1What this schedule does

1. This schedule contains provisions on the following matters:

2. the ranking of income provisions in and outside this schedule:
3. what, for the purposes of this Act, is income (including an overview of how child support may be income for the purposes of this Act):
4. general provisions on how income is calculated:
5. special provisions on how weekly income is calculated if that income is information share child support payments:
6. what may happen if an applicant for a benefit deprives the applicant of income, property, or both:
7. how insurance payments to or for a person affect liabilities for the purposes of various benefits.

2Ranking of provisions in and outside this schedule

1. Clause 3 is overridden by clauses 4 to 10.

2. Clauses 4 to 10 are overridden by any contrary provisions in this Act (for example, by regulations made under section 424(2)(d), and by clause 16(3)).

3. Regulations made (under section 422) for the purposes of clause 9 override any contrary provisions in this Act.

3General definition of income

1. Income, of a person, means the money value (before income tax) of a thing that—

2. is money received, or an interest acquired, by the person; and
3. is not an interest in capital received or acquired by the person.

4Income includes periodical payments, etc, for income-related purposes

1. A person’s income includes any periodical payments made to the person, and the value of any credits or services provided periodically to the person,—

2. from any source for income-related purposes; and
3. used by the person for income-related purposes.

4. Subclause (1) applies—

5. whether or not the payments, credits, or services are capital; and
6. to the payments, credits, or services as calculated before the deduction (if applicable) of income tax.

7. The contrary provisions that (under clause 2(2)) override this clause include clause 10 (which requires MSD to have regard to specified matters in considering, in respect of a person, whether a payment, credit, or service is for an income-related purpose).

5Income includes specified insurance payments

1. A person’s income includes the following payments made to the person:

2. any periodical income-related insurance payments:
3. any lump sum income-related insurance payment—
   1. made in respect of the occurrence of a contingency; and
   2. made within a period of 10 weeks from that occurrence; and
   3. to the extent only that it replaces income lost by the person because of that occurrence.

4. Subclause (1) also applies to a payment referred to in subclause (1)(a) or (b) that the person would have been entitled to receive—

5. under an accident insurance contract as defined in section 13 of the Accident Insurance Act 1998; and
6. but for the existence of a risk sharing agreement referred to in section 185 of the Accident Insurance Act 1998 (as it read immediately before its repeal by section 7 of the Accident Insurance Amendment Act 2000).

7. Subclause (1) applies—

8. whether or not the payments are capital; and
9. to the payments as calculated before the deduction (if applicable) of income tax.

10. The contrary provisions that (under clause 2(2)) override this clause include—

11. section 198 (loss of earnings compensation under Accident Compensation Act 2001); and
12. clause 10 (which requires MSD to have regard to specified matters in considering, in respect of a person, whether a payment, credit, or service is an income-related insurance payment).

6Income includes specified other payments related to work ending

1. A person’s income includes the following payments made to the person:

2. any payment relating to a situation involving a seasonal layoff:
3. any payment contingent on the completion of either a fixed-term engagement or an engagement to complete work specified in a contract:
4. any payment in lieu of notice terminating employment:
5. any payment (including holiday pay) that, if it had not been made in relation to termination of employment, would, in MSD’s opinion, have been paid so as to constitute monetary remuneration of the employee:
6. any parental leave payments paid under Part 7A of the Parental Leave and Employment Protection Act 1987:
7. any payment in relation to termination of employment made by a company pursuant to its constitution to any of its directors.

7Income includes value of goods, etc, supplied on regular basis

1. A person’s income includes the value of any goods, services, transport, or accommodation supplied on a regular basis to the person by any other person.

2. Subclause (1) applies to the value of the goods, services, transport, or accommodation as calculated before the deduction (if applicable) of income tax.

7AOverview of how child support may be income

1. Under clause 8(m), child support that is an interest acquired by a person (rather than money received by (a payment made to) a person) is not income of the person. Examples are—

2. an interest acquired that is an offset child support payment; or
3. an interest acquired by way of any child support debt recovery by reduced further payments of child support.

4. Under clause 8(n), child support that is a child support deduction for a receiving carer who is a UCB beneficiary is not income of that person.

