Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698847753018.pdf (New Zealand)
Social Security (Youth Support and Work Focus) Amendment Bill Government Bill Explanatory note General policy statement The purpose of the Social Security (Youth Support and Work Focus) Amendment Bill is to introduce a new system of income support for young people and to change certain aspects of the benefit system by introducing a stronger work focus to some benefit categories.
Introduction Many elements of the current welfare system are based on outdated views of what people can and should do, and proactive employment support is provided to a relatively narrow group of people, mainly those receiving unemployment benefits.

Currently, there are nearly 330,000 working age people receiving a benefit in New Zealand – that’s more than 12% of the working age population.
There are well established links between people receiving benefits and poverty, poor health, and many other poor social outcomes.

On top of the social cost is the financial cost of benefit dependence.

The benefit system now costs New Zealanders around $8 billion each year.

The benefit system can do a lot more to promote independ- ence and recognise people’s work potential.
10—1 2 Social Security (Youth Support and Work Focus) Amendment Bill Explanatory note This Bill significantly reforms the benefit system in two areas: • support, obligations and services for 16-17 year olds and 16-18 year old parents: extension to work availability and work preparation for sole parents, widows, women alone and spouses and partners of people receiving a main benefit.
• Changes in this Bill are only one part of a comprehensive package of welfare reform staged over two years, aimed at transforming the benefit system into one that is modern, active and work-focused for adults and education focused for young people.

Alongside changes to legislative settings, the Ministry of Social De- velopment will be implementing a new investment approach to wel- fare.
These changes represent the first step in improving and devel- oping the service model to respond to different client groups These reforms are a response to the review of the benefit system undertaken by the Welfare Working Group in 2010.

The Youth Package Young people who come onto benefit generally stay longer than those who enter the welfare system at a later date.

Over 50 per cent of people who first enter the benefit system at 16 or 17 years old spend at least five of the next 10 years on benefit.
The lifetime cost of paying these young people a benefit is higher than for any other group.

This Bill addresses this by changing the nature of the financial as- sistance young people can receive, by strengthening what they need to do in return for assistance and by providing at risk young people with comprehensive support.

This group are some of New Zealand’s most vulnerable citizens.

Im- proving social outcomes for these young welfare recipients both now and in the future, benefits all New Zealanders.
Eligibility, payment and rates This Bill introduces two new payments for young people that will replace most benefits currently accessed by 16-18 year olds: • a Youth Payment for 16-17 year-olds with no dependent chil- dren who have exceptional circumstances: Explanatory note Social Security (Youth Support and Work Focus) Amendment Bill 3 • a Young Parent Payment for 16-18 year-old parents (and, if aged 16-17 years, have exceptional circumstances or come from a low income family).
The new payments will be based on the level of financial assistance available at 1 April 2012 and will be distributed through redirec- tions (for accommodation and utility costs), a payment card (for food and groceries) and an in-hand allowance.

An abatement-free income level will be set at $206.73 per week.

Income management is a practical measure to help young people meet essential household needs and expenses.
A young person can earn the right to manage their own payment if they continually meet their obligations and are financially competent.

Young beneficiaries will be able to earn incentive payments while receiving a Youth Payment or Young Parent Payment if they meet their obligations for a period of time.

Obligations Young people receiving the support of the state, including young people who are the spouses or partners of older beneficiaries, will face tougher obligations under this Bill.
Currently there are limited obligations for young parents to be in education or training and a wide range of activities for 16-17 year olds.
There will be three main activities required of young people so that they improve their educational and social outcomes: • full-time education, training or work-based learning working towards at least NCEA Level 2 qualification or equivalent: undertaking an approved budgeting programme and require- ments: for parents, undertaking an approved parenting education pro- gramme and requirements.
• • There is a strong focus on education as evidence shows that educa- tional attainment is one of the best pathways to lowering the likeli- hood of being unemployed, earning a higher income and improving social outcomes.

4 Social Security (Youth Support and Work Focus) Amendment Bill Explanatory note Service Providers Young people receiving the Youth Payment or Young Parent Pay- ment, or who are the spouses or partners of older beneficiaries, will be supported to stay in education by service providers.
Once a young person is referred, the service provider will become their key point of contact.

The provider will assist the client to apply for financial assistance.

The provider will engage regularly with the client to en- sure that they are actively engaged and meeting their obligations.

The Bill will enable regulations to be developed that will set out the responsibilities of the service provider.

Where there are no ser- vice providers, Work and Income will provide this support to young people.
Information-sharing A key approach to ensure that young people have opportunities other than receiving a benefit is to identify those at risk and provide support to them to re-engage them in education or training.

The Ministry of Education will be able to provide the Ministry of Social Development with information about school leavers which will be used to identify young people at risk.

Information would include, for example, quali- fication data, contact details, and school attendance records.
Young people would be offered additional support from primarily non-gov- ernment organisation providers contracted by Work and Income.

In order to fulfil their roles effectively, service providers will need to be able to seek personal information about young people they are contracted to work with directly from local organisations.
Provisions in this Bill authorise the sharing of information between the Ministry of Social Development, service providers, and local agencies and organisations, such as schools, and the police.

The Bill includes appropriate safeguards to ensure that the personal information involved is adequately protected.

Implementation date for the youth changes Changes will come into effect from 30 July 2012.
Explanatory note Social Security (Youth Support and Work Focus) Amendment Bill 5 Work availability and work preparation for sole parents, widows, women alone, and partners The changes in this Bill focus on work availability and work prepar- ation for sole parents, widows, women alone, and partners within the benefit system.
Work availability expectations for sole parents, widows, women alone, and partners Under the current law, sole parents receiving the Domestic Purposes Benefit and spouses and partners of other main benefit recipients have part-time work availability expectations when their youngest child is aged six years of age, and have full-time work availability ex- pectations when their youngest child reaches 18 years of age.

The age for full-time work availability expectations is higher than for many other countries.
In addition, women receiving the Widows’ and Women Alone benefits do not have work availability expecta- tions even though men in similar circumstances receiving benefits generally do.
To increase the work focus for this group, and enable Work and In- come to work with more people on benefit to connect them with op- portunities to work or improve their skills, the new government pol- icy is to: • require sole parents receiving the domestic purposes benefit and partners of other main benefit recipients to be available for part-time work when their youngest child is five years of age: require sole parents receiving the domestic purposes benefit and partners of other main benefit recipients to be available for full-time work when their youngest child is aged 14 or older: extend these work availability expectations to women receiv- ing the widows’ benefit and the domestic purposes benefit for women alone: extend the ability to require pre-benefit activities before grant of a domestic purposes benefit for sole parents or women alone or widow’s benefit.
• • • The changes are in line with modern societal norms, as most children will start school at five years of age enabling part time work availabil- ity expectations.

The age for introducing full-time work availability 6 Social Security (Youth Support and Work Focus) Amendment Bill Explanatory note expectations is in line with the legal requirement for parental super- vision for children up until fourteen years of age.
Aligning work expectations with other beneficiaries in similar cir- cumstances will remove a significant source of discrimination from the benefit system associated with the Widows’ Benefit and the Do- mestic Purposes Benefit for Women Alone.

Extending work expectations to a wider group of beneficiaries will require Work and Income to implement a service model which is adaptable and flexible enough to respond to the developing Invest- ment Approach.
Important to this is getting a better understanding of these potential clients as early as possible, so that Work and In- come (or third-party providers) can work with them in a more tar- geted manner.

Currently the legislation only allows Work and Income to require a person eligible to apply for the Unemployment Benefit to under- take pre-benefit activities.
Pre-benefit activities are an integral part of helping people into employment at the first point of contact, thereby reducing the need for benefit assistance.

Activation powers The Bill creates a new activation power which will enable Work and Income to require beneficiaries who are not expected to be available for work to take steps to prepare for work.
It: • replaces the existing provisions that focus on planning alone to set an expectation that, in general, beneficiaries should be taking reasonable steps to prepare for work: establishes a broad range of activities that people can be di- rected to do in order to improve their work readiness: aligns sanctions for non-compliance with the sanctions that apply to people who do not meet their work obligations.
• • Hours test to meet the work obligations Currently people cannot be required to take jobs of less than 30 hours a week (for someone who is expected to be available for full-time work) or 15 hours a week (for someone who is expected to be avail- able for part-time work).
To increase flexibility, the intention is to allow people who have work availability expectations to be referred to suitable employment that is less than or greater than the hours re- Explanatory note Social Security (Youth Support and Work Focus) Amendment Bill 7 quired to satisfy the work test for that person, but still having regard to the existing definitions of part-time and full-time work.
Changes to work availability expectations for parents on benefit who have subsequent children Families who have subsequent children while on benefit are at height- ened risk of long-term welfare dependence.

To address the risks to this group, where a parent has additional children while receiving a benefit, their work availability expectations will be based on the age of their previous youngest child, once their newborn turns one year of age.
This policy: • aligns expectations with the 12 month extended parental leave provisions for working parents: supports parents and children through critical bonding and breastfeeding milestones: ensures that families at greater risk of long-term benefit receipt are afforded earlier support and assistance to secure paid work and the social, financial and developmental advantages this provides to the family.
• • To support application of the policy, the Bill includes discretion for the Chief Executive not to apply the policy where he or she is satisfied that this best supports the policy intent, for example where a child has particularly high care needs.

The Chief Executive would also have the ability to apply the policy in particular circumstances, such as where a person leaves the benefit to give birth to a subsequent child, before quickly returning to benefit.
The changes will come into effect on 15 October 2012.

Implementation date Regulatory impact statement The Ministry of Social Policy produced a regulatory impact state- ment on 1 February 2012 to help inform the main policy decisions taken by the Government relating to the contents of this Bill.
8 Social Security (Youth Support and Work Focus) Amendment Bill Explanatory note A copy of this regulatory impact statement can be found at— • http://www.msd.govt.nz/about-msd-and-our-work/news- room/media-releases/2012/welfare-reform-announce- ment.html http://www.treasury.govt.nz/publications/informationre- leases/ris • Clause by clause analysis Clause 1 is the Title clause.

Clause 2 is the commencement clause.

Parts 3 and 4 (Work Focus) come into force on 15 October 2012.
The rest of this Bill (Youth Support) comes into force on 30 July 2012.

This Bill is intended to be capable at select committee or committee of the whole House stage to be divided into 2 separate Bills; one on Work Focus, the other on Youth Support.

Clause 3 provides that this Bill amends the Social Security Act 1964 (the principal Act).

Part 1 Substantive provisions taking effect on 30 July 2012 Clause 4 amends section 1A, which states the principal Act’s pur- pose.
The amendments ensure that one part of that purpose is to pro- vide services to encourage and help young persons to move to edu- cation, training, and employment.

They also ensure that it includes a reference to new requirements imposed on young persons.

