Social Security (Mandatory Reviews) Amendment Bill
Social Security (Mandatory Reviews) Amendment Bill
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Social Security (Mandatory Reviews) Amendment Bill
Social Security (Mandatory Reviews) Amendment Bill
Government Bill
158—1
Explanatory note
General policy statement
The Social Security (Mandatory Reviews) Amendment Bill amends the Social Security Act 2018 (the Act). The amendments will enable an efficient and proactive welfare system through introducing mandatory reviews. Mandatory reviews at least once every 52 weeks will confirm if clients are still eligible and receiving the correct rate of specified benefits. Automated decision making (ADM) will be used to administer aspects of these reviews.
Context
The Ministry of Social Development (MSD) currently has discretionary powers to determine whether a client remains eligible for a benefit and is receiving the right rate of payment (a discretionary review). However, this discretionary review does not require MSD to regularly check whether clients are still eligible for assistance, and, if eligible, are receiving the right assistance. In the absence of any engagement with MSD, this can make it uncertain whether clients remain eligible for the assistance they are currently receiving and whether they are receiving the correct rate.
Objectives of Bill
The objectives of this Bill are to—
determine at least once every 52 weeks if clients are still eligible and receiving the correct rate of assistance:
create efficiencies within the administration of the welfare system through allowing the use of ADM.
What Bill does to help achieve its objectives
To help achieve its objectives, this Bill will—
introduce a requirement that MSD must review a client’s eligibility and rate of a specified benefit at least once every 52 weeks (mandatory reviews); and
allow the use of ADM to administer some aspects of the mandatory reviews to reduce the impact on MSD’s frontline staff.
Mandatory reviews
This Bill will introduce a requirement that MSD must review specified benefits at least once every 52 weeks. The review will ask clients to confirm the information MSD holds about their circumstances, so MSD can determine if the client is still eligible and receiving the right rate of assistance. Specified benefits that will be included for mandatory reviews are—
the supported living payment:
the emergency benefit with an expiry date beyond 52 weeks or no expiry date at all:
the accommodation supplement (except for clients who are also getting young parent payments or youth payments):
the disability allowance:
New Zealand Superannuation with a non-qualified partner (grandparented).
Some clients will have circumstances that prevent them from responding to their mandatory reviews. We propose to introduce legislative amendments to allow MSD to implement—
exceptions where MSD would not be required to review a group of clients or a group of clients would not be required to respond to a review (these clients would not be required to respond to a review while they are experiencing specific circumstances or situations; and their next review would take place 52 weeks later, unless the client had completed a suitable engagement earlier):
exemptions where MSD can exempt an individual client from a mandatory review when a client contacts MSD before their review date and MSD is satisfied that the client is not able to respond to the review even if the client had more time (these clients would not be required to respond to a review while they are experiencing specific circumstances or situations; and their next review would take place 52 weeks later, unless the client had completed a suitable engagement earlier):
extensions where a review date can be extended by up to 20 working days if MSD determines that a client has a good and sufficient reason for needing more time to respond to the review.
Suitable engagements
The Bill introduces the ability to reset the review date if the requirements of the mandatory review are met through a suitable engagement (for example, an application for temporary additional support).
ADM
ADM will be used to administer aspects of mandatory reviews. This Bill will expand the current limited enabling provision to support the use of ADM in the administration of mandatory reviews.
Departmental disclosure statement
The Ministry of Social Development is required to prepare a disclosure statement to assist with the scrutiny of this Bill. The disclosure statement provides access to information about the policy development of the Bill and identifies any significant or unusual legislative features of the Bill.
A copy of the statement can be found at http://legislation.govt.nz/disclosure.aspx?type=bill&subtype=government&year=2025&no=158
Regulatory impact statement
The Ministry of Social Development produced a regulatory impact statement on 23 January 2025 to help inform the main policy decisions taken by the Government relating to the contents of this Bill.
A copy of this regulatory impact statement can be found at—
Clause by clause analysis
Clause 1 is the Title clause.
Clause 2 provides for the Bill to come into force on 2 March 2026.
Clause 3 provides that the Bill amends the Social Security Act 2018 (the principal Act).