5. Child support that is money received by a person is income of the person for the purposes of this Act unless it is—

   Court-ordered lump sums MSD determines are capital are not income

6. a payment that is ordered by the Family Court under section 109 of the Child Support Act 1991 (orders for provision of child support in form of lump sum) and that MSD determines, under clause 3(b) of this schedule, is an interest in capital received or acquired by the person; or

Child support excess payments are not income

7. a child support excess payment (which includes, without limitation, a mixed child support payment) that, under clause 8(na), is not income of the person; or

Payments covered by income exemption regulations are not income

8. a payment that, under clause 9 and income exemption regulations made under section 422, is not income of the person.

9. A child support payment is 1 of the following (as defined in Schedule 2)—

10. an information share child support payment; or
11. a general provisions child support payment.

12. An information share child support payment that is income is subject to—

13. general annual income provisions in Part 3 of this schedule (see clauses 12 and 14 (how annual income is calculated)); and
14. special weekly income provisions in Part 3A of this schedule.

15. A general provisions child support payment that is income is subject to—

16. general annual income provisions in Part 3 of this schedule (see clauses 12 and 14 (how annual income is calculated)); and
17. general weekly income provisions in Part 3 of this schedule (see clauses 13 and 14 (how weekly income is calculated)).

18. This overview is about income for the purposes of the Act, and so does not affect special provisions about cash assets or income for particular purposes, for example,—

19. accommodation supplement (see regulations made under section 423):
20. childcare assistance (see regulations made under section 424):
21. temporary additional support (see regulations made under section 428):
22. a benefit’s stand-down period (see regulations made under section 440).

8Income excludes specified benefits, payments, interests acquired, etc

1. A person’s income excludes the following amounts or payments:

2. any benefit, grant, allowance, or concession received by the person under this Act, Part 6 of the Veterans’ Support Act 2014, or Part 1 of the New Zealand Superannuation and Retirement Income Act 2001:
3. any pension or allowance (other than weekly income compensation or weekly compensation) under the Veterans’ Support Act 2014 received by any person because of the person’s own disablement:
4. any surviving spouse or partner pension received by the person under section 66 of the Veterans’ Support Act 2014:
5. any, or any part of any, pension or other periodical allowance received by any person from the Government of any Commonwealth country (other than New Zealand) that MSD determines is analogous to a pension or allowance specified in paragraph (b) or (c):
6. the value of any assistance of a kind approved by MSD provided to the person as a person with a health condition, injury, or disability to obtain or remain in employment:
7. any money received by the person by way of funeral benefit from any friendly society:
8. a participation allowance received by the person:
9. any money paid in respect of any military decoration and received by the person as a recipient of that decoration:
10. any money received by the person by way of an independence allowance under section 54 of the Accident Rehabilitation and Compensation Insurance Act 1992 or Part 13 or Part 4 of Schedule 1 of the Accident Insurance Act 1998, or any impairment lump sum received under Schedule 1 of the Accident Compensation Act 2001:
11. any money received by the person under the Oranga Tamariki Act 1989 in respect of the care of a child or young person (as those terms are defined in that Act), including financial assistance received by a young person (including a young adult), a caregiver, or other person under section 386AAG or 386B of that Act:
12. any income-related rent (within the meaning of the Public and Community Housing Management Act 1992):
13. any tax credit or amount received by the person under—
    1. subparts MA to MG and MZ of the Income Tax Act 2007; or
    2. subpart KD of the Income Tax Act 2004; or
    3. subpart KD of the Income Tax Act 1994; or
    4. Part 11A of the Income Tax Act 1976:
14. child support that is an interest acquired by the person, for example,—
    1. an interest acquired that is an offset child support payment; or
    2. an interest acquired by way of child support debt recovery by reduced further payments of child support:
15. a child support deduction for a receiving carer who is a UCB beneficiary:
16. a child support excess payment (which includes, without limitation, a mixed child support payment):
17. any amount of output tax charged in respect of a supply of goods and services made by that person:
18. any amount of goods and services tax payable by the Commissioner of Inland Revenue to that person.

8AException to exclusion in clause 8(a): income includes COVID-19 income relief payment (Repealed)

9Income excludes amounts, etc, declared not to be income

1. A person’s income excludes any amount, item, payment, or income from specified source, declared by regulations made under section 422 not to be income.