Clause 5 amends section 3, which relates to interpretation.

The amendments add or adjust a number of definitions, including defini- tions of youth payment and young parent payment.
Clause 6 amends section 12J, on rights of appeal against certain de- cisions of the chief executive.

The amendments adjust the heading of the section and account for new Part 5.

Clause 7 amends section 21, which relates to widows’ benefits.

At present, any widow is eligible for a widows’ benefit if she is the mother of a dependent child or children.

The amendment has the effect of requiring all applicants for a widows’ benefit to be at least 19 years old.
Explanatory note Social Security (Youth Support and Work Focus) Amendment Bill 9 Clause 8 amends section 27B, which relates to domestic purposes benefits for solo parents.

The amendment has the effect of requiring all applicants for a domestic purposes benefit under that section to be at least 19 years old.

Clause 9 amends section 27G, on domestic purposes benefits for care at home of the sick or infirm.
At present,— • an applicant for a domestic purposes benefit under that section must be at least 16 years old; but in the case of an applicant who is only 16 or 17 years old, the chief executive must be satisfied that no other caregiver is reasonably available to care for the person he or she is giving care and attention to.
• The amendments have the effect of— • requiring all applicants for a domestic purposes benefit under that section who do not have a dependent child or children to be at least 18 years old; and requiring all applicants for a domestic purposes benefit under that section who do have a dependent child or children to be at least 19 years old.

• Clause 10 amends section 54, which states standard eligibility re- quirements for the sickness benefit.
At present, an applicant for a sickness benefit—— • • must be at least 18 years old; or must be married or in a civil union or de facto relationship, have a dependent child or children, and be at least 16 years old.

The amendment has the effect of— • • requiring all applicants for a sickness benefit who do not have a dependent child or children to be at least 18 years old; and requiring all applicants for a sickness benefit who do have a dependent child or children to be at least 19 years old.
Clause 11 repeals section 54A(2).

That provision enables the grant- ing on the grounds of hardship of a sickness benefit to certain people who are single and only 16 or 17 years old, but satisfy the require- ments of section 54(1).

Clause 12 repeals sections 60F to 60GAC, on independent youth benefits.

10 Social Security (Youth Support and Work Focus) Amendment Bill Explanatory note Clause 13 amends section 82, on payment of benefits.
The amend- ments provide that sections 82(6B) and (6D) do not apply to the ad- vance payment of a youth support payment or to the advance payment of any other benefit payable to a person receiving a youth support payment.

The amendments also ensure section 82 is subject to new section 176, on the effect of the cancellation of young parent pay- ments.

Clause 14 amends section 83, on the apportionment of benefits be- tween spouses or partners.
The amendment provides that nothing in section 83 applies to a rate of youth payment or young parent pay- ment or the rate of any other benefit payable to a person receiving a youth payment or young parent payment.

Clause 15 amends section 89, on standard eligibility requirements for the unemployment benefit.

The amendment raises the age of eli- gibility.

Clause 16 amends section 105, on exemptions from certain obliga- tions.
The amendments provide cross references to new sections 170 and 171, on the obligations of young people receiving youth sup- port payments, and the obligations of specified young people who are spouses or partners of specified beneficiaries, respectively.

Clause 17 amends section 123D(a), on regulations that specify who may be exempted under section 105, and that specify grounds for ex- emptions under section 105, from specified obligations.
The amend- ments insert references to obligations under new sections 170 and 171.

Clause 18 inserts new sections 123E to 123G.

New section 123E pro- vides that the chief executive may provide services to encourage and help young persons to move to education, training, and employment, enter into contracts with service providers to provide services of that kind on the chief executive’s behalf, or both.
New section 123F provides that the chief executive may enter into information-sharing agreements with chief executive of Ministry of Education for the pur- poses of facilitating the provision of services to encourage and help young persons to move to education, training, and employment.

New section 123G requires the parties to a proposed information-sharing agreement to consult with the Privacy Commissioner and other rele- vant persons before entering into the agreement.
Explanatory note Social Security (Youth Support and Work Focus) Amendment Bill 11 Clause 19 inserts new sections 125A to 125G.

New section 125A pro- vides that the chief executive may contract with service providers.

New section 125B specifies the required form and content of contracts with service providers.

New section 125C concerns the release of per- sonal information about young persons to and by service providers.
New section 125D permits certain agencies to disclose information about young persons in certain circumstances.

New section 125E provides that the chief executive may adopt existing contracts as if entered into under new section 125A.

New section 125F specifies the information that the Ministry of Social Development must provide in its annual report with respect to contracted service providers.

Clause 20 inserts new Part 5, on financial support for young people.
New section 156 states the purpose of new Part 5.

New section 157 relates to the interpretation of new Part 5, and defines terms used in it and in new Schedule 26 (as replaced by clause 21).

New section 158 provides the basic eligibility qualifications for youth payments.

New section 159 states additional eligibility qualifications for youth payments for single young persons.
New section 160 states addi- tional eligibility qualifications for youth payments for persons who are or have been married, in a civil union, or a de facto relation- ship.

New section 161 sets out hardship grounds for youth payments.

New section 162 concerns the continuation, after the young person concerned turns 18 years old, of youth payments granted when he or she was aged under 18 years.
New section 163 ensures a youth payment is payable at the appropriate rate, and includes the (in-hand allowance) component, in new Schedule 26 (as replaced by clause 21).

New section 164 provides the basic eligibility qualifications for young parent payments.

New section 165 states additional eligibility qualifications for young parent payments for single young persons.
New section 166 states additional eligibility qualifications for young parent payments for persons who are or have been married, in a civil union, or a de facto relationship.

New section 167 sets out hardship grounds for young parent payments.

New section 168 concerns the continuation, after the young person concerned turns 19 years old, of young parent payments, granted when he or she was aged under 19 years.
New section 169 ensures a young parent payment is payable at the appropriate rate, and includes the (in-hand allowance) compo- nent, in new Schedule 26 (as replaced by clause 21).

New sections 170 and 171 are on the obligations of young people receiving youth 12 Social Security (Youth Support and Work Focus) Amendment Bill Explanatory note support payments, and the obligations of specified young people who are spouses or partners of specified beneficiaries, respectively.
New section 172 provides that the chief executive must take reasonable and appropriate steps to make every young person who is subject to obligations under new section 170 or 171 aware of those obligations and the consequences of failing to comply with them.

New sections 173 to 177A set out the applicable sanctions regime.

New sections 177 to 180 deal with certain administrative matters.

Clause 21 replaces Schedule 26.


Part 2 Consequential amendments, and transitional and savings provisions, taking effect on 30 July 2012 Clause 22 consequentially amends section YA 1 of the Income Tax Act 2007, which concerns certain definitions.

Clause 23 consequentially amends section 2 of the Child Support Act 1991, which concerns certain definitions.

Clause 24 sets other consequential amendments in Schedule 2.
Clause 25 sets out a transitional provision for entitlements to youth payments or young parent payments.

Clause 26 sets out a savings provision for the domestic purposes benefit under section 27G.

Clause 27 empowers the making of regulations authorising the pro- vision of financial assistance to people financially disadvantaged as a result of the net effects of the amendments made by Part 1.
Part 3 Substantive provisions taking effect on 15 October 2012 Clause 28 amends section 1B, which concerns the principles of the principal Act.

The amendment replaces “plan” with “prepare” in sec- tion 1B(c).

Clause 29 amends section 3, which relates to interpretation.

The amendments add, adjust, or replace several definitions.

Explanatory note Social Security (Youth Support and Work Focus) Amendment Bill 13 Clause 30 amends section 21, which concerns widows’ benefits.
The amendment adjusts the relevant eligibility requirements.

Clause 31 inserts new section 21A, which concerns widows’ benefits (pre-benefit activities).

Clause 32 amends section 27C, which concerns domestic purposes benefits for women alone.

The amendment adjusts the relevant eli- gibility requirements.

Clause 33 inserts new section 27CA, which concerns domestic pur- poses benefits under section 27B or 27C (pre-benefit activities).

Clause 34 inserts new sections 60GAD to GAF.


New section 60GAD specifies the purpose of new sections 60GAE to 60GAF.

New sec- tion 60GAE provides for beneficiaries having additional dependent children (general).

New section 60GAF provides that the chief ex- ecutive may refrain from applying new section 60GAE in certain cir- cumstances.

Clause 35 replaces sections 60O to 60Z with new sections 60P and 60Q.

New section 60P sets out the purpose of new section 60Q.
New section 60Q provides that certain obligations may be placed on bene- ficiaries and their spouses and partners.

New section 60R requires the chief executive to explain to beneficiaries their work preparation obligations and the consequences of failing to comply with them.

Clause 36 amends section 96A, which concerns unemployment bene- fits (pre-benefit activities).
The amendments adjust the application provision of this section and the grounds on which the chief execu- tive may impose certain requirements on persons.

Clause 37 amends section 105, which concerns exemptions from cer- tain obligations.

The amendments insert references to obligations under new section 60Q (as replaced by clause 35).

Clause 38 inserts new section 116A, which concerns failure to comply with requirements under new section 60Q(2).
Clause 39 amends section 117, which concerns sanctions that may be imposed for certain failures.

The amendment inserts a cross ref- erence to new section 116A.

Clause 40 amends section 119, which concerns the calculation of failure rate.

The amendment inserts a cross reference to new section 116A.

14 Social Security (Youth Support and Work Focus) Amendment Bill Explanatory note Clause 41 amends section 122, which concerns the meaning of re- compliance.
The amendment inserts a cross reference to new section 116A.

Part 4 Consequential provisions taking effect on 15 October 2012 Clauses 42 and 43 amend sections 171 and 123D(a) as a consequence of new section 60Q (as replaced by clause 35).

Clause 44 provides that certain employment plans, reviews, require- ments, notices, and sanctions cease to have effect when Part 4 com- mences.

