These regulations, which come into force on 1 July 2017, amend Schedule 27 of the Social Security Act 1964 (the Act), which relates to means assessments for long-term residential care.

Section 155 of the Act requires the relevant asset thresholds set out in Schedule 27 to be increased by an amount that reflects the movement in the New Zealand Consumers Price Index (All Groups) for the year that ended on 31 March 2017, rounded up to the nearest whole dollar. The movement of that index was 2.17% for that year. The new asset thresholds are, therefore, $224,654 for Threshold A and $123,025 for Threshold B.

Section 155 of the Act also requires the income-from-assets exemption set out in Schedule 27 to be increased by an amount that reflects the movement in the New Zealand Consumers Price Index (All Groups, excluding cigarettes and other tobacco products) for the year that ended on 31 March 2017, rounded up to the nearest whole dollar. The movement of that index was 1.87% for that year. The new amounts are, therefore, $982 for a resident who is single, $1,964 for a resident who has a spouse or partner who is also a resident assessed as requiring care, and $2,946 for a resident who has a spouse or partner who is not a resident assessed as requiring care.

The increases are based on last year’s unrounded amounts as required by section 155(3)(b) of the Act.