10Considerations for whether income-related insurance payment or income-related purpose

1. In considering, in respect of a person, whether a payment, credit, or service is an income-related insurance payment or (as the case may be) is for an income-related purpose, MSD must have regard to the following matters:

2. the nature of the contingency in respect of which the payment, credit, or service was made, provided, or used:
3. the nature of the payment, credit, or service:
4. the manner in which, and the occasions on which, the payment, credit, or service is made, provided, or used:
5. the manner in which the right to or eligibility for the payment, credit, or service is expressed in any contract of insurance or in any other document:
6. whether the payment, credit, or service is required to be made or provided to any other person and, if so, the relationship between the persons:
7. whether the person has assigned the person’s right to receive the payment, credit, or service:
8. any other matters that MSD considers, in the circumstances of the particular case, to be relevant.

11Interpretation

1. In clauses 12 to 14,—

   appropriate number of weeks means a number that—

   1. must not exceed 52; and
   2. is specified, for the benefit concerned, in regulations made under section 418(1)(o)

   specified provision means a provision that is all or a portion of legislation in or made under all or any of the following:

   1. this Act (for example, a schedule of this Act):
   2. the New Zealand Superannuation and Retirement Income Act 2001:
   3. Part 6 of the Veterans’ Support Act 2014.

12How annual income is calculated

1. A person’s annual income, for the rate of benefit, or as referred to in a specified provision, is (unless the context otherwise requires) the person’s estimated income for the 52 weeks commencing on the date on which the benefit (if granted, or regranted) will commence.

2. The estimated annual income for the 52 weeks specified in subclause (1) is an amount equal to the income received by the person for the 52 weeks ending on the day preceding the date on which the benefit, if granted or regranted, will commence as MSD determines.

3. The income received by the person for the 52 weeks specified in subclause (2) is or includes any information share child support payment that is charged as weekly income of the person under Part 3A of this schedule for all or any of those weeks.

13How weekly income is calculated: general

1. A person’s weekly income, for the rate of benefit, or as referred to in a specified provision, is (unless the context otherwise requires) the person’s weekly income calculated by dividing the person’s total income over the appropriate number of weeks by that number of weeks.

2. MSD may, in calculating a person’s weekly income under subclause (1), determine the period or periods to which any income relates, having regard to—

3. the extent to which it was earned in that period or those periods; or
4. the extent to which any other entitlement to it arose in, or in respect of, that period or those periods; or
5. the period or periods for which it was otherwise received, acquired, paid, provided, or supplied.

6. MSD’s determination under subclause (2) is not limited to, or by, the exact time or times of the relevant earning, entitlement, receipt, acquisition, payment, provision, or supply, referred to in subclause (2)(a) to (c).

7. Nothing in this clause applies to any information share child support payment (see Part 3A of this schedule).

14Adjustments for likely reductions or increases

1. The estimated income for the period for which the calculation under clause 12(1) or 13(1) is made is the income as calculated under clause 12(1) or 13(1), but adjusted for all (if any) of the following deductions and additions:

2. MSD may deduct any items by which MSD is satisfied that income as so calculated is likely to be reduced:
3. MSD may add any items by which MSD is satisfied that income as so calculated is likely to be increased.

15Rules on how MSD determines income of people engaged in business or trade

1. The Governor-General may, by Order in Council, make rules—

2. prescribing how MSD is to assess and determine for the purposes of this Act the income of all or any of the following:
   1. self-employed people:
   2. people carrying on business in a partnership:
   3. people trading as a small business:
   4. directors of a company:
   5. people carrying on business or trade through a company of which they are—
      1. a director and a shareholder; or
      2. an employee and a shareholder; or
      3. a director, a shareholder, and an employee:
   6. people otherwise engaged in business or trade; and
3. prescribing the circumstances in which those rules apply.

4. However, neither subclause (1) nor rules made under subclause (1) apply to any information share child support payment (see Part 3A of this schedule).

