B) if benefit A and benefit B have been paid continuously in respect of the beneficiary; but”.
15 (3) Section 119 is amended by inserting the following subsection after subsection (3): “(3A) For the purpose of subsection (1)(a), the chief executive must treat an unemployment benefit that expires under section 99AA, and any unemployment benefit re-granted to the bene- 20 ficiary under that section section 99AB, as the same benefit.” Section 119(5) is amended by omitting “subsection (2)” and substituting “subsection (3)”.
(4) 33 Modified effect in some cases of sanctions on rate of benefit for people married or in civil union or de facto relationship Section 120(1) is amended by omitting “suspension” and sub- stituting “reduction, suspension,”.
Section 120 is amended by inserting the following subsection after subsection (1): 25 30 (1) (2) “(1A) If the reduction, suspension, or cancellation under section 117 of a benefit payable at a work-test married rate results from failures of both spouses or partners to comply with work test obligations, and they have no dependent children,— “(a) the reduction, suspension, or cancellation in respect of 35 each spouse or partner applies only to 50% of the ap- 27 Part 4 cl 34 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill “(b) plicable rate of the benefit before abatement on account of income payable in respect of that spouse or partner; and any amount of the benefit payable to the spouses or part- ners after that reduction, suspension, or cancellation is 5 applied is subject to the appropriate income test but at half the abatement rate under that test.” (3) Section 120(2) is amended by— (a) omitting “under section” and substituting “under sec- tion 60H or”: inserting “section 60H(3) applying to both work-tested spouses or partners or” after “from”.
(b) 34 Meaning of recompliance Section 122 is amended by repealing paragraph (a) and substi- tuting the following paragraph: “(a) in the case of a work-tested beneficiary, an activity that is the same as, or substantially similar to, the activity that the person failed to comply with under the applic- able work test obligation; or”.

10 15 35 36 Regulations Section 123D(a) is amended by omitting “the work test” and substituting “some or all of their work test obligations”.
20 Regulations relating to childcare assistance Section 132AC(2) to (4) are repealed.
25 37 New section 132K inserted The following section is inserted after section 132J: “132K Regulations relating to advance payments of benefit “(1) The Governor-General may, by Order in Council, make regu- lations for the purpose of section 82(6) (which relates to ad- vance payments of a benefit), including, without limitation, 30 provisions that— “(a) specify the manner and form in which an application for advance payments of a benefit may be made under that section, which may differ depending on the number of 28 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 4 cl 37A “(b) “(c) times the beneficiary has applied for advance payments of a benefit under that section, or for special assistance under section 124(1)(d), or for both: authorise the chief executive to require a beneficiary who applies for an advance payment of a benefit, or the 5 beneficiary’s spouse or partner, or both, to undertake to the satisfaction of the chief executive a budgeting activity of a kind specified in regulations made under this section: define the kinds of budgeting activities that the chief ex- 10 ecutive may require a person to undertake under para- graph (b) section 82(6AB) and the terms and condi- tions of those activities: “(d) prescribe the circumstances in which the power referred to in paragraph (b) section 82(6AB) may be exer- 15 cised.
“(2) Nothing in subsection (1) limits section 132.” 37A Regulations relating to this Part Section 155 is amended by inserting the following subsection after subsection (2): 20 “(2A) The adjustments (by any percentage movement in the All Groups index number of the New Zealand Consumers Price Index) required under subsection (2) as at 1 July 2011, 1 July 2012, and 1 July 2013 must, despite that subsection, be calcu- lated,— “(a) 25 “(b) if, and insofar as, they relate to movements during quar- ters that end before 29 April 2010, using, for those quarters, the All Groups index numbers of the New Zealand Consumers Price Index published by Statistics New Zealand; and if, and insofar as, they relate to movements during quarters that end after 28 April 2010, using, for those quarters, the All Groups excluding cigarettes and other tobacco products index numbers of the New Zealand Consumers Price Index published by Statistics New 35 Zealand.” 30 29 Part 4 cl 38 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill 38 39 40 (1) (2) 41 Schedule 8 repealed Schedule 8 is repealed.
Schedule 31 amended Clause 12 of Schedule 31 is amended by omitting “$791.53 807.04” and substituting “$821.04”.

5 Consequential amendments The principal Act is amended in the manner indicated in Parts 1AA to 7 of Schedule 1 of this Act.

