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UPDATE: Government to clarify welfare and ACC payments

Source: New Zealand Government

The Government is introducing legislation to clarify the law on the impact of ACC payments on welfare entitlement and ensure the process is fair.

Social Development and Employment Minister Louise Upston says the Social Security (Accident Compensation and Calculation of Weekly Income) Amendment Bill will:

  • confirm the longstanding policy intent underpinning MSD’s approach to charging income, including income from ACC
  • authorise MSD to retrospectively consider a person a non-beneficiary when their backdated ACC payment reduces their benefit to zero for the applicable period, as is current practice
  • reflect the principles of a targeted welfare system; where the more income you earn, the less assistance you receive from the state
  • provide certainty in the law and remove the potential for interpretations of the law that go further than the policy intent, creating inequities between different cohorts of people receiving ACC payments.
  • people who receive ACC and welfare assistance at the same time
  • people who receive welfare assistance while they wait for ACC to decide on their entitlement

“There are two main cohorts of ACC compensation recipients in the welfare system,” Louise Upston says. 

“Under the current situation, as interpreted by the courts, the latter group, who receive lump sum payments, are treated more generously than the former. 

“They are in effect receiving two forms of income support to address one need. This also means these clients can remain eligible for assistance which only beneficiaries receive, such as the Winter Energy Payment. 

“This would not result in fair treatment between these groups and isn’t in line with the policy intent.

“The Government has a duty to fix this situation and clarify the law, so it aligns with the longstanding intent of policy,” Louise Upston says.

Notes to editors: 

  • The bill will be referred to the Social Services and Community Select Committee for one week
  • The need to amend the Social Security Act comes out of a High Court case known as ‘B’ and an earlier decision by the Social Security Appeal Authority, in which a client received a backdated lump sum payment of weekly ACC compensation and MSD sought to recover supplementary assistance paid for the period covered by the ACC payment

The retrospective effect of the legislation will not apply to a small number of cases that have been filed with the Social Security Appeal Authority or the Courts before 2pm on the day of the introduction of the Bill.

MIL OSI

Posted on

Government to clarify welfare and ACC payments

Source: New Zealand Government

The Government is introducing legislation to clarify the law on the impact of ACC payments on welfare entitlement and ensure the process is fair.

Social Development and Employment Minister Louise Upston says the Social Security (Accident Compensation and Calculation of Weekly Income) Amendment Bill will:

  • confirm the longstanding policy intent underpinning MSD’s approach to charging income, including income from ACC
  • authorise MSD to retrospectively consider a person a non-beneficiary when their backdated ACC payment reduces their benefit to zero for the applicable period, as is current practice
  • reflect the principles of a targeted welfare system; where the more income you earn, the less assistance you receive from the state
  • provide certainty in the law and remove the potential for interpretations of the law that go further than the policy intent, creating inequities between different cohorts of people receiving ACC payments.
  • people who receive ACC and welfare assistance at the same time
  • people who receive welfare assistance while they wait for ACC to decide on their entitlement

“There are two main cohorts of ACC compensation recipients in the welfare system,” Louise Upston says. 

“Under the current situation, as interpreted by the courts, the latter group, who receive lump sum payments, are treated more generously than the former. 

“They are in effect receiving two forms of income support to address one need. This also means these clients can remain eligible for assistance which only beneficiaries receive, such as the Winter Energy Payment. 

“This would not result in fair treatment between these groups and isn’t in line with the policy intent.

“The Government has a duty to fix this situation and clarify the law, so it aligns with the longstanding intent of policy,” Louise Upston says.

Notes to editors: 

  • The bill will be referred to the Social Services and Community Select Committee for one week
  • The need to amend the Social Security Act comes out of a High Court case known as ‘B’ and an earlier decision by the Social Security Appeal Authority, in which a client received a backdated lump sum payment of weekly ACC compensation and MSD sought to recover supplementary assistance paid for the period covered by the ACC payment

The retrospective effect of the legislation will not apply to a small number of cases that have been filed with the Social Security Appeal Authority or the Courts before 2pm on the day of the introduction of the Bill.

MIL OSI

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Infrastructure Plan Contradicts Government Own Spending Priorities

Source: Green Party

The newly released National Infrastructure Plan stands in stark contrast to the Government’s actual spending priorities, the Green Party says.

“We welcome today’s National Infrastructure Plan, which would take us in the opposite direction of the decisions of Luxon’s Government,” said Chlöe Swarbrick, Green Party Co-Leader and Finance spokesperson.

“This Plan shows how we can and must invest in resilient critical infrastructure like hospitals and renewables. Yet Luxon’s Government continues to burn taxpayer money on inflaming the climate crisis and inducing congestion through the daft LNG terminal and roads at all costs.