5. Rules made under subclause (1) may prescribe for the purposes of this Act all or any of the following:

6. the kinds of deduction from income allowed under the Income Tax Act 2007 that are to be disregarded in determining income, and—
   1. the circumstances in which the deductions are to be disregarded; and
   2. whether the deductions are to be disregarded wholly or in part only:
7. how income is to be calculated if business accounts are presented in cash or accrual form:
8. livestock valuation methods, and their treatment, in calculating income:
9. the extent (if any) to which, and circumstances in which, all or any of the following are to be treated as a person’s income:
   1. the person’s drawings from a business or trade:
   2. goods or services supplied to the person by a business or trade:
   3. distributions to the person from a business or trade:
   4. income from a business or trade by the person:
10. how it is to be determined whether a person has used assets of a business or trade for no consideration or inadequate consideration:
11. how a person’s income is to be determined if the person has used assets of a business or trade for no consideration or inadequate consideration:
12. the extent (if any) to which depreciation or other provision for replacement of capital assets is to be—
    1. allowed as a deduction from income; or
    2. disregarded in calculating income:
13. the extent (if any) to which, and circumstances in which, either or both of the following are to be treated as income:
    1. distributions from a company:
    2. retained profits of a company:
14. the treatment of look-through companies (within the meaning of the Income Tax Act 2007).

15. Subclause (2)(d) applies to businesses and trades however they are carried on.

16. Subclause (3) does not limit subclause (1).

17. Rules made under subclause (1), if those rules reduce the income of people, have effect in respect of any income specified in the rules on and after a date that is—

18. specified in the rules; and
19. earlier than, the same as, or later than, the date on which the rules are made.

20. Rules under this clause are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

15AHow payment is charged as weekly income

1. This Part sets out how a person’s information share child support payment is all or any of their weekly income—

2. for the rate of benefit; or
3. for a specified provision (as defined in clause 15C).

4. The key steps in charging the payment as weekly income are as follows:

5. the payment is taken to be received at deemed receipt:
6. deemed receipt is used to identify when income charging starts and ends:
7. the payment amount is divided by the number of weeks the payment is charged to produce equal amounts of weekly income for each of those weeks.

8. Under the exception in clause 15H (terminal benefit), which applies when the person has died, and their benefit will end, or has ended, under section 326(2) or (3), the payment is not charged as the person’s weekly income.

9. Under the exception in clause 15I (transfer to new benefit paid in different instalments), MSD may charge the payment amount—

10. as income for other weeks; and
11. as equal or unequal amounts of weekly income for each of those other weeks.

15BEffect of non-payment of benefit or other assistance

1. This Part applies to a person and an income-charging period even if the person’s benefit or other assistance under this Act is not payable at all or any of the following times:

2. at or after the time of disclosure to MSD of a payment that could be charged as income in the period:
3. at the start or end of, or at any other time or times in, the period.

Examples of benefit or other assistance not payable

The person’s benefit or other assistance under this Act—

• is not payable at the start of the period; but

• is payable again later in the period.

The person’s benefit or other assistance under this Act—

• is payable at the start of the period; but

• is not payable, then is payable again, later in the period.

4. Subclause (1) applies whether or not the person’s benefit or other assistance under this Act changes at the start or end of, or at any other time or times in, the period.

5. But subclause (1)(a) does not apply (despite subclause (4)) to a person’s benefit or other assistance under this Act that is not payable because it has been cancelled.

6. For the purposes of subclause (1), a person’s benefit or other assistance under this Act is not payable (subject to subclause (3)) if all or any of the following apply:

7. the benefit or other assistance under this Act is, in connection with a review under section 304 or otherwise, suspended, or otherwise not payable, in connection with decisions MSD has made, or is to make, about whether the person is, or remains, entitled to—
   1. the benefit or other assistance under this Act; or
   2. the rate of benefit or other assistance under this Act that was paid to the person:
8. the person is subject to legislation in or made under this Act that provides for the suspension, or other non-payment, in certain circumstances, of that person’s benefit or other assistance under this Act.

9. The legislation mentioned in subclause (4)(b) includes, without limitation,—

10. section 213 (immediate suspension of benefit at request of New Zealand Police):
11. section 219 (general rule: benefit not payable while beneficiary absent from New Zealand):
12. section 237 (sanction for second failure: suspension of main benefit):
13. section 270 (sanction for first or second failure: suspension of in-hand allowance and incentive payments):
14. section 280 (sanction for first or second failure: suspension of in-hand allowance and incentive payments):
15. sections 331 to 336 (expiry and regrant of specified benefits):
16. regulations made under section 436 (regulations: factors affecting benefits: absence from New Zealand):
17. regulations made under section 441(1) (regulations: expiry and regrant of benefits).

