Social Security (New Work Tests, Incentives, and Obligations) Amendment Act 2010

1: Title
This Act is the Social Security (New Work Tests, Incentives, and Obligations) Amendment Act 2010.
2: Commencement
1: Sections 4(1) 14 17 30 31
2: Sections 4(14) to (17) 8 Schedule 2
3: The rest of this Act comes into force on 27 September 2010.
3: Principal Act amended
This Act Social Security Act 1964 2010-08-24 Social Security Act 1964 sections 4(1), 14, 17, 30, and 31 2011-05-02 Social Security Act 1964 Sections 4(14) to (17), section 8, and Schedule 2 2010-09-27 Social Security Act 1964 The rest of this Act other than shown above.
4: Interpretation
1: The definition of dependent child section 3(1) dependent child
a: means a child—
i: whose care is primarily the responsibility of the person; and
ii: who is being maintained as a member of that person's family; and
iii: who is financially dependent on that person:
b: does not include a child in respect of whom payments are being made under section 363 of the Children, Young Persons, and Their Families Act 1989:
c: despite paragraph (b)
i: of whom the person is a parent within the meaning of that Act; and
ii: to whom section 361 of that Act applies; and
iii: who, under section 362 of that Act, is placed in the charge of the person:
d: for the purposes only of Schedules 3, 6, 9, 16, 17, and 18 of this Act, does not include a child in respect of whom an orphan's benefit or an unsupported child's benefit is being paid .
2: Section 3(1) employment plan health practitioner work-tested domestic purposes beneficiary
a: who has been granted a domestic purposes benefit under section 27B; and
b: whose youngest dependent child is aged 6 years or older, but under 18 years, or is aged 18 years and is a child in respect of whom that benefit is paid, or continues to be paid, under section 63A .
3: The definition of Income Test 1 section 3(1)
a: omitting $80 $100
b: omitting $180 $200
4: The definition of Income Test 2 section 3(1)
a: by omitting $80 $100
b: by omitting $180 $200
5: The definition of Income Test 3 section 3(1) Income Test 3
a: if the rate of benefit is a rate of New Zealand superannuation stated in clause 2 of Schedule 1 of the New Zealand Superannuation and Retirement Income Act 2001
b: in any other case, $80 a week .
6: The definition of Income Test 5 section 3(1)
7: Paragraph (a) of the definition of part-time work-tested beneficiary section 3(1) or a work-tested domestic purposes beneficiary work-tested spouse or partner
8: The definition of personal development and employment plan section 3(1)
9: The definition of work-tested beneficiary section 3(1)
f: a work-tested domestic purposes beneficiary .
10: The definition of work-tested benefit section 3(1)
e: in relation to a work-tested spouse or partner—
i: a sickness benefit; or
ii: an emergency benefit; or
iii: an invalid's benefit; or
f: in relation to a work-tested domestic purposes beneficiary, a domestic purposes benefit under section 27B .
11: Paragraph (b) of the definition of work-tested spouse or partner section 3(1) either
12: Paragraph (c) of the definition of work-tested spouse or partner section 3(1) or an emergency benefit
13: The definition of work-tested spouse or partner section 3(1)
ca: the spouse or partner of a person granted an emergency benefit at a work-tested married rate if the chief executive has, under section 61A(1A) .
14: Section 3(1) work-tested sickness beneficiary section 54DA(1) .
15: Section 3(1) part-time work-tested beneficiary part-time work-tested beneficiary
a: a person with a youngest dependent child aged 6 or older, but under 18 years, and who is—
i: a work-tested spouse or partner; or
ii: a work-tested domestic purposes beneficiary; or
b: a person who is a work-tested sickness beneficiary .
16: The definition of work-tested beneficiary section 3(1) ; or
g: a work-tested sickness beneficiary .
17: The definition of work-tested benefit section 3(1) ; or
g: in relation to a work-tested sickness beneficiary, a sickness benefit .