Schedule 1 replaces Schedule 26 of the principal Act.
Schedule 2 sets out consequential amendments to the principal Act and other enactments.
Hon Paula Bennett Social Security (Youth Support and Work Focus) Amendment Bill Government Bill Contents Title Commencement Principal Act Part 1 Substantive provisions taking effect on 30 July 2012 Section 1A amended (Purpose) Section 3 amended (Interpretation) Section 12J amended (Right of appeal) Section 21 amended (Widows’ benefits) Section 27B amended (Domestic purposes benefits for solo parents) Section 27G amended (Domestic purposes benefits for care at home of the sick or infirm) Section 54 amended (Sickness benefit: standard eligibility requirements) Section 54A amended (Sickness benefit: grounds of hardship) Sections 60F to 60GAC repealed Section 82 amended (Payment of benefits) Section 83 amended (Apportionment of benefit between spouses or partners) Section 89 amended (Unemployment benefit: standard eligibility requirements) Section 105 amended (Exemption from obligations) 10—1 Page 5 5 5 5 6 7 7 8 8 8 8 8 8 9 9 9 1 17 18 19 Social Security (Youth Support and Work Focus) Amendment Bill Section 123D(a) amended (Regulations) New sections 123E to 123G inserted 123E Services to encourage young persons to move to education, training, and employment 123F Chief executive may enter into information-sharing agreement with chief executive of Ministry of Education 123G Consultation on proposed agreement New sections 125A to 125G inserted 125A Chief executive may contract with service providers 125B Contracts with service providers: contents and form 125C Release of
 personal information to and by contracted service provider 125D Information-sharing in relation to young persons 125E Chief executive may adopt existing contracts 125F Information on provision of contracted services to be published 125G Actions of contracted service providers to be treated for certain purposes as if actions of department New Part 5 inserted 20 Part 5 Financial support for young people 156 157 158 159 160 161 162 163 164 165 Purpose Interpretation Youth payment Youth payment: basic criteria Youth
 payment: single young persons Youth payment: young persons who are or have been married, or in civil union or de facto relationship Youth payment: ground of hardship Youth payment: continuation after age 18 Youth payment: rate and components Young parent payment Young parent payment: basic criteria Young parent payment: single young persons 2 9 9 10 10 10 11 11 12 12 13 14 14 14 15 15 15 16 17 18 18 18 19 20 21 Social Security (Youth Support and Work Focus) Amendment Bill Young parent payment: persons who are or have been married, in civil union, or in de facto relationship Young parent payment: ground of hardship Young parent payment: continuation after age 19 Young parent payment: rate and components Obligations Youth support payments: obligations Obligations of spouses and partners of specified beneficiaries Department to explain obligations to young person Sanction regime Sanctions for failure by young person receiving youth payment to comply with obligations under section 170 Sanctions for failure by young person receiving young parent payment to comply with obligations under section 170 Effect of sanctions on supplementary benefits Sanctions generally Effect of sanction on young parent payment Incentive payment may be cancelled if young person’s actions inconsistent with purpose 166 167 168 169 170 171 172 173 174 175 176 177 178 Administration 179 Money management in relation to youth support 180 payments: general Chief executive may assign contracted
 service provider to young person 21 Schedule 26 replaced Part 2 Consequential amendments, and transitional and savings provisions, taking effect on 30 July 2012 Consequential amendments to Income Tax Act 2007 and Child Support Act 1991 22 23 24 Amendment to Income Tax Act 2007 Amendment to Child Support Act 1991 Other consequential amendments Consequential amendments 22 22 22 23 23 26 26 27 28 29 31 32 32 32 33 34 34 34 35 3 Social Security (Youth Support and Work Focus) Amendment Bill Transitional provision:
 entitlement to youth payment or young parent payment Savings provision: domestic purposes benefit under section 27G Transitional arrangements for financially disadvantaged people Part 3 Substantive provisions taking effect on 15 October 2012 Section 1B amended (Principles) Section 3 amended (Interpretation) Section 21 amended (Widows’ benefits) New section 21A inserted (Widows’ benefits: pre-benefit activities) 21A Widows’ benefits: pre-benefit activities Section 27C amended (Domestic purposes benefits for women alone) New section 27CA inserted (Domestic purposes benefits under section 27B or 27C: pre-benefit activities) 27CA Domestic purposes benefits under section 27B or 27C: pre-benefit activities New sections 60GAD to 60GAF inserted 60GAD Purpose of sections 60GAE and 60GAF 60GAE Beneficiaries having additional dependent child: general 60GAF Chief executive may refrain from applying section 60GAE New sections 60P to 60R substituted 60P 60Q Purposes of section 60Q Certain obligations may be placed on beneficiaries and their spouses and partners Department to explain obligations to beneficiaries 60R Section 96A amended (Unemployment benefit: pre-benefit activities) Section 105 amended (Exemption from obligations) New section 116A inserted (Failure to comply with requirements under section 60Q(2)) 116A Failure to comply with requirements under section 60Q(2) Section 117 amended (Sanctions that may be imposed for failures) 35 36 37 38 38 39 40 40 40 40 40 41 41 41
Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 4 40 41 42 43 44 Section 119 amended (Calculation of failure rate) Section 122 amended (Meaning of recompliance) Part 4 Consequential provisions taking effect on 15 October 2012 Section 171 amended (Obligations of spouses and partners of specified beneficiaries) Section 123D amended (Regulations) Employment plans and certain sanctions cease to have effect
 Schedule 1 New Schedule 26 of Social Security Act 1964 Schedule 2 Consequential amendments 45 45 45 45 46 47 49 The Parliament of New Zealand enacts as follows: 1 2 (1) (2) 3 Title This Act is the Social Security (Youth Support and Work Fo- cus) Amendment Act 2012.
Commencement Parts 3 and 4 come into force on 15 October 2012.

The rest of this Act comes into force on 30 July 2012.

Principal Act This Act amends the Social Security Act 1964 (the principal Act).
Part 1 Substantive provisions taking effect on 30 July 2012 Section 1A amended (Purpose) 4 (1) After section 1A(12)(c), insert the following paragraph: 5 10 5 Part 1 cl 5 Social Security (Youth Support and Work Focus) Amendment Bill “(ca) to provide services to encourage and help young per- sons to move to education, training, and employment rather than to receiving financial support under this Act:”.
In section 1A(d), insert after “this Act”, “, and, in the case of 5 young persons, seeking or receiving financial support under this Act, educational, budget management, and (where appro- priate) parenting requirements”.

Section 3 amended (Interpretation) In section 3(1), definition of benefit, after paragraph (b)(ii), 10 insert: “(iia) an incentive payment, a youth payment, and a young parent payment:”.
In section 3(1), insert in their appropriate alphabetical order: “contracted service provider has the meaning given by sec- 15 tion 125A(1) “incentive payment means a payment referred to in any of items 7 to 9 of Schedule 26 “young parent payment means a young parent payment payable under Part 5 “youth payment means a youth payment payable under Part 5 “youth support payment means a young parent payment or youth payment”.
In section 3(1), definition of dependent child, paragraph (d), 25 replace “and 18” with “18, and 26”.

In section 3(1), definition of dependent child, after paragraph (d), insert: “(e) does not include a child in respect of whom a young parent payment is being paid except in relation to that 30 child’s parent or step-parent”.
20 In section 3(1), replace the definition of work-tested spouse or partner with— “work-tested spouse or partner means a person— “(a) who— 35 (2) 5 (1) (2) (3) (4) (5) 6 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 7 “(i) “(ii) has no dependent child under 6 years (or has no dependent child at all); and is not subject to obligations under section 171; and “(iii) has not been granted an exemption from the work 5 test; and “(b) who— “(i) is the spouse or partner of a person granted an unemployment benefit, a sickness benefit, or an invalid’s benefit, (being, in each case, a benefit 10 granted at a work-test married rate); or “(ii) both— “(A) is the spouse or partner of a person granted an emergency benefit at a work-tested married rate; and 15 “(B) has under section 61A(1A) been required by the chief executive to comply with the work test; or “(iii) is— “(A) the spouse or partner of a person who is 20 receiving long-term residential care in a hospital or rest home; and “(B) aged under 60 years; and “(C) in receipt of an invalid’s benefit under sec- tion 42(2) or an emergency benefit under 25 regulations under section 155”.
6 (1) (2) 7 Section 12J amended (Right of appeal) In the heading to section 12J(1)(a), replace “Right” with “Rights”.

In section 12J(1)(a), replace “or Part 4” with “Part 4, or Part 30 5”.

Section 21 amended (Widows’ benefits) In section 21(1)(a), after “who”, insert “is aged 19 years or over and”.
7 8 9 (1) Part 1 cl 8 Social Security (Youth Support and Work Focus) Amendment Bill Section 27B amended (Domestic purposes benefits for solo parents) Replace section 27B(2)(a) with: “(a) the applicant is aged 19 years or over; and”.

Section 27G amended (Domestic purposes benefits for care at home of the sick or infirm) In section 27G(2), delete “has attained the age of 16 years and”.
Replace section 27G(2A) with: (2) “(2A) An applicant must not be granted a domestic purposes benefit 10 5 under this section unless,— “(a) in the case of an applicant without a dependent child, he or she is aged at least 18 years: in any other case, he or she is aged at least 19 years.” “(b) 10 Section 54 amended (Sickness benefit: standard eligibility 15 requirements) Replace section 54(2) with: “(2) An applicant for a sickness benefit— “(a) must be aged at least 18 years, in the case of an applicant without a dependent child: 20 “(b) must be aged at least 19 years, in any other case.” 11 12 Section 54A amended (Sickness benefit: grounds of hardship) Repeal section 54A(2).
Sections 60F to 60GAC repealed Repeal sections 60F to 60GAC and the cross-heading above section 60F.
25 Section 82 amended (Payment of benefits) 13 (1) After section 82(6D), insert: “(6E) Subsections (6B) to (6D) do not apply to the advance payment 30 of a youth support payment, or to the advance payment of any other benefit payable to a person receiving a youth support payment.” 8 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 18 (2) After section 82(7), insert: “(8) This section is subject to section 176.” 14 (1) Section 83 amended (Apportionment of benefit between spouses or partners) In section 83(1), replace “subsection (2)” with “subsections 5 (2) and (2A)”.
(2) After section 83(2), insert: “(2A) Nothing in this section applies to— “(a) “(b) a rate of youth payment or young parent payment; or the rate of any benefit (other than a youth payment or 10 young parent payment) payable to a person receiving a youth payment or young parent payment.” 15 20 25 15 Section 89 amended (Unemployment benefit: standard eligibility requirements) Replace section 89(2) with: “(2) An applicant for an unemployment benefit— “(a) must be aged at least 18 years, in the case of an applicant without a dependent child: “(b) must be aged at least 19 years, in any other case.” 16 (1) (2) 17 18 Section 105 amended (Exemption from obligations) In section 105(1), after “work test obligations”, insert “or obli- gations under section 170 or 171”.
In section 105(5),— (a) after “work test obligations”, under section 170 or 171; and” after “117”, insert “or (as the case rquires) section 173 or 174”.

insert “or obligations (b) Section 123D(a) amended (Regulations) In section 123D(a), after “work test obligations”, insert “or obligations under section 170 or 171”.
30 New sections 123E to 123G inserted Before section 124, insert the following sections: 9 Part 1 cl 18 Social Security (Youth Support and Work Focus) Amendment Bill “123E Services to encourage young persons to move to education, training, and employment The chief executive may do either or both of the following things: “(a) provide services to encourage and help young persons 5 to move into education, training, and employment rather than to receiving financial support under this Act: enter (under section 125A) into contracts with service providers to provide services of that kind on the chief 10 executive’s behalf.
“(b) “123F Chief executive may enter into information-sharing agreement with chief executive of Ministry of Education “(1) The chief executive may enter into an agreement with the chief executive of the Ministry of Education relating to the shar- 15 ing, for the purposes of facilitating the provision of services of a kind described in section 123E(a), of information about young persons who have ceased to be enrolled at a registered school (as defined in section 2 of the Education Act 1989) or a tertiary education organisation (being an organisation as de- 20 fined in section 159B(1) of that Act).
“(2) While the agreement is in force, the chief executive of the Ministry of Education— “(a) may provide to the chief executive any information to which subsection (1) applies that the former thinks 25 will facilitate the provision by the latter of services of a kind described in section 123E(a); and “(b) may use national student numbers for the purpose of gathering the information.