Part 1Amendments to principal Act
Clause 4 inserts new subpart 3A into Part 6 of the principal Act. New subpart 3A provides for mandatory reviews of specified benefits. It consists of new sections 310A to 310H.
New section 310A sets out the meaning of specified benefits.
New section 310B requires MSD to review eligibility for, and the rate of, specified benefits.
New section 310C provides that beneficiaries must provide MSD with information and answers to questions that MSD requires for the purposes of mandatory reviews of specified benefits. If, as a result of giving information or answers, MSD determines that a beneficiary’s circumstances have changed, MSD may require the beneficiary to provide information or answers in a way that MSD specifies and by a reasonable deadline that MSD specifies. If a beneficiary fails to comply, MSD must suspend every benefit the beneficiary is receiving apart from those of the kind listed in new section 310C(6).
New section 310D requires MSD to notify beneficiaries that it is required to review their entitlement to specified benefits at least 20 working days before the date of the mandatory review unless an exception, exemption, or extension applies.
New sections 310E to 310G provide that MSD is not required to undertake or complete a review in certain circumstances. New section 310G also sets out when a mandatory review must take place once a suspension ends or a specified benefit otherwise becomes payable.
New section 310H provides that certain provisions in subpart 3 of Part 6 of the principal Act apply to mandatory reviews under new subpart 3A of Part 6.
Clause 5 amends section 363A of the principal Act, which concerns the use of automated electronic systems to make decisions, exercise powers, comply with obligations, and take related actions. The amendment replaces section 363A(3) to expand what specified provisions must be about or relate to.
Part 2Other amendments to principal Act
Clause 6 inserts new section 438A into the principal Act, which provides for the making of regulations regarding the requirement to review specified benefits.
Clause 7 amends Schedule 1 of the principal Act, which contains transitional, savings, and related provisions, to insert new Part 11 into that schedule. New Part 11 (new clauses 104 to 107) indicates when mandatory reviews of specified benefits granted before this Bill comes into force must commence.
Clause 8 amends Schedule 2 of the principal Act, which sets out a dictionary of terms used in the principal Act. The amendments add a definition and adjust several other definitions owing to the proposed inclusion of new subpart 3A of Part 6 in the principal Act.
Hon Louise Upston
Social Security (Mandatory Reviews) Amendment Bill
Government Bill
158—1
Contents
The Parliament of New Zealand enacts as follows:
1 Title
This Act is the Social Security (Mandatory Reviews) Amendment Act 2025.
2 Commencement
This Act comes into force on 2 March 2026.
3 Principal Act
This Act amends the Social Security Act 2018.
Part 1 Amendments to principal Act
4 New subpart 3A of Part 6 inserted
After section 310, insert:
Subpart 3A—Mandatory reviews
310A Meaning of specified benefit
In this subpart, specified benefit means a benefit designated by regulations made under section 438A to be a specified benefit for the purposes of this subpart.
310B MSD must review eligibility for, and rate of, specified benefits
(1)
MSD must, for the purpose set out in subsection (2), review a specified benefit that has been granted—
(a)
within 52 weeks after the date on which the benefit commences; and
(b)
within 52 weeks after the date of completion of the most recent review of the benefit under this subpart or section 304 for that purpose.
(2)
The purpose referred to in subsection (1) is to ascertain whether the beneficiary—
(a)
is, or remains, entitled to receive the benefit, or the rate of benefit, that is being paid to the beneficiary; or
(b)
was not entitled to receive the benefit, or the rate of benefit, that was paid to the beneficiary.
(3)
MSD must review all specified benefits when undertaking a mandatory review and must review those specified benefits no later than 52 weeks after the later of the following dates:
(a)
if the client receives a main benefit that is a specified benefit,—
(i)
the date on which the beneficiary’s main benefit commenced; or
(ii)
the date on which the beneficiary’s main benefit was last reviewed:
(b)
if the client does not receive a main benefit that is a specified benefit,—
(i)
the date on which the beneficiary’s last specified benefit that is a supplementary benefit commenced; or
(ii)
the date on which the beneficiary’s last specified benefit that is a supplementary benefit was last reviewed.
(4)
Subsections (1) to (3) are subject to sections 310C to 310G.