5: Domestic purposes benefits for solo parents
Section 27B
2A: A person who receives a benefit under this section must—
a: comply with—
i: a requirement under section 60Q; and
ii: any other obligation arising under any of sections 60Q to 60S; or
b: comply with the work test if that person is a work-tested domestic purposes beneficiary.
6: Sickness benefit: medical examinations
Section 54B(1) ; or
d: a health practitioner of a kind specified in regulations made under section 132 (in respect of a condition within the ambit of his or her scope of practice).
7: Rates of sickness benefit
1: Section 54D(1) , unless subsection (2) applies
2: Section 54D(2)
8: New section 54DA inserted
1: The following section is inserted after section 54D
54DA: Sickness beneficiary may be required to comply with work test
1: The chief executive may, by notice in writing, require a person who is granted a sickness benefit under section 54 to comply with the work test from a date specified in the notice if the chief executive, having regard to the certificate and any report obtained under section 54B, is satisfied that the person has, while receiving that benefit, the capacity to seek, undertake, and be available for part-time work.
2: The date specified in a notice under subsection (1)
a: in the case of a new grant of the benefit, may be the date on which the benefit is first paid; but
b: in any case, must not be a date before the date on which the chief executive reasonably considers the person will receive the notice.
3: The chief executive may at any time, whether on the application of the person or otherwise, review a requirement under subsection (1)
2: The principal Act is consequentially amended in the manner set out in Schedule 2
9: Independent youth benefits: obligations
1: Section 60GAB(2)﻿(a) the person has previously agreed in writing to undertake
2: Section 60GAB(2)﻿(b) when required by the chief executive, to be
10: Interpretation
1: The definition of personal development and employment plan plan section 60O
2: Section 60O employment plan
a: has goals to assist the beneficiary to move towards employment:
b: sets out a plan of action designed to meet the goals referred to in paragraph (a)
c: includes a statement of the information the department will provide to assist the beneficiary to do 1 or more of the following:
i: achieve the goals referred to in paragraph (a)
ii: improve his or her employment capabilities:
iii: obtain employment:
d: includes, if agreed to by the chief executive, a statement of the assistance that the department will provide to assist the beneficiary to do 1 or more of the things described in paragraph (c)﻿(i) to (iii) .
11: Purpose of sections 60Q to 60Z
Section 60P(a) (other than work-tested domestic purposes beneficiaries) domestic purposes beneficiaries
12: Personal development and employment plans
Section 60Q(6)﻿(a)
ii: a benefit under section 27B (the domestic purposes benefit for solo parents) if the recipient has a dependent child under the age of 6 years; or .
13: Obligations of spouse or partner of person granted emergency benefit
Section 61A
1A: The chief executive may, by notice in writing, require the spouse or partner of a person granted an emergency benefit at a work-test married rate to comply with the work test if the chief executive is satisfied that it is appropriate and reasonable to require that spouse or partner to seek, undertake, and be available for—
a: part-time work, in the case of a spouse or partner whose youngest dependent child is aged 6 or older but under 18 years; or
b: full-time employment, in any other case.
14: Interpretation
1: The definition of accommodation costs section 61E(1)
a: in relation to premises rented by the person, the amount payable by the person for rent of the premises, excluding any service costs included in that rent and any arrears: .
2: Paragraph (b) of the definition of accommodation costs section 61E(1) any service costs and excluding
3: Section 61E(1) service costs
a: means the cost as reasonably determined by the chief executive of any services (for example, electricity supply, gas supply, telephone network connection, or broadband Internet connection) provided to or in connection with the premises for consumption or use by the occupants of the premises; but
b: does not include the cost of water supplied to the premises .
15: New section 61HA inserted
The following section is inserted after section 61H
61HA: Annual CPI adjustment of rates of certain benefits
1: In this section, CPI
2: The rates of benefits set out in Schedules 3, 4, 6, 9, 16, 17, and 26, and in clause 1 of Schedule 22 must be adjusted, by Order in Council, as at 1 April each year so that in each case the new rate is the rate at that date adjusted by any percentage movement upwards in the CPI between the CPI for the quarter ended with 31 December 1 year before the immediately preceding 31 December and the CPI for the quarter ended with the immediately preceding 31 December.
