Pursuant to sections 5 and 124(1)(d) of the Social Security Act 1964, the Minister for Social Development establishes and approves the following welfare programme of special assistance and consequentially amends the Ministerial directions and welfare programmes specified in the Schedule.
P r o g r a m m e
1. Title-This programme is the Work Bonus Programme.
2. Commencement-This programme comes into effect on 15 July 2013.
3. Purpose-The purpose of this programme is to provide a financial incentive for specified beneficiaries without work-test obligations to gain and commence paid employment, or increase their hours of work, in order to cease receiving a main benefit under the Act.
4. Interpretation-(1) In this programme, unless the context otherwise requires:
Act means the Social Security Act 1964
additional dependent child, in relation to a person, has the same meaning as in section 60GAE(1) of the Act
applicant means a person to whom a work bonus is granted
cancelled, in relation to a specified benefit, includes terminated
cancellation date, in relation to a specified benefit, has the meaning in clause 6(1)(b)
main benefit under the Act has the same meaning as the term main benefit under this Act in section 3(1) of the Act
qualifying employment has the meaning in clause 6(1)(a)
specified beneficiary means a person (A) who:
(a) receives a supported living payment on the grounds of A's sickness, injury, disability, or total blindness, under section 40B of the Act; or
(b) is the spouse or partner of a person (B) who is receiving a supported living payment under section 40B of the Act on the ground of B's sickness, injury, disability, or total blindness, if A:
(i) would be qualified in his or her own right to receive a supported living payment under section 40B of the Act; or
(ii) is the principal caregiver in respect of
a dependent child (not being an additional dependent child) aged under 5 years or an additional dependent child aged under 1 year; or
(c) receives an emergency benefit analogous to a supported living payment under section 40B of the Act on the grounds of A's sickness, injury, disability, or total blindness, under section 61 of the Act; or
(d) is the spouse or partner of a person (B) who is receiving an emergency benefit analogous to a supported living payment under section 40B of the Act on the ground of B's sickness, injury, disability, or total blindness, if A:
(i) would be qualified in his or her own right to receive an emergency benefit analogous to a supported living payment under section 40B of the Act; or
(ii) is the principal caregiver in respect of
a dependent child (not being an additional dependent child) aged under 5 years or an additional dependent child aged under 1 year; or
(e) receives sole parent support under section 20D of the Act and whose youngest dependent child (not being an additional dependent child) is aged under
5 years or is an additional dependent child aged under 1 year; or
(f) receives the emergency benefit known as emergency maintenance allowance and is the principal caregiver in respect of a dependent child (not being an additional dependent child) aged under 5 years or
an additional dependent child aged under 1 year; or
(g) who receives a main benefit under the Act pursuant to section 123B(3) of the Act during the person's satisfactory participation in an approved activity or activities and is a person to whom paragraph (a), (b), or (e) would apply if he or she were receiving a benefit referred to in any of those paragraphs
specified benefit means a benefit referred to in the definition of the term specified beneficiary
unsuitable employment, in relation to a person, means employment that the chief executive considers would not be suitable employment for the person and includes employment:
(a) as a sex worker or as the operator of a brothel
(as the terms sex worker, operator, and brothel are defined in the Prostitution Reform Act 2003); or
(b) as a strip-tease artist or lap dancer; or
(c) in the production of any pornographic film or video whether as an actor or otherwise
work bonus means the special assistance under this programme and work bonus payment has a corresponding meaning.
(2) Terms 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 12, 62, 63, 72, 74, 74A, 76, 77, 80A, 81, 82 (except 82(6) to (6D)), 83(1) and (2), 84, and 86J of the Act apply to the following as if the special assistance under this programme were a benefit under the Act:
(a) This programme;
(b) an applicant;
(c) the applicant's spouse or partner (if any).
(2) Nothing in subclause (1) affects the application of any other provision of the Act.
6. Work bonus-(1) On the cancellation of a specified benefit otherwise than because of a sanction under section 117(1)(c) of the Act, the chief executive must, with or without an application for it, grant a work bonus to the specified beneficiary in respect of that benefit if the chief executive is satisfied that:
(a) the specified benefit has been cancelled because the specified beneficiary has obtained employment (qualifying employment) or increased his or her hours of employment; and
(b) immediately prior to the date of cancellation of the specified benefit for that reason (the cancellation date), the specified beneficiary had no work-test obligations under the Act; and
(c) the specified beneficiary or his or her spouse or partner:
(i) notified the department prior to or within 14 days after the commencement of the qualifying employment or (as the case requires) the increased hours of employment; or
(ii) makes that notification to the department after that 14-day period and has, in the chief executive's opinion, a good and sufficient reason for failing to make that notification within that period; and
(d) neither the specified beneficiary nor his or her spouse or partner (if any) is receiving a main benefit under the Act.
(2) Subclause (1) is subject to subclause (3) and clause 7.
(3) If a person and his or her spouse or partner are both specified beneficiaries in respect of a specified benefit, only one of them may be granted a work bonus in respect of that benefit's cancellation.
7. Work bonus: ineligibility-(1) No person must be granted a work bonus in respect of the cancellation of the person's specified benefit if:
(a) the commencement of the qualifying employment or, as the case requires, the increased hours of employment is before 15 July 2013; or
(b) either the person or his or her spouse or partner has received a work bonus payment (including a portion of a work bonus payment under section 83 of the Act) within the period of 12 months preceding
the cancellation date of the specified benefit; or
(c) the qualifying employment is unsuitable employment, self-employment, or employment outside New Zealand; or
(d) the specified benefit was suspended or not for the time being payable under the Act immediately before the cancellation date.
