Social Security (Social Assistance) Amendment Bill Government Bill 2004 No 193-1 Explanatory Note General policy statement This Bill amends the Social Security Act 1964. The Bill's purpose is to--- o put into effect, as part of a broader package of initiatives, measures to encourage more sole parent beneficiaries to establish paternity and apply for child support. The provisions will--- o increase the reduction in benefit for sole parents who fail or refuse to meet the requirements under section 70A after they have been given the opportunity to reconsider their decision: o provide for an additional exemption from the reduction in benefit under section 70A for sole parent beneficiaries where they, or their children would be at risk of violence should they take steps to name the other parent of their child or apply for child support: o provide for an additional exemption from the reduction in benefit under section 70A for sole parent beneficiaries in compelling circumstances and where no child support could be collected from the liable parent in the foreseeable future: o address an anomaly in the accommodation supplement by extending the eligibility for accommodation supplement to residents of retirement villages who have "licence to occupy" tenure: o ensure that benefit applicants who work for part of the year, for example seasonal workers, are not financially disadvantaged, by enabling all applicants for benefit assistance to elect a 52-week or 26-week income assessment period for the calculation of their stand down period: o clarify existing legislation to reflect a number of current practices and the policy intent. Summary of key measures file:///t /_Kim/bills/PDFs/new/20041931.txt (1 of 17)15/09/2004 8:03:46 p.m.
Measures to encourage more sole parent beneficiaries to establish paternity and apply for child support Background There has been a steady increase in the number of sole parent beneficiaries who do not legally identify the other parent of their child or who refuse to apply for child support (from 7 965 or 5.6% of all sole parents in 1993 to 19 467 or 16% in 2004). A growing number of liable parents are failing to meet their financial responsibilities to their children. This in turns creates a financial inequity between the parents in respect of the costs of supporting their children, reduces the child support revenue the State receives to help offset the costs of paying sole parent benefits, makes it financially harder for the custodial parent to move off benefit as that parent would not receive child support, and may cause long-term financial disadvantage to their children. Increase to reduction rate Currently, under section 70A of the Social Security Act 1964, the rate of benefit paid to sole parents is reduced by $22 per week for each dependent child where they fail or refuse to--- o identify the other parent in law; or o make an application for child support; or o attend a hearing and give evidence at proceedings brought under the Child Support Act 1991. The purpose of this provision is to provide an incentive for sole parents to carry out these actions so that the other parent contributes financially to the upbringing of the child. On and after 1 July 2005, where 3 months have passed since the $22 reduction was imposed, an additional reduction of $6 per week per beneficiary will be applied where the beneficiary has been given a reasonable opportunity to reconsider their decision, and they still refuse to comply with the section 70A requirements. Number of reductions* Reduction Additional Total reduction from benefit increase from from benefit 1 July 2005 1 $22 $6 $28 2 $44 $6 $50 3 $66 $6 $72 4 $88 $6 $94 file:///t /_Kim/bills/PDFs/new/20041931.txt (2 of 17)15/09/2004 8:03:46 p.m.
*This is the number of children in respect of whom a reduction is made. Before the additional increase applies, the beneficiary must be given the opportunity to reconsider their decision. In practice, information and the opportunity to reconsider their decision will be given to the beneficiary through correspondence and an Early Intervention Programme (home visit by field officers of the Ministry of Social Development). When meeting with a beneficiary, field officers will also ensure that the beneficiary is receiving all of their entitlements. The additional increase in reduction of $6 per week will continue to apply until the beneficiary has met their section 70A requirements for all of their dependent children. New exemptions Currently, the reduction does not apply where there is insufficient evidence to establish the identity of the other parent in law, where the sole parent is taking active steps to legally identify the other parent, or where the child is conceived as a result of incest or sexual violation. On 1 July 2005, 2 additional exemptions will be introduced. No reduction will apply where the sole parent beneficiary and/or their children would be at risk of violence should they meet their section 70A requirements. The definition of violence is that used in the Domestic Violence Act 1995. In this Act, violence is defined as--- o physical abuse: o sexual abuse; and o psychological abuse (including intimidation, harassment, damage to property, and threats of physical abuse, sexual abuse, or psychological abuse). No reduction would apply where there are compelling circumstances and no child support is likely to be collected from the other parent in the foreseeable future. This amendment is necessary because there are a number of situations where it is clear that a sole parent beneficiary's circumstances are such that the beneficiary should not have a reduction imposed under section 70A, yet none of the existing three exemptions apply. Compelling circumstances under which the new exemption could apply include--- o refugees and asylum seekers where the other parent(s) of the child is overseas, missing or deceased: o where the other parent of the child is deceased: file:///t /_Kim/bills/PDFs/new/20041931.txt (3 of 17)15/09/2004 8:03:46 p.m.