15CInterpretation

1. In this Part,—

   business day, for an information share child support payment, means a day of the week other than—

   1. a Saturday, a Sunday, Waitangi Day, Good Friday, Easter Monday, Anzac Day, the Sovereign’s birthday, Te Rā Aro ki a Matariki/Matariki Observance Day, and Labour Day; and
   2. if Waitangi Day or Anzac Day falls on a Saturday or a Sunday, the following Monday; and
   3. Christmas Day, Boxing Day, New Year’s Day, and 2 January; and
   4. if Christmas Day or 1 January falls on a Friday, the following Monday; and
   5. if Christmas Day or 1 January falls on a Saturday or a Sunday, the following Monday and Tuesday

   expected date of the next in-cycle payment, for an in-cycle payment made on the second business day after the 19th day of a month, means the third business day after the 19th day of the next month

   in-cycle payment means an information share child support payment that is made—

   1. by the Commissioner of Inland Revenue to the receiving carer; and
   2. on the second business day after the 19th day of a month

   out-of-cycle payment means an information share child support payment that is not an in-cycle payment

   specified provision has the same meaning as in clause 11 of this schedule

   standard income-charging period means,—

   1. if the relevant benefit or other assistance is paid in instalments of 1 week’s benefit or other assistance, a period that—
      1. starts on a Monday; and
      2. ends at the close of the first Sunday after that Monday; and
   2. if the relevant benefit or other assistance is paid in instalments of 2 weeks’ benefit or other assistance, a period that—
      1. starts on a Wednesday; and
      2. ends at the close of the second Tuesday after that Wednesday

   transaction date, for an information share child support payment to a person, means the date of the business day on which a bank is to make the payment to the person by direct credit to a bank account nominated by the person under section 148 of the Child Support Act 1991, as the date of that business day is—

   1. stated in the Commissioner of Inland Revenue’s instructions to the bank; and
   2. disclosed to MSD under the specified approved information sharing agreement.

15DDeemed receipt: general rule

1. In this Part, the deemed receipt of a person’s information share child support payment is,—

2. at the start of the first business day after the transaction date, if MSD makes no determination under clause 15E; or
3. if MSD makes a determination under clause 15E, at the start of the date determined under that clause.

15EDeemed receipt: exception

1. MSD may determine that a person’s information share child support payment is, for the purposes of this Part, taken to be received—

2. not at the start of the first business day after the transaction date (under the general rule in clause 15D(a)); but instead
3. at the start of a later date.

4. MSD must consider the day on which the person actually received the payment, and any advantage to the person of the general rule in clause 15D(a) not applying to the person, if, and when, MSD decides—

5. whether to make a determination under this clause; and
6. the terms of a determination made under this clause.

15FWhen income charging starts: general rule

1. For a person’s in-cycle payment or out-of-cycle payment, income charging starts as set out in item 1 or 2 of the following table:

   The following table is small in size and has 3 columns. Column 1 is headed Item. Column 2 is headed If the relevant benefit or other assistance is paid. Column 3 is headed income charging starts.

   Item	If the relevant benefit or other assistance is paid ...			income charging starts ...
   1	in instalments of 1 week’s benefit or other assistance			at the start of a standard income-charging period, if deemed receipt falls in that period
   2	in instalments of 2 weeks’ benefit or other assistance			at the start of a standard income-charging period, if deemed receipt falls in week 1 of that period or at the start of the next standard income-charging period, if deemed receipt falls in week 2 of a standard income-charging period

15GWhen income charging ends: general rule

1. For a person’s in-cycle payment, income charging ends as set out in item 1 or 2 of the following table:

   The following table is small in size and has 3 columns. Column 1 is headed Item. Column 2 is headed If the relevant benefit or other assistance is paid. Column 3 is headed income charging ends.

   Item	If the relevant benefit or other assistance is paid ...			income charging ends ...
   1	in instalments of 1 week’s benefit or other assistance			at the end of the standard income-charging period immediately before the expected date of the next in-cycle payment
   2	in instalments of 2 weeks’ benefit or other assistance			at the end of the 4 weeks that start on the day on which the payment starts to be charged as the person’s income

2. For a person’s out-of-cycle payment, income charging ends as set out in item 1 or 2 of the following table:

   The following table is small in size and has 3 columns. Column 1 is headed Item. Column 2 is headed If the relevant benefit or other assistance is paid. Column 3 is headed income charging ends.

