Child Poverty Reduction Act 2018

1: Title
This Act is the Child Poverty Reduction Act 2018.
2: Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.
1: Preliminary provisions
3: Purpose of this Act
The purpose of this Act is to help achieve a significant and sustained reduction in child poverty in New Zealand by provisions that—
a: encourage a focus by government and society on child poverty reduction:
b: facilitate political accountability against published targets:
c: require transparent reporting on levels of child poverty.
4: Overview of this Act
To help achieve its purpose, this Act—
a: specifies and requires child poverty measures:
b: requires the setting of child poverty reduction targets:
c: requires reports relating to child poverty:
d: requires the identification of child poverty related indicators:
e: requires monitoring reports related to identified indicators.
5: Interpretation
In this Act, unless the context otherwise requires,— amended section 6(2)
a: is amended or replaced; or
b: expires or is revoked; or
c: otherwise ceases to have effect base financial year section 11 chief executive child child poverty related indicator
a: a cause of, or a factor that contributes to, child poverty:
b: an event or a circumstance that occurs with (for example, as a correlate of, or incidental to) child poverty:
c: a consequence of child poverty child’s household DHI Income Tax Act 2007 DHI for the year equivalised financial year household household income housing costs identified indicators section 38 income intermediate targets section 21(1)﻿(b) long-term targets section 21(1)﻿(a) material
a: means material referred to in section 6(2)
b: does not include anything incorporated by reference by that material material hardship section 12 measures
a: primary measures; and
b: supplementary measures Minister monitoring reports section 44 persistent poverty section 13 primary measure sections 10 to 13 reports section 30 severe material hardship section 19 Statistician section 6 Statistician’s definition section 34 Statistics New Zealand continued by the Data and Statistics Act 2022 strategy Children’s Act 2014 supplementary measure sections 15 to 20 targets
a: long-term targets; and
b: intermediate targets technical appendix section 31(2) written material
a: in a visible and tangible form by any means and in any medium; or
b: in a visible form in any medium by electronic means that enables them to be stored in permanent form and be retrieved and read. Section 5 Statistician amended 1 September 2022 section 107(1) Data and Statistics Act 2022 Section 5 Statistics New Zealand amended 1 September 2022 section 107(1) Data and Statistics Act 2022
6: Statistician’s definitions
Duty and power to define concepts or terms
1: The Statistician—
a: must make under section 34 section 5
b: may make under section 34 Definitions may incorporate material by reference
2: Statistician’s definitions may define concepts or terms by incorporating by reference, with or without specified modifications, all or parts of relevant overseas or international legislation, standards, or practices (and Schedule 2
3: If the material incorporated in a definition in reliance on subsection (2) is amended by the originator of the material after the definition is decided, the amendments have no legal effect as part of the definition unless—
a: they are specifically incorporated by later definition decided in reliance on subsection (2); or
b: amendments to the material are expressly authorised to have that effect by another Act. Access to, and status of, definitions
4: Statistician’s definitions decided for the purposes of measures, targets, or reports for a financial year may be decided, amended, or replaced before, during, or after that financial year
5: The following are secondary legislation (see Part 3
a: a Statistician’s definition:
b: an amendment to, or replacement of, a Statistician’s definition.
6: See also section 31(2) Welfare Reform and Work Act 2016 s 4(2) (UK) The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it on a website maintained by, or on behalf of, Statistics New Zealand LA19 ss 73 74(1)﻿(a) cl 14 Presentation It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 LA19 s 114 cl 32(1)﻿(a) Disallowance It is not disallowable because an exemption applies under Schedule 3 LA19 s 115(d) Sch 3 This note is not part of the Act. Section 6(4) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 6(5) replaced 28 October 2021 section 3 Secondary Legislation Act 2021
7: Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in Schedule 1
8: Act binds the Crown
This Act binds the Crown.
2: Measures, targets, reports, indicators, and monitoring reports
Primary measures
9: Purpose of primary measures
Sections 10 to 13
10: Low income: less than 50% of median equivalised DHI (without deducting housing costs) for financial year
A child falls within this section in a financial year if the child’s household’s equivalised DHI (without deducting housing costs) for the year is less than 50% of median equivalised DHI (without deducting housing costs) for the year.
