Social Security (Working for Families) Amendment Act 2004

1: Title
1: This Act is the Social Security (Working for Families) Amendment Act 2004.
2: In this Act the Social Security Act 1964 the principal Act
2: Commencement
1: Section 19 1
2: Section 11
3: Sections 5 15
4: Sections 6 7 9 13 14 16 20(1) 22(1) 2 4
5: Sections 10 21 23 3
6: The rest of this Act comes into force on the day after the date on which this Act receives the Royal assent.
3: Purpose
The purpose of this Act is to—
a: provide targeted financial incentives for certain persons to enter into, and stay in, employment:
b: address accommodation affordability issues for those persons eligible for the accommodation supplement:
c: take steps towards simplifying the benefit system and making it easier to understand (for example, by introducing a new benefit rate structure for families):
d: make related amendments to the Social Security Act 1964
4: Interpretation
The definition of income section 3(1) paragraph (f)
xviii: any tax credit or amount received under subpart KD of the Income Tax Act 2004 KD of the Income Tax Act 1994 Part 11A of the Income Tax Act 1976
5: New section 44A inserted
1: The principal Act is amended by inserting, after section 44
44A: Beneficiary receiving invalid's benefit may establish whether open employment is sustainable
1: The purpose of this section is to encourage persons who are receiving an invalid's benefit to undertake open employment in order to establish whether they can sustain that employment and cease receiving that benefit.
2: This section applies to a person who—
a: is receiving an invalid's benefit granted on the ground of permanent and severe restriction of capacity for work; and
b: with the agreement of the chief executive, is undertaking open employment for a period agreed with the chief executive to establish whether he or she can sustain such employment.
3: The period of open employment agreed with the chief executive under subsection (2)﻿(b)
4: A person to whom subsection (2)
2: Section 40 subsection (3)
3A: Subsection (3) section 44A
6: Payment of funeral grants where there is surviving spouse or children
Section 61DB
a: by omitting from paragraph (d)﻿(ii) the value of an amount equivalent to 400 percent of the maximum weekly rate of invalid's benefit which a married couple is entitled to receive the amount in clause 2 of Part 1 of Schedule 31
b: by omitting from paragraph (e) would not be sufficient to disentitle a person in receipt of that income from receiving an invalid's benefit is less than 52 times the appropriate amount in Part 2 of Schedule 31
7: Children's funeral grants
Section 61DD
a: by omitting from paragraph (a)﻿(ii) the value of an amount equivalent to 400 percent of the maximum weekly rate of invalid's benefit which a married couple is entitled to receive the amount in clause 2 of Part 1 of Schedule 31
b: by omitting from paragraph (b) would not be sufficient to disentitle a person in receipt of that income from receiving an invalid's benefit is less than 52 times the appropriate amount in Part 2 of Schedule 31
8: New section 61DH inserted
The principal Act is amended by inserting, before section 61E
61DH: Purpose of accommodation supplement
The purpose of sections 61E to 61EC
9: Accommodation supplement
Section 61EA(3)
a: by omitting the word if unless
b: by omitting the words is such as would prevent payment of an invalid's benefit under this Act is less than the appropriate amount in Part 2 of Schedule 31
10: New heading and new section 61G substituted
The principal Act is amended by repealing section 61G Temporary additional support
61G: Temporary additional support
1: The purpose of temporary additional support is to provide temporary financial assistance within the prescribed limits as a last resort to alleviate the financial hardship of people whose essential costs cannot be met from their chargeable income and other resources, while ensuring that people seeking or granted that assistance take reasonable steps to reduce their costs or increase their chargeable incomes.
2: An applicant is eligible for temporary additional support if—
a: his or her chargeable income is less than his or her essential costs; and
b: he or she has cash assets of not more than the prescribed amount; and
c: he or she meets any prescribed criteria and any other requirements set out in regulations made under section 132AB
3: Temporary additional support granted to an applicant in accordance with this section and regulations made under section 132AB
a: in the prescribed amount; and
b: for the prescribed period.
4: Despite subsection (2)
a: the person's accommodation costs (as that term is defined in section 61E(1) New Zealand Public Health and Disability Act 2000
b: the person's care (other than care in his or her own home) is wholly or partly funded under the New Zealand Public Health and Disability Act 2000
5: Subsection (6)
a: the applicant or the applicant's spouse has arranged, or rearranged, his or her financial affairs in order to qualify for temporary additional support; or
b: the applicant or the applicant's spouse has failed to take reasonable steps to reduce his or her costs or increase his or her chargeable income; or
c: the applicant or the applicant's spouse has failed to take all necessary steps to obtain any assistance towards his or her essential costs from any other source from which he or she may be entitled to assistance.
