These regulations, which come into force on 11 June 2021, amend regulation 18 and Schedule 3 of the Residential Care and Disability Support Services Regulations 2018. That regulation and that schedule list income exempt from a means assessment as to income, and exempt assets for the purposes of conducting a means assessment, to determine a person’s eligibility for financial support for long-term residential care under the Residential Care and Disability Support Services Act 2018. The amendments relate to a lump sum residential care subsidy refund arising from a retrospective review of financial means assessment by the Ministry of Social Development where the review finds that a person has paid more towards the cost of their care than they should have. The review may also result in a lump sum payment of a benefit because the person’s income for the purposes of the Social Security Act 1964 or the Social Security Act 2018 has been overestimated.

The amendments ensure that the amount of the payment and related income are, for the first 12 months after the payment is made, income exempt from a means assessment as to income, and an exempt asset for the purposes of the means assessment.