The regulations specified in Part 8 of Schedule 1 of this Act are amended in the manner indicated in that Part.
10 Transitional provisions Transitional provision relating to personal development and employment plans Any personal development and employment plan made and in force immediately before the commencement of this Act is to 15 be treated as an employment plan made under section 60Q of the principal Act (as amended by this Act).
42 Transitional provisions relating to job seeker agreements and job seeker development activities (1) Despite the commencement of this Act, any job seeker agree- 20 ment in force before the commencement of this Act continues in force for the purpose of section 102A(1)(h) of the princi- pal Act until the chief executive directs otherwise under that paragraph.
(2) Despite the commencement of this Act, any job seeker devel- 25 opment activity defined, and any conditions of any job seeker development activity specified, under section 110 (before its repeal by this Act) continue in force for the purpose of sec- tion 102A(1)(h) of the principal Act .
30 43 (1) (2) (3) 44 45 46 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 4 cl 46 5 (b) Transitional provisions relating to sanctions under former section 117(1)(a) In this section, former section 117(1)(a) means section 117(1)(a) of the principal Act as it read before its repeal and substitution by this Act.
This section applies to a beneficiary who,— (a) on the commencement of this Act, is subject to a sanc- tion of suspension of his or her benefit imposed under the former section 117(1)(a); or before the commencement of this Act, has been given 10 written notice under section 113(2) of the principal Act of the chief executive’s decision to impose a sanction of suspension of benefit under the former section 117(1)(a) that specifies that the sanction is to take effect on a date that is on or after the commencement of this Act.
For the purposes of completing or imposing the sanction re- ferred to in subsection (2), the former section 117(1)(a) con- tinues to apply to a beneficiary to whom this section applies as if this Act had not been enacted.
15 Transitional provision relating to exemptions from the work test Every exemption from the work test granted under section 105(1) of the principal Act before the commencement of this Act and in force on that commencement must, until the exemp- tion is varied or revoked under subsection (6) of that section, 25 be treated as an exemption from all work test obligations.
20 Amendments to Social Security (Childcare Assistance) Regulations 2004 Social Security (Childcare Assistance) Regulations 2004 amended Sections 46 to 48 amend the Social Security (Childcare As- sistance) Regulations 2004.
30 Rate of childcare subsidy Regulation 18 is amended by revoking subclause (1) and sub- stituting the following subclause: 35 31 Part 4 cl 47 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill “(1) A childcare subsidy is payable,— “(a) “(b) until the close of 27 September 2013, at the appro- priate rate stated in Schedule 2 to a person who was receiving childcare assistance on or at any time within the period of 12 months before the commencement of 5 this subclause; or if paragraph (a) does not apply to the person, at the appropriate rate stated in Schedule 1.” 47 New regulation 24 substituted Regulation 24 is revoked and the following regulation substi- 10 tuted: “24 Rate of OSCAR subsidy An OSCAR subsidy is payable,— “(a) until the close of 27 September 2013, at the appro- priate rate stated in Schedule 2 to a person who was 15 receiving childcare assistance on or at any time within the period of 12 months before the commencement of this subclause; or if paragraph (a) does not apply to the person, at the appropriate rate stated in Schedule 1.” 20 “(b) 48 New Schedules 1 and 2 substituted The Schedule is revoked and the Schedules 1 and 2 set out hedule 333 of this Act are substituted.
in ScScSchedule hedule Amendment to Social Security (Application of Work Test Obligations) Regulations 2007 48A Social Security (Application of Work Test Obligations) Regulations 2007 amended Section 48B amends the Social Security (Application of Work Test Obligations) Regulations 2007.
48B Application of work test obligations Regulation 4 is amended by inserting the following subclause after subclause (2): “(2A) The work test obligation set out in section 102A(1)(f) of the Act applies Monday to Sunday (inclusive).” 25 30 32 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 5 cl 51 Part 5 Amendments to War Pensions Act 1954 Principal Act amended This Part amends the War Pensions Act 1954.
Interpretation The definition of Income Test 3 in section 67(1) is amended by omitting “$80” and substituting “$100”.