6: If this subsection applies, the chief executive may—
a: refuse to grant temporary additional support; or
b: grant temporary additional support at a reduced rate; or
c: reduce the rate of temporary additional support already granted; or
d: terminate any temporary additional support already granted.
7: In this section and section 132AB allowable costs section 132AB applicant cash assets section 132AB chargeable income section 132AB essential costs standard costs section 132AB(1)﻿(b) tax credit subpart KD of the Income Tax Act 2004 subpart KD of the Income Tax Act 1994
11: New heading and new section 61GA inserted
1: The principal Act is amended by inserting, before section 61H Childcare assistance
61GA: Childcare assistance
1: The purpose of childcare assistance is to provide targeted financial assistance to help certain people meet the costs of childcare.
2: The principal caregiver of a dependent child is eligible for financial assistance ( childcare assistance section 132AC
3: Childcare assistance granted to an applicant, in accordance with this section and regulations made under section 132AC
a: in the prescribed amount; and
b: for the prescribed period.
2: The definition of benefit section 3(1) paragraph (b)﻿(iv)
iva: childcare assistance payable under section 61GA
12: Rates of benefits, etc, may be increased by Order in Council
Section 61H(1)
a: omitting from paragraph (d) Schedules 3 and 16 Schedules 3, 16, and 31
b: inserting after the words asset limit, income limit,
13: Areas for accommodation supplement purposes may be altered by Order in Council
1: Section 61I subsection (1)
1: The Governor-General may by Order in Council, amend the definitions of the terms Area 1 Area 2 Area 3
a: by adding to any 1 of those definitions any urban area, urban zone, or area unit of New Zealand (as those terms are from time to time defined by the Government Statistician) that is in Area 4
b: by omitting any urban area, urban zone, or area unit of New Zealand from the definition of Area 2 Area 3
c: by omitting any urban area, urban zone, or area unit of New Zealand from the definition of Area 3 Area 2
d: by making any adjustments that are required to maintain a part of New Zealand within the same accommodation supplement area as a result of any new or altered definition of any urban area, urban zone, or area unit of New Zealand adopted by the Government Statistician.
2: Section 61I
3: In this section Area 1 Area 2 Area 3 Area 4 clause 1 of Part 1 of the Schedule 18
14: Disability allowance
Section 69C(1)﻿(c) is such that the income less 7.47% of that income would not prevent the payment of an invalid's benefit is less than the appropriate amount in Part 3 of Schedule 31
15: Commencement of benefits
Section 80(5) paragraph (c)
ca: the benefit is an invalid's benefit, and the applicant—
i: is sick or is suffering from an injury or disability from accident or congenital defect; and
ii: has applied for an invalid's benefit on the grounds of that sickness, injury, or disability on a prior occasion; or
16: Money payable out of Crown Bank Account
1: Section 124(1)﻿(a) Part 1 or Part 2
2: Section 124(1A) Part 1
17: New section 132AB inserted
The principal Act is amended by inserting, after section 132AA
132AB: Regulations relating to temporary additional support
1: Without limiting the general power to make regulations under section 132 section 61G
a: prescribe or provide for the setting of eligibility criteria for receiving temporary additional support:
b: prescribe amounts allowed for standard living costs that ought to be met from chargeable income ( standard costs
i: whether the applicant or the applicant's spouse, or both of them, is or are receiving a benefit or tax credit:
ii: the kind and amount of benefit or benefits or tax credit or credits received by the applicant or his or her spouse:
iii: whether the applicant has a spouse or dependent children:
iv: whether the applicant's spouse is lawfully or unlawfully in New Zealand:
v: the number and ages of the applicant's dependent children:
c: define the kinds of costs that are allowable costs, including any limits on the extent to which any such costs are allowable costs:
d: define the kinds of income, benefits, credits, and receipts that are chargeable income, including any limits on the extent to which any income, benefit, credit, or receipt of that kind is chargeable income:
e: prescribe amounts of temporary additional support that may be granted or 1 or more means for calculating the amount of temporary additional support to be granted, which may differ depending on whether the applicant—
i: has a dependent spouse; or
ii: has a dependent child; or
iii: is in any other prescribed circumstances:
f: define the kinds of assets that are cash assets, including any limits on the extent to which any such assets are cash assets, and prescribe 1 or more cash asset limits, which may differ depending on whether the applicant—
i: has a dependent spouse; or
ii: has a dependent child; or
iii: is in any other prescribed circumstances:
g: prescribe the period or periods for which temporary additional support may be granted:
h: authorise the payment of temporary additional support in a lump sum up to a specified maximum amount in any prescribed circumstances.
