Social Security Bill

  • enacted
  • Previous title has changed

Hon Carmel Sepuloni

Social Security Bill

Government Bill

122—3A

Contents

Bill note
Key
1Title
2Commencement
3Purpose of this Act
4Principles
5Guide to this Act
6Definitions are in dictionary in Schedule 2
7Minister may give MSD binding directions
8Determinations person is single or in de facto relationship
9Interpretation: references to old law, and using it as a guide
10Comparative tables of old and new provisions
11Transitional, savings, and related provisions
12Act binds the Crown
13Status of guides or outlines
14Status of examples
15What this Part does
16Residential requirement
17Rates
18General limitation on receiving more than 1 benefit
19General limitation on receiving benefit: persons unlawfully resident or present in New Zealand and persons holding temporary entry class visa
20Jobseeker support: requirements
21What is work gap
22When person is available for work
23Jobseeker support: age requirement
24Jobseeker support: no or minimum income
25Jobseeker support: discretionary grant on ground of hardship
26Jobseeker support: ineligibility
27Jobseeker support: on ground of health condition, injury, or disability: application must include certificate
28Jobseeker support: on ground of health condition, injury, or disability: medical examination
29Sole parent support: requirements
30What is sole parent requirement
31When dependent child may be regarded as applicant’s child
31ASole parent support: situation of split care
32Expiry of sole parent support, and replacement with jobseeker support, when youngest dependent child turns 14 years old
33Supported living payment: on ground of restricted work capacity or total blindness: requirements
34When person has restricted work capacity
35Supported living payment: on ground of restricted work capacity or total blindness: ineligibility
36Supported living payment: on ground of restricted work capacity or total blindness: medical examination
37Supported living payment: on ground of restricted work capacity or total blindness: payment not apportioned in specified cases
38Supported living payment: on ground of restricted work capacity: encouraging open employment
39Supported living payment: on ground of caring for another person: requirements
40Supported living payment: on ground of caring for another person: application must include certificate
41Supported living payment: on ground of caring for another person: medical examination
42Supported child’s payment: requirements
43Who is eligible caregiver
44Supported child’s payment to be used for benefit of child
42Orphan’s benefit: requirements
43Who is eligible caregiver
44Orphan’s benefit to be used for benefit of child
44AUnsupported child’s benefit: requirements
44BWho is eligible caregiver
44CUnsupported child’s benefit to be used for benefit of child
45Youth payment: requirements
46When person is study ready
47Youth payment: no or minimum income
48When person has parental support gap
49Youth payment: discretionary grant on ground of hardship
50Youth payment: continuation after turning 18 years old
51Youth payment: incentive payments
52Young parent payment: requirements
53When person is study ready
54Young parent payment: no or minimum income
55When person has parental support gap
56Young parent payment: discretionary grant on ground of hardship
57Young parent payment: continuation after turning 20 years old
58Young parent payment: incentive payments
59Exceptional circumstances Emergency benefit: discretionary grant on ground of hardship
60Exceptional circumstances Emergency benefit: grant during epidemic in New Zealand
61Accommodation supplement: discretionary grant
62Social housing exclusion
63Other funding exclusion
64Accommodation supplement: special rules for joint tenants who are in relationship
65Accommodation supplement: refusal, reduction, or cancellation of grant in certain circumstances
65AWinter energy payment: purpose
65BWinter energy payment: interpretation
65CWinter energy payment: requirements
65DWinter energy payment: election not to receive
65EWinter energy payment: instalments, rates, and payment
65FWinter energy payment: termination on review
66Childcare assistance: purpose
67Childcare assistance: eligibility
68Child disability allowance: discretionary grant
69Meaning of child with a serious disability
70Child disability allowance: MSD may require medical certificate
71Child disability allowance: MSD may require medical examination
72Child disability allowance: payment
73Child disability allowance: not payable with other assistance or pension
74Meaning of disability
75Disability allowance: discretionary grant
76Disability allowance: excluded expenses
77Disability allowance: refusal, reduction, or cancellation of grant in certain circumstances
78Disability allowance: medical examination