   Item	If the relevant benefit or other assistance is paid ...			income charging ends ...
   1	in instalments of 1 week’s benefit or other assistance			at the end of the first Sunday before the day that—
   (a) is in the month after the month of deemed receipt; and
   (b) corresponds to the day of deemed receipt
   or
   at the end of the first day of the second month after the month of deemed receipt, if the month after the month of deemed receipt contains no day that corresponds to the day of deemed receipt
   2	in instalments of 2 weeks’ benefit or other assistance			at the end of the 4 weeks that start on the day on which the payment starts to be charged as the person’s income

15HTerminal benefit

1. This clause applies to the person’s information share child support payment (whether an in-cycle payment or an out-of-cycle payment) if—

2. the person has died, and their benefit—
   1. is specified in any of paragraphs (a) to (h) of section 326(1); and
   2. will end, or has ended, under section 326(2) or (3); and
3. the payment’s deemed receipt is after the person’s death.

4. The payment is not charged as the person’s weekly income.

5. This clause overrides clauses 15F and 15G.

15ITransfer to new benefit paid in different instalments

1. This clause applies to a person who transfers—

2. from a benefit or other assistance that is payable in instalments of 1 week’s benefit or other assistance; and
3. to a benefit or other assistance that is payable in instalments of 2 weeks’ benefit or other assistance.

4. This clause also applies to a person who transfers—

5. from a benefit or other assistance that is payable in instalments of 2 weeks’ benefit or other assistance; and
6. to a benefit or other assistance that is payable in instalments of 1 week’s benefit or other assistance.

7. MSD may determine that the person’s information share child support payment is charged as the person’s weekly income for a period that—

8. MSD identifies; and
9. is after the deemed receipt; and
10. is 3 or more weeks, but not more than 6 weeks; and
11. does not start or end as required by clauses 15F and 15G.

12. In making a determination under this clause, MSD may charge the payment amount as equal or unequal amounts of weekly income.

13. MSD must consider how MSD can best charge the payment as weekly income reasonably and conveniently if, and when, MSD decides—

14. whether to make a determination under this clause; and
15. the terms of a determination made under this clause.

16. This clause overrides clauses 15F and 15G.

16Effect of deprivation of income or property

1. This clause applies if MSD is satisfied that—

2. deprivation of 1 or both of the following kinds has occurred:
   1. an applicant for a benefit has, directly or indirectly, deprived the applicant of income, property, or both:
   2. the spouse or partner of an applicant for a benefit has, directly or indirectly, deprived the spouse or partner of income, property, or both; and
3. the deprivation results in the applicant’s qualifying for that benefit, any other benefit, or an increased rate of benefit.

4. For the purposes of this clause and of rules under clause 17, deprivation of income, property, or both, by a person who is an applicant for a benefit, or the spouse or partner of that applicant, excludes that person doing all or any of—

5. not applying for a formula assessment of child support payable in respect of a qualifying child under the Child Support Act 1991:
6. electing to end a formula assessment of child support payable in respect of a qualifying child under that Act:
7. choosing not to enter into a voluntary agreement for child support in respect of a qualifying child under that Act (whether or not that voluntary agreement—
   1. is a voluntary agreement that, under section 48 of that Act, qualifies for acceptance by the Commissioner of Inland Revenue; and so
   2. is a qualifying voluntary agreement (as defined in section 2(1) of that Act)):
8. making under that Act an election to terminate liability under a qualifying voluntary agreement that, under section 48 of that Act, has been accepted by the Commissioner of Inland Revenue:
9. not making, or making, any other arrangement (for example, one in respect of a qualifying child and that is not a qualifying voluntary agreement (as those terms are defined in section 2(1) of that Act)) that does or may affect whether or what child support is payable in respect of a qualifying child under that Act.

10. Subclause (1A) does not apply to, and does not limit the application of section 9 (UCB beneficiaries must apply for formula assessment) of the Child Support Act 1991 to,—

11. an applicant for an unsupported child’s benefit; or
12. the spouse or partner of that applicant; or
13. a UCB beneficiary; or
14. the spouse or partner of that UCB beneficiary.