2: For the purposes of any calculation made under section 61G subsection (1)
18: New section 132AC inserted
The principal Act is amended by inserting, before section 132B
132AC: Regulations relating to childcare assistance
1: Without limiting the general power to make regulations under section 132 section 61GA
a: prescribe or provide for the setting of eligibility criteria for receiving childcare assistance, and which may include (without limitation) criteria based on—
i: the income of the principal caregiver and his or her spouse:
ii: the age of the dependent child and whether the child attends school:
iii: whether the principal caregiver or the dependent child or any of the principal caregiver's other dependent children has a disability or serious illness:
iv: whether there is another person available to care for the child:
v: whether the principal caregiver is undertaking employment or is engaged in—
A: an employment-related activity arranged or approved by the department; or
B: an approved course of study; or
C: an approved rehabilitation programme:
b: prescribe the kinds of childcare assistance to be provided, which may differ depending on the purposes of the childcare and the age of the child, or in any other prescribed circumstances:
c: prescribe the amounts of childcare assistance to be paid, which may differ depending on the kind of assistance to be provided, the income of the principal caregiver and his or her spouse, the number of dependent children in the family, and the kind of childcare, or in any other prescribed circumstances:
d: prescribe the number of hours a week for the weeks during the year for which childcare assistance is available, which may differ depending on the purposes of the childcare or the principal caregiver's activity, employment, or study, or whether the assistance is granted for the school term or during school holidays, or in any other prescribed circumstances:
e: provide for childcare assistance to be available to keep a child's place open in a childcare facility or programme during temporary absence:
f: prescribe kinds of childcare facilities or programmes for which childcare assistance may be paid:
g: authorise the chief executive to approve other kinds of childcare facilities or programmes for which childcare assistance may be paid and regulate—
i: the period for which approval may be granted; and
ii: the criteria for their approval:
h: regulate the method of application for, and payment of, childcare assistance (which may include provision for payment to be made directly to a childcare facility or provider of a programme, and conditions relating to the payment of childcare assistance applicable to any such facility or provider):
i: provide for the recovery of any overpayments of assistance from a childcare facility or the provider of a programme or from the person granted the assistance:
j: define the kinds of income, benefits, credits, and receipts to be treated as income for the purposes of section 61GA
k: prescribe transitional arrangements.
2: If regulations made under subsection (1) subsection (1) paragraph (a) or (b)
a: the total percentage increase in the movements in the quarterly all groups index number of the New Zealand Consumers Price Index from that applying on 4 October 2004 is 5% or more:
b: the total percentage increase in the movements in the quarterly all groups index: number of the New Zealand Consumers Price Index from that applying on the date when the requirement to make the immediately preceding adjustment under this subsection arose is 5% or more.
3: For the purposes of any adjustment required under subsection (2)
4: Any adjustment required by subsection (2) subsection (1)
19: Amendments to Schedule 18
The Schedule 18 Schedule 1
20: Amendments to various schedules
1: Schedules 3 4 6 9 16 17 18 28 Schedule 2
2: Subsection (1) 2 section 61H subsection (1)
21: Consequential amendments to other enactments relating to temporary additional support
The enactments set out in Schedule 3
22: New Schedule 31 added to principal Act
1: The principal Act is amended by adding, as Schedule 31 Schedule 4
2: Subsection (1) 4 section 61H Schedule 31 Transitional provisions
23: Savings in respect of existing special benefits
1: A special benefit continues to be payable to a person receiving or who had applied for a special benefit immediately before this section comes into force as if the former section 61G
a: the date on which the chief executive determines, under section 81
i: no longer qualified to receive the special benefit under the former section 61G
ii: no longer entitled to have fixed in respect of him or her, under the former section 61G
b: if the special benefit was granted under the former section 61G
2: The following provisions continue to apply to a person referred to in subsection (1) paragraphs (a) (b)
a: the former section 61G
b: any direction given under section 5 relating to the former section 61G
3: To avoid doubt, the Minister may from time to time, under section 5, amend or revoke any direction referred to in subsection (2)﻿(b)
4: While the former section 61G section 61G
5: In this section, former section 61G section 61G
24: Savings in respect of income assessments
For the purpose of determining the validity of any income assessment, the principal Act must be read as if the definition of income section 3(1) section 4
25: Transitional arrangements for financially disadvantaged persons
1: The purpose of this section is to enable. the making of regulations authorising the provision of financial assistance to any persons who are financially disadvantaged as a consequence of the net effects of the amendments made by this Act, the Taxation (Working for Families) Act 2004
2: The chief executive may from time to time grant to a person referred to in subsection (1)
a: of the prescribed kind and in the prescribed amount; and
b: for the prescribed period; and
c: in accordance with the prescribed criteria; and
d: in accordance with any other requirements set out in the regulations made under subsection (3)
3: The Governor-General may from time to time, by Order in Council, make regulations for the purposes of this section.
4: Regulations made under subsection (3)