79Special disability allowance: entitlement in special circumstances
80Funeral grant: general eligibility and definitions
80AFuneral grant: eligibility if deceased person has dependants
80BFuneral grant: eligibility if deceased person has no dependants
80CFuneral grant: eligibility if deceased person is child
80DFuneral grant: restrictions on payment
81Temporary additional support: purpose
82Temporary additional support: requirements
83Temporary additional support: refusal, reduction, or cancellation of grant in certain circumstances
84Interpretation
85Overseas epidemics affecting visitors to New Zealand: Minister may give overseas epidemic management notice
86Special assistance for visitors affected by overseas epidemics
87Approved special assistance programmes
88Special assistance: status of, and access to, notices
89Provisions relating to children aged 18 years or over who continue education
90What this Part does
91Failure to comply with obligation under this Part
92MSD must make people affected aware of their obligations, consequences of non-compliance, and their review and appeal rights
93MSD must explain rules relating to absence from New Zealand
94MSD must assist in relation to obtaining overseas pension, etc
95Outline of beneficiary’s general and specific obligations
96When obligations apply
97Beneficiary must hold, and give MSD details of, bank account
98Beneficiary must supply tax file number
99Beneficiary must notify change of circumstances
100Obligation to notify absence from New Zealand
101Obligation to undergo work ability assessment
102Persons subject to work ability assessment
103Persons not subject to work ability assessment
104Work ability assessment
105Person who fails to comply with requirement to undergo work ability assessment is subject to sanction
106Work-preparation obligations
107Persons subject to work-preparation obligations
108Persons not subject to work-preparation obligations
109Persons subject to work-preparation obligations if sufficient capacity to comply
110General obligation to take all steps to prepare for employment
111Work-preparation obligations as required by MSD
112Person who fails to comply with work-preparation obligation subject to sanction
113Obligations in relation to dependent children
114Obligations of beneficiary in relation to dependent children
115Obligations of spouse or partner of beneficiary in relation to dependent children of beneficiary
116Obligations of spouse or partner of beneficiary in relation to dependent children of spouse or partner
117Attendance of dependent child aged 3 to 5 years at early childhood education programme
118Attendance of dependent child aged 5 or 6 years at early childhood education programme or registered school
119Attendance of dependent child aged 6 to 15 years at registered school
120Health care enrolment and compliance with core health checks
121Interviews and reporting
122Person who fails to comply with obligations in relation to dependent children is subject to sanction
123Definitions and attendance: regulations made under section 409
124Work-test obligations
125Purpose of sections 126 to 140
126Persons subject to work-test obligations
127Jobseeker support: work capacity determination and work test
128Person not subject to work-test obligations
129Time when work-test obligation applies
130General obligation to be available for suitable employment, etc
131Meaning of suitable employment
132Work-test obligations as required by MSD
133Obligation to undertake and pass drug test
134Compliant drug test defined
135Failing drug test
136Use of drug test result
137Costs of drug test
138Definitions for drug-testing provisions
139Person who fails to comply with work-test obligations is subject to sanction
140Deemed failure to comply with work-test obligation
141Deferral of work-test obligations
142Effect of deferral of work-test obligations
143Regulations may specify categories of exempt persons and grounds for exemption
144MSD may grant exemption from work preparation, work test,work-preparation, work-test, or other obligation
144ADonors of qualifying organs exempt from work-preparation, work-test, or other obligation while recuperating
145Procedure for grant of exemption
146Person who fails to comply with requirement to attend interview is subject to sanction
147Obligations of young person granted youth support payment
148When education obligation or training obligation begins for young parent
149Obligations of young person granted young parent payment
150Young person aged 18 or 19 years who is receiving jobseeker support in young person’s own right and who is at significant risk of long-term welfare dependency
151Young person aged 16 or 17 years who has no dependent child and who is spouse or partner of specified beneficiary