(5)
To avoid doubt, a beneficiary remains entitled to receive the specified benefit, and the rate of the specified benefit, that the beneficiary received immediately before the review if the review determines that the beneficiary’s circumstances are unchanged.
310C Information for mandatory reviews of specified benefits
(1)
For the purposes of the mandatory review specified in section 310B, the beneficiary must, before the date by which MSD is required under section 310B(1) to have reviewed a specified benefit, provide MSD with—
(a)
the information that MSD has notified the beneficiary under section 310D that MSD requires for the review:
(b)
the answers to questions that MSD has notified the beneficiary under section 310D that MSD requires for the review.
(2)
If, as a result of giving information or answers in response to a notification described in subsection (1), MSD determines that the beneficiary’s circumstances have changed, MSD may require the beneficiary to provide information or answers—
(a)
in a way that MSD specifies; and
(b)
by a reasonable deadline that MSD specifies.
(3)
If, in the case of a mandatory review of a specified benefit for the purpose set out in section 310B(2), the beneficiary contacts MSD before the specified deadline, MSD may extend the time allowed under subsection (1) by up to 20 working days if MSD is satisfied that the beneficiary has a good and sufficient reason for not being able to provide the information, or answer the questions, in the specified way by the specified deadline.
(4)
If the beneficiary fails to comply with a requirement under this section, MSD must suspend, with effect from the end of the day before the relevant deadline set out in subsection (5), every benefit or special assistance granted under section 100 or 101 that—
(a)
the beneficiary is receiving; and
(b)
is not of a kind listed in subsection (6).
(5)
The relevant deadline referred to in subsections (4) and (8)(a) and (b) is,—
(a)
if MSD does not require information under subsection (2) and has not granted the beneficiary an extension under subsection (3), the deadline specified in subsection (1):
(b)
if MSD has not granted the beneficiary an extension under subsection (3), the deadline MSD has specified under subsection (2):
(c)
if MSD has granted the beneficiary an extension under subsection (3), the extended deadline.
(6)
The kinds of benefits referred to in subsection (4)(b) are the following:
(a)
a child disability allowance:
(b)
an orphan’s benefit:
(c)
an unsupported child’s benefit:
(d)
a youth payment:
(e)
a young parent payment:
(f)
childcare assistance:
(g)
New Zealand superannuation (other than New Zealand superannuation that is being paid at a rate specified in clause 1 of Part 2 of Schedule 1 of the New Zealand Superannuation and Retirement Income Act 2001):
(h)
a veteran’s pension:
(i)
assistance paid under the guaranteed childcare assistance programme.
(7)
If MSD suspends a benefit under subsection (4) and the beneficiary does not provide the information required under subsection (1) or (2) within the relevant period set out in subsection (8), MSD must cancel the benefit or special assistance granted under section 100 or 101.
(8)
The relevant period referred to in subsection (7) is,—
(a)
if the suspended benefit is not New Zealand superannuation paid at the rate specified in clause 1 of Part 2 of Schedule 1 of the New Zealand Superannuation and Retirement Income Act 2001, a period of 8 weeks starting immediately after the relevant deadline set out in subsection (5):
(b)
if the suspended benefit is New Zealand superannuation paid at the rate specified in clause 1 of Part 2 of Schedule 1 of the New Zealand Superannuation and Retirement Income Act 2001, a period of 2 years starting immediately after the relevant deadline set out in subsection (5).
(9)
This section does not limit sections 113, 290, and 300, and clause 2 of Schedule 6.
310D MSD must notify or advise beneficiaries
(1)
For the purposes of the mandatory review specified in section 310B, MSD must, at least 20 working days before the date by which MSD is required under section 310B(1) to have reviewed a specified benefit, inform the beneficiary of—
(a)
the information that it requires for the review:
(b)
the questions for which it requires answers for the review.