o carers of children not their own where the natural mother has not established paternity. Where compelling circumstances, such as these exist and no child support is likely to be collected from the other parent, the beneficiary would not have a section 70A reduction imposed. Broader paternity measures The changes in this Bill form part of a broader package of measures to encourage more sole parents to name the other parent and apply for child support. In addition to the changes in this Bill--- o Work and Income case managers will provide information about establishing paternity to pregnant single women applying for sickness benefit: o an information pack will be developed to help lead maternity carers to provide advice to expectant mothers, where appropriate: o sole parent beneficiaries who have a section 70A penalty imposed will receive a letter confirming the reduction from their benefit and providing information on steps they can take to have that reduction removed: o all beneficiaries who have a section 70A reduction imposed will be given the opportunity, and information, to reconsider their decision by participating in an Early Intervention Programme (home visit by field officers). Accommodation supplement for people in retirement villages with "licence to occupy" tenure Currently, the definition of "licence to occupy" arrangements for the purposes of eligibility for an accommodation supplement in the Social Security Act 1964, does not include retirement village residents. From 1 July 2005, eligibility for an accommodation supplement will be extended to retirement village residents with "licence to occupy" tenure. To qualify for an accommodation supplement, these applicants must still meet all other qualifying criteria for an accommodation supplement, including an income and cash assets test. Extending the accommodation supplement to retirement village residents who have a "licence to occupy" will assist residents who have high accommodation costs and limited resources. Change to the income assessment period for calculating benefit stand downs A stand down of between 1 to 10 weeks applies to most new applicants before their benefit commences. The stand down is currently calculated on the applicant's income in the 26 weeks prior to becoming entitled to the benefit file:///t /_Kim/bills/PDFs/new/20041931.txt (4 of 17)15/09/2004 8:03:46 p.m.
and the number of dependent children in their care. For example, currently a stand down of 1 week applies to an applicant for unemployment benefit with one dependent child if their average earnings in the previous 26 weeks were between $0 and $718.30 a week before tax. People who work for part of the year can be disadvantaged by the current 26-week period assessment. >From 1 May 2005, all applicants for a benefit can elect to have their stand down calculated over the 52 weeks prior to becoming entitled to the benefit instead of 26 weeks. This means that seasonal or intermittent workers may not face a lengthy stand down after undertaking short periods of employment. Encouraging job seekers to adopt seasonal work as a sustainable employment option will benefit major New Zealand industries that employ seasonal workers. It will also reduce the need for recoverable emergency assistance, which is accessed by people who are engaged in seasonal or intermittent employment, thereby reducing benefit debt. Other amendments The Bill includes a number of amendments to the Social Security Act 1964 to clarify existing legislation to reflect current policy and practice in order to--- o provide that where an unemployment benefit applicant has a spouse whose benefit is suspended or cancelled as a result of failing a work test obligation, the applicant cannot receive a full benefit in respect of both of them: o clarify that the definition of cash assets for the purposes of determining eligibility for accommodation supplement includes money saved with a bank or other institution, money invested with a bank or other institution, or money banked with a bank or other institution: o amend the disability allowance provision to provide that applicants receiving an independent youth benefit on any ground can be paid the allowance without having to meet an additional income test: o legislate for the long-standing practice of "grossing up" benefit rates for income tax purposes instead of deducting tax from benefits: o remove references to the transitional retirement benefit from legislation as that benefit no longer exists: o remove the provision allowing payment of special assistance to people undergoing diagnostic procedures or medical or surgical treatment overseas as file:///t /_Kim/bills/PDFs/new/20041931.txt (5 of 17)15/09/2004 8:03:46 p.m.
