This instrument is made under section 5 of the Social Security Act 1964 and section 23(3) of the Social Security (Working for Families) Amendment Act 2004 by the Minister for Social Development.

Instrument

1. Title—This instrument is the Direction in Relation to Special Benefit Amendment 2016.

2. Commencement—This instrument comes into force on 31 October 2016.

3. Principal direction—This instrument amends the Direction in relation to Special Benefit (given on 10 February 1999^*) (“principal direction”).

4. Clause 2 amended (Definitions)

(1) In clause 2.1, definition of chargeable income, after “in relation to an applicant” insert “and subject to clause 2.1A”.

(2) In clause 2.1, insert in its appropriate alphabetical order:

specified processing error for a person, means incorrect data relating to either or both of the type of the person’s premises and the person’s accommodation costs (within the meaning of section 61E of the Act) being entered:

(a) into a computer system operated by or on behalf of the department;

(b) as a result of a system error; and

(c) at any time in the years 1993 to 2014 (inclusive).

(3) After clause 2.1, insert:

2.1A For the period of 12 months after the payment was received, a person’s chargeable income does not include:

(a) the amount of any lump sum payment of arrears of accommodation supplement made to the person, on or after 1 November 2016, and as a result of the department correcting a specified processing error; or

(b) any income derived in that period by the person from a payment referred to in paragraph (a).

Dated at Wellington this 17th day of October 2016.

Hon ANNE TOLLEY, Minister for Social Development.

Explanatory note

This note is not part of the instrument, but is intended to indicate its general effect.

This instrument, which comes into force on 31 October 2016, amends the Ministerial Direction in relation to Special Benefit. The amendments relate to lump sum payments, made on or after 1 November 2016, of arrears of accommodation supplement as a result of the correction of a specified processing error. They ensure that, for the first 12 months after the payments are made to a person, the payments, and any income derived by the person from them in that period, are excluded from the person’s chargeable income (as defined in clause 2 of the direction). The payments are already excluded from being the person’s cash assets under paragraph (l) of the definition of cash assets because of a similar amendment to the Social Security (Income and Cash Assets Exemptions) Regulations 2011.

^*New Zealand Gazette, 16 December 1999, No. 193, page 4599