3: The adjustments (by any percentage movement upwards in the CPI) required under subsection (2) subsections (1) and (2)
a: if, and insofar as, they relate to movements during quarters that end before 29 April 2010, using index numbers for those quarters of the consumers price index-all groups published by Statistics New Zealand; and
b: if, and insofar as, they relate to movements during quarters that end after 28 April 2010, using index numbers for those quarters of the consumers price index-all groups excluding cigarettes and other tobacco products published by Statistics New Zealand.
4: An adjustment under subsection (2)
5: Every Order in Council made under subsection (2)
6: Section 61H(3) to (6) apply to every Order in Council made under subsection (2)
16: Payment of benefits
Section 82
6A: Despite subsection (3), if the immediate needs of the beneficiary relate to the supply of any goods or services to the beneficiary or a member of the beneficiary's family, the chief executive may pay the whole or any part of an advance payment of a benefit under subsection (6) to the supplier of the goods or services.
6B: The chief executive may, in circumstances prescribed by regulations made under section 132K section 132K
6C: Subsection (6D)
a: the applicant or the applicant's spouse or partner has failed to take reasonable steps to reduce his or her costs or increase his or her income or better manage his or her finances; or
b: the applicant or the applicant's spouse or partner has failed to take all necessary steps to obtain any assistance towards his or her costs from any other source from which he or she may be entitled to assistance; or
c: the applicant or the applicant's spouse or partner has failed to comply with any requirement of the chief executive to undertake a budgeting activity under subsection (6B)
6D: If this subsection applies, the chief executive may refuse to make an advance payment of a benefit under subsection (6), or any subsequent advance payment of a benefit, to or in respect of the applicant.
17: New section 86K inserted
The following section is inserted after section 86J
86K: Validation of benefit payments and other payments in respect of certain children in care
1: This section applies to any payment before the commencement of this section of a benefit or other assistance under this Act to a person in respect of a child who is a dependent child within the meaning of paragraph (c) section 4(1)
2: The payment must be taken to be, and to always have been, as valid and authorised as if that definition were in force, and applied in respect of the payment, when it was made.
18: New sections 99AA and 99AB inserted
The following sections are inserted after section 99
99AA: Unemployment benefit: expiry
1: If it has not ceased earlier, an unemployment beneficiary's entitlement to the unemployment benefit ceases on the expiry date for that benefit (as defined in subsection (5) section 99AB
2: The chief executive must, not less than 20 working days before the expiry date for an unemployment benefit, give notice to the beneficiary stating—
a: that entitlement to the benefit will cease unless the beneficiary reapplies for the benefit and it is re-granted; and
b: the date on which entitlement to the benefit will cease; and
c: what the beneficiary must do to reapply for the benefit and the time within which he or she must do so.
3: Subsection (2)
a: is suspended because the beneficiary is undertaking temporary employment; or
b: is not for the time being payable under this Act (for example, under section 76 or 77); or
c: is suspended under any provision of this Act other than section 117
4: However, if at any time before the expiry date for the benefit any of the circumstances described in subsection (3) paragraphs (a) to (c) of subsection (2)
5: In this section and in section 99AB expiry date unemployment beneficiary
a: a person who has been granted an unemployment benefit under section 89; or
b: a person who has been re-granted an unemployment benefit under section 99AB
99AB: Unemployment benefit: requirements for re-grant
1: No unemployment benefit may be re-granted under this section to a person to whom section 99AA
a: the department has received—
i: a reapplication form (provided by the chief executive for the purpose) completed by or on behalf of the beneficiary and his or her spouse or partner (if any) to the chief executive's satisfaction; and
ii: any supporting evidence reasonably required by the chief executive; and
b: the beneficiary and the beneficiary's work-tested spouse or partner (if any) have participated, to the satisfaction of the chief executive, in a comprehensive work assessment of a kind specified by the chief executive.