this assistance is now provided under the New Zealand Public Health and Disability Act 2000: o change the reference to the Rehabilitation League N.Z. (Incorporated) to the New Zealand Artificial Limb Board as the former organisation no longer exists: o amend the accommodation supplement provisions to provide that people in receipt of a veteran's pension are subject to the same income test as New Zealand superannuitants for accommodation supplement purposes. Amendments to the Social Security Act 1964 to clarify the legislation to reflect current policy and practice will come into effect from the day after the date on which the Bill is assented. Clause by clause analysis Clause 1 is the Title clause. Clause 2 is the commencement clause. Most of the Bill comes into force on the day after the date on which it receives the Royal assent. The exceptions are--- o clause 4(3), relating to the eligibility of some retirement village residents for the accommodation supplement, which comes into force on 1 July 2005: o clause 7(2) to (4), relating to changes in reductions in rates of benefits for sole parents who fail to meet certain requirements, which comes into force on 1 July 2005: o clauses 9(1) and (3) and 10, relating to a change to the basis for calculating the stand down period, which come into force on 1 May 2005. Part 1 Amendments to Social Security Act 1964 Clause 3 amends certain definitions in section 3 of the Social Security Act 1964 (the principal Act) by removing references to the transitional retirement benefit. Clause 4 amends the definitions in section 61E(1) of the principal Act, which provide interpretations for the purpose of the sections on the accommodation supplement, by--- o removing from the definition of beneficiary the reference to the transitional retirement benefit; and o clarifying the definition of cash assets; and file:///t /_Kim/bills/PDFs/new/20041931.txt (6 of 17)15/09/2004 8:03:46 p.m.
o including in the definition of owner, for the purposes of entitlement to the accommodation supplement, retirement village residents occupying residential units under a licence to occupy. Clause 5 amends section 61EA(3) of the principal Act, which relates to grants of an accommodation supplement. The amendment includes people in receipt of veterans' pensions among those who are income-tested for entitlement to an accommodation supplement. Clause 6 amends section 69C of the principal Act, which relates to grants of a disability allowance. The amendment removes references to the transitional retirement benefit. It also removes the income test for a disability allowance for applicants receiving an independent youth benefit on any ground. At present, only those who are receiving an independent youth benefit on the ground in section 60F(6)of the principal Act are not subject to the income test. Clause 7 amends section 70A of the principal Act, which relates to the reduction of certain benefits for sole parents who fail to meet certain requirements. Those requirements (the relevant requirements) are one or more of the following: o identifying the other parent of a dependent child in the care of the beneficiary: o applying for child support in respect of that child: o giving evidence for or against the liable parent in proceedings under the Child Support Act 1991. At present, section 70A of the principal Act provides that the rate of the benefit payable to the sole parent is reduced in respect of each dependent child (in respect of whom the beneficiary fails to meet a relevant requirement) by an amount equal to $22. The amendments provide for an additional reduction of the benefit by $6 for a beneficiary's continued non-compliance. In certain circumstances, currently specified in section 70A(3) of the principal Act, a beneficiary, who would otherwise be liable under the section to have his or her benefit reduced, is not liable. The amendments create 2 further exemptions from liability. First, the benefit is not reduced if the chief executive is satisfied that the beneficiary or any of the beneficiary's children would be at risk of violence if he or she complied with any of the relevant requirements. Secondly, the benefit is not reduced if the chief executive is satisfied that there is a compelling circumstance for the beneficiary's failure to carry out any of the relevant requirements and, even if he or she did carry out the action, there is no real likelihood of child support being collected. This clause also removes a reference to the transitional retirement benefit file:///t /_Kim/bills/PDFs/new/20041931.txt (7 of 17)15/09/2004 8:03:46 p.m.
from section 70A. Clause 8 amends section 80 of the principal Act, which relates to the commencement of benefits. The amendment removes references to the transitional retirement benefit. Clauses 9 and 10 amend sections 80B and 80BA of the principal Act, which relate to interpretation of terms in sections 80BA to 80BC, and to calculation of the stand down period before commencement of certain benefits. The amendments allow a person to elect to have his or her average income calculated on the basis of a 52-week or 26-week period, for calculation of the stand down period for certain benefits. These clauses also remove references to the transitional retirement benefit from sections 80B and 80BA. Clause 11 amends section 80BD of the principal Act, which relates to the ending of benefits. The reference in subsection (3) to the transitional retirement benefit is omitted. Clause 12 brings the legislation into line with the long-standing practice of notionally treating rates of benefit as being at a higher rate for tax purposes than the rates set out in the Social Security Act 1964, and paying tax direct to the Inland Revenue Department on the "grossed up" rate. Clause 13 amends section 99 of the principal Act, which relates to rates of unemployment benefit. The amendment provides that an applicant for the unemployment benefit whose spouse's benefit is suspended or cancelled cannot receive a full benefit in respect of both of them. Clause 14 repeals the provisions in section 124 of the principal Act allowing payment out of the Crown Bank Account for special assistance for those undergoing health treatment overseas. These payments are now authorised under the New Zealand Public Health and Disability Act 2000. Clause 15 amends section 126 of the principal Act, which relates to payment for the cost of repair and replacement of artificial limbs. The amendment removes the reference in section 126 to the Rehabilitation League NZ (Incorporated), and replaces it with a reference to the New Zealand Artificial Limb Board, which performs the functions formerly undertaken by the Rehabilitation League. Part 2 Consequential amendments and savings provision Clause 16 amends the Income Tax Acts of 1994 and 2004 by repealing references to the transitional retirement benefit. Clause 17 provides for the validity at all times of the practice of paying tax direct to the Inland Revenue Department on a "grossed up" rate of income-tested benefit, where the rates of benefit have been notionally treated as being at a higher rate for tax purposes than the rates set out in the Social Security Act 1964. file:///t /_Kim/bills/PDFs/new/20041931.txt (8 of 17)15/09/2004 8:03:46 p.m.