5 Abatement Section 74D(3)(a) and (4)(a) are amended by omitting “$80” and substituting in each case “$100”.

Section 74D is amended by omitting “$180” in each place where it appears and substituting in each case “$200”.
10 49 50 51 (1) (2) 33 Schedule 1 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill s 40 Schedule 1 Consequential amendments to Social Security Act 1964 Part 1AA Amendment to Social Security Act 1964 consequential on amendments to definition of Income Test 1 in section 3(1) Schedule 6 Clause 2: omit “$312.20” and substitute “$332.20”.
Part 1 Amendment to Social Security Act 1964 consequential on repeal of definition of Income Test 5 in section 3(1) 5 10 Section 61H(1)(b) Omit “Income Test 4, and Income Test 5” and substitute “and Income 15 Test 4”.

Part 2 Amendment to Social Security Act 1964 consequential on amendments to section 60GAB Section 60F(5) Insert “educational course or” after “in an”.
Part 3 Amendments to Social Security Act 1964 consequential on amendments to section 60O (definition of employment plan) Heading to section 60Q Omit “Personal development and employment” and substitute “Employment”.

20 25 34 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Schedule 1 Part 3—continued Section 60Q(1)(ab) Omit “personal development and”.

Section 60Q(1)(b) Omit “a personal development and” and substitute “an”.
Section 60Q(1)(c) and (ca) Omit “personal development and”.

Section 60Q(1)(d) Omit “plan” in each place where it appears and substitute in each case “employment plan”.

Section 60Q(3)(a) Omit “a personal development and” and substitute “an”.

Omit “the plan” and substitute “the employment plan”.

Section 60Q(3)(b) Omit “personal development and”.

Omit “a plan” and substitute “an employment plan”.

Section 60Q(3)(c) Omit “a personal development and” and substitute “an”.
Omit “a plan” and substitute “an employment plan”.

5 10 15 Section 60Q(3A) and (3B) Omit “personal development and” in each place where it appears.

20 Section 60Q(4) Omit “A personal development and” and substitute “An”.

Heading to section 60R Omit “personal development and”.

35 Schedule 1 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 3—continued Section 60R(1) Omit “A personal development and” and substitute “An”.
Section 60R(2) and (3) Omit “a personal development and” and substitute in each case “an”.

Section 60R(3) and (4) Omit “the plan” in each place where it appears and substitute in each case “the employment plan”.

5 Section 60R(4) Omit “personal development and”.

Heading to section 60S Omit “personal development and”.

Section 60S(1) Omit “a personal development and” and substitute “an”.

Section 60S(2) and (4) Omit “personal development and”.
Section 60S(4) Omit “other plan” and substitute “other employment plan”.

10 15 Section 60S(5) Omit “a personal development and” and substitute “an”.

Omit “the plan” in each place where it appears and substitute in each 20 case “the employment plan”.

Omit “that plan” in each place where it appears and substitute in each case “that employment plan”.

Section 60S(5A) Omit “plan” and substitute “employment plan”.
25 36 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Schedule 1 Part 3—continued Heading to section 60T Omit “personal development and”.

Section 60T Omit “a personal development and” and substitute “an”.

Section 60T(a) and (b) Omit “a plan” and substitute in each case “an employment plan”.

5 Section 60T(c) to (e) Omit “plan” and substitute in each case “employment plan”.

Heading to section 60U Omit “personal development and”.
Section 60U(1)(b) and (2)(a) Omit “personal development and”.

10 Section 60U(3) and (4) Omit “a personal development and” and substitute in each case “an”.

Section 60U(3)(a) and (b) Omit “plan” in each place where it appears and substitute in each case “employment plan”.

15 Section 60V(3)(c) Omit “personal development and”.

Insert “employment” after “new”.

Section 60W Omit “personal development and” in each place where it appears.
20 37 Schedule 1 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Part 3—continued Section 60W(3) Omit “beneficiary’s plan” and substitute “beneficiary’s employment plan”.

Heading to section 60Y Omit “personal development and”.

Section 60Y(4)(b) Omit “personal development and”.

Section 77(4)(b)(i) Omit “personal development and”.

Section 123C(1)(b) Omit “a personal development and” and substitute “an”.
Part 4 Amendment to Social Security Act 1964 consequential on insertion of new section 61HA Schedule 22: clause 2 Omit “$34.8735.55 a week” and substitute “the amount specified in clause 1”.
5 10 15 38 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Schedule 1 Part 5 Amendments to Social Security Act 1964 consequential on substitution of section 102 and repeal of sections 105A, 105B, 105D, and 110 5 Section 3(1) Definition of employment required to satisfy the work test: repeal and substitute: “employment required to satisfy the work test means,— “(a) “(b) for a part-time work-tested beneficiary, part-time work: 10 for any other work-tested beneficiary, full-time employ- ment”.
Definition of work test: omit “102(2)” and substitute “102A(1)”.

