Social Security (Social Assistance) Amendment Act 2005

1: Title
1: This Act is the Social Security (Social Assistance) Amendment Act 2005.
2: In this Act, the Social Security Act 1964 the principal Act
2: Commencement
1: Sections 4(3) 7(3)
2: Sections 9(1) (3) 10(1)
3: The rest of this Act comes into force on the day after the date on which it receives the Royal assent.
1: Amendments to Social Security Act 1964
3: Interpretation
1: The definition of benefit section 3(1) subparagraph (ia)
2: The definition of income-tested benefit section 3(1) paragraph (h)
3: The definition of transitional retirement benefit section 3(1)
4: Interpretation
1: The definition of beneficiary section 61E(1) paragraph (b) , a transitional retirement benefit,
2: The definition of cash assets section 61E(1) paragraph (a)﻿(i)
i: money saved with a bank or other institution, money invested with a bank or other institution, or money banked with a bank or other institution:
3: The definition of owner section 61E(1) paragraph (b)
ba: a licence to occupy, where the premises are a residential unit in a retirement village (as those terms are defined in the Retirement Villages Act 2003
5: Accommodation supplement
Section 61EA(3) superannuation or a veteran's pension
6: Disability allowance
1: Section 69C(1)﻿(a) on the ground specified in section 60F(6)
2: Section 69C(5)﻿(a) or a transitional retirement benefit
7: Rates of benefits for sole parents may be reduced
1: Section 70A(1)﻿(b) subparagraph (iiia)
2: Section 70A(1) paragraph (c)
c: who, in respect of any dependent child in the care of the beneficiary, fails or refuses—
i: to identify who is in law the other parent of that child; or
ii: to make an application for formula assessment of child support, when required to do so by section 9 of the Child Support Act 1991
iii: to attend and give in evidence all information that is required of the beneficiary during a hearing of a proceeding under the Child Support Act 1991 section 122 of that Act
3: Section 70A(3) paragraph (b)
ba: the beneficiary or any of the beneficiary's children would be at risk of violence if the beneficiary carried out or took steps to carry out any of the actions referred to in subparagraphs (i) to (iii) of subsection (1)﻿(c)
bb: there is a compelling circumstance, other than a circumstance mentioned elsewhere in this subsection, for the beneficiary's failure or refusal to carry out any of the actions set out in subparagraphs (i) to (iii) of subsection (1)﻿(c)
4: Section 70A subsection (4)
4: A reduction of the rate of benefit under subsection (2) subparagraph (i), (ii), or (iii) of subsection (1)﻿(c)
5: If a beneficiary's rate of benefit has been reduced under subsection (2) subsection (6)
6: The circumstances are that—
a: a period of not less than 13 weeks has elapsed after the date on which the beneficiary's rate of benefit was reduced under subsection (2)
b: during the period referred to in paragraph (a) subparagraphs (i) to (iii) of subsection (1)﻿(c)
7: A further reduction made under subsection (5) subsection (1)﻿(c)
8: A reduction of the rate of benefit under subsection (5) subsection (2)
9: For the purposes of this section— violence section 3 of the Domestic Violence Act 1995
5: Despite anything in section 70A(5) subsection (4) section 70A(5)
8: Commencement of benefits
1: Section 80(2)﻿(b) a transitional retirement benefit,
2: Section 80(14)﻿(b) A transitional retirement benefit or
9: Interpretation
1: Section 80B average income average income calculation period average income average income calculation period
a: if the person has made an election under section 80BA(1A)
i: the date the person became entitled to receive the benefit; or
ii: if the person's employment terminated or the person is given notice of termination of employment before he or she applied for the benefit, the date the person's employment ceased; or
b: in any other case, the period of 26 weeks immediately before the later of the dates referred to in subparagraphs (i) and (ii) of paragraph (a)
2: The definition of income section 80B subparagraph (x)
3: Section 80B specified income
a: the person's income in the average income calculation period; and
b: the amount of any redundancy payment or retirement payment, before the deduction of income tax, not included in the person's income under paragraph (a)
i: before the person's employment ceased; or
ii: in the 52 weeks after the date on which the employment ceased.