“(3) Subsection (2) overrides section 344(2) of the Education Act 30 1989.
“123G Consultation on proposed agreement “(1) Before entering into an agreement under section 123F(1), the parties must— “(a) consult on the proposed agreement, and invite submis- 35 sions on it from,— “(i) the Privacy Commissioner; and 10 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 19 “(ii) any person or organisation that they consider rep- resents the interests of the classes of individuals whose personal information will be shared under the proposed agreement; and “(iii) any other person or organisation that the parties 5 consider should be consulted; and “(b) consider all submissions received within a reasonable time of being invited.
“(2) The Privacy Commissioner— “(a) must consider the privacy implications of the proposed 10 agreement; and “(b) may make any submissions under subsection (1)(a)(i) that he or she thinks fit.” 19 New sections 125A to 125G inserted Before section 126, insert: 15 20 that are— “(i) “125A Chief executive may contract with service providers “(1) The chief executive may from time to time, on behalf of the Crown, enter into a contract with any person, body, or organ- isation (a contracted service provider) for the provision by the contracted service provider of services— “(a) services of the kind referred to in section 123E; or services in relation to Part 5; and “(b) “(ii) that are services of a kind or description stated for the 25 purposes of this section by regulations under this Act.
“(2) The chief executive must not enter into a contract with a per- son, body, or organisation for the provision of services of a kind stated in subsection (1) unless the chief executive is satisfied that it— “(a) 30 is suitable to provide the services specified in the con- tract; and is suitable to work with young persons in providing those services; and has the powers and capacity to enter into and perform a 35 contract for those services.
“(b) “(c) “(3) In this section, young person has the meaning in section 157.
11 Part 1 cl 19 Social Security (Youth Support and Work Focus) Amendment Bill “125B Contracts with service providers: contents and form “(1) A contract under section 125A— “(a) must set out the responsibilities of the contracted ser- vice provider and the chief executive in respect of each of the services the provider is to provide under the con- 5 tract; and “(b) must require the provider to co-operate with the chief executive; and “(c) must contain all terms and conditions (if any) stated for the purposes of that section by regulations under this 10 Act.
“(2) The contract must be in writing.

“(3) Subsection (1) does not limit section 125A.

“125C Release of personal information to and by contracted service provider “(1) This section applies to any personal information about a young person or young persons to whom a contract under section 125A applies that is held by the contracted service provider concerned or the department.
“(2) Regulations under this Act may state— 15 20 “(a) “(b) the circumstances in which a contracted service provider and its employees may release or disclose to the chief executive and employees of the department information to which this section applies held by the contracted service provider and the conditions with 25 which the chief executive and employees of the depart- ment must comply in dealing with the information; or the circumstances in which the chief executive and em- ployees of the department may release or disclose to a contracted service provider and its employees informa- 30 tion to which this section applies held by the depart- ment and the conditions with which the contracted ser- vice provider and its employees must comply in dealing with the information.
“(3) The chief executive and employees of the department, and 35 staff members of a contracted service provider, may release or disclose information in accordance with regulations of the kind referred to in subsection (2).

12 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 19 “(5) “(4) Nothing in this section requires the chief executive, employ- ees of the department, or staff members of a contracted service provider provide access to, or release or disclose, any informa- tion.
In this section— “held includes deemed for the purposes of the Official Infor- mation Act 1982 to be held “staff member, in relation to a contracted service provider, includes a volunteer.
“Compare: 2004 No 50 s 199J “125D Information-sharing in relation to young persons “(1) An agency specified by the Governor-General by Order in Council for the purposes of this subsection may disclose any information about a young person to the chief executive, if sat- isfied that— “(a) “(b) subsection (3) applies to the young person; and the information will help the department to— “(i) perform any function, or exercise any power, under Part 5; or achieve any of the purposes of this Act.
“(ii) 5 10 15 20 “(2) An agency specified by the Governor-General by Order in Council for the purposes of this subsection may disclose any information about a young person to a contracted service provider, if satisfied that— “(a) the provider is the young person’s contracted service 25 provider; and “(b) subsection (3) applies to the young person; and “(c) the information will help the provider to provide ser- vices under a contract under section 125A.
“(3) This subsection applies to a young person if he or she— 30 “(a) “(b) “(c) has applied for or is receiving a youth support payment; or is subject to obligations under section 171; or has left or finished education, and is not or may not be in employment or training; or “(d) has left or finished training, and is not or may not be in 35 employment.
13 Part 1 cl 19 Social Security (Youth Support and Work Focus) Amendment Bill “(4) Orders under subsection (1) or (2) may specify particular “(5) agencies, or agencies of any specified class or description.

In this section, agency has the meaning given to it by section 2(1) of the Privacy Act 1993.
“125E Chief executive may adopt existing contracts 5 The chief executive may agree in writing with the other party to any contract the chief executive has entered into before the commencement of the Social Security (Youth Support and Work Focus) Amendment Act 2012 that this Act applies to the contract as if it had been entered into under section 125A; and 10 in that case, after the agreement takes effect, this Act applies to the contract (to the extent that it was capable of being en- tered into under that section) as if it it had been entered into under that section.
“125F Information on provision of contracted services to be 15 published The chief executive must ensure that there is published, no later than 1 October in every year,— “(a) a general description of the services provided by con- tracted service providers during the year ending on 20 30 June in that year, and of the contracted service providers; and “(b) details of the providers concerned.
“125G Actions of contracted service providers to be treated for certain purposes as if actions of department “(1) For the purposes of section 80AA, any action or inaction of a contracted service provider must be treated as an action or inaction of an officer of the department.

“(2) For the purposes of section 80A, a contracted service provider must be treated as an officer of the department.
25 30 “(3) For the purposes of section 86(9A) and (9B), the provision of information by, and any act or omission of, a contracted ser- vice provider must be treated as having been done or omitted by an officer of the department.” 14 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 20 New Part 5 inserted After section 155, insert: “Part 5 “Financial support for young people “156 Purpose 5 The purpose of this Part is to specify the supports, obligations, and sanctions that apply to certain young people who receive financial assistance under this Act.
“157 Interpretation 10 In this Part and in Schedule 26,— “accommodation costs, in relation to any young person, has the same meaning as in section 61E(1) except that in relation to a person who is a boarder or lodger in any premises, it means 100% of the amount paid for board or lodging “approved training means an employment-related training 15 course approved by the chief executive “full-time course has the same meaning as in regulation 2(1) of the Student Allowances Regulations 1998 “in-hand allowancemeans the component of a youth support payment set out in clause 6 of Schedule 26 under that name 20 “NCEA level 2 means a level 2 National Certificate of Educa- tional Achievement issued by the New Zealand Qualifications Authority established under Part 20 of the Education Act 1989 “parents, in relation to a young person,— “(a) means the parents or guardians or other person who had 25 the care of the young person most recently before the person turned 16 years; and includes any other parent, or guardian or former guardian, willing to have financial responsibility for the young person; but does not include— “(i) “(b) “(c) 30 the chief executive of the department responsible for administering the Children, Young Persons, and Their Families Act 1989 in his or her official capacity; or any body or organisation approved under section 396 of that Act 35 “(ii) 15 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill “service costs has the same meaning as in section 61E(1) “specified beneficiary
 means a person who is married, in a civil union, or in a de facto relationship and receives in his or her own right— “(a) “(b) a domestic purposes benefit under section 27G; or an emergency benefit, invalid’s benefit, sickness bene- fit, or unemployment benefit; or “(c) New Zealand superannuation paid at the rate specified in clause 2 of Schedule 1 of the New Zealand Super- annuation and Retirement Income Act 2001; or a veteran’s pension paid at a rate specified in clause 2 of Schedule 11 of the War Pensions
 Act 1954 “(d) 5 10 “teen parent unit means an educational facility for teenage parents attached to a State school (within the meaning of the Education Act 1989) “WFF tax credit has the same meaning as in section YA 1 of the Income Tax Act 2007 “work-based learning means any course or programme that includes a component of practical or on-the-job vocational learning (for example, industry training programmes and ap- 20 prenticeships) “young person means a person aged at least 16 years but under the age of 20 years.
15 “Youth payment “158 Youth payment: basic criteria “(1) The basic qualifications for entitlement to a youth payment are in subsection (2).

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

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

“(e) 20 25 “163 Youth payment: rate and components “(1) A youth payment is payable at the appropriate rate, and in- “(2) cludes the component, set out in Schedule 26.
If a young person to whom a youth payment is payable meets the criteria prescribed for the purposes of this section by regu- 30 lations made under this Act, there is payable together with that payment the appropriate incentive payment (if any) stated in Schedule 26.

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


19 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill “Young parent payment “164 Young parent payment: basic criteria “(1) The basic qualifications for entitlement to a young parent pay- ment are in subsection (2).

The qualifications for a single person are in section 165.