152Young person aged 16 to 19 years who has dependent child and who is spouse or partner of specified beneficiary
153Young person aged 18 or 19 years, who is receiving jobseeker support as spouse or partner of person granted that benefit, or who is work-tested spouse or partner of specified beneficiary, and who is at significant risk of long-term welfare dependency
154Interpretation
155Obligation to work with contracted service providers
156Person who fails to comply with requirement under section 155(2) subject to sanction
157Interpretation
158Applicant for benefit, etc, to take reasonable steps to obtain overseas pension
159MSD may give notice requiring person to take reasonable steps to obtain overseas pension
160MSD may give notice requiring person to take reasonable steps to obtain overseas pension for dependant
161Failure to comply with MSD’s notice given under section 163 or 164
162Applicant for benefit must provide information as to rate of overseas pension
163MSD may give notice requiring beneficiary to provide information as to rate of overseas pension
164Failure to comply with MSD’s notice given under section 163
165Meaning of rate
166Application of health and safety legislation, etc
167Obligations suspended where MSD has exercised discretion to pay benefit while beneficiary overseas
168What this Part does
169Regulations may prescribe pre-benefit activities
170MSD must explain requirements
171Benefit may be subject to repayment of insurance payment
172Interpretation
173Persons affected by receipt of overseas pension
174Benefit of person affected is reduced by amount of overseas pension
175MSD may enter into arrangement with person affected by receipt of overseas pension
175ATreatment of certain overseas benefits, pensions, and allowances that are not overseas pensions
176MSD must reduce rates of benefits for sole parents for failure to assist child support
177No reduction in certain cases
178Additional reduction in certain cases
179Shared care of dependent child
180Rules for assessing which parent has greater responsibility for dependent child
181Effect of compensation or damages on application for benefit
182Loss of earnings compensation under Accident Compensation Act 2001
183Veteran’s entitlement excludes any other benefit
184Exceptions to rule that veteran’s entitlement excludes any other benefit
185Personal benefit of spouse or partner excludes benefit on behalf of spouse or partner
186MSD may refuse or cancel benefit for failure to take reasonable steps to obtain maintenance
187MSD may refuse or cancel benefit if family protection claim not pursued
188MSD may refuse or cancel benefit if person not ordinarily resident in New Zealand
189Refugee or protected person status
190Hospitalisation
191Benefit of spouse or partner increased after 13th week of hospitalisation
192Beneficiary resident in institution for treatment of alcoholism or drug addiction
193Benefit not payable to person who is subject to warrant of arrest
194Beneficiary and offence defined for section 193
195MSD must give beneficiary notice of unresolved warrant
196Requirements for unresolved warrant notice
197Immediate suspension of benefit at request of New Zealand Police
198Beneficiary and offence defined for section 197
199MSD must give beneficiary notice of immediate suspension
200Effect of non-payment or suspension of benefit
201Benefit not payable during custody in prison or on remand
202Exceptions to rule that benefit not payable during custody in prison or on remand
203General rule: benefit not payable while beneficiary absent from New Zealand
203ASpecial absence rule: winter energy payment
204Purpose of sections 205 to 207
205Additional dependent child must not be taken into account in certain cases
206Extended application of additional dependent child rules
207Limited application of additional dependent child rules
208Basic rule: no work-tested benefit for 13 weeks after leaving employment or scheme or loss of employment due to misconduct
209Persons to whom basic rule applies
210What happens if basic rule applies
211MSD’s options in case of misconduct
212Interpretation
213How non-entitlement period, etc, affects supplementary benefits, and spouse or partner
214What this Part does
215Sanctions for failure to comply with certain obligations under this Act
216Obligations that carry sanction for failure to comply
217Hierarchy of sanctions
218Failure, and first, second, and third failure, defined for obligations other than young person or young parent obligations
219Sanction for first failure: reduction in main benefit
220Sanction for second failure: suspension of main benefit
221Sanction for third failure: cancellation of main benefit
222Reduction or suspension of reduced benefit
223Failures that can be counted
224Meaning of continuous payment
225Failures that cannot be counted
226Exclusion of sanction if failure is subject of prosecution under Education Act 1989