(2)
When requiring information under subsection (1), MSD must give the beneficiary a notice that—
(a)
states—
(i)
that MSD is required to review the specified benefit in accordance with section 310B; and
(ii)
the date by which the beneficiary is required to provide the information or answer questions; and
(iii)
that, unless an exception, exemption, or extension applies, the beneficiary’s benefit will be suspended if the beneficiary fails to provide the information by the deadline specified in section 310C(1) or (2) or the date specified in an extension given under section 310C(3); and
(b)
specifies—
(i)
any information that MSD, under section 310C, requires the beneficiary to provide for the mandatory review; and
(ii)
the way in which that information must be provided; and
(iii)
any questions that MSD, under section 310C, requires the beneficiary to answer for the mandatory review; and
(iv)
the way in which those questions must be answered; and
(v)
the deadline for providing that information or answering those questions.
(3)
Subsections (1) and (2) do not apply if, at the time that MSD is required to give a notice under that subsection, the specified benefit—
(a)
is suspended; or
(b)
is not for the time being payable under this Act, for example, under—
(i)
section 217 (benefit not payable during custody in prison or on remand); or
(ii)
section 219 (general rule: benefit not payable while beneficiary absent from New Zealand).
(4)
However, if the suspension ends and the specified benefit becomes payable under this Act, or the specified benefit otherwise becomes payable under this Act, MSD must, as soon as practicable, take reasonable steps to advise the beneficiary of the matters set out in subsection (2).
310E Exceptions to requirement to review specified benefits
(1)
MSD is not required to undertake or complete a review that MSD would, but for this section, be required to undertake and complete under section 310B(1) if,—
(a)
at the mandatory review deadline, the specified benefit—
(i)
is suspended; or
(ii)
is not for the time being payable under this Act; or
(b)
at any time or times, or at all times, in the period that starts at least 20 working days before the mandatory review deadline and ends on the mandatory review deadline,—
(i)
there is a disruption to an automated electronic system used for mandatory reviews by MSD of specified benefits; or
(ii)
1 or more of the prescribed circumstances apply to the beneficiary.
(2)
In this section,—
mandatory review deadline means the date by which MSD would, but for this section, be required to undertake the mandatory review
prescribed circumstances means any circumstances that are—
(a)
circumstances in which MSD is not required under this section to undertake a mandatory review that MSD would, but for this section, be required to undertake under section 310B(1); and
(b)
prescribed for the purposes of this section by regulations made under section 438A.
310F Exemption from mandatory review
MSD is not required to undertake or complete a review that MSD would, but for section 310E, be required to undertake and complete under section 310B(1) if, MSD is satisfied that, owing to the beneficiary’s circumstances, a mandatory review should not be undertaken or completed (for example, the circumstances specified in sections 326 to 330).
310G When MSD must review specified benefit that was suspended or otherwise not payable at mandatory review deadline
(1)
This section applies if,—
(a)
because section 310E(1)(a) applies, MSD is not required to undertake or complete a review that MSD would, but for that section, be required to undertake and complete under section 310B(1); and
(b)
the suspension ends and the specified benefit becomes payable under this Act, or the specified benefit otherwise becomes payable under this Act, after the mandatory review deadline (as defined in section 310E(2)).
(2)
MSD must, as soon as practicable, review the specified benefit for the purpose set out in section 310B(2).
310H Application of certain provisions in subpart 3 of this Part to this subpart
The following provisions in subpart 3 of this Part apply, with all necessary modifications, to mandatory reviews under this subpart:
(a)
section 304(3) (review of, or appeal against, decision on review under subpart):
(b)
section 306 (no entitlement, or entitlement only at different rate):
(c)
section 307 (benefit on another eligibility ground more appropriate):
(d)
section 308 (another benefit more appropriate):
(e)
section 309 (termination of winter energy payment):
(f)
section 310 (certain benefits granted, or granted at rate, not taking into account certain insurance payments).
5 Section 363A amended (Use of automated electronic systems to make decisions, exercise powers, comply with obligations, and take related actions)
Replace section 363A(3) with:
(3)
The specified provision must—
(a)
be about how an information share child support payment is or affects any person’s assets, income, or other means of any kind (however described), for the purposes of, or for any purpose related to,—
(i)
a benefit; or
(ii)
any other assistance under this Act; or
(b)
be about sanctions for breach of—
(i)
young person or young parent obligations; or
(ii)
obligations other than young person or young parent obligations; or
(c)
be about mandatory reviews by MSD of specified benefits (as defined in section 310A(1)); or
(d)
be about expiry and regrant of specified benefits (as defined in section 331(1)).