15. MSD may refuse to grant a benefit, cancel or reduce a benefit already granted, or grant a benefit at a reduced rate.

16. In this clause and clause 17,—

    income excludes, for 12 months after the date of the person’s receipt of the amount, an amount that—

    1. MSD considers is, or might have been, derived by a person from—
       1. an impairment lump sum under Schedule 1 of the Accident Compensation Act 2001; or
       2. a lump sum payment of an independence allowance under Part 13 or Part 4 of Schedule 1 of the Accident Insurance Act 1998; and
    2. is paid to, and received by, the person, after (when section 74(2) of the Social Security Act 1964 commenced at) the close of 31 March 2002

    property excludes, for 12 months after the date of the person’s receipt of the sum or payment, a sum or payment that—

    1. was paid to, and received by, a person as—
       1. an impairment lump sum under Schedule 1 of the Accident Compensation Act 2001; or
       2. a lump sum payment of an independence allowance under Part 13 or Part 4 of Schedule 1 of the Accident Insurance Act 1998; and
    2. is paid to, and received by, the person, after (when section 74(2) of the Social Security Act 1964 commenced at) the close of 31 March 2002.

17. This clause—

18. overrides any provisions to the contrary in this Act (under clause 2(3)), Part 6 of the Veterans’ Support Act 2014, or the New Zealand Superannuation and Retirement Income Act 2001; but
19. is subject to any rules prescribed by rules under clause 17.

17Rules on how MSD determines deprivation of income or property

1. The Governor-General may, by Order in Council, for the purposes of clause 16 make rules—

2. relating to the deprivation of income, property, or both; and
3. prescribing the circumstances in which the rules apply.

4. Rules under this clause are subject to clause 16(1A) (under which deprivation of income, property, or both, excludes specified conduct by a person who is an applicant for a benefit, or the spouse or partner of that applicant).

5. Rules under this clause are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

18How accommodation costs affected by debt insurance payment in relation to mortgage security

1. This clause applies to a person if a debt insurance payment in relation to a mortgage security is made to the person, or to some other person—

2. on the person’s behalf; or
3. for the person’s benefit.

4. For the purposes of the definition in section 65 of accommodation costs, the payments required to be made by that person under that mortgage security are taken to be reduced by the amount of the debt insurance payment.

19How expenses for disability allowance may be affected by health or disability insurance payment

1. This clause applies to a person if a health or disability insurance payment is made to the person, or to some other person—

2. on the person’s behalf; or
3. for the person’s benefit; or
4. on behalf of a member of the person’s family; or
5. for the benefit of a member of the person’s family.

6. For the purposes of subpart 14 of Part 2 (disability allowance), any additional expenses of the person arising from the person’s disability, or expenses arising from the hospitalisation of the person’s spouse or partner, as the case may be, are taken to be reduced to the extent, if any, MSD considers appropriate.

7. MSD must, in determining the extent of any reduction, have regard to the nature of the payment and those additional expenses or expenses.

20How commitments for temporary additional support may be affected by debt, or health or disability, insurance payment

1. This clause applies to a person if a debt insurance payment, or a health or disability insurance payment, is made to the person, or to some other person—

2. on the person’s behalf; or
3. for the person’s benefit; or
4. on behalf of a member of the person’s family; or
5. for the benefit of a member of the person’s family.

6. For the purposes only of temporary additional support, the person’s commitments are taken to be reduced to the extent, if any, MSD considers appropriate.

7. MSD must, in determining the extent of any reduction, have regard to the nature of the payment and of those commitments.

8. In this clause, temporary additional support means either or both of the following:

9. temporary additional support under subpart 16 of Part 2:
10. a special benefit continued under section 23 of the Social Security (Working for Families) Amendment Act 2004 (as that section is saved by clause 19 of Schedule 1 of this Act).

21How costs, etc, for approved programme of special assistance may be affected by debt, or health or disability, insurance payment

1. This clause applies to a person if a debt insurance payment, or a health or disability insurance payment, is made to the person, or to some other person—

2. on the person’s behalf; or
3. for the person’s benefit; or
4. on behalf of a member of the person’s family; or
5. for the benefit of a member of the person’s family.

6. For the purposes of any approved special assistance programme under section 101, the costs, expenses, and commitments of the person are taken to be reduced to the extent, if any, MSD considers appropriate having regard to the nature of the payment and those costs, expenses, and commitments.