11: Low income: less than 50% of median equivalised DHI (after deducting housing costs) for base financial year
1: A child falls within this section in a financial year if the child’s household’s equivalised DHI (after deducting housing costs) for the year is less than the applicable level.
2: The applicable level is the specified amount (50% of median equivalised DHI (after deducting housing costs) for the base financial year) after the specified amount is adjusted to take account of changes in the value of money after the base financial year.
12: Material hardship
A child falls within this section in a financial year if, for a period that is or includes all or any of the year, the child’s household experiences material hardship.
13: Persistent poverty
A child falls within this section in a financial year if, for a period that is or includes all or any of the year, the child’s household experiences persistent poverty. Supplementary measures
14: Purpose of supplementary measures
Sections 15 to 20
15: Low income: less than 60% of median equivalised DHI (without deducting housing costs) for financial year
A child falls within this section in a financial year if the child’s household’s equivalised DHI (without deducting housing costs) for the year is less than 60% of median equivalised DHI (without deducting housing costs) for the year.
16: Low income: less than 60% of median equivalised DHI (after deducting housing costs) for financial year
A child falls within this section in a financial year if the child’s household’s equivalised DHI (after deducting housing costs) for the year is less than 60% of median equivalised DHI (after deducting housing costs) for the year.
17: Low income: less than 50% of median equivalised DHI (after deducting housing costs) for financial year
A child falls within this section in a financial year if the child’s household’s equivalised DHI (after deducting housing costs) for the year is less than 50% of median equivalised DHI (after deducting housing costs) for the year.
18: Low income: less than 40% of median equivalised DHI (after deducting housing costs) for financial year
A child falls within this section in a financial year if the child’s household’s equivalised DHI (after deducting housing costs) for the year is less than 40% of median equivalised DHI (after deducting housing costs) for the year.
19: Severe material hardship
A child falls within this section in a financial year if, for a period that is or includes all or any of the year, the child’s household experiences severe material hardship.
20: Low income and hardship: less than 60% of median equivalised DHI (after deducting housing costs) for financial year and material hardship
A child falls within this section in a financial year if, in the year,—
a: the child falls within section 16
b: the child falls within section 12 Targets
21: Targets: duty to set
1: The Minister must set (and may change)—
a: long-term targets for reducing, over a long-term period (10 financial years), child poverty; and
b: intermediate targets that support, over an intermediate period (3 financial years), current long-term targets.
2: The periods to be covered by long-term targets set, or changed, under subsection (1)﻿(a) are—
a: the long-term period from the 2018/19 financial year to the 2027/28 financial year; and
b: every later long-term period.
3: The periods to be covered by intermediate targets set, or changed, under subsection (1)﻿(b) are—
a: the intermediate period from the 2018/19 financial year to the 2020/21 financial year; and
b: every later intermediate period.
4: A target that covers a long-term period, or an intermediate period,—
a: must be set before, or as soon as is reasonably practicable after, the start of the period; and
b: may, after it is set, be changed at any time before the end of the period.
22: Targets: content
Targets must be set for each primary measure.
23: Targets: setting, changing, and publication
1: Targets are set or changed by notice in the Gazette
2: Targets, and changes to targets, must also be published on, and available at all reasonable times from, an Internet site directed by the Minister.
24: Targets: presentation to House of Representatives
The Minister must, promptly after setting or changing targets, present to the House of Representatives a copy of the targets or changes.
25: Targets: application of Legislation Act 2012
Section 25 repealed 28 October 2021 section 3 Secondary Legislation Act 2021
26: Targets: duty to review
The Minister must ensure that each current target is reviewed—
a: at least once in the financial years that the target covers:
b: if it is an intermediate target, at the same time as, or as soon as is reasonably practicable after, any change is made to the related long-term target.
27: Targets: duty to explain non-compliance
1: This section applies if a report—
a: is presented to the House of Representatives under section 37
b: discloses non-compliance with long-term targets or intermediate targets.
2: The Minister must, in another document presented to the House of Representatives when, or as soon as is reasonably practicable after, the report is presented, explain why that non-compliance occurred.