The qualifications for a young 5 person who is or has been married, in a civil union, or in a de facto relationship are in section 166.
“(2) The basic qualifications for entitlement to a young parent pay- ment are that the young person— is aged 16 to 18 years; and “(a) is a parent or step-parent of a dependent child or de- “(b) pendent children; and either— “(i) “(c) 10 is undertaking or is available for a full-time course of secondary instruction, tertiary educa- 15 tion, approved training, or approved work-based learning, leading to— “(A) NCEA level 2; or “(B) an equivalent qualification (in the opinion of the chief executive); or “(C) a higher qualification; or 20 “(ii) would be so available but for circumstances— “(A) under which the obligation to undertake education or training or work-based learn- ing in section 170(1)(a) would not, 25 under section 170(3), apply to the young person; or that would qualify the young person for an exemption under section 105 from that obligation; and “(B) 30 “(d) meets the residential requirements set out in section “(e) 74AA; and has no income or an income of less than the amount that would fully abate the young parent payment.
“(3) Nothing in subsection (2)(e) affects the entitlement of a 35 young person to receive a young parent payment if, during a temporary period, the person has income sufficient to fully abate the payment but the person otherwise fulfils the condi- tions of entitlement to the payment.
20 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 “(4) For the purposes of subsection (2)(b), a dependent child of a young person who is married, in a civil union, or in a de facto relationship must also be treated as a dependent child of the young person’s spouse or partner.
“Compare: 1964 No 136 s 60F(1) and (2), s 89(5), s 3(5) 5 “165 Young parent payment: single young persons “(1) A young person is entitled to receive a young parent payment if— “(a) “(b) subsection (2) or subsection (3) or subsection (4) 10 section 164(2) applies to him or her; and applies to him or her.
“(2) This subsection applies to a single young person if he or she— “(a) “(b) “(c) is aged 16 or 17 years; and is not living with a parent or guardian; and is in exceptional circumstances (within the meaning of 15 section 159).
“(3) This subsection applies to a single young person if— he or she is aged 16 or 17 years; and “(a) “(b) he or she is living with or being financially supported “(c) 20 by a parent or guardian; and the family scheme income (within the meaning of the Income Tax Act 2007) of the parent or guardian concerned and the spouse or partner (if any) of the parent or guardian concerned is less than the amount that would, in accordance with sections MD 1 and 25 MD 13 of that Act, fully abate the amount of the parent or guardian concerned’s family tax credit entitlement under that Act.
“(4) This subsection applies to a single young person who is aged 18 years.
30 “(5) For the purposes of the calculation required by subsection (3)(c), if the parent or guardian with whom the young per- son concerned is living or by whom he or she is being sup- ported has no family tax credit entitlement because that parent or guardian has no dependent children (within the meaning 35 of section YA 1 of the Income Tax Act 2007), that parent or guardian’s family tax credit entitlement must be calculated as if the young person and his or her dependent child or children 21 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill were dependent children (within the meaning of that section) of that parent or guardian.
“(6) Nothing in this section entitles a parent or guardian to whom subsection (5) applies to a family tax credit.
“166 Young parent payment: persons who are or have been married, in civil union, or in de facto relationship A young person who is or has been married or in a civil union or de facto relationship is entitled to receive a young parent payment if— “(a) “(b) section 164(2) applies to him or her; and (if he or she is married, or in a civil union or a de facto relationship) his or her spouse or partner is not a speci- fied beneficiary within the meaning of paragraphs (b) to (d) of the definition of that term in section 157.
“Compare: 1954 No 136, s 60FB 5 10 15 “167 Young parent payment: ground of hardship The chief executive may grant a young parent payment under section 165 or 166 to a young person who meets the criteria in paragraphs (a) to (c) and (e) of section 164(2) but does not meet the criteria referred to in paragraph (d) of that 20 subsection if— “(a) “(b) the young person is suffering hardship; and the young person is not qualified to receive any other benefit; and the young person is unable to earn a sufficient income 25 to support the person, and his or her spouse or partner (if any) and dependent children.
“(c) “Compare: 1964 No 136 s 90(1) “168 Young parent payment: continuation after age 19 “(1) A young parent payment granted when the young person con- 30 cerned was aged under 19 years continues, if he or she is other- wise qualified for it,— “(a) in the case of a payment granted on an application made on or after the commencement of section 20 of the So- cial Security (Youth Support and Work Focus) Amend- 35 ment Act 2012, until the close of the day on which 22 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 “(b) the period of 6 months from the commencement of the payment expires, even if he or she turns 19 during the period; or in the case only of a payment granted to a young person who, on the day when he or she turns 18, is (in the chief 5 executive’s opinion) continuing in a course of educa- tion, training, or work-based learning, until— “(i) if the course is a course of secondary instruction, the close of the calendar year in which the young person turned 18: in any other case, the earlier of— “(A) the close of the calendar year in which the young person turned 18; and the close of the day the course ends.
“(B) “(ii) 10 “(2) While a young parent payment continues by virtue of subsec- 15 tion (1)(a), the young person concerned is not eligible to be granted the following benefits: a widow’s benefit: “(a) a domestic purposes benefit: “(b) a sickness benefit: “(c) an emergency benefit: “(d) an unemployment benefit.

“(e) 20 “169 Young parent payment: rate and components “(1) A young parent payment is payable at the appropriate rate, and “(2) includes the component, set out in Schedule 26.
If a young person to whom a young parent payment is payable meets the criteria prescribed for the purpose of this section by regulations made under this Act, there is payable together with that payment the appropriate incentive payment (if any) stated in Schedule 26.

25 30 “(3) Subsection (2) is subject to section 178.
“Obligations “170 Youth support payments: obligations “(1) A young person receiving a youth support payment is subject to the following obligations: 35 23 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill “(a) to be enrolled in and undertaking to the satisfaction of the chief executive, or be available for, a full-time course of secondary instruction or tertiary education or approved training or work-based learning leading to— “(i) NCEA level 2; or “(ii) an equivalent qualification (in the opinion of the chief executive); or 5 “(iii) a higher qualification: “(b) when required by the chief executive, to participate in “(c) and complete a budgeting programme approved by the 10 chief executive for the purpose: in the case only of a young person receiving a young parent payment, when required by the chief executive, to participate to the satisfaction of the chief executive in a parenting education programme approved by the chief 15 executive for the purpose: “(f) “(e) “(d) when required by the chief executive, to attend and par- ticipate in any interview with an officer of the depart- ment or other person on behalf of the chief executive: if a contracted service provider assigned to the young 20 person by the chief executive has so required, to attend and participate in any interview with that provider: to report to the department, or to any contracted service provider assigned to the young person by the chief ex- ecutive, on his or her compliance with the obligations 25 in paragraphs (a) to (c) as often as, and in the man- ner that, the chief executive (or, as the case requires, the provider) reasonably requires: to co-operate with the chief executive, or with any con- tracted service provider assigned to the young person 30 by the chief executive, in managing the spending of the young person’s youth payment or young parent pay- ment, and (in particular)— “(i) “(g) attend and participate in regular discussions on budgeting with an officer of the department (or, 35 as the case requires, the
 provider); and at any discussion or when otherwise required, provide information on— “(ii) 24 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 “(A) the young person’s accommodation costs and service costs and other lawful debts and liabilities for the purpose of section 178(1)(b)(i); and “(B) how the young person has spent the 5 amount of the payment paid to him or her and how the young person has spent any money credited to a payment card, voucher, or device in accordance with regulations under this Act.
10 “(2) A young person receiving a young parent payment is also sub- ject to the following obligations: “(a) “(b) “(c) to enrol every dependent child with a primary health organisation: to keep every dependent child under the age of 5 years 15 up-to-date with WellChild checks: to ensure the child’s attendance at an approved early childhood education programme (as defined in regula- tions under this Act) or other suitable childcare while the young person is in education, training, work-based 20 learning, or part-time work.
“(3) Except as provided in subsection (4), the obligations in sub- sections (1) and (2) apply to a young person receiving a youth support payment from the time that it is first paid to the young person.
“(4) Where a young person receiving a young parent payment is the principal caregiver of his or her youngest dependent child and the child is aged under 12 months, the obligation in subsec- tion (1)(a) begins to apply (in relation to the young person) only on the earlier of the following days: “(a) the first day after the child becomes 6 months old on which— “(i) 25 30 “(ii) a suitable place is available for the young person in a teen parent unit; and the chief executive is satisfied that there are no 35 special circumstances justifying the obligation’s beginning to apply later: “(b) the day on which the child becomes 12 months old.
25 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill “(5) A failure without good and sufficient reason to comply with obligations under this section is subject to sanctions, as pro- vided in section 174.
“171 Obligations of spouses and partners of specified beneficiaries 5 “(1) A young person who is aged 16 or 17 years without dependent children and is the spouse, or civil union or de facto partner, of a specified beneficiary— “(a) to the obligations set out is subject 170(1)(a), (b), (d), (e), and (f) as if he or she were 10 receiving a youth payment; and is not subject to the work test or to employment plan obligations under section 60Q.
in section “(b) “(2) A young person who is aged 16 to 18 years, has a dependent child or children, and is the spouse, or civil union or de facto 15 partner, of a specified beneficiary— “(a) is subject in section to the obligations set out 170(1)(a) to (f) and 170(2) as if he or she were receiving a young parent payment; and is not subject to the work test or to employment plan 20 obligations under section 60Q.
“(b) “(3) A failure without good and sufficient reason to comply with any of the obligations placed on a young person under this section is,— “(a) for a young person who would, but for subsection 25 (1)(b) or (2)(b), be subject to the work test, a failure to comply with the work test for the purposes of section 117; and for a person who would, but for subsection (1)(b) or (2)(b), be subject to employment plan obligations, a 30 failure to comply with section 60Q(1) for the purposes of section 60U.
“(b) “172 Department to explain obligations to young person The chief executive must take reasonable and appropriate steps to make every young person who is subject to obliga- 35 tions under section 170 or 171 aware of— “(a) those obligations; and 26 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 “(b) the consequences of failure to comply with them and (in particular) the sanctions that may be imposed under this Act for failing to comply with them.
“Compare: 1964 No 136 ss 60GAC, 105C “Sanction regime 5 “(1) “173 Sanctions for failure by young person receiving youth payment to comply with obligations under section 170 If satisfied that a young person receiving a youth payment has, without good and sufficient reason, failed to comply with an obligation placed on him or her by section 170, the chief 10 executive must,— “(a) for a first or second failure,— “(i) “(ii) suspend the in-hand allowance and any incentive payments until he or she satisfies the obligation (or, if he or she has failed to comply with 2 or 15 more obligations, until he or she satisfies all of them); and if the person has not satisfied the obligation (or, if he or she has failed to comply with 2 or more obligations, if he or she has not satisfied all of 20 them) within 4 weeks after the date on which the suspension took effect, suspend the whole of the youth payment and any incentive payments until the young person satisfies the obligation or obligations; and 25 “(2) “(b) for a third failure, cancel the youth payment and any incentive payments.
If a young person’s youth payment has been cancelled under subsection (1)(b),— “(a) he or she is not entitled to be granted any benefit until 30 after the expiration of 13 weeks from the date of the cancellation unless he or she— “(i) has completed a 6-week approved activity under, and in accordance with, section 123B; or “(ii) has applied for a benefit and established his or her 35 eligibility for it; and “(iii) sections 123 and 175 apply to him or her.
27 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill “(3) For the purposes of subsection (2)(a)(i), a 6-week approved activity is completed in accordance with section 123B if it is completed in such a way that its completion would be in ac- cordance with section 123B if subsection (1)(b) of that section referred to the following activities (rather than those to which 5 it in fact refers): “(a) if the young person concerned is not already in part-time work, participation in part-time work or work experi- ence: “(b) participation in recognised community activities (as de- 10 “(c) fined in section 88A): participation in any other activity that the chief execu- tive considers will enhance skills or improve motiva- tion.
“(4) This section overrides every other provision of this Act.
15 “174 Sanctions for failure by young person receiving young “(1) parent payment to comply with obligations under section 170 If satisfied that a young person receiving a young parent pay- ment has, without good and sufficient reason, failed to comply 20 with an obligation placed on him or her by section 170, the chief executive must,— “(a) for a first or second failure, suspend the in-hand allow- ance and any incentive payments until he or she satis- fies the obligation (or, if he or she has failed to comply 25 with 2 or more obligations, until he or she satisfies all of them); and for a third failure,— “(i) cancel the person’s entitlement to receive the whole of the young parent payment and instead 30 pay the person half the base rate of the payment before income abatement; and cancel any incentive payments.
“(ii) “(b) “(2) A young person whose entitlement to receive the whole of a young parent payment has been cancelled under subsection 35 (1)(b)(i) is not entitled to be granted any benefit until after the expiration of 13 weeks from the date of the cancellation unless he or she— 28 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 “(a) has completed a 6-week approved activity under, and in accordance with, section 123B; or “(b) has applied for a benefit and established his or her eli- gibility for it.
“(3) For the purposes of subsection (2)(a)(i), a 6-week approved 5 activity is completed in accordance with section 123B if it is completed in such a way that its completion would be in ac- cordance with section 123B if subsection (1)(b) of that section referred to the following activities (rather than those to which it in fact refers): “(a) if the young person concerned is not already in part-time work, participation in part-time work or work experi- ence: “(b) participation in recognised community activities (as de- “(c) fined in section 88A): participation in any other activity that the chief execu- tive considers will enhance skills or improve motiva- tion.
10 15 “(4) In order to satisfy himself or herself that a young person has established continued eligibility for a young parent payment, 20 the chief executive may require the young person to comply with the requirements of section 11D(2) as if applying for a young parent payment (and that section, with any necessary modifications, applies accordingly).

