Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on 1 July 2007, amend the definition of income-from-assets exemption in clause 5 of Schedule 27 of the Social Security Act 1964. In accordance with Part 3 of Schedule 27, a certain amount of a person's annual income that is derived from assets (the income-from-assets exemption) is not included in the calculation of the person's overall annual income for the purpose of the means assessment relating to income. The amount of the income-from-assets exemption is increased—

• •from $805 to $826, if the person is single:

• •from $1,610 to $1,651, if the person's spouse or partner is a resident assessed as requiring care:

• •from $2,415 to $2,477, if the person's spouse or partner is not a resident assessed as requiring care.

These increases reflect a 2.54% increase in the All Groups index number of the New Zealand Consumers Price Index for the previous year.