227Variation for failure to comply with work-test obligation to accept offer of suitable employment
228Variation for breach of work-test obligation by 1 spouse or partner
229Variation for breach of work-test obligation by both partners or spouses
230Variation for suspension or cancellation of benefit or non-entitlement period affecting couple with 1 or more dependent children
231Variation for suspension or cancellation of main benefit or non-entitlement period affecting sole parent
232Good and sufficient reason for non-compliance: default by MSD
233Good and sufficient reason for failure to comply with drug-testing obligation
234Good and sufficient reason for failure to supervise dependent child
235MSD must give notice of sanction
236Notice relates to single failure
237How notice of sanction may be given
238Breach of obligation in relation to dependent children: additional steps before notice may be given
239When reduction, suspension, or cancellation of benefit takes effect
240Request for evidential drug test if sanction imposed for failing screening drug test
241Effect of request for evidential drug test
242Effect of failure of evidential drug test
243Costs of evidential drug test
244How person recomplies after failure to comply with obligation
245Impossibility of remedying failure of work-test obligation
246How person recomplies after failure to comply with drug-testing obligation
247Drug testing for purposes of recompliance
248Failure of drug test for purposes of recompliance constitutes third failure
249Costs of drug testing for purposes of recompliance
250Case management support for beneficiary in breach of obligation in relation to dependent children
251Failure, and first, second, and third failure, defined for young person or young parent obligations
252Sanction for failure to comply with young person obligation
253Sanction for first or second failure: suspension of in-hand allowance and incentive payments
254Sanction for third failure: cancellation of youth payment and incentive payments
255Effect of cancellation of youth payment on accommodation supplement or temporary additional support
256Effect of cancellation of youth payment on exceptional circumstances emergency benefit
257Effect of cancellation of youth payment on disability allowance or child disability allowance
258Sanctions for failure by young person required to receive youth services to comply with obligations: money management
259Sanctions for failure by young person required to receive youth services to comply with obligations: other cases
259ASanctions for failure by young spouse or partner of specified beneficiary to comply with obligations: money management
259BSanctions for failure by young spouse or partner of specified beneficiary to comply with obligations: other cases
260Sanction for failure to comply with young parent obligation
261Sanction for first or second failure: suspension of in-hand allowance and incentive payments
262Sanction for third failure: cancellation of young parent payment and incentive payments
263Effect of cancellation of young parent payment
264Effect of cancellation of young parent payment on accommodation supplement or temporary additional support
265Effect of cancellation of young parent payment on exceptional circumstances emergency benefit
266Effect of cancellation of young parent payment on disability allowance or child disability allowance
267How young person satisfies obligation after failure to comply
268Procedure for imposing sanctions for failure to comply with young person or young parent obligation
269Effect of regrant of youth payment on incentive payment
270MSD may cancel incentive payment
271Offences: false statements, misleading, or attempting to mislead, to receive or continue to receive benefits
272Offences: spouse or partner knowingly benefiting from excess amount obtained by beneficiary’s fraud
273Offence of demanding or accepting fee or other consideration in relation to grant of benefit
274Offence of demanding or accepting acknowledgement or undertaking
275General penalty for offences
276Time for filing charging document
277What this Part does
278Application for benefit: making of, help with, lapse, and deemed receipt
279MSD must inquire into claim for benefit
280Exception during epidemic
281Information gathering, disclosure, and matching
282MSD decides whether to grant benefit
283Immediate provisional grant, and later backdating of other benefit
284After death of applicant
285Review of entitlement and rate payable
286Information for review
287No entitlement, or entitlement only at different rate
288Benefit on another eligibility ground more appropriate
289Another benefit more appropriate
289ATermination of winter energy payment
290Certain benefits granted, or granted at rate, not taking into account certain insurance payments