“(5) This section overrides every other provision of this Act.
25 “175 Effect of sanctions on supplementary benefits “(1) While a young person’s youth payment is cancelled under sec- tion 173,— “(a) “(b) the young person is not entitled to receive any accom- modation supplement or temporary additional support 30 if he or she is not married or in a civil union or de facto relationship: if the young person is married or in a civil union or de facto relationship and his or her spouse or partner’s youth payment is not also cancelled under that sec- 35 tion,— “(i) any accommodation supplement or temporary additional support otherwise payable to him or 29 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill “(ii) her must be reduced by half, and paid to the spouse or partner; and any accommodation supplement or temporary additional support otherwise payable to his or her spouse or partner must be reduced by half: 5 “(c) if the young person is married or in a civil union or de facto relationship and his or her spouse or partner’s youth payment is also cancelled under that section,— “(i) the young person is not entitled to receive any accommodation supplement or temporary addi- 10 tional support otherwise payable to him or her; and the young person’s spouse or partner is not en- titled to receive of any accommodation supple- ment or temporary additional support otherwise 15 payable to him or her.
“(ii) “(2) The cancellation under section 174 of the whole of the young parent payment of a young person who is a sole parent has no effect on his or her entitlement to receive any accommodation supplement or temporary additional support.
20 “(3) While the young parent payment of a young person who is married to or in a civil union or de facto relationship with a spouse or partner whose young parent payment is not also can- celled under that section is cancelled under section 174,— “(a) any accommodation supplement or temporary addi- 25 tional support otherwise payable to him or her must be reduced by half, and paid to the spouse or partner; and any accommodation supplement or temporary addi- tional support otherwise payable to his or her spouse or partner must be reduced by half.
30 “(b) “(4) Where the whole of the young parent payment of each of 2 young persons who are married to, or in a civil union or de facto relationship with, each other is cancelled, each is entitled to receive only half of any accommodation supplement or tem- porary additional support that would otherwise be payable to 35 him or her.

“(5) A young person whose youth payment or the whole of whose young parent payment is cancelled under section 173 or 174 is not entitled to receive an emergency benefit.
30 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 “(6) The cancellation of a young person’s youth payment or the whole of his or her young parent payment under section 173 or 174 has no effect on his or her entitlement to receive any disability allowance, or child disability allowance.
“176 Sanctions generally “(1) For the purposes of sections 173 and 174, a young person 5 satisfies an obligation if he or she— “(a) “(b) remedies the failure concerned; or if (in the chief executive’s opinion) it is not possible to remedy the failure, undertakes to the chief executive’s 10 satisfaction an activity that is (in the chief executive’s opinion) the same as or substantially similar to the per- formance of the obligation.
“(2) Sections 113 (procedure for imposing sanctions), 114 (no- “(3) “(4) tices), and 119 (calculation of failure rate) apply with all 15 necessary modifications to the imposition of sanctions under sections 173 and 174.
In sections 173 and 174,— “second failure means a failure that occurs after the young person concerned has satisfied the obligation to which a first 20 failure related; and “third failure means a failure that occurs after the young per- son concerned has satisfied the obligation to which a second failure related.
If a young person whose youth support payment has been can- 25 celled under section 173(1)(b) or 174(1)(b) is again granted a youth support payment,— “(a) except as provided in paragraph (b), any incentive payments that were payable to the young person before the cancellation must be paid with the youth payment 30 or young parent payment; but if the failure that led to the cancellation was a failure to comply with section 170(1)(a), an education incen- tive payment is payable only if the young person again meets the conditions of entitlement to that payment set 35 out in regulations under this Act.
“(b) 31 Part 1 cl 20 Social Security (Youth Support and Work Focus) Amendment Bill “177 Effect of sanction on young parent payment “(1) If under section 174(1)(b)(i) a young person’s entitlement to the whole of a young parent payment is cancelled,— “(a) the person is entitled during the period of cancellation to receive half of that base rate of young parent payment 5 and only half the abatement rate in clause 10 or 11 of Schedule 26 (as the case requires) applies to that rate; but “(b) during the period of cancellation, no incentive payments are payable.
10 “(2) While subsection (1)(b) applies to a young person, the amounts payable must be paid to him or her or on his or her account personally.

“Compare: 1964 No 136 s 121 “178 Incentive payment may be cancelled if young person’s 15 actions inconsistent with purpose “(1) The chief executive may cancel an incentive payment if satis- fied that the young person concerned has intentionally acted in a way inconsistent with the purpose for which it was granted.
“(2) The cancellation makes the young person ineligible for the 20 incentive payment again until the chief executive decides that it may be re-granted.

“Administration “179 Money management in relation to youth support payments: general 25 “(1) Except as provided in this section and section 177(2), no payment under a youth support payment can be paid to or on account of the young person concerned personally.
“(2) Except as provided in subsection (4), every youth support payment is payable by instalments of the number of weeks’ 30 payment on the day or date, or the days or dates, in the month that the chief executive determines from time to time.

“(3) Every youth support payment is paid in respect of a 7-day week.
“(4) Except as otherwise provided in this Act,— 35 32 Social Security (Youth Support and Work Focus) Amendment Bill Part 1 cl 20 “(a) “(b) the following must be paid in a manner stated in regu- lations made under this Act for the purposes of this sec- tion: “(i) (including the any youth support payment in-hand allowance up to the maximum amount 5 set out in clause 6 of Schedule 26): any WFF tax credit payable to a young person by the chief executive: “(ii) “(iii) the amount of any child disability allowance or disability allowance to which a young person is 10 entitled: “(iv) any other benefit or payment under this Act to which a young person is entitled specified for the purposes of this paragraph by the regulations; but if no manner is for the time being stated for a benefit 15 or payment of a kind referred to in paragraph (a)(i) to (iv), it must be paid to or on account of the young person entitled to it in accordance with section 82(3).
“(5) A manner stated under subsection (4) may include crediting an amount to a payment card, voucher, or device, that enables 20 a young person to obtain goods or services from a particular supplier and enables the supplier to obtain payment from the department for the goods or services.

“(6) Subsection (5) does not limit the generality of subsection (4).
25 “(7) No appeal under this Act lies against a determination by the chief executive under regulations made under this Act for the purposes of this section.

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

“(9) Subsection (4) overrides section 80KS of the Tax Adminis- 30 tration Act 1994.

“(10) Section 84(1) is subject to regulations under this Act made for the purposes of subsection (4).
“180 Chief executive may assign contracted service provider to young person The chief executive may assign a contracted service provider to a young person,— 35 33 Part 1 cl 21 Social Security (Youth Support and Work Focus) Amendment Bill “(a) “(b) “(c) at any time after the young person has contacted the department for financial assistance at which the chief executive considers that the most appropriate financial assistance for the young person is likely to be a youth support payment; or at the time, or at any time after, the youth support pay- ment is payable to the young person; or at any time section 171 applies to the young person.” 5 21 Schedule 26 replaced Replace Schedule 26 with the Schedule 26 set out in Schedule 10 1 of this Act.
Part 2 Consequential amendments, and transitional and savings provisions, taking effect on 30 July 2012 Consequential amendments to Income Tax Act 2007 and Child Support Act 1991 15 Amendment to Income Tax Act 2007 This section amends the Income Tax Act 2007.

In section YA 1, definition of financially independent, para- 20 graph (d), delete “, payable under Part 1 of the Act”.
In section YA 1, definition of income-tested benefit,–– (a) (b) In section YA 1, definition of income-tested benefit, after 25 paragraph (g), insert: “(h) young parent payment: youth payment”.

“(i) repeal paragraph (c): in paragraph (g), replace “benefit” with “benefit:”.

Amendment to Child Support Act 1991 This section amends the Child Support Act 1991.

In section 2, the definition of social security benefit, para- graph (c), after subparagraph (iv), insert: 30 “(v) young parent payment”.
22 (1) (2) (3) (4) 23 (1) (2) 34 Social Security (Youth Support and Work Focus) Amendment Bill Part 2 cl 25 Other consequential amendments Consequential amendments 24 (1) Amend the principal Act as set out in Part 1 of Schedule 2.