2: Subsection (1)﻿(b) subsection (8)
3: If, in relation to a person, the requirements of subsection (1)
a: the chief executive must re-grant the person's unemployment benefit if the chief executive is satisfied that the person meets or continues to meet the eligibility criteria for the benefit set out in section 89:
b: if re-granted, the benefit commences on that expiry date.
4: If, in relation to a person, the requirements of subsection (1)
a: the chief executive must re-grant the person's unemployment benefit if the chief executive is satisfied that—
i: the person meets the eligibility criteria for the benefit set out in section 89; and
ii: after that expiry date, and unless exceptional circumstances prevented the person from doing so, the person continued to—
A: seek, and be available for, full-time employment; and
B: be willing and able to undertake it; and
C: take reasonable steps to find it:
b: if re-granted, the benefit commences on that expiry date.
5: If a person intending to reapply for an unemployment benefit contacts the department on or before the expiry date for the person's unemployment benefit,—
a: the chief executive may set a time (not later than 10 working days after that expiry date) for completing the requirements of subsection (1)
b: if those requirements are completed within that time, the chief executive may re-grant the benefit under subsection (4)
6: Subsections (1) to (5) section 11D(1)
7: An unemployment benefit must not be re-granted under this section to a person, and any reapplication form received from or on behalf of that person must be treated as an application form for the purposes of section 11D(2) subsection (1)
a: are not completed within 20 working days after the expiry date for the person's unemployment benefit; or
b: were completed within that time but after that expiry date, and the chief executive is satisfied that there were no exceptional circumstances why those requirements could not have been completed on or before that expiry date.
8: For the purposes of this section, a failure of a beneficiary's work-tested spouse or partner to participate in a comprehensive work assessment in accordance with subsection (1)﻿(b)
a: must not be treated as a failure to complete the requirements of subsection (1)
b: must be treated as a failure by that spouse or partner to comply with his or her work test obligations.
19: New section 101 inserted
The following section is inserted before section 102
101: Purpose of sections 102 to 123D
The purpose of sections 102
a: to ensure that work-tested beneficiaries maintain an unrelenting focus on entering, or returning to, employment:
b: to reinforce the continuing obligation of work-tested beneficiaries to take reasonable steps to support themselves and their families:
c: to identify the activities that work-tested beneficiaries may be required to undertake to meet their obligations arising from work-tested benefits being paid in respect of them:
d: to provide a work test structure applying to all work-tested beneficiaries that is sufficiently flexible to take account of an individual beneficiary's circumstances.
20: New sections 102 and 102A substituted
Section 102
102: Application of work test
1: The work test applies to a person while he or she is a work-tested beneficiary, and unless subsection (2) section 102A
2: The work test does not apply to a work-tested beneficiary if the chief executive is satisfied that the beneficiary is undertaking employment of the kind required to satisfy the work test for that beneficiary.
3: A work test obligation set out in section 102A
a: a day that is a day between Monday and Friday (inclusive); or
b: a day of the week on which regulations under this Act provide (in relation to the obligation, obligations that include it, or all obligations) that it applies.