“Treasury confirmed on Friday that we should be borrowing more to invest in infrastructure that builds real value and expands our productive capacity, which is exactly the vision the Greens have shown can be a reality in our Fiscal Strategy.

“As parts of our country are underwater in yet another climate emergency, the need for decisive action, leadership and investment has never been more clear.

“The choice is obvious: invest now in resilience, reducing the cost of living and improving our quality of life – or pay exponentially more for failures and disasters later,” said Swarbrick.

MIL OSI

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Reform brings more flexibility for workers and confidence for employers

Source: New Zealand Government

The Employment Relations Amendment Bill has passed its third reading, Workplace Relations and Safety Minister Brooke van Velden says.

“I am proud to see the Bill pass as law, bringing these reforms to life and fixing what really matters for employers and workers.

“This Bill is about backing business to hire with increased confidence.

“When employers can hire and grow their business with confidence, more people get opportunities. That means more jobs and higher paid jobs,” says Ms van Velden.

“Rebalancing the employment relations settings, as this law does, brings more choice for businesses and workers to create and enter working arrangements that suit their individual needs,” says Ms van Velden.

The Act will:

  • Clarify contractor vs employee status with a four part ‘gateway test’ to ensure businesses and workers have more clarity from the start of their contracting arrangement.
  • Ensure accountability for serious misconduct and poor behaviour which means the law stops pay-outs that financially reward employees for serious misconduct.
  • Set an income threshold of $200,000 for unjustified dismissal personal grievances, enabling employers to give workers a go in these high impact positions, without having to risk a costly and disruptive dismissal process if things don’t work out.
  • Restore freedom for workers to negotiate their employment agreements from day one by removing the 30-day rule. This means employers and workers can agree on their own terms from the first day on the job.

Most of these changes will come into effect the day after the Employment Relations Amendment Bill receives Royal assent.

“This Government is committed to maximising business confidence and accelerating business growth, and today’s changes advance both,” says Ms van Velden.

Editor’s notes:

  • Employees on existing employment agreements who meet the remuneration threshold will have up to 12-months to re-negotiate their agreements before the threshold for unjustified dismissal claims takes effect.  

MIL OSI

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All wartime service now honoured on Anzac Day

Source: New Zealand Government

Legislation to formally recognise all those who have served New Zealand in times of war as part of Anzac Day commemorations has passed in Parliament today.

“Honouring our service personnel on Anzac Day is one of our most enduring national traditions,” Arts, Culture and Heritage Minister Paul Goldsmith says.

“It binds us to our history and to the story of who we are as a country, while providing an opportunity to reflect on the courage and extraordinary sacrifice of those who have served to defend and protect New Zealand and our allies.

“However, the Anzac Day Act was in desperate need of updating. It failed to acknowledge conflicts after 1966, meaning many service personnel were excluded from official commemorations under the law. The modernised law more accurately reflects public sentiment about who we honour on Anzac Day.”

Veterans Minister Chris Penk says, increasingly, New Zealanders are using the occasion of Anzac Day to reflect on the loss of loved ones in war and in warlike situations, including United Nations missions, other multi-force groupings, and service alongside allied forces.

“Kiwis also commemorate the loss of family members who served as civilians in medical units, and the Merchant Navy during the two World Wars. Others remember those who tragically died while training for conflict.

“The updated Act will now also cover the service of members of allied forces who participated in the first landing on Gallipoli, including personnel from countries such as France and India.

“These changes are well overdue, and come into effect before Anzac Day 2026, meaning that this year will be the first time our national commemoration formally recognises all those who have served New Zealand in times of war.

“We will remember them.”

Mr Goldsmith says the passage of the legislation strengthens the integrity and relevance of one of New Zealand’s most important days of remembrance.

“Preserving the memory of those who fought to defend our country, and of those who served in other vital roles during times of war, is a critical part of safeguarding New Zealand’s history and national identity.”

MIL OSI

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Minister welcomes settlement for pharmacists

Source: New Zealand Government

Health Minister Simeon Brown has welcomed the ratification of a new collective agreement for pharmacists employed by Health New Zealand, following a vote by members of the Association of Professionals & Executive Employees (APEX).

“I’m pleased for the approximately 300 pharmacists nationwide who will benefit from this agreement. It recognises the valuable work they do and the high level of skill and care they provide to patients and their families each day,” Mr Brown says.

“Importantly, it also helps provide greater stability for the workforce and supports the essential role pharmacists play in delivering services across our health system.”

The agreement also includes uplifts to professional membership contributions and other improvements to the collective agreement.

“This is another step toward building a more stable and supported pharmacy workforce that can continue delivering timely, quality care for New Zealanders,” Mr Brown says.

MIL OSI