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

(3) Amend the regulations specified in Part 3 of Schedule 2 as set out in that Part of that schedule.
25 (1) Transitional provision: entitlement to youth payment or young parent payment This subsection applies to a person— (a) who, immediately before the commencement of this Part,— (i) was aged 16 or 17 years and did not have a de- pendent child; and 5 10 (b) (ii) was receiving in his or her own right an inde- 15 pendent youth benefit or sickness benefit; and is not the spouse or civil union or de facto partner of a specified beneficiary within the meaning of any of para- graphs (b) to (d) of the definition of that term in sec- tion 157 of the principal Act (as inserted by section 20 20 of this Act).
(2) A person to whom subsection (1) applies is entitled, on the commencement of this Part of this Act to receive a youth payment as if it had been granted on that commencement under section 159 or 160 of the principal Act.
This subsection applies to a person— (a) (3) 25 was aged 16, 17, or 18 years; and who, immediately before the commencement of this Part,— (i) (ii) was receiving in his or her own right a widow’s 30 benefit, a domestic purposes benefit (other than a domestic purposes benefit under section 61G of the principal Act), a sickness benefit, an emergency benefit ( being an emergency benefit granted to the person on the basis that he or she 35 would, but for his or her being aged 16 or 17 years, be entitled to a domestic purposes benefit 35 Part 2 cl 26 Social Security (Youth Support and Work Focus) Amendment Bill (b) (c) under section 27B of the principal Act), or an unemployment benefit (other than an unemploy- ment benefit granted under section 90(2) or (3) of the principal Act); and has a dependent child or children; and is not the spouse orr civil union or de facto partner of a specified beneficiary within the meaning of any of para- graphs (b) to (d) of the definition of that term in sec- tion 157 of the principal Act (as inserted by section 20 of this Act).
5 10 (4) A person to whom subsection (3) applies is entitled, on the commencement of this Act to receive a young parent payment as if it had been granted on that commencement under section 165 or 166 of the principal Act.
(5) A youth payment or young parent payment under subsection 15 (2) or (4)— (a) is, despite Schedule 26 but subject to section 23, payable at not less than the rate of the benefit that the person was receiving immediately before the com- mencement of this Act; and continues at that rate until the young person’s entitle- ment to the payment is reviewed under section 81 fol- lowing a change of circumstances.
20 (b) If, immediately before the commencement of this Part, the benefit of a person to whom subsection (1) or (3) applies is 25 subject to a sanction under section 60Y or 60Z or 117 of the principal Act, on that commencement— the sanction ceases to apply; and (a) for the purposes of subsections (2) and (4), the rate of (b) the benefit that would have been payable if the sanction 30 had not been imposed must be treated as the rate of the benefit that the person was receiving immediately before that commencement.
Savings provision: domestic purposes benefit under section 27G This section applies to a person who— (a) either— 35 (6) 26 (1) 36 Social Security (Youth Support and Work Focus) Amendment Bill Part 2 cl 27 (i) (ii) was receiving a domestic purposes benefit under section 27G in his or her own right immediately before the commencement of this Act; or had made an application for a domestic purposes benefit under section 27G in his or her own right 5 before that commencement, and was granted the benefit (on that application) after that commence- ment; and (b) (c) is aged 16 or 17 years; or is aged 18 years and has a dependent child or children.
(2) A person to whom this section applies is entitled to continue to receive that benefit for so long as he or she otherwise qualifies for it as if section 9 of this Act had not been enacted.

10 27 (1) (2) (3) 15 Transitional arrangements for financially disadvantaged people The Governor-General may, by Order in Council, make regu- lations authorising the provision of financial assistance to any people who are financially disadvantaged as a result of the net effects of the amendments made by Part 1 or 2.
The regulations must state the day on and after which they 20 have effect (which may be earlier than the day on which they were made).

The chief executive may provide financial assistance of the kind prescribed by the regulations to a person disadvantaged as a result of the net effects of the amendments made by Part 25 1 or 2— (a) in the amount, for the period, and in accordance with the criteria, prescribed by the regulations; and in accordance with any other requirements imposed by the regulations.
(b) 30 (4) After it has initially been granted, financial assistance provided under the regulations must for the purposes of the principal Act be treated as a benefit; and the principal Act applies ac- cordingly.

(5) A decision or determination made by the chief executive under 35 the regulations is a decision or determination for the purposes of section 12J(1) of the principal Act.
37 Part 3 cl 28 Social Security (Youth Support and Work Focus) Amendment Bill Part 3 Substantive provisions taking effect on 15 October 2012 Section 1B amended (Principles) In section 1B(c), replace “plan” with “prepare”.
5 10 Section 3 amended (Interpretation) In section 3(1), replace paragraph (a) of the definition of part- time work-tested beneficiary with— “(a) a work-tested spouse or partner; or a work-tested domestic purposes beneficiary; or a person with a youngest dependent child aged 5 or older, but under 14 years, who is— “(i) “(ii) “(iii) a work-tested widow’s beneficiary; or”.
In section 3(1), replace the definitions of work-tested benefi- ciary, work-tested benefit, and work-tested domestic pur- 15 poses beneficiary with— “work-tested beneficiary means a person— “(a) who is granted an unemployment benefit; or “(b) who is— “(i) “(ii) “(iii) a work-tested widow’s beneficiary; or “(iv) a work-tested sickness beneficiary a work-tested spouse or partner; or a work-tested domestic purposes beneficiary; or 20 “work-tested benefit— “(a) except in relation to a work-tested domestic purposes 25 beneficiary, a work-tested sickness beneficiary, or a work-tested widow’s beneficiary, means an unemploy- ment benefit; and in relation to a work-tested spouse or partner, includes a sickness benefit, an emergency benefit, and an invalid’s 30 benefit; and in relation to a work-tested domestic purposes benefi- ciary, means a domestic purposes benefit under section 27B or 27C; and in relation to a work-tested sickness beneficiary, means 35 a sickness benefit; and “(b) “(c) “(d) 28 29 (1) (2) 38 Social Security (Youth Support and Work Focus) Amendment Bill Part 3 cl 30 “(e) in relation to a work-tested widow’s beneficiary, means a widow’s benefit “work-tested domestic purposes beneficiary means a person who has been granted a domestic purposes benefit under sec- tion 27B or 27C; and— “(a) who has no dependent children; or “(b) whose youngest dependent child— 5 “(i) “(ii) is aged 5 years or older, but under 18 years; or is aged 18 years or older, and is a child in respect of whom that benefit is paid, or continues to be 10 paid, under section 63A”.
In section 3(1), replace the definition of suitable employment with— “suitable employment in relation to a person, means employ- ment that the chief executive is satisfied is suitable for the per- 15 son to undertake for a number of hours a week determined by the chief executive having regard to the employment required to satisfy the work test for that person”.

In section 3(1), paragraph (a) of definition of work-tested spouse or partner, replace “6” with “5”.
In section 3(1), insert in its appropriate alphabetical order— “work-tested widow’s beneficiary means a person who has been granted a widow’s benefit; and— “(a) who has no dependent children; or “(b) whose youngest dependent child— 20 25 (3) (4) (5) “(i) “(ii) is aged 5 years or older, but under 18 years; or is aged 18 years or older, and is a child in respect of whom that benefit is paid, or continues to be paid, under section 63A”.
30 Section 21 amended (Widows’ benefits) Replace section 21(2A) with— 30 “(2A) A woman who receives a benefit under this section must— “(a) “(b) comply with any obligation arising under section 60Q; and if she is a work-tested widow’s beneficiary, comply with 35 the work test.” 39 Part 3 cl 31 Social Security (Youth Support and Work Focus) Amendment Bill 31 New section 21A inserted (Widows’ benefits: pre-benefit activities) After section 21, insert: “21A Widows’ benefits: pre-benefit activities “(1) This subsection applies to a person if— 5 “(a) “(b) she contacts the department requesting financial assist- ance after the commencement of Part 3 of the Social Security (Youth Support and Work Focus) Amendment Bill 2012; and the chief executive considers that the appropriate finan- 10 cial assistance for her would be a widow’s benefit.
“(2) Section 96A(2) to (13) applies to a person to whom subsec- tion (1) applies, but as if every reference to an unemployment benefit were a reference to a widow’s benefit.” 32 Section 27C amended (Domestic purposes benefits for women alone) Replace section 27C(4) with— “(4) A woman who receives a benefit under this section must com- ply with the work test.” 33 New section 27CA inserted (Domestic purposes benefits under section 27B or 27C: pre-benefit activities) After section 27C, insert: “27CA Domestic purposes benefits under section 27B or 27C: pre-benefit activities “(1) This subsection applies to a person if— 15 20 25 “(a) “(b) he or she who contacts the department requesting fi- nancial assistance after the commencement of Part 3 of the Social Security (Youth Support and Work Focus) Amendment Bill 2012; and the chief executive considers that the appropriate finan- 30 cial assistance for him or her would be a domestic pur- poses benefit under section 27B or 27C.
“(2) Section 96A(2) to (13) applies to a person to whom subsec- tion (1) applies, but as if every reference to an unemployment benefit were a reference to a domestic purposes benefit under 35 section 27B or 27C.” 40 Social Security (Youth Support and Work Focus) Amendment Bill Part 3 cl 34 34 New sections 60GAD to 60GAF inserted Insert before section 60GA the following sections: “60GAD Purpose of sections 60GAE and 60GAF The purpose of sections 60GAE and 60GAF is to improve the financial and social outcomes for families that include 5 people to whom those sections apply by providing earlier access to employment services and expectations, while recog- nising the care and development needs of children.
“60GAE Beneficiaries having additional dependent child: general 10 “(1) This section applies to a person (the beneficiary parent) who (whether or not by having given birth) becomes a caregiver, or the principal caregiver, of a dependent child (an additional dependent child) while the person— “(a) is receiving a domestic purposes benefit, an invalid’s 15 benefit, a sickness benefit, an unemployment benefit, a widow’s benefit, or an emergency benefit (whether in his or her own right, or as the spouse or partner of the person granted the benefit); and is already a caregiver, or the principal caregiver, of a 20 dependent child or children.
“(b) “(2) An additional dependent child aged 1 or over must not be in- cluded in the determination for the purposes of the definitions of part-time work-tested beneficiary, work-tested domestic purposes beneficiary, work-tested spouse or partner, and 25 work-tested widow’s beneficiary in section 3(1) and section 60Q(1) of— “(a) the age of the youngest dependent child of the benefi- ciary parent concerned; and “(b) whether the beneficiary parent concerned has a depend- 30 ent child or children under 5 or 14 (and if so, how many).
“(3) Subsection (2) may apply to 2 or more additional dependent children of the same beneficiary parent.
“(4) The chief executive may apply this section in relation to any 35 dependent child or children of whom a person who already has any dependent child or children becomes a caregiver, or the principal caregiver, if satisfied that— 41 Part 3 cl 35 Social Security (Youth Support and Work Focus) Amendment Bill “(a) “(b) the person’s situation is analogous to that of a person to whom subsection (1) applies; or to do so would best achieve the purpose stated in sec- tion 60GAD.
“(5) An example of a situation that is analogous to that of a person 5 to whom section 60GAE(1) applies is that of a woman who gives birth during a period when she has temporarily ceased receiving a benefit (whether in her own right, or as the spouse or partner of the person granted the benefit).