(2) Subclause (1)(d) does not apply:
(a) if the specifed benefit was suspended or not payable because of a sanction of suspension or reduction under section 117(1)(a) or (b) of the Act; or
(b) if the specified benefit was suspended while the specified beneficiary or, as the case requires, his or her spouse or partner, was undertaking temporary employment; or
(c) to a specified beneficiary if the specified benefit payable at a work-test couple rate was suspended or not payable because of a warrant to arrest issued in respect of the specified beneficiary's spouse or partner.
8. Rate of work bonus payments-(1) The amount of a work bonus payment must be calculated in accordance with the following formula:
a = r - $100 ž (w - 1)
where:
a is the amount payable in any week
r is the rate, immediately before the cancellation date and before any abatement on account of income or other reduction or deduction under the Act:
(a) of the specified benefit; or
(b) in the circumstances referred to in clause 7(2), of the specified benefit that would have been payable if it had not been suspended or
was payable
w is the number of the week the work bonus is payable after its commencement where the first payment is counted as week 1.
(2) However, no work bonus payment is payable if a is less than $10.00.
(3) Despite subclause (1), the amount of any work bonus payment payable to a specified beneficiary to whom clause 7(1)(d) does not apply by virtue of clause 7(2)(c) is one half of the amount of a work bonus payment calculated under subclause (1).
9. Commencement of work bonus-A work bonus granted under clause 6 commences on the day after the date on which the specified benefit ceases to be payable to the specified beneficiary, his or her spouse or partner, or both of them, as a result of its cancellation.
10. Ending of work bonus-A work bonus granted under clause 6 ends on the earliest of the following dates:
(a) The date on which the amount calculated in accordance with clause 8(1) or (as the case requires) 8(3) is less than $10.00;
(b) except as provided in paragraph (c) or (d), if the applicant applies for and is granted a main benefit under the Act while receiving a work bonus, the date on which that benefit commences;
(c) if the applicant applies for a work-tested benefit and the chief executive determines that the applicant
is not entitled to a benefit for a period of 13
weeks under section 60H of the Act (voluntary unemployment or loss of employment through misconduct), the date on which the non-entitlement period starts;
(d) if the applicant is granted a conditional benefit under section 60H(6)(b) of the Act, the date on which that benefit commences.
11. Ministerial direction and welfare programmes consequentially amended-Amend the Ministerial direction and welfare programmes specified in the Schedule in the manner specified in that Schedule.
Schedule
Clause 11
Consequential amendments
Direction in relation to Special Benefit (given on
10 February 1999)1
Clause 2.1
In clause 2.1, definition of chargeable income, paragraph (f)(iii), after "of the Act", insert "under the Work Bonus Programme,".
Special Needs Grants Programme (as established and approved on 18 December 1998)2
Clause 7.3
In clause 7.3, after "Seasonal Work Assistance Programme", insert "or the Work Bonus Programme".
Transition to Work Grant Programme (as established and approved on 23 January 2007)3
New clause 9(1A)
In clause 9, after subclause (1), insert:
"(1A) Subclause (1)(c) is subject to clause 10(3)."
New clause 10(3)
In clause 10, after subclause (2), insert:
"(3) If the applicant is receiving work bonus payments under the Work Bonus Programme established and approved under section 124(1)(d) of the Act in respect of the cancellation or termination of a working age benefit, any grant under this programme for bridging finance under clause 9(1)(c) is affected as follows:
(a) the grant is not payable if the total amount of the work bonus payments in the first 2 weeks following the date of the last payment of the working-age benefit is equal to or more than $500.00;
(b) if paragraph (a) does not apply, each dollar of the amount of the grant payable in respect of a week is reduced by each whole dollar amount of the work bonus payment payable in that week."
Dated at Wellington this 24th day of June 2013.
HON PAULA BENNETT, Minister for Social Development.
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Explanatory Note
This note is not part of the programme, but is intended to indicate its general effect.
This welfare programme under the Social Security Act 1964 ("the Act") provides (subject to certain restrictions) for grants of special assistance called a work bonus as
an incentive for specified beneficiaries who do not have work-test obligations under the Act to move into employment, or increase their hours of work, and thereby cease to receive a main benefit under the Act. A work bonus payment is not payable if the benefit was suspended or not payable under the Act before it was cancelled, except where it was suspended or not payable because of:
- a sanction of suspension or reduction under section 117 of the Act;
- participation of the beneficiary or his or her spouse or partner in temporary employment;
- a warrant to arrest of the beneficiary's spouse or partner.
The amount of each work bonus payment is equivalent to the unabated weekly amount of the beneficiary's specified benefit before its cancellation reduced by $100.00 for each subsequent week of its payment, but is nil if it reduces to less than $10.00. However, where a specified benefit paid at a work-test married rate was not payable or suspended because of a warrant to arrest of the beneficiary's spouse or partner, the amount payable is half that amount.
Clause 11 and the Schedule make consequential amendments to a Ministerial direction and welfare programmes under
the Act.
1New Zealand Gazette, 16 December 1999, No. 193, page 4599
2New Zealand Gazette, 28 January 1999, No. 8, page 202
3New Zealand Gazette, 1 February 2007, No. 10, page 215