Section 12J(4) Repeal.

15 Section 88A Definition of job seeker agreement: repeal.

Definition of job seeker development activity: repeal.

Section 104A(2)(c) Omit “included in a job seeker agreement signed by the beneficiary”.

20 Section 105C Omit “, before he or she signs a job seeker agreement,”.

Paragraphs (b) and (d): repeal.

Paragraph (e): omit “the job seeker agreement” and substitute “his or her work test obligations”.
Section 111 Subsection (1): insert “(before its repeal and substitution by sec- tion 27 of the Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Act 2010)”after “section 102(2)(f)”.

25 30 39 Schedule 1 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Section 111—continued Part 5—continued Add: “(5) This section applies only in respect of a beneficiary to whom section 102A(1)(h) for the time being applies.” Section 112 Repeal.
Section 115(2) Repeal.

5 Section 115(3) Omit “in the beneficiary’s job seeker agreement”.

Paragraph (a): omit “in the person’s job seeker agreement” and sub- 10 stitute “by the department”.

Paragraph (b): omit “in the agreement” and substitute “by the depart- ment”.

Section 115(4) Insert “activity required under section 102A(1)(f) or” after “com- 15 pleting any”.

Omit “in his or her job seeker agreement”.


Section 123B(1)(b)(i) Omit “job seeker development activities” and substitute “activities of the kind referred to in section 102A(1)(f)”.

20 Section 123C(1)(a) Omit “job seeker agreement” and substitute “work test obligations”.

Omit “job seeker activity” and substitute “job search activity”.
40 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Schedule 1 Part 6 Amendments to Social Security Act 1964 consequential on substitution of section 117(1)(a) (sanctions) and amendments to section 120 5 Section 60H(5) Insert “120, 121,” after “sections”.

Section 113(2) Insert “reduce or” after “must not”.

Paragraph (c): omit “suspending” and substitute “reducing, suspend- 10 ing,”.
Paragraphs (d) and (e): omit “suspension” in each place where it appears and substitute in each case “reduction, suspension”.

Paragraph (f): insert “reduce or” after “the decision to”.

Section 113(3) Omit “suspension” and substitute “reduction, suspension,”.

15 Part 7 Amendments to Social Security Act 1964 consequential on repeal of Schedule 8 Section 3(1) Paragraph (a) of the definition of work-test married rate: omit “8 or”.

20 Section 135(5) Omit “Schedule 8” and substitute “Schedule 9”.
Part 8 Consequential amendments to regulations Social Security (Application of Work Test Obligations) Regulations 2007 (SR 2007/230) Regulation 4(1): omit “102(2)(b), (c), and (g)(ii)” and substitute “102A(1)(b), (c), and (h)(ii)”.
25 30 41 Schedule 1 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Social Security (Application of Work Test Obligations) Regulations 2007 (SR 2007/230)—continued Part 8—continued Regulation 4(3) and (4): omit “102(2)(g)(ii)” and substitute in each case “102A(1)(h)(ii)”.

Regulation 4(3)(a): insert “(before its repeal by section 27 of the Social Assistance (New Work Tests, Incentives, and Obligations) Amendment Act 2010)” after “Act”.
5 Social Security (Childcare Assistance) Regulations 2004 (SR 2004/268) Definition of job seeker agreement in regulation 3(1): omit “of the kind described in section 105A of the principal Act” and substitute “continued in force by section 42 of the Social Assistance (New 10 Work Tests, Incentives, and Obligations) Amendment Act 2010”.

Regulation 15(c): omit “or section 123B of the principal Act”.
Regulation 15: insert after paragraph (c): “(ca) any activity specified in section 102A(1)(f) of the prin- cipal Act that the caregiver is required to undertake 15 under that section or is undertaking under section 123B of the principal Act:”.

Regulation 21(b): omit “or section 123B of the principal Act”.
Regulation 21: insert after paragraph (b): “(ba) any activity specified in section 102A(1)(f) of the prin- 20 cipal Act that the caregiver is required to undertake under that section or is undertaking under section 123B of the principal Act:”.
42 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Schedule 2 Schedule 2 Consequential amendments to the Social Security Act 1964 relating to work-testing of sickness beneficiaries s 16(2) Section 53A(1) Insert the following paragraph paragraphs after paragraph (ba): 5 “(bab) under section 54DA(1), the chief executive requires a sickness beneficiary to comply with the work test; or “(bac) under section 54DA(3), the chief executive confirms a requirement under section 54DA(1) (that a sickness 10 beneficiary complies with the work test); or”.
Section 54(7) Insert “(other than a person required to comply with the work test under section 54DA(1))” after “this section”.