10: Calculation of stand down
1: Section 80BA subsection (1)
1A: A person who is entitled to a benefit to which this section applies may elect to have his or her average income calculated by reference to a period of 52 weeks instead of 26 weeks.
2: Section 80BA(4)﻿(b)﻿(i) a sickness benefit, or a transitional retirement benefit or a sickness benefit
11: Ending of benefits
Section 80BD(3) a transitional retirement benefit,
12: New section 83A inserted
The principal Act is amended by inserting, after section 83
83A: Tax on benefits
1: This section applies where any instalment or a payment of an income-tested benefit is a source deduction payment.
2: Where this section applies, the chief executive may, instead of making a tax deduction from the source deduction payment, pay to the Commissioner of Inland Revenue, at such time as the Commissioner determines in consultation with the chief executive, an amount for income tax payable on that payment, calculated in accordance with subsection (3)
3: The amount for income tax payable on a source deduction payment is the amount of the tax deduction that would be made, at the rate determined under the appropriate specified provision, if the payment were increased by an amount that, after the tax deduction were made, would result in an amount equal to the source deduction payment.
4: An amount for income tax paid to the Commissioner under subsection (2)
a: for the purposes of this Act, be considered to be a payment of a benefit, within the meaning of that term in section 3(1)
b: for the purposes of—
i: the Income Tax Act 1976
ii: the Income Tax Act 1994
iii: the Income Tax Act 2004
5: If, as a result of the review, suspension, cancellation, or termination of an income-tested benefit, the chief executive determines that an amount for tax on the benefit has been paid in accordance with this section to the Commissioner in excess of the amount that is properly payable under this section, the chief executive may not recover the excess amount as a debt due to the Crown within the meaning of section 85A
a: making an adjustment to any amount subsequently payable to the Commissioner under subsection (2)
b: making such other arrangements for its refund as are agreed with the Commissioner.
6: In this section,— income-tested benefit section 2 of the Income Tax Act 1976 section OB 1 of the Income Tax Act 1994 section OB 1 of the Income Tax Act 2004 section 3(1) of this Act source deduction payment section 2 of the Income Tax Act 1976 section OB 1 of the Income Tax Act 1994 section OB 1 of the Income Tax Act 2004 specified provision
a: the fourth proviso to section 343(1) of the Income Tax Act 1976
b: the fourth proviso to section NC 6(1) of the Income Tax Act 1994
c: section NC 6(1D) of the Income Tax Act 1994
d: section NC 6(1D) of the Income Tax Act 2004
13: Unemployment benefit rates
Section 99(4) paragraph (a)
ab: the application of section 117
14: Money payable out of Crown Bank Account
Section 124(1) paragraph (da)
15: Cost of repair and replacement of artificial limbs
Section 126 Rehabilitation League N.Z. (Incorporated) New Zealand Artificial Limb Board
2: Consequential amendments and savings provision
16: Consequential amendments to Income Tax Acts
1: The definition of income-tested benefit section OB 1 of the Income Tax Act 1994 and includes a transitional retirement benefit payable under Part 1 of the Social Welfare (Transitional Provisions) Act 1990
2: The definition of New Zealand superannuation section OB 1 of the Income Tax Act 1994 paragraph (c)﻿(ii)
3: The definition of New Zealand superannuation section OB 1 Income Tax Act 2004 paragraph (c)﻿(ii)
17: Consequential amendments to regulations
1: The Health Entitlement Cards Regulations 1993 regulation 8(1)﻿(a) a transitional retirement benefit granted under section 7A of the Social Welfare (Transitional Provisions) Act 1990
2: The Social Security (Period of Income Assessment) Regulations 1996 Transitional retirement benefit
3: The Taxation (Abated Interim Payments of Part KD Credit) Regulations 2002 regulation 3(1)﻿(b) (c)
b: an emergency benefit payable under the Social Security Act 1964
18: Savings in respect of tax on benefits
1: For the purpose of determining the validity of any payment for tax on an income-tested benefit, the principal Act must be read as if at all material times it contained section 83A section 12
2: In this section, income-tested benefit section 83A(6) section 12