4602

NEW ZEALAND GAZETTE

No. 193

“Disposable income”, in relation to an applicant, means the applicant’s weekly chargeable income after the deduction of the applicant’s allowable costs:

“Grand-parented rate”, in relation to a community wage payable to a person to whom section 99 (2) of the Act applies, means the appropriate rate in the Eighth Schedule of the Act that was payable to the person immediately before 1 July 1998:

“Income”, in clause 3 means income as defined in section 3 (1) of the Act:

“Living alone” has the meaning in section 18A of the Social Welfare (Transitional Provisions) Act 1990:

“Non-beneficiary” means a person who is not a beneficiary:

“Standard costs”, in relation to an applicant, means the appropriate amount set out in the Schedule, being the proportion of the living costs of the applicant and his or her dependants that he or she may be expected to meet—

(a) From his or her benefit; or

(b) In the case of a non-beneficiary, from the appropriate rate of a community wage that would be payable to the applicant if he or she was entitled to that benefit,—

but do not include any of the applicant’s allowable costs—

2.2 Terms otherwise defined in section 3 (1) of the Act have the meanings so defined, except where the context otherwise requires.

3. Assessment procedure

3.1 Subject to clauses 3.3 and 3.4, you should regard as justified the fixing of a special benefit at a rate that is the lesser of a or b if—

(a) The applicant has cash assets of not more than—

(i) For a unmarried person, 4 × sib; or

(ii) For a married person or a sole parent, 4 × mib; and

(b) The applicant’s disposable income is less than the applicant’s standard costs.

Definitions for the purposes of clause 3.1

a is the applicant’s standard costs less the applicant’s disposable income less c:

b is 30% of the applicant’s allowable costs:

c is $5 a week:

mib is the maximum weekly rate of invalid’s benefit payable to a married couple without dependent children:

sib is the maximum weekly rate of invalid’s benefit payable to an unmarried person without dependent children.

Example

An unmarried community wage beneficiary with 2 dependent children, whose weekly chargeable income is $210.45 and whose weekly allowable costs are $94.30.

Special Benefit Calculation

Chargeable income $210.45
less allowable costs $94.30
= disposable income $116.15
standard costs $144.89
less disposable income $116.15
= Deficiency $28.74
less c $5.00
= a $23.74
b is 30% of allowable costs ($94.30) = $28.29

A special benefit that is the lesser of a and b is justified, i.e. $23.74, subject to paragraphs 3.3 and 3.4.

3.2 Subject to clauses 3.3 and 3.4, a special benefit should be considered justified in respect of a person receiving community wage under the Act while undergoing training, and who incurs additional costs because he or she is undergoing training away from his or her usual home. The rate of the special benefit considered justified should be the lesser of—

(a) The additional weekly accommodation costs incurred; and

(b) $100 per week.

3.3 Upon completion of the appropriate calculation set out in clauses 3.1 or 3.2, you must consider whether there is justification for increasing or decreasing the rate of special benefit paid to the applicant, or to fix or decline to fix an entitlement to special benefit, having regard to the principles set out in clause 1 and to the following matters:

(a) Whether the applicant has any special or unusual financial expenditure compared to others in a similar general position to the applicant and the extent of any such expenditure;

(b) Whether the applicant has any special or unusual reasons for any expenditure item that has caused or contributed to his or her Deficiency;

(c) The nature of the financial difficulty, and the likely duration of the Deficiency;

(d) The age and health of the applicant and his or her dependants and any special needs arising from that age or health;

(e) The ability of the applicant to improve his or her financial situation;

(f) The causes of the applicant’s financial difficulty;