Pursuant to sections 5 and 124(1)(d) of the Social Security Act 1964, the Minister for Social Development and Employment establishes and approves the following welfare programme for special assistance.
Dated at Wellington this 9th day of September 2008.
HON RUTH DYSON, Minister for Social Development and Employment.
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P r o g r a m m e
1. Title—This programme is the Income Tax (Transitional Provisions) Programme.
2. Commencement—This programme comes into effect on 1 October 2008.
3. Purpose—The purpose of this programme is to provide for a transitional period for people in receipt of certain benefits under the Act, so that any reduction in those benefits during this period due to the impact of changes to income tax thresholds and family tax credits on 1 October 2008 takes place in the context of a review of their circumstances.
4. Interpretation—(1) In this programme, unless the context otherwise requires:
Act means the Social Security Act 1964
eligible person means a person to whom any of clauses 6 to 9 applies
transitional assistance or assistance means the special assistance under this programme
weekly compensation has the same meaning as in section 71A(3) of the Act.
(2) For the purposes of clause 11(c), the terms chargeable income and standard costs have the meanings given to them in the Direction in relation to Special Benefit given on 10 February 1999.
(3) For the purposes of clause 11(d), the terms chargeable income and standard costs have the meanings given to them by the Social Security (Temporary Additional Support) Regulations 2005.
(4) Expressions otherwise defined in section 3(1) of the Act have the same meanings in this programme.
5. Application of the Social Security Act—(1) Sections 3, 10A, 11, 12, 62, 63, 63A, 64, 66, 66A, 66B, 68, 68A, 70, 71, 73, 74, 74A, 74AA, 76, 77, 78, 80A, 81, 82, 82A, 83, 84 and 86J of the Act apply to and in respect of this programme
and to an eligible person as if the special assistance authorised by this programme were a benefit.
(2) Nothing in subclause (1) limits or affects the application of any other provision of the Act.
6. Beneficiaries receiving accommodation supplement—This clause applies to a person who, immediately before
1 October 2008, was receiving an accommodation supplement granted under section 61EC of the Act.
7. Beneficiaries receiving income-tested benefits and weekly compensation—This clause applies to a person who, immediately before 1 October 2008, was receiving an income-tested benefit and—
(a) was receiving weekly compensation in respect of
the person or his or her spouse or partner or a dependent child; or
(b) the person’s spouse or partner was receiving weekly compensation.
8. Beneficiaries receiving special benefit—This clause applies to a person who, immediately before 1 October 2008, was receiving a special benefit continued under section 23 of the Social Security (Working for Families) Amendment Act 2004.
9. Beneficiaries receiving temporary additional support—This clause applies to a person who, immediately before 1 October 2008, was receiving temporary additional support granted under section 61G of the Act.
10. Transitional assistance—The effect of this programme is to create an entitlement to transitional assistance for eligible persons in accordance with clauses 11 and 12.
11. Amount of assistance—The amount of transitional assistance granted to an eligible person:
(a) to whom clause 6 applies is such difference
between the amount of accommodation supplement that was payable to that person immediately
before 1 October 2008 and the amount payable to the person immediately after that date as is attributable to:
(i) the increase to the annual rate of family tax credit payable in respect of an eldest, or first, dependent child under subparts MA to MF and MZ of the Income Tax Act 2007; and
(ii) the increase to the person’s New Zealand superannuation or veteran’s pension arising from the change to the income tax deduction rates on 1 October 2008.
(b) to whom clause 7 applies is such difference
between the amount of weekly compensation that was deductible from the person’s income-tested benefit immediately before 1 October 2008 and the amount deductible from the person’s benefit
after that date as is attributable to the changes to
the income tax deduction rates that take effect on
1 October 2008.
(c) to whom clause 8 applies is such difference between the amount of special benefit that was payable to the person immediately before 1 October 2008 and
the amount payable to the person after that date
as is attributable to the increases to the person’s chargeable income and standard costs arising from:
(i) the increase to the person’s rate of family tax credit payable under subparts MA to MF and MZ of the Income Tax Act 2007; and
(ii) the increase to the person’s income arising from the change to the income tax deduction rates on 1 October 2008.
(d) to whom clause 9 applies is such difference between the amount of temporary additional support that was payable to the person immediately before 1 October 2008 and the amount payable to the person after that date as is attributable to the increases to the person’s chargeable income and standard costs arising from:
(i) the increase to the person’s rate of family tax credit payable under subparts MA to MF and MZ of the Income Tax Act 2007; and
(ii) the increase to the person’s income arising from the change to the income tax deduction rates on 1 October 2008.
12. Commencement of assistance—Assistance under clause 10 commences on 1 October 2008.
13. Ending and suspension of assistance—(1) Assistance under clause 10 ends if the benefit in respect of which it was granted ends, and is suspended while the benefit in respect of which it was granted is suspended.
(2) If it has not ended earlier, assistance under clause 10 ends not later than the date the eligible person dies, or any of the following earlier applies:
(a) in the case of any assistance, the person’s benefit is reviewed under section 81 of the Act as a result
of a change of circumstances or otherwise;
(b) in the case of any assistance granted to a person to whom clause 9 applies, the 13-week period for which his or her temporary additional support
was granted ends, whether or not that benefit is
re-granted.
14. Expiry—This programme expires with the close of
31 March 2009.
15. Consequential amendment—Clause 2.1 of the Direction in relation to Special Benefit given on 10 February 1999* is amended by inserting in paragraph (f)(i)† of the definition of chargeable income “the Income Tax (Transitional Provisions) Programme” after “the care supplement programme”.
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Explanatory Note
This note is not part of the programme, but is intended to explain its general effect.
This programme, which comes into effect on 1 October 2008, provides for transitional assistance to ensure that people receiving certain social security benefits, who would be adversely affected by the impact of the reduction in income tax rates or increases in the family tax credit rates that take affect on 1 October 2008, are not affected until their benefits are next reviewed for whatever reason or, in the case of temporary additional support, the period for which the benefit is granted ends, whichever is earlier.
*New Zealand Gazette, 16 December 1999, No. 193, page 4599
†New Zealand Gazette, 24 February 2005, No. 41, page 1056