3096 NEW ZEALAND GAZETTE, No. 115 9 SEPTEMBER 2010

(b) would have been entitled to continue to receive that benefit or those benefits but for the effect of the changes to the rates of income tax or rates of family tax credits on the specified date.

8. Amount of tax transitional supplement for eligible person—The amount of a tax transitional supplement granted to an eligible person is the total of the following amounts:

(a) For a person referred to in paragraph (a) of the definition of eligible person in clause 5(1), the difference between the amount of accommodation supplement that was payable to the person immediately before the specified date and the amount payable to the person on and after that date to the extent that difference is attributable to (and only to) the increase in the person’s after tax rate of New Zealand superannuation or veteran’s pension because of the change to income tax deduction rates on the specified date;

(b) for a person referred to in paragraph (b) of that definition, the difference between the after-tax amount of weekly compensation that was deductible from the person’s income-tested benefit immediately before the specified date and the amount deductible on that date to the extent that difference is attributable to (and only to) the changes to income tax deduction rates on the specified date;

(c) for a person referred to in paragraph (c) or (d) of that definition, the difference between the amount of special benefit or temporary additional support that was payable to the person immediately before the specified date and the amount payable to the person on and after that date to the extent that difference is attributable to (and only to) the increases to the person’s chargeable income or standard costs arising from either or both of the following:

(i) The increase to the rate of family tax credit payable to the person on the specified date;

(ii) the increase in the person’s after tax income because of the change to income tax deduction rates on the specified date.

9. Commencement of supplement—A tax transitional supplement granted to an eligible person under clause 7 commences on the specified date.

10. Ending and suspension of supplement—(1) If a benefit in respect of which a tax transitional supplement is granted under this Part ends, the portion of the supplement granted in respect of that benefit ends.

(2) If a benefit in respect of which a tax transitional supplement is granted under this Part is suspended, the portion of the supplement granted in respect of that benefit is suspended.

(3) If an eligible person dies, a tax transitional supplement granted under this Part in respect of a benefit ends:

(a) on the date of the death; or

(b) on a date set by the chief executive (being a date not later than four weeks after the date of the death).

(4) A tax transitional supplement granted under this Part ends if any of the following applies:

(a) That benefit is reviewed under section 81 of the Act because of a change in the person’s circumstances or otherwise;

(b) in the case of temporary additional support, the 13-week period for which that benefit was granted ends, whether or not that benefit is re-granted.

(5) If it has not ended earlier, a tax transitional supplement granted under this Part ends on the close of 31 March 2011.

11. Payment of tax transitional supplement—A tax transitional supplement granted under this Part must be paid to or on account of the eligible person to offset the loss of benefit entitlement arising from changes to income tax rates or rates of family tax credits on the specified date.

Part 2
Tax transitional supplement: Loss of income

12. Tax transitional supplement: Single persons—(1) This clause applies to any person who is single and who, immediately before the specified date, was receiving or entitled to receive one or more specified payments if:

(a) on or after the specified date, the person’s net income is reduced from that applying immediately before the specified date as a consequence of one or more of the specified amendments that come into effect on the specified date; and

(b) the chief executive is satisfied that the reason why that reduction occurred is not:

(i) a change in the circumstances of the person (being a change in circumstances that took place before, on, or after the specified date); or

(ii) the ineligibility of that person to receive any specified payment or rate of specified payment (other than an ineligibility that arises from a specified amendment); or

(iii) any failure or omission of the person that has led to the suspension or cancellation or reduction of a specified payment.

(2) For the purpose of subclause (1)(a), a reduction of a person’s net income includes any reduction due to:

(a) a loss of eligibility for a specified payment, or a re-grant of a specified payment at a lesser rate, if:

(i) the specified payment was granted before the specified date and the period for which it was granted expires after the specified date; and

(ii) the loss of eligibility or re-grant at a lesser rate is solely a consequence of a specified amendment that came into effect on the specified date;

(b) a reduction in the rate of a specified payment on its review after the specified date if the only change in the person’s circumstances is an increase in the person’s chargeable income or income arising from a specified amendment that came into effect on the specified date.

(3) If this clause applies to an applicant who is a beneficiary or a low income earner, the chief executive may grant that applicant a tax transitional supplement for any period that the chief executive specifies in accordance with subclause (4).

(4) A tax transitional supplement:

(a) must be granted for a period of no longer than six months; but

(b) must not be granted for a period ending after 31 March 2011.

(5) Nothing in subclause (4) prevents the chief executive granting, before the close of 31 March 2011, a further tax transitional supplement to an applicant to whom this clause applies.

(6) In this clause, entitled to receive, in relation to a specified payment and the specified date, includes a specified payment to which a person is entitled and has made application for before the specified date even though the application is not granted or the payment made until after that date.

13. Tax transitional supplement: Persons married or in civil unions or de facto relationships—(1) This clause