102A: Work test obligations
1: The work test obligations are—
a: to be available for, and take reasonable steps to obtain, suitable employment; and
b: to accept any offer of suitable employment, including temporary employment or employment that is seasonal or subsidised; and
c: to attend and participate in an interview for any opportunity of suitable employment to which the beneficiary is referred by the chief executive; and
d: when required by the chief executive, to attend and participate in any interview with an officer of the department or other person on behalf of the chief executive; and
e: when required by the chief executive, to undertake planning for employment; and
f: when required by the chief executive, to participate in or, as the case requires, undertake any of the following activities that the chief executive considers suitable for the beneficiary to improve the beneficiary's work-readiness or prospects for employment:
i: any work assessment specified by the chief executive:
ii: any programme or seminar specified by the chief executive to increase particular skills or enhance motivation:
iii: a work experience or work exploration activity specified by the chief executive:
iv: employment-related training specified by the chief executive:
v: any other activity specified by the chief executive (including rehabilitation but not medical treatment); and
g: to report to the department on his or her compliance with his or her work test obligations as often, and in the manner, as the chief executive from time to time reasonably requires; and
h: in the case of a person in respect of whom a job seeker agreement was in force immediately before the commencement of section 23
i: to undertake the job-search activities set out in the agreement; and
ii: to undertake and complete any job seeker development activity or recognised community activity described in the agreement (subject to the chief executive's taking reasonable steps to arrange for the person to undertake the activity); and
iii: to undertake and complete any other activities set out in the agreement.
2: Subsection (1)﻿(f)
3: A person cannot be required under subsection (1) subsection (1)﻿(h)
4: The failure by a beneficiary to undertake or complete a recognised community activity or activity in the community, as set out in a job seeker agreement that continues to apply to him or her, is not a failure to comply with a work test obligation for the purpose of section 115(1)﻿(a).
5: If the chief executive requires a beneficiary to undertake an activity under subsection (1)﻿(f)
21: Section 103 repealed
Section 103
22: Exemption from obligations
1: Section 105(1) the work test some or all of his or her work test obligations
2: Section 105(5) the work test all of his or her work test obligations
23: Sections 105A, 105B, and 105D and heading above section 105A repealed
Sections 105A 105B 105D section 105A
24: Section 110 and heading above section 110 repealed
Section 110
25: Sanctions that may be imposed for failures
1: Section 117(1)
a: for a first failure,—
i: the person's benefit must be reduced by 50% until the person recomplies; and
ii: if the person has not recomplied within 4 weeks after the date on which the reduction took effect, the person's benefit must be reduced by a further 50% (so that the total reduction is 100%) until the person recomplies: .
2: Section 117
4: If a person's unemployment benefit is reduced or suspended under subsection (1) and the person is re-granted an unemployment benefit under section 99AB
26: Calculation of failure rate
1: Section 119(1)﻿(a) but and
2: Section 119(1)
ab: if the benefit being paid in respect of the beneficiary is a work-tested benefit ( benefit A benefit B .
3: Section 119
3A: For the purpose of subsection (1)﻿(a), the chief executive must treat an unemployment benefit that expires under section 99AA section 99AB
4: Section 119(5) subsection (2) subsection (3)
27: Modified effect in some cases of sanctions on rate of benefit for people married or in civil union or de facto relationship
1: Section 120(1) suspension reduction, suspension,
2: Section 120
1A: If the reduction, suspension, or cancellation under section 117 of a benefit payable at a work-test married rate results from failures of both spouses or partners to comply with work test obligations, and they have no dependent children,—
a: the reduction, suspension, or cancellation in respect of each spouse or partner applies only to 50% of the applicable rate of the benefit before abatement on account of income payable in respect of that spouse or partner; and
b: any amount of the benefit payable to the spouses or partners after that reduction, suspension, or cancellation is applied is subject to the appropriate income test but at half the abatement rate under that test.
3: Section 120(2)
a: omitting under section under section 60H or
b: inserting section 60H(3) applying to both work-tested spouses or partners or from
28: Meaning of recompliance
Section 122
a: in the case of a work-tested beneficiary, an activity that is the same as, or substantially similar to, the activity that the person failed to comply with under the applicable work test obligation; or .