1 Title Hon Steve Maharey Social Security (Social Assistance) Amendment Bill 2 Commencement 3 Interpretation 4 Interpretation Government Bill Contents Part 1 Amendments to Social Security Act 1964 5 Accommodation supplement 6 Disability allowance 7 Rates of benefits for sole parents may be reduced 8 Commencement of benefits 9 Interpretation 10 Calculation of stand down 11 Ending of benefits 12 New section 83A inserted 83A Tax on benefits 13 Unemployment benefit rates 14 Money payable out of Crown Bank Account 15 Cost of repair and replacement of artificial limbs file:///t /_Kim/bills/PDFs/new/20041931.txt (9 of 17)15/09/2004 8:03:46 p.m.
Part 2 Consequential amendments and savings provision 16 Consequential amendments to Income Tax Acts 17 Savings in respect of tax on benefits The Parliament of New Zealand enacts as follows: 1 Title (1) This Act is the Social Security (Social Assistance) Amendment Act 2004. (2) In this Act, the Social Security Act 1964 1964 No 136 is called "the principal Act". 2 Commencement (1) Sections 4(3) and 7(2) to (4) come into force on 1 July 2005. (2) Sections 9(1) and (3) and 10 come into force on 1 May 2005. (3) The rest of this Act comes into force on the day after the date on which it receives the Royal assent. 3 Interpretation Part 1 Amendments to Social Security Act 1964 (1) The definition of benefit in section 3(1) of the principal Act is amended by repealing subparagraph (ia) of paragraph (b). (2) The definition of income-tested benefit in section (3)(1) of the principal Act is amended by repealing paragraph (h). (3) The definition of transitional retirement benefit in section 3(1) of the principal Act is repealed. file:///t /_Kim/bills/PDFs/new/20041931.txt (10 of 17)15/09/2004 8:03:46 p.m.
4 Interpretation (1) The definition of beneficiary in section 61E(1) of the principal Act is amended by omitting, from paragraph (b), the words "a transitional retirement benefit,". (2) The definition of cash assets in section 61E(1) of the principal Act is amended by repealing paragraph (a)(i), and substituting the following subparagraph: "(i) money saved with a bank or other institution, money invested with a bank or other institution, or money banked with a bank or other institution:". (3) The definition of owner in section 61E(1) of the principal Act is amended by inserting, after paragraph (b), the following paragraph: "(ba) a licence to occupy, where the premises are a residential unit in a retirement village (as those terms are defined in the Retirement Villages Act 2003); or". 5 Accommodation supplement Section 61EA(3) of the principal Act is amended by inserting, after the word "superannuation", the words "or a veteran's pension". 6 Disability allowance (1) Section 69C(1)(a) of the principal Act is amended by omitting the words "on the ground specified in section 60F(6), or a transitional retirement benefit". (2) Section 69C(5)(a) of the principal Act is amended by omitting the words "or a transitional retirement benefit". 7 Rates of benefits for sole parents may be reduced (1) Section 70A(1)(b) of the principal Act is amended by repealing subparagraph (iiia). file:///t /_Kim/bills/PDFs/new/20041931.txt (11 of 17)15/09/2004 8:03:46 p.m.