Part 2 Other amendments to principal Act
6 New section 438A inserted (Regulations: requirement to review specified benefits)
After section 438, insert:
438A Regulations: requirement regarding specified benefits
(1)
The Governor-General may, by Order in Council, make regulations for either or both of the following purposes:
(a)
designating the benefits or kinds of benefits that are a specified benefit or specified benefits for the purposes of subpart 3A of Part 6:
(b)
prescribing circumstances for the exception under section 310E(1) from the requirement for MSD to undertake a mandatory review under section 310B(1).
(2)
Regulations made under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
7 Schedule 1 amended
In Schedule 1,—
(a)
insert the Part set out in the Schedule of this Act as the last Part; and
(b)
make all necessary consequential amendments.
8 Schedule 2 amended
(1)
In Schedule 2, definition of automated electronic system, replace “that section”
with “that section and section 310E(1)(b)(i)”
.
(2)
In Schedule 2, definition of disruption, replace “that section”
with “that section and section 310E(1)(b)(i)”
.
(3)
In Schedule 2, insert in its appropriate alphabetical order:
mandatory review deadline is defined in section 310E(2)
(4)
In Schedule 2, replace the definition of prescribed circumstances with:
prescribed circumstances is defined in—
(a)
section 310E(2) for the purposes of section 310E(1)(b)(ii):
(b)
section 334(5) for the purposes of section 334
(5)
In Schedule 2, definition of specified benefit, after paragraph (aa), insert:
(ab)
is defined in section 310A for the purposes of subpart 3A of Part 6; and
Schedule New Part 11 inserted into Schedule 1
s 7
Part 11 Provisions relating to Social Security (Mandatory Reviews) Amendment Act 2025
104 Interpretation
In this Part,—
amendment Act means the Social Security (Mandatory Reviews) Amendment Act 2025
commencement date means the date on which the amendment Act comes into force.
105 First mandatory review date for specified benefit granted and commences before commencement date
(1)
This clause applies if, before the commencement date,—
(a)
MSD grants a beneficiary a specified benefit or specified benefits; and
(b)
the specified benefit or specified benefits have commenced.
(2)
MSD must undertake the beneficiary’s first mandatory review for the purposes of subpart 3A of Part 6 no later than 52 weeks after the later of the following dates:
(a)
the date on which the specified benefit or specified benefits commenced; or
(b)
the date on which the beneficiary’s last review for the purposes of subpart 3 of Part 6 was completed; or
(c)
the date on which MSD last contacted the beneficiary to confirm whether the information MSD holds regarding the beneficiary’s circumstances is correct.
106 First mandatory review date for specified benefit granted but not commenced before commencement date
(1)
This clause applies if, before the commencement date,—
(a)
MSD grants a beneficiary a specified benefit or specified benefits; but
(b)
the specified benefit or specified benefits have not commenced.
(2)
MSD must undertake the beneficiary’s first mandatory review for the purposes of subpart 3A of Part 6 no later than 52 weeks after the date on which the beneficiary’s last specified benefit commenced.
(3)
However, if the beneficiary is also receiving a specified benefit to which clause 105 applies, the beneficiary’s first mandatory review for the specified benefit or specified benefits to which this clause applies must—
(a)
be part of the mandatory review for the specified benefit to which clause 105 applies; and
(b)
commence as specified in clause 105.
107 First mandatory review date if clauses 105 and 106 both apply
(1)
Despite anything in clauses 105 and 106, this clause applies if a beneficiary has—
(a)
a specified benefit or specified benefits to which clause 105 applies; and
(b)
a specified benefit or specified benefits to which clause 106 applies.
(2)
The beneficiary’s first mandatory review for the specified benefit to which clause 106 applies must—
(a)
be part of the mandatory review for the specified benefit to which clause 105 applies; and
(b)
commence as specified in clause 105.
(3)
However, if a specified benefit to which clause 106 applies is the beneficiary’s main benefit, the beneficiary’s first mandatory review for the specified benefit or specified benefits to which clause 105 applies must—
(a)
be part of the mandatory review for the specified benefit to which clause 106 applies; and
(b)
commence as specified in clause 106.
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Social Security (Mandatory Reviews) Amendment Bill
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