29: Regulations
Section 123D(a) the work test some or all of their work test obligations
30: Regulations relating to childcare assistance
Section 132AC(2) to (4)
31: New section 132K inserted
The following section is inserted after section 132J
132K: Regulations relating to advance payments of benefit
1: The Governor-General may, by Order in Council, make regulations for the purpose of section 82(6) (which relates to advance payments of a benefit), including, without limitation, provisions that—
a: specify the manner and form in which an application for advance payments of a benefit may be made under that section, which may differ depending on the number of times the beneficiary has applied for advance payments of a benefit under that section, or for special assistance under section 124(1)﻿(d), or for both:
b: define the kinds of budgeting activities that the chief executive may require a person to undertake under section 82(6B)
c: prescribe the circumstances in which the power referred to in section 82(6B)
2: Nothing in subsection (1)
32: Regulations relating to this Part
Section 155
2A: The adjustments (by any percentage movement in the All Groups index number of the New Zealand Consumers Price Index) required under subsection (2) as at 1 July 2011, 1 July 2012, and 1 July 2013 must, despite that subsection, be calculated,—
a: if, and insofar as, they relate to movements during quarters that end before 29 April 2010, using, for those quarters, the All Groups index numbers of the New Zealand Consumers Price Index published by Statistics New Zealand; and
b: if, and insofar as, they relate to movements during quarters that end after 28 April 2010, using, for those quarters, the All Groups excluding cigarettes and other tobacco products index numbers of the New Zealand Consumers Price Index published by Statistics New Zealand.
33: Schedule 8 repealed
Schedule 8
34: Schedule 31 amended
Clause 12 of Schedule 31 $807.04 $821.04
35: Consequential amendments
1: The principal Act is amended in the manner indicated in Parts 1 to 8
2: The regulations specified in Part 9 2010-09-27 Social Security (Application of Work Test Obligations) Regulations 2007 Social Security (Childcare Assistance) Regulations 2004 Transitional provisions
36: Transitional provision relating to personal development and employment plans
Any personal development and employment plan made and in force immediately before the commencement of this Act is to be treated as an employment plan made under section 60Q
37: Transitional provisions relating to job seeker agreements and job seeker development activities
1: Despite the commencement of this Act, any job seeker agreement in force before the commencement of this Act continues in force for the purpose of section 102A(1)﻿(h)
2: Despite the commencement of this Act, any job seeker development activity defined, and any conditions of any job seeker development activity specified, under section 110 section 102A(1)﻿(h)
38: Transitional provisions relating to sanctions under former section 117(1)﻿(a)
1: In this section, former section 117(1)﻿(a) section 117(1)﻿(a)
2: This section applies to a beneficiary who,—
a: on the commencement of this Act, is subject to a sanction of suspension of his or her benefit imposed under the former section 117(1)﻿(a); or
b: before the commencement of this Act, has been given written notice under section 113(2) section 117(1)﻿(a)
3: For the purposes of completing or imposing the sanction referred to in subsection (2) section 117(1)﻿(a)
39: Transitional provision relating to exemptions from the work test
Every exemption from the work test granted under section 105(1) Amendments to Social Security (Childcare Assistance) Regulations 2004
40: Social Security (Childcare Assistance) Regulations 2004 amended
Sections 41 to 43 Social Security (Childcare Assistance) Regulations 2004 2010-09-27 Social Security (Childcare Assistance) Regulations 2004
41: Rate of childcare subsidy
Regulation 18
1: A childcare subsidy is payable,—
a: until the close of 27 September 2013 Schedule 2
b: if paragraph (a) Schedule 1
42: New regulation 24 substituted
Regulation 24
24: Rate of OSCAR subsidy
An OSCAR subsidy is payable,—
a: until the close of 27 September 2013 Schedule 2
b: if paragraph (a) Schedule 1
43: New Schedules 1 and 2 substituted
The Schedule Schedule 3 Amendment to Social Security (Application of Work Test Obligations) Regulations 2007
44: Social Security (Application of Work Test Obligations) Regulations 2007 amended
Section 45 Social Security (Application of Work Test Obligations) Regulations 2007 2010-09-27 Social Security (Application of Work Test Obligations) Regulations 2007
45: Application of work test obligations
Regulation 4
2A: The work test obligation set out in section 102A(1)﻿(f)