28: Targets: effect
1: The only remedies or relief that a court may grant for non-compliance with the targets are a declaration (made by the High Court or, on an appeal, by the Court of Appeal or the Supreme Court) of that non-compliance and costs.
2: In particular, no form of monetary compensation or relief, or injunctive relief, is available as a remedy for non-compliance with the targets.
3: If a declaration is made under subsection (1), and the declaration is not overturned on appeal or the time for lodging an appeal (which, in this section, includes applying for leave to appeal) expires, the Minister must present to the House of Representatives a document—
a: bringing the declaration to the attention of the House of Representatives; and
b: containing advice on the Government’s response to the declaration.
4: The Minister must carry out the duties imposed by subsection (3) as soon as is reasonably practicable after the date of disposal of all appeals against the granting of the declaration or, if no appeal is lodged, the date when the time for lodging an appeal expires.
5: Despite any contrary enactment or other law, the targets do not (except as provided in subsections (1) to (4))—
a: create any legal right enforceable in a court of law:
b: affect or limit the way in which a person (for example, a Minister of the Crown or chief executive of a department of State) is required to exercise a statutory power of decision:
c: affect the interpretation of any enactment or the operation of any other law:
d: restrict the ability of the Crown to exercise its powers and perform its functions and duties in accordance with the law and Government policy, for example, the ability to—
i: introduce legislation and change Government policy; and
ii: interact with or consult a person the Crown considers appropriate:
e: restrict the responsibilities of a Minister of the Crown or a department of State.
6: Subsection (5) overrides section 29(1) 1993 No 82 ss 92J 92K s 11 ss 23 24
29: Targets: accountabilities to Parliament and Executive
1: For the purposes of the operation of the legislative and executive branches of Government, in any matter relating to the setting or achievement of the targets, the Minister is the Minister of the Crown who is accountable, both to Parliament and the Executive.
2: Subsection (1) does not limit or affect section 28(5) Public Finance Act 1989
3: A duty, function, or power of the Minister is affected by the targets only to the extent necessary to give effect to subsection (1) (as overridden by section 28(5) 2014 No 40 s 13 Reports
30: Reports: duty to prepare
1: The Statistician must, after a financial year, prepare a report measuring child poverty in that financial year.
2: The report must be prepared as soon as is reasonably practicable, and in any case within the next financial year.
31: Reports: content: general
1: The report must include a statement of the percentage of children living in households in New Zealand in the financial year— Primary measures
a: who fell within section 10
b: who fell within section 11
c: who fell within section 12
d: who fell within section 13 Supplementary measures
e: who fell within section 15
f: who fell within section 16
g: who fell within section 17
h: who fell within section 18
i: who fell within section 19
j: who fell within section 20
2: The report must include a technical appendix that sets out all Statistician’s definitions for the report.
32: Reports: content: analysis of identified populations
1: The report must include analysis of the identified populations.
2: The identified populations
a: Māori children; and
b: any groups identified for the report under subsection (3).
3: The Statistician may identify for the report 1 or more groups of other children, analysis of whom may help achieve the purpose of this Act.
4: Examples of groups of other children who may be identified are Pacific children, disabled children, and children with a disabled parent, guardian, or caregiver.
5: However, this section does not require the report to include analysis of the identified populations if, or so far as, available data is not reasonably adequate to enable that analysis to be done using the relevant statistical methodology.
33: Reports: consultation and acting independently
1: In preparing the report, the Statistician must consult the chief executive.
2: In preparing the report, and performing other duties or functions under this Act, the Statistician and the chief executive must act independently of, and are not subject to direction from, Ministers of the Crown or other chief executives of departments of State.
3: Subsection (2)—
a: applies despite section 52
b: applies to the Statistician, in performing duties or functions under this Act, instead of section 16 1975 No 1 s 15 Section 33(3)﻿(a) amended 7 August 2020 section 135 Public Service Act 2020 Section 33(3)﻿(b) amended 1 September 2022 section 107(1) Data and Statistics Act 2022
34: Reports: Statistician decides how statistics to be produced
1: In preparing the report, and performing other duties or functions under this Act, the Statistician must decide the following to be used in the provision of any statistics to be produced:
a: concepts or terms (for example, classifications or definitions) mentioned in section 6(1)
b: the data and statistical methodology.
2: Before making the decisions required by subsection (1), the Statistician must consult the chief executive on the Statistician’s proposed decisions.
3: The provisions of the Data and Statistics Act 2022 1975 No 1 s 14(i) Section 34(3) amended 1 September 2022 section 107(1) Data and Statistics Act 2022
35: Reports: duty to follow statistical best practice
In preparing the report, and performing other duties or functions under this Act, the Statistician and the chief executive must, whenever it is reasonably practicable to do so, follow statistical best practice.
36: Reports: publication
After the report is prepared, the Statistician must ensure that the report is published. 1975 No 1 s 15 s 15
37: Reports: presentation to House of Representatives
The Minister must, after receiving a copy of the report, and as soon as is reasonably practicable after the time it is published under section 36 Indicators
38: Child poverty related indicators: duty to identify
1: The Minister must identify, for monitoring reports, 1 or more child poverty related indicators related to all or any of the following areas:
a: income and employment:
b: housing:
c: education and development:
d: health (for example, physical health and mental health) and disability:
e: any other area or areas.
2: A child poverty related indicator identified for a financial year—
a: must be identified before, or as soon as is reasonably practicable after, the start of the year; and
b: may, after it is identified, be changed at any time before the end of the year.
39: Identified indicators: identifying, changing, and publication
1: Identified indicators are identified or changed by notice in the Gazette
2: Identified indicators, and changes to identified indicators, must also be published on, and available at all reasonable times from, an Internet site directed by the Minister.
40: Identified indicators: presentation to House of Representatives
The Minister must, promptly after identifying or changing identified indicators, present to the House of Representatives a copy of the identified indicators or changes.
41: Identified indicators: application of Legislation Act 2012
Section 41 repealed 28 October 2021 section 3 Secondary Legislation Act 2021
42: Identified indicators: duty to review
1: The Minister must ensure that each current identified indicator is reviewed before the deadline for review of the strategy.
2: The deadline for review of the strategy is, under section 7A
a: within 3 years after the date of its first adoption under section 6
b: thereafter within 3 years after the date of completion of the most recent review of it under section 7A
43: Identified indicators: purpose and effect
Identified indicators are identified only for, and so have no effect unrelated to, monitoring reports. Monitoring reports
44: Monitoring reports: duty to prepare
1: The Minister must, after a financial year, prepare a monitoring report related to that financial year.
2: The monitoring report must be prepared as soon as is reasonably practicable, and in any case within the next financial year.
45: Monitoring reports: content
The monitoring report must include data on every identified indicator identified for the financial year.
46: Monitoring reports: publication
After the monitoring report for a financial year is prepared, and the Minister receives a copy of the Statistician’s report for that financial year, the Minister must ensure that the monitoring report is published as soon as is reasonably practicable after the time that the Statistician’s report for that financial year is published under section 36
47: Monitoring reports: presentation to House of Representatives
After the monitoring report for a financial year is prepared, and the Minister receives a copy of the Statistician’s report for that financial year, the Minister must, as soon as is reasonably practicable after the time that the Statistician’s report for that financial year is published under section 36 Amendments to Public Finance Act 1989
48: Amendments to Public Finance Act 1989
Sections 49 50 Public Finance Act 1989 principal Act 2018-12-21 Public Finance Act 1989 Also section 50 — amend the principal Act as indicated in Schedule 3.
49: New section 15EA inserted (Main Appropriation Bill: supporting information relating to child poverty)
After section 15E
15EA: Main Appropriation Bill: supporting information relating to child poverty
1: The supporting information for the main Appropriation Bill must include a report on child poverty.
2: The report must—
a: discuss any progress made, in the most recent completed financial year, in reducing child poverty consistent with the targets under the Child Poverty Reduction Act 2018
b: indicate whether and, if so, to what extent, measures in or related to that Bill will affect child poverty.
50: Consequential amendments
Amend the principal Act as indicated in Schedule 3