291General
292If applicant paid, but claim fails for, ACC weekly compensation
293Benefits subject to stand down
294Work-tested benefit of applicant subject to non-entitlement period
295Exemptions from stand down, and when certain benefits commence
296Start and calculation of stand-down period
297Minister may consent to backdating
298No consent unless benefit not granted earlier because of error
298ACommencement of winter energy payment
299Effect of no longer being subject to work test or young person obligations
300Effect of no longer being subject to dependent children obligations
301Effect of no longer being subject to work-preparation obligations
302Effect of employment on non-entitlement period
303Effect of participation in certain activities on non-entitlement period
304General rule if person’s entitlement to benefit ceases
305After death of beneficiary receiving specified benefit
306Benefits payable to sole parent who stops caring for dependent child due to sudden and uncontrollable circumstances
307Supported living payment payable to beneficiary who stops caring for another person
308If child ceases to be entitled to supported child’s paymentorphan’s benefit or unsupported child’s benefit
309Supported living payment on ground of restricted work capacity or total blindness and cancelled on medical grounds
310Expiry date, and specified benefit, defined
311General rule
312Exception for specified benefit expiring in week of or before 26 December
313Exemptions
314MSD must notify or advise beneficiary
315Requirements for regrant
316How benefits are paid
317Weekly instalments
318Payment generally to, or on account of, beneficiary personally
319Required manner of payment: general
320Required manner of payment: money management for certain payments to young people
322Money management for certain payments to young people: exception if young person meets prescribed criteria for managing own payments
323Review and appeal of specified determinations made by MSD under regulations
324Young person beneficiaries may elect money management
324ACredit on payment card, etc, at end of money management
325Required manner of payment: payment on death of beneficiary
326Advance payment of instalments of benefit
327Requirement for beneficiary, spouse or partner, or both, to undertake budgeting activity
328Interpretation
329MSD may pay tax on income-tested benefit other than by tax deduction from source deduction payment
330Status of amount for income tax paid by MSD
331Recovery amount paid in excess of amount properly payable
332Debts and deductions
333Recovery of penalty from beneficiary who obtains by fraud amount in excess of entitlement
334Restriction on imposing penalty under section 333: prosecution for offence
335Restriction on imposing penalty under section 333: notice and period to respond
336Restriction on recovering penalty under section 333: decision to be final
337Recovery from spouse or partner who misleads MSD of excess amount beneficiary obtained
338Recovery from spouse or partner of apportioned excess amount beneficiary obtained by fraud
339Obtaining amount by fraud: meaning and proof
340Recovery from spouse or partner of unapportioned excess amount beneficiary obtained by fraud
341MSD’s duty to recover debts
342Duty unaffected by law on mistaken payments
343Ways MSD or person can meet requirement to give notice or other document
344Services to encourage young people to move to and remain in education, training, and employment
345Preferred suppliers: contracts
346Preferred suppliers: determinations
347Preferred suppliers: paying them disability allowance, special assistance, or advance payment
348Preferred suppliers: paying them disability allowance: exception if total benefit payments less than amount required
349Preferred suppliers: paying them disability allowance: exception if allowance granted at maximum rate
350Preferred suppliers: no appeal lies against MSD decisions
351Preferred suppliers: transitional or savings provisions directions
352Administration service providers: contracts
353Administration service providers: contents and form of contracts
354Administration service providers: adoption of existing contracts
355Administration service providers: MSD to ensure information published
356Conduct of provider of services in relation to young people to be treated for specified purposes as if MSD’s conduct
357MSD may assign contracted service provider to young person
358Minister determines rates and conditions of employment and payment
359Orders adopting reciprocity agreements
360Privacy report for orders adopting agreements with mutual assistance provisions
361Interpretation
362Inclusion of mutual assistance provisions in reciprocity agreements
363MSD may use mutual assistance provisions to recover debts
364MSD may use mutual assistance provisions to exchange information