(2) Section 70A(1) of the principal Act is amended by repealing paragraph (c), and substituting the following paragraph: "(c) who, in respect of any dependent child in the care of the beneficiary, fails or refuses--- "(i) to identify who is in law the other parent of that child; or "(ii) to make an application for formula assessment of child support, when required to do so by section 9 of the Child Support Act 1991; or "(iii) to attend and give in evidence all information that is required of the beneficiary during a hearing of a proceeding under the Child Support Act 1991, as required under section 122 of that Act." (3) Section 70A(3) of the principal Act is amended by inserting, after paragraph (b), the following paragraphs: "(ba) the beneficiary or any of the beneficiary's children would be at risk of violence if the beneficiary carried out or took steps to carry out any of the actions referred to in subparagraphs (i) to (iii) of subsection (1)(c); or "(bb) there is a compelling circumstance, other than a circumstance mentioned elsewhere in this subsection, for the beneficiary's failure or refusal to carry out any of the actions set out in subparagraphs (i) to (iii) of subsection (1)(c), and, even if the beneficiary carried out the action, there is no real likelihood of child support being collected in the foreseeable future from the other parent, or, as the case may be, the other parent's estate; or". (4) Section 70A of the principal Act is amended by repealing subsection (4), and substituting the following subsections: "(4) A reduction of the rate of benefit under subsection (2) in respect of a dependent child in the care of the beneficiary ceases to apply to a beneficiary who subsequently carries out the action referred to in subparagraph (i), (ii), or (iii) of subsection (1)(c) that the beneficiary failed or refused to carry out in respect of that child. "(5) If a beneficiary's rate of benefit has been reduced under subsection (2), it must be reduced by a further $6 if the circumstances in subsection (6) exist. file:///t /_Kim/bills/PDFs/new/20041931.txt (12 of 17)15/09/2004 8:03:46 p.m.
"(6) The circumstances are that--- "(a) a period of not less than 13 weeks has elapsed after the date on which the beneficiary's rate of benefit was reduced under subsection (2); and "(b) during the period referred to in paragraph (a), the chief executive has given the beneficiary a reasonable opportunity to reconsider his or her decision not to carry out the action referred to in subparagraphs (i) to (iii) of subsection (1)(c) that led to that reduction. "(7) A further reduction made under subsection (5) to a beneficiary's rate of benefit must not exceed $6, regardless of the number of the beneficiary's dependent children to whom subsection (1)(c) applies. "(8) A reduction of the rate of benefit under subsection (5) ceases to apply where the rate of benefit has ceased to be reduced under subsection (2). "(9) For the purposes of this section--- "violence has the same meaning as in section 3 of the Domestic Violence Act 1995." 8 Commencement of benefits (1) Section 80(2)(b) of the principal Act is amended by omitting the words "a transitional retirement benefit,". (2) Section 80(14)(b) of the principal Act is amended by omitting the words "A transitional retirement benefit or". 9 Interpretation (1) Section 80B of the principal Act is amended by repealing the definitions of average income and average income calculation period, and substituting the following definitions: "average income, in relation to a person, means the person's specified income divided by the number of weeks in the average income calculation period "average income calculation period, in relation to a person, means--- file:///t /_Kim/bills/PDFs/new/20041931.txt (13 of 17)15/09/2004 8:03:46 p.m.
"(a) if the person has made an election under section 80BA(1A), the period of 52 weeks immediately before the later of--- "(i) the date the person became entitled to receive the benefit; or "(ii) if the person's employment terminated or the person is given notice of termination of employment before he or she applied for the benefit, the date the person's employment ceased; or "(b) in any other case, the period of 26 weeks immediately before the later of the dates referred to in subparagraphs (i) and (ii) of paragraph (a)". (2) The definition of income in section 80B of the principal Act is amended by repealing subparagraph (x) of paragraph (a). (3) Section 80B of the principal Act is amended by adding the following definition: "specified income, in relation to a person, means--- "(a) the person's income in the average income calculation period; and "(b) the amount of any redundancy payment or retirement payment, before the deduction of income tax, not included in the person's income under paragraph (a) and made to the person--- "(i) before the person's employment ceased; or "(ii) in the 52 weeks after the date on which the employment ceased." 10 Calculation of stand down (1) Section 80BA of the principal Act is amended by inserting, after subsection (1), the following subsection: "(1A) A person who is entitled to a benefit to which this section applies may elect to have his or her average income calculated by reference to a period of 52 weeks instead of 26 weeks." (2) Section 80BA(4)(b)(i) of the principal Act is amended by omitting the file:///t /_Kim/bills/PDFs/new/20041931.txt (14 of 17)15/09/2004 8:03:46 p.m.
