This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on 1 July 2014, amend Schedule 27 of the Social Security Act 1964, which relates to means assessments for long-term residential care.

Section 155 of that Act requires the relevant asset thresholds set out in that schedule to be increased by the amount of the movement in the New Zealand Consumers Price Index (All Groups) for the year that ended on 31 March 2014, rounded up to the nearest whole dollar.

The movement of that index was 1.53%. The new asset thresholds are therefore—

• Threshold A, which is $218,423, and applies to a resident if—

  • the resident has no spouse or partner; or

  • the resident’s spouse or partner also requires care; or

  • the resident has elected to have Threshold A apply even though his or her spouse or partner does not require care:

• Threshold B, which is $119,614, and applies to a resident if the resident’s spouse or partner does not require care, and the resident has not elected to have Threshold A apply.

Section 155 of the Social Security Act 1964 also requires the income-from-assets exemptions set out in Schedule 27 to be increased by the amount of the movement in the New Zealand Consumers Price Index (All Groups, excluding cigarettes and other tobacco products) for the year ended 31 March 2014, as that amount is calculated under subsection (2A) of that section.

The movement of that index was 1.20%. The changes in the amounts, after rounding up to the nearest whole dollar, are as follows:

• from $951 to $963, if the resident has no spouse or partner:

• from $1,902 to $1,925, if the resident’s spouse or partner is a resident assessed as requiring care:

• from $2,852 to $2,887, if the resident’s spouse or partner is not a resident assessed as requiring care.