“(6) Subsection (5) does not limit the generality of subsection 10 (4).
“60GAF Chief executive may refrain from applying section 60GAE The chief executive may refrain (for any period he or she thinks fit) from applying section 60GAE in relation to any 15 additional dependent child or children (within the meaning of that section) if satisfied in any particular case that– “(a) to do so would best achieve the purpose stated in sec- tion 60GAD; or there are circumstances beyond the control of the bene- 20 ficiary parent concerned making it inappropriate or un- reasonable to apply that section.” “(b) 35 New sections 60P to 60R substituted Repeal sections 60O to 60Z and substitute: “60P Purposes of section 60Q The purposes of section 60Q are— “(a) to facilitate the movement into ongoing employment (as their parenting responsibilities and individual circum- stances allow) of beneficiaries to whom that section ap- plies; and to provide opportunities for them to improve their cap- abilities and preparation for employment; and to improve social and economic outcomes for them and their dependent children.
“(b) “(c) 42 25 30 Social Security (Youth Support and Work Focus) Amendment Bill Part 3 cl 35 “60Q Certain obligations may be placed on beneficiaries and their spouses and partners “(1) This section applies to every person (other than a person who is a work-tested beneficiary or is for the time being exempted under section 105) who— “(a) 5 “(b) “(c) is the recipient of a benefit under section 21 (the widow’s benefit) and has a youngest dependent child under the age of 5 years; or is the recipient of a benefit under section 27B (the domestic purposes benefit for solo parents) and has a 10 youngest dependent child under the age of 5 years; or is the spouse or partner of a person who— “(i) is the recipient of an emergency benefit, an in- valid’s benefit, a sickness benefit, or an unem- ployment benefit; and 15 “(ii) has a youngest dependent child aged under 5 years.
“(2) A person to whom this section applies has a general obliga- tion to take all steps that are reasonably practicable in his or her particular circumstances to prepare for employment and 20 (in particular) an obligation to comply with any requirement under subsection (3).
“(3) The chief executive may, from time to time, require a person to whom this section applies— “(a) “(b) to undertake planning for employment: to participate in or undertake (as the case requires) any of the following activities specified by the chief execu- tive that the chief executive considers suitable to im- prove his or her work-readiness or prospects for em- ployment: “(i) “(ii) a work assessment: a programme or seminar to increase particular skills or enhance motivation: an education programme: “(iii) a work-experience or work-exploration activity: “(iv) employment-related training: “(v) “(vi) any other activity (including rehabilitation) other than medical treatment, voluntary work, or activ- ity in the community.
43 25 30 35 Part 3 cl 36 Social Security (Youth Support and Work Focus) Amendment Bill “60R Department to explain obligations to beneficiaries The chief executive must take reasonable and appropriate steps to make every person who is subject to obligations under section 60Q aware of— “(a) “(b) those obligations; and the consequences of failure to comply with them and (in particular) the sanctions that may be imposed under this Act for failing to comply with them.” 36 Section 96A amended (Unemployment benefit: pre-benefit activities) Repeal section 96A(1) and substitute: (1) “(1) This section applies to a person if— “(a) “(b) he or she who contacts the department requesting finan- cial assistance after the commencement of this section; and the chief executive considers that the appropriate finan- cial assistance for him or her would be an unemploy- ment benefit.” 5 10 15 In section 96A(2), replace “If the chief executive considers that the appropriate financial assistance for the person would 20 be an unemployment benefit, the chief executive may (for the purpose stated in section 1A(a)(ii)) require him or her” with “The chief executive may (for the purpose stated in section 1A(a)(ii)) require a person to whom this section applies”.
Section 105 amended (Exemption from obligations) In section 105(1), after “work test obligations”, insert “, or obligations under section 60Q,”.

In section 105(5), after “work test obligations”, insert “, or obligations under section 60Q,”.
New section 116A inserted (Failure to comply with requirements under section 60Q(2)) Insert before section 117 the following section: 25 30 (2) 37 (1) (2) 38 44 Social Security (Youth Support and Work Focus) Amendment Bill Part 4 cl 43 “116A Failure to comply with requirements under section 60Q(2) The sanctions stated in section 117 must be imposed on a per- son on whom a requirement has been imposed under section 60Q(2) if the chief executive considers that the person has, 5 without a good and sufficient reason, failed to comply with it.” 39 40 41 Section 117 amended (Sanctions that may be imposed for failures) Insert before “are” in section 117(1) “or section 116A”.
10 Section 119 amended (Calculation of failure rate) Insert before “is” where it first occurs in section 119(1) “or section 116A”.

Section 122 amended (Meaning of recompliance) Insert before “a person” in section 122(1) “or section 116A”.
15 Part 4 Consequential provisions taking effect on 15 October 2012 42 Section 171 amended (Obligations of spouses and partners of specified beneficiaries) 20 (1) Delete from subsections (1)(b) and (2)(b) of section 171 as inserted by section 20 of this Act) “or to employment plan obligations under section 60Q”.
In section 171 (3)(b) replace “section 60Q(1) for the pur- poses of 60U” with “section 60Q(3) for the purposes of sec- 25 tion 117A” (2) 43 Section 123D amended (Regulations) In section 123D(a), after “work test obligations”, insert “, or obligations under section 60Q,”.
45 Part 4 cl 44 Social Security (Youth Support and Work Focus) Amendment Bill Employment plans and certain sanctions cease to have effect On the commencement of this Part of this Act, the following cease to have effect if they were in force immediately before that commencement: (a) 5 all employment plans under former section 60R of the principal Act: all reviews of an employment plan commenced under former section 60S, 60U, or 60V of the principal Act: all requirements under former section 60W of the prin- 10 cipal Act: all notices under former section 60X of the principal Act: all sanctions under section 60Y or 60Z of the principal Act.
15 (b) (c) (d) (e) 44 46 Social Security (Youth Support and Work Focus) Amendment Bill Schedule 1 Schedule 1 New Schedule 26 of Social Security Act 1964 Schedule 26 Rates and component of youth payment and young parent payment, and criteria for incentive payments Rates of youth payment and young parent payment s 21 ss 163, 169 5 For a single young person without dependent chil- dren.
For a single young person who— • • is aged 16 to 17 years; and is living with or being financially supported by a parent or guardian; and • has a dependent child or children.

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

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

For a young person who is married, in a civil union, or in a de facto relationship and has a dependent child or children.
$ 170.80 a week sub- ject to clause 10 134.64 a week sub- ject to clause 10 293.58 a week sub- ject to clause 10 170.80 a week sub- ject to clause 11 170.80 a week sub- ject to clause 11 Component 10 6 Maximum amount of in-hand allowance.
Rates of incentive payments 7 8 9 Education, training, or work-based learning incen- tive Budgeting incentive Parenting education incentive $ 50 a week $ 10 a week 10 a week 10 a week 47 Schedule 1 Social Security (Youth Support and Work Focus) Amendment Bill Schedule 26—continued Abatement rates and income limits The applicable rate of youth payment or young parent payment in clause 1, 2, or 3 must be reduced by $1 for every $1 of the young person’s weekly income that exceeds $206.73, but no amount of youth payment or young parent payment or incentive payment is payable if the young person’s weekly income exceeds $256.73.
The applicable rate of youth payment or young parent payment in clause 4 or 5 must be reduced by 50 cents for every $1 of the combined weekly income of the young person and his or her spouse or partner that exceeds $206.73, but no amount of youth payment or young parent payment or incentive payment is payable if that combined income exceeds $306.73.
For the purposes of clause 10 or 11 and a rate of young parent payment, the chief executive may, in his or her discretion, disregard up to $20 a week of the personal earnings of the young person used to meet the costs of child care for any of the person’s dependent children.
10 11 12 48 Social Security (Youth Support and Work Focus) Amendment Bill Schedule 2 Schedule 2 Consequential amendments Part 1 Consequential amendments to principal Act s 24 Section 3(1) In section 3(1), definition of income-tested benefit, repeal paragraph (d).

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

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

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

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

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

25 Section 61HA(2) In section 61HA(2), after “and 26” insert “(other than any rate of incentive payment)”.
30 49 Schedule 2 Social Security (Youth Support and Work Focus) Amendment Bill Part 1—continued Section 69C(1)(a) In section 69C(1)(a), replace “or an independent youth benefit” with “a youth payment, or a young parent payment”.

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

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

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

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

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

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

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

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

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

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

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

Section 84(1) In section 84(1), after “82”, insert “or 179(5)”.
25 51 Schedule 2 Social Security (Youth Support and Work Focus) Amendment Bill Part 1—continued Section 115A Repeal section 115A.

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

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

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

Repeal section 122(b).

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

In the heading to section 123, after “work test” insert “or section 170 or 171”.
5 10 Section 123(1) In section 123(1)(a), after “117”, insert “or section 173 or 174” In section 123(1)(b)(ia), replace “section 60GAB” with “section 170 or 171”.

In section 123(1)(b)(ii), after “section 60HA”, insert “or section 170 or 171”.

15 20 Section 123B(1)(a) In section 123B(1)(a), after “section 117”, insert “or section 173 or 174” .

Section 123B(5) In section 123B(5)(a), replace “section 60GAB” with “section 170 25 or 171”.
In section 123B(5)(b), after “section 60HA”, insert “or section 170 or 171”.

52 Social Security (Youth Support and Work Focus) Amendment Bill Schedule 2 Part 1—continued Section 123C(1)(b) In section 123C(1)(b), delete “or a requirement under section 60GAB”.

Schedule 18 In Schedule 18, Part 1, clause 3, after “purposes benefit”, insert “or 5 a young parent payment”.
Part 2 Amendments to other enactments Education Act 1989 (1989 No 80) In section 226A(1), definition of benefit, delete “, or an independent 10 youth benefit under section 60F of that Act”.

In section 235F(1), definition of benefit, delete “, or an independent youth benefit under section 60F of that Act”.

In section 307B(2)(ab), replace “benefit debt” with “debt described in section 85A of the Social Security Act 1964”.
15 Part 3 Amendments to regulations Health Entitlement Cards Regulations 1993 (SR 1993/169) Revoke regulation 8(1)(a)(v).

After regulation 8(1)(a)(vii), insert: 20 “(viii) a youth payment: “(ix) a young parent payment.”.

Social Security (Debt Recovery Suspension) Regulations 2007 (SR 2007/86) In regulation 3, definition of working age benefit, replace paragraph 25 (e) with: a youth payment; or “(e) “(ea) a young parent payment; or”.
53 Schedule 2 Social Security (Youth Support and Work Focus) Amendment Bill Part 3—continued Social Security (Temporary Additional Support) Regulations 2005 (SR 2005/334 In regulation 4, replace paragraph (f) with: a youth payment; or “(e) “(ea) a young parent payment; or”.

Student Allowances Regulations 1998 (SR 1998/277) Revoke regulation 13(1)(d).
After regulation 13(1)(f), insert: “(g) “(h) a youth payment: a young parent payment.” 12 5 10 Wellington, New Zealand: Published under the authority of the New Zealand Government—2012 54