Section 60H(2) Insert the following paragraph after paragraph (a): “(ab) a person who is an applicant for a sickness benefit if the chief executive would be able to require him or her to comply with the work test under section 54DA(1) from the date on which the benefit is first paid; or”.
15 20 Section 60P(ab) Insert “(other than work-tested sickness beneficiaries)” after “sick- ness beneficiaries”.

Section 60Q(6)(a)(v) Insert “, unless the person is a work-tested sickness beneficiary” after 25 “benefit)”.
Section 102(1) (as substituted by section 27 of this Act) Repeal and substitute: “(1) The work test applies to a person while he or she is a work- tested beneficiary, and unless subsection (2) applies, the per- 30 43 Schedule 2 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Section 102(1) (as substituted by section 27 of this Act)—continued 5 son is subject to the obligations of the work test set out in sec- tion 102A from,— “(a) in the case of a work-tested sickness beneficiary, the date specified in the chief executive’s notice under sec- tion 54DA(1); or in any other case, the date on which the work-tested benefit is first paid.” “(b) 44 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Schedule 3 Schedule 3 New Schedules 1 and 2 of Social Security (Childcare Assistance) Regulations 2004 Schedule 1 Rates of childcare and OSCAR subsidies s 48 rr 18, 24 5 1 2 3 For a principal caregiver with 1 dependent child where household income before the deduction of in- come tax is— (a) less than $1,200 a week $3.63 3.70 per hour (b) (c) (d) $1,200 or more but less than $1,300 a week $2.52 2.57 per hour $1,300 or more but less than $1,400 a week $1.40 1.43 per hour $1,400 or more a week Nil For a principal caregiver with 2 dependent children where household income before the deduction of income tax is— (a) less than $1,380 a week $3.63 3.70 per hour (b) (c) (d) $1,380 or more but less than $1,490 a week $2.52 2.57 per hour $1,490 or
 more but less than $1,600 a week $1.40 1.43 per hour $1,600 or more a week Nil For a principal caregiver with 3 or more dependent children where household income before the deduc- tion of income tax is— (a) less than $1,540 a week $3.63 3.70 per hour (b) (c) (d) $1,540 or more but less than $1,670 a week $2.52 2.57 per hour $1,670 or more but less than $1,800 a week $1.40 1.43 per hour $1,800 or more a week Nil 45 Schedule 3 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations)
 Amendment Bill Schedule 2 Rates of childcare and OSCAR subsidies applicable until close of 27 September 2013 for persons receiving childcare assistance on 27 September 2010 or who received childcare assistance at any time within the 12-month period before 27 September 2010 rr 18, 24 5 For a principal caregiver with 1 dependent child where household income before the deduction of in- come tax is— (a) less than $1,274 a week $3.63 3.70 per hour (b) (c) (d) $1,274 or more but less than $1,380 a week $2.52 2.57 per hour $1,380 or more but less than $1,486 a week $1.40 1.43 per hour $1,486 or more a week Nil For a principal caregiver with 2 dependent children where household income before the deduction of income tax is— (a) less than $1,465 a week $3.63 3.70 per hour (b) (c) (d) $1,465 or more but less than $1,581 a week $2.52 2.57 per hour $1,581 or more but less than $1,698 a week $1.40 1.43 per hour $1,698 or more a week Nil For a principal caregiver with 3 or more dependent children where household income before the deduc- tion of income tax is— (a) less than $1,634 a week $3.63 3.70 per hour (b) (c) (d) $1,634 or more but less than $1,772 a week $2.52 2.57 per hour $1,772 or more but less than $1,910 a week $1.40 1.43 per hour $1,910 or more a week Nil 1 2 3 46 Social Assistance (Future Focus New Work Tests, Incentives, and Obligations) Amendment Bill Legislative history Introduction (Bill 125–1) First reading and referral to Social Services Committee 23 March 2010
 30 March 2010 12 Published under the authority of the House of Representatives—2010 Wellington, New Zealand: 47