words "a sickness benefit, or a transitional retirement benefit", and substituting "or a sickness benefit". 11 Ending of benefits Section 80BD(3) of the principal Act is amended by omitting the words "a transitional retirement benefit,". 12 New section 83A inserted The principal Act is amended by inserting, after section 83, the following section: "83A Tax on benefits "(1) This section applies where any instalment or a payment of an income-tested benefit is a source deduction payment. "(2) Where this section applies, the chief executive may, instead of making a tax deduction from the source deduction payment, pay to the Commissioner of Inland Revenue, at such time as the Commissioner determines in consultation with the chief executive, an amount for income tax payable on that payment, calculated in accordance with subsection (3). "(3) The amount for income tax payable on a source deduction payment is the amount of the tax deduction that would be made, at the rate determined under the appropriate specified provision, if the payment were increased by an amount that, after the tax deduction were made, would result in an amount equal to the source deduction payment. "(4) An amount for income tax paid to the Commissioner under subsection (2) must,--- "(a) for the purposes of this Act, be considered to be a payment of a benefit, within the meaning of that term in section 3(1), made on account of, and received by, the person; and "(b) for the purposes of--- "(i) the Income Tax Act 1976, be considered to be assessable income of the person; or "(ii) the Income Tax Act 1994, or as the case requires, the Income Tax Act file:///t /_Kim/bills/PDFs/new/20041931.txt (15 of 17)15/09/2004 8:03:46 p.m.
2004, be considered to be gross income of the person. "(5) If, as a result of the review, suspension, cancellation, or termination of an income-tested benefit, the chief executive determines that an amount for tax on the benefit has been paid in accordance with this section to the Commissioner in excess of the amount that is properly payable under this section, the chief executive may not recover the excess amount as a debt due to the Crown within the meaning of section 85A, but may recover that amount by--- "(a) making an adjustment to any amount subsequently payable to the Commissioner under subsection (2) in respect of the source deduction payments for that or any other benefit payable to that beneficiary; or "(b) making such other arrangements for its refund as are agreed with the Commissioner. "(6) In this section,--- "income-tested benefit has the meaning given to that term by section 2 of the Income Tax Act 1976 or section OB 1 of the Income Tax Act 1994 or section OB 1 of the Income Tax Act 2004 (whichever is applicable) and not the meaning in section 3(1) of this Act "source deduction payment has the meaning given to that term by section 2 of the Income Tax Act 1976 or section OB 1 of the Income Tax Act 1994 or section OB 1 of the Income Tax Act 2004 (whichever is applicable) "specified provision, in relation to a source deduction payment, means (as the case requires)--- "(a) the fourth proviso to section 343(1) of the Income Tax Act 1976; or "(b) the fourth proviso to section NC 6(1) of the Income Tax Act 1994; or "(c) section NC 6(1D) of the Income Tax Act 1994; or "(d) section NC 6(1D) of the Income Tax Act 2004." 13 Unemployment benefit rates Section 99(4) of the principal Act is amended by inserting, after paragraph (a), the following paragraph: file:///t /_Kim/bills/PDFs/new/20041931.txt (16 of 17)15/09/2004 8:03:46 p.m.
"(ab) the application of section 117 (which relates to sanctions that may be imposed for failures to comply with work test and work preparation interviews and exercises); or". 14 Money payable out of Crown Bank Account Section 124(1) of the principal Act is amended by repealing paragraph (da). 15 Cost of repair and replacement of artificial limbs Section 126 of the principal Act is amended by omitting the words "Rehabilitation League N.Z. (Incorporated)", and substituting the words "New Zealand Artificial Limb Board". Part 2 Consequential amendments and savings provision 16 Consequential amendments to Income Tax Acts (1) The definition of income-tested benefit in section OB 1 of the Income Tax Act 1994 is amended by omitting the words "and includes a transitional retirement benefit payable under Part 1 of the Social Welfare (Transitional Provisions) Act 1990;". (2) The definition of New Zealand superannuation in section OB 1 of the Income Tax Act 1994 is amended by repealing paragraph (c)(ii). (3) The definition of New Zealand superannuation in section OB 1 of the Income Tax Act 2004 is amended by repealing paragraph (c)(ii). 17 Savings in respect of tax on benefits (1) For the purpose of determining the validity of any payment for tax on an income-tested benefit, the principal Act must be read as if at all material times it contained section 83A, as inserted by section 12 of this Act. (2) In this section, income-tested benefit has the meaning given to it in section 83A(6) of the principal Act, as inserted by section 12 of this Act. file:///t /_Kim/bills/PDFs/new/20041931.txt (17 of 17)15/09/2004 8:03:46 p.m.