3618 NEW ZEALAND GAZETTE No. 114

Dated at Wellington this 14th day of September 1995.
D. A. M. GRAHAM, Minister of Justice.
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Social Welfare

Social Security Act 1964

Direction by Minister of Social Welfare

To: The Director-General of Social Welfare.

Pursuant to section 5 (2) of the Social Security Act 1964, I, Peter John Gresham, Minister of Social Welfare, hereby give you the following direction.

Advance Payment of Benefits

This direction applies where a beneficiary makes application, on or after 9 October 1995, for an advance payment of a benefit under section 82 (6) of the Social Security Act 1964.

In considering whether an advance payment of a benefit would best meet the immediate needs of a beneficiary and in exercising your discretion to make such payment, you are to apply the following.

1 Interpretation

1.1 In this direction—

“Act” means the Social Security Act 1964.

“Advance” means an advance payment of a benefit under section 82 (6) of the Act.

“Cash assets”, in relation to any person—

(a) mean assets of that person and his or her spouse (if any) that can be readily converted into cash and include—

(i) shares, stocks, debentures, bonus bonds, and other bonds,

(ii) bank accounts, including fixed and term deposits with any bank, friendly society, credit union, or building society,

(iii) money invested with or lent to any bank or other financial institution,

(iv) the net equity held in any property or land not used as the person’s home,

(v) building society shares,

(vi) mortgage investments and other long term loans,

(vii) bills of exchange or promissory notes,

(viii) the applicant’s share in any partnership, but

(b) do not include—

(i) the motor vehicle principally used by the beneficiary for his or her personal use,

(ii) a caravan, boat, or other vehicle the net equity in which is less than $2,000,

(iii) a caravan, boat, or other vehicle which is used by the person or a member of his or her immediate family for day to day accommodation,

(iv) the personal effects of the person and his or her spouse (if any).

“Immediate needs”, in relation to a beneficiary, means all of the beneficiary’s essential needs, including—

(a) the beneficiary’s particular immediate need, and

(b) his or her ability to meet the regular and ongoing essential living expenses of the beneficiary and his or her spouse and dependent children (if any).

“Particular immediate need”, in relation to a beneficiary, means a particular and immediate need for an essential item or service.

1.2 Expressions otherwise defined in section 3 (1) of the Act, are to have the meanings so defined.

Definitions: beneficiary, benefit, dependent child, spouse, Social Security Act 1964, s. 3

2 Identifying Particular Immediate Need

2.1 To be considered for an advance, a beneficiary must be able to identify a particular immediate need.

2.2 In determining if a particular immediate need exists, you are to have regard to—

(a) the effect on the beneficiary or the beneficiary’s spouse or dependent children if the need is not met, and

(b) when that effect might be expected to impact on that or those persons, and

(c) the beneficiary’s ability to meet the need from the beneficiary’s own resources.

2.3 A beneficiary can generally be expected to be able to meet a particular immediate need if the beneficiary and his or her spouse (if any) has—

(a) cash assets exceeding in value four times the rate of an invalid’s benefit that would be payable to the beneficiary and his or her spouse if the beneficiary qualified for that benefit, or

(b) income (including any New Zealand superannuation or veteran’s pension payable to the beneficiary or his or her spouse) that would prevent payment of an invalid’s benefit.

Definitions: advance, cash assets, particular immediate need, clause 1.1, beneficiary, dependent child, New Zealand superannuation, spouse, veteran’s pension, Social Security Act 1964, s. 3

3 Determining whether an Advance would Best Meet the Immediate Needs of the Beneficiary

In determining if an advance would best meet the immediate needs of a beneficiary, you are to have regard to—

(a) The assistance that is or might be available to the beneficiary from other sources or under the Act to meet the beneficiary’s particular immediate need,

(b) the beneficiary’s existing level of debt, and whether the rate of repayment of the proposed advance (as set out in clause 5) from subsequent instalments of the benefit would be sustainable, having regard to—

(i) whether the reduction of the amount of benefit payable to the beneficiary will leave enough for the beneficiary’s living expenses and any other debt repayments, and

(ii) the likelihood it would cause the beneficiary to seek further advances or other supplementary assistance under the Act,

(c) whether the beneficiary is likely to continue to be in receipt of the benefit for the period over which the advance would be repayable,

(d) any other matters put forward by the beneficiary to justify the advance.

Definitions: Act, advance, immediate needs, particular immediate need, clause 1.1, beneficiary, Social Security Act 1964, s. 3

4 Amount of Advance

4.1 The amount of an advance should be the least amount required to meet the beneficiary’s particular immediate need.

4.2 In no case is the amount of an advance to exceed the instalments of the benefit payable in a six week period.

Definitions: advance, particular immediate need, clause 1.1, beneficiary, benefit, Social Security Act 1964, s. 3

5 Repayment of Advance

Every advance is to be recovered from the beneficiary at a rate that will ensure the advance is repaid within 24 months after the making of the advance.

Definitions: advance, clause 1.1, beneficiary, Social Security Act 1964, s. 3