9 SEPTEMBER 2010 NEW ZEALAND GAZETTE, No. 115

applies to any person who is married, in a civil union, or in a de facto relationship 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 net incomes of the person and his or her spouse or partner (their combined 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 or his or spouse or partner (being a change in circumstances that took place before, on or after the specified date); or

(ii) the ineligibility of the person or his or her spouse or partner 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 or his or her spouse or partner 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 combined 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 circumstances of the person or his or her spouse or partner is an increase in the chargeable income or income of the person, his or her spouse or partner, or both, 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.

14. Entitlement of person to tax transitional supplement where new or increased specified payment available but not sought—If the chief executive is satisfied in respect of an applicant that the applicant’s net income, or as the case may be, combined net income has reduced because the applicant or his or her spouse or partner has not applied for, or supplied any information required to determine entitlement to, a specified payment or a rate of a specified payment that became available as a consequence of a specified amendment that came into effect on the specified date, the chief executive may:

(a) refuse to grant a tax transitional supplement; or

(b) grant a tax transitional supplement under clause 12 or 13 at a reduced rate; or

(c) reduce the rate of a tax transitional supplement already granted; or

(d) terminate any tax transitional supplement already granted.

15. Rate of tax transitional supplement—(1) The amount of a tax transitional supplement payable to an applicant under clause 12 is the weekly amount of the reduction of the applicant’s net income.

(2) The amount of a tax transitional supplement payable to an applicant under clause 13 is the weekly amount of the reduction of the combined net income of the applicant and his or her spouse or partner.

(3) If, as a result of a change of circumstances of the applicant or his or her spouse or partner, the rate of one or more of the specified payments payable to the applicant decreases, the amount of the supplement must not be increased by reason of that change.

(4) If, as a result of a change of circumstances of the applicant or his or her spouse or partner the rate of one or more of the specified payments payable to the applicant increases, the amount of the supplement must be reduced by $1.00 for each $1.00 increase in the sum of the rates of the person’s specified payments.

16. Commencement and ending of supplements—(1) A tax transitional supplement granted under this Part commences on the date on which the applicant became entitled to receive it.

(2) In the event that an applicant dies, a supplement 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).

(3) If it has not ended earlier, a tax transitional supplement under this Part ends on 31 March 2011.

Amendments to Direction

17. Amendments to Direction—(1) Paragraph (f)(i) of the definition of chargeable income in clause 2.1 of the Direction is amended by omitting "Care Supplement Programme" and substituting "Tax Transitional Supplement Programme, the Temporary GST Assistance Programme".

(2) Clauses 16 and 17 of the Schedule of the Direction are amended by omitting "Income Tax Act 2004" and substituting in each case "Income Tax Act 2007".

Explanatory Note

This note is not part of this programme, but is intended to indicate its general effect.

This programme comes into effect on 1 October 2010. Part 1 provides transitional financial assistance, until 31 March 2011 or earlier review of the benefit concerned, to effectively postpone the effect of the 1 October 2010 changes to income tax rates and rates of family tax credits on certain benefits. The assistance is paid to compensate for the loss of benefit. Part 2 provides transitional financial assistance to compensate people who are beneficiaries (including recipients of New Zealand superannuation or veteran’s pension) or low income earners and have an overall