365Adverse action against individual if discrepancy shown by information from other country
366Prosecutions and debt recovery proceedings: representation and fees
367Payment of benefit does not affect right to maintenance
368Maintenance proceedings
369What this Part does
370Right to seek review of specified decision of MSD made under delegation
371Application must be made within 3 months after date of notification or further period allowed
372Benefits review committee
373How to begin, and procedure and powers for, review by benefits review committee
374Appeals only against decision confirmed or varied by benefits review committee or made by chief executive personally
375Authority cannot hear and determine certain appeals on medical or capacity grounds
376Decision under specified social assistance enactments
377Decision under reciprocity agreements
378Decision to recover excess amount
379Appeal must be begun within 3 months of notification or further allowed period
380Social security appeal authority
381Act does not affect appeals to authority under other enactments
382How to begin, and procedure and powers for, appeal to authority
383Notice, and carrying into effect, of decision
384Right of appeal using case stated on question of law only
385Appeal must be begun, and case stated lodged, within time prescribed or allowed
386How to begin, and procedure for, appeal to High Court
387Orders, etc, on successful appeal
388Appeal, with Court of Appeal’s leave, against High Court’s determination
389Appeal, with Supreme Court’s leave, against High Court’s or Court of Appeal’s determination
390Right of appeal on medical grounds
391Appeal must be begun within 3 months of notification or further allowed period
392Board
393How to apply, and procedure and powers, for appeal to board
394Notice of, and carrying into effect, board’s decision
395What this Part does
396Benefits cannot, in general, be assigned or charged, or pass by operation of law
397Regulations: general
398Regulations: general powers not limited by special powers
399Regulations: effect of duties or powers to give directions
400Regulations: residential requirement
401Regulations: income exemptions
402Regulations: accommodation supplement
403Regulations: childcare assistance
404Regulations: disability allowance: special categories of eligibility
405Regulations: use of disability allowance to fund specified expenses
406Regulations: funeral grants: amounts and methods of payment
407Regulations: temporary additional support
408Regulations: participation allowance for people participating in activities
409Regulations: specific obligations: obligations in relation to dependent children: definitions and attendance
410Regulations: specific obligations: work-test obligations, and deferrals of, or exemptions from, specified obligations
411Regulations: factors affecting benefits: pre-benefit activities
412Regulations: factors affecting benefits: insurance recovery
413Regulations: factors affecting benefits: overseas pensions
414Regulations: factors affecting benefits: issue of warrant to arrest beneficiary
415Regulations: factors affecting benefits: absence from New Zealand
416Regulations: issue and use of entitlement cards
417Regulations: application for benefit: making of, help with, lapse, and deemed receipt
418Regulations: certain benefits granted, or granted at rate, not taking into account certain insurance payments
419Regulations: exemptions from, and calculation of, stand down
420Regulations: expiry and regrant of specified benefits
421Regulations: payments
422Regulations: payments during epidemic in New Zealand
423Regulations: debts and deductions
424Regulations: further provisions on deductions
425Regulations: advance payment of instalments of benefit
426Regulations: budgeting activities due to application for advance payment of instalments of benefit
427Regulations: remittance or suspension of debt
428Regulations: ways MSD or person can meet requirement to give notice or other document
429Regulations: reciprocity agreements with mutual assistance provisions, and adverse action if discrepancy shown by information from other country
430Regulations: how to begin, and procedure and powers for, review or appeal
431Orders in Council: discretionary increases in rates of benefits, etc
432Orders in Council: mandatory annual CPI adjustment of rates of certain benefits
433Certain orders are confirmable instruments
434Social Security Act 1964 repealed
435Social Welfare (Reciprocity Agreements, and New Zealand Artificial Limb Service) Act 1990 repealed
436Department of Social Welfare Act 1971 repealed
437Employment Services and Income Support (Integrated Administration) Act 1998 repealed
438Other enactments amended consequentially
Legislative history

The Parliament of New Zealand enacts as follows: