Summary of Underpinning Analysis: Social Security (Cash Asset Exemption—Bonus Payments) Amendment Regulations 2026

Good law-making: 9(i)

The importance of consulting, to the extent that is reasonably practicable, the persons or representatives of the persons that the responsible agency considers will be directly and materially affected by the legislation.

Inconsistency identified: NO

Summary of agency analysis

The cash asset exemption gives effect to Cabinet decisions made on the wider Bonus Payment programme in September 2025. 

The cash asset exemption is a minor technical inclusion typical of this type of payment, and it confers only benefits to the public. As such there was no consultation with potentially impacted persons given time and expense constraints. Some government agencies representing impacted persons had oversight of the decision to include a cash asset exemption. These were Te Puni Kōkiri, Ministry for Pacific Peoples, Ministries of Education, Health, Business, Innovation and Employment, and Youth Development, Treasury, the Social Investment Agency, and the Department of the Prime Minister and Cabinet.   

Social Security (Cash Asset Exemption—Bonus Payments) Amendment Regulations 2026 (the Regulations) are consistent with this principle.

Good law-making: 9(j)

The importance of carefully evaluating:

• the issue concerned; and
• the effectiveness of any relevant existing legislation and common law; and
• whether the public interest requires that the issue be addressed; and
• any options (including non-legislative options) that are reasonably available for addressing the issue; and
• who is likely to benefit, and who is likely to suffer a detriment, from the legislation.

Inconsistency identified: NO

Summary of agency analysis

The Bonus Payment cash asset exemption is a minor technical inclusion conciliatory to earlier decisions to establish the Bonus Payment. It will align the Bonus Payment with similar welfare programme payments, which are exempt as cash assets for a limited time for the purpose of assessing eligibility for supports dependent on the Accommodation Supplement cash asset test under the Social Security Act 2018. 

The exemption supports the policy intent to recognise young people who work with a community job coach and achieve a certain off benefit outcome. It ensures that receiving this recognition payment would not impact a young person’s eligibility to receive other supports for which they qualify. 

The Regulations are consistent with this principle.

Good law-making: 9(k)

The importance of the responsible agency identifying and developing effective arrangements for implementing the legislation

Inconsistency identified: NO

Summary of agency analysis

Amending the Social Security Regulations is the only way to establish a cash asset exemption for the Bonus Payment, to allow the Ministry of Social Development (MSD) to administer other supports without the Bonus Payment being treated as a cash asset. There is a well-established regime for implementing this change. 

The Regulations are consistent with this principle.

Good law-making: 9(l)

Legislation should be expected to produce benefits that exceed the costs of the legislation to the public or persons.

Inconsistency identified: NO

Summary of agency analysis

The cash asset exemption for the Bonus Payment is a necessary amendment to the Social Security Act alongside the welfare programme which is also being developed by MSD. There are no new costs associated with the cash asset exemption. 

The Regulations are consistent with this principle.

Good law-making: 9(m)

Legislation should be the most effective, efficient, and proportionate response to the issue concerned that is available.

Inconsistency identified: NO

Summary of agency analysis

Amending the Social Security Regulations is the only way to establish a cash asset exemption for the Bonus Payment, to allow MSD to administer supports dependent on the Accommodation Supplement cash asset test without the Bonus Payment being treated as a cash asset. 

The Regulations are consistent with this principle.

Rule of Law: 9(a)(i)

The law should be clear and accessible.

Inconsistency identified: NO

Summary of agency analysis

The language in this legislation is suitable for the target audience. It will inform guidance for MSD when assessing eligibility for supports dependent on the Accommodation Supplement cash asset test so that the Bonus Payment is not treated as a cash asset. 

The Regulations are consistent with this principle.

Rule of Law: 9(a)(ii)

The law should not adversely affect rights and liberties, or impose obligations, retrospectively.

Inconsistency identified: NO

Summary of agency analysis

The cash asset exemption will ensure that young people can be provided a recognition payment under the Bonus Payment programme without it impacting their eligibility to support for which they would otherwise qualify. It provides no adverse changes to rights and liberties, and it does not impose obligations. 

The Regulations are consistent with this principle.

Rule of Law: 9(a)(iii)

Every person is equal before the law.

Inconsistency identified: NO

Summary of agency analysis

The Regulations apply uniformly to all persons and bind the Crown. They are consistent with this principle.

Rule of Law: 9(a)(iv)

There should be an independent impartial judiciary.

Inconsistency identified: NOT APPLICABLE

Summary of agency analysis

Nothing in the Regulations will affect the independence or impartiality of the judiciary.

Rule of Law: 9(a)(v)

Issues of legal right and liability should be resolved by the application of law, rather than the exercise of administrative discretion.

Inconsistency identified: NO

Summary of agency analysis

The Regulations do not delegate authority to an administrative body, such as a minister or a regulator, to resolve issues relating to legal rights and liabilities. The Regulations do not create any new discretionary decision-making powers. They are consistent with this principle.

Liberties: 9(b)

Legislation should not unduly diminish a person’s liberty, personal security, freedom of choice or action, or rights to own, use, and dispose of property, except as is necessary to provide for, or protect, any such liberty, freedom, or right of another person.

Inconsistency identified: NO

Summary of agency analysis

The Regulations do not diminish a person’s liberty, personal security, freedom of choice or action, or rights to own, use, and dispose of property. They are consistent with this principle.

Taking of property: 9(c)

Legislation should not take or severely impair, or authorise the taking or severe impairment of, property without the consent of the owner unless-

• there is a good justification for the taking or severe impairment; and
• fair compensation for the taking or severe impairment is provided to the owner; and
• the compensation is provided, to the extent practicable, by or on behalf of the persons who obtain the benefit of the taking or severe impairment.

Inconsistency identified: NOT APPLICABLE

Summary of agency analysis

The Regulations do not involve the taking or impairment of property.

Taxes, fees and levies: 9(d)

The importance of maintaining consistency with section 22(a) of the Constitution Act 1996 (Parliamentary control of taxation).

Inconsistency identified: NOT APPLICABLE

Summary of agency analysis

The Regulations do not impose taxes, fees, or levies.

Taxes, fees and levies: 9(e)

Legislation should impose, or authorise the imposition of, a fee for goods or services only if the amount of the fee bears a proper relation to the cost of providing the good or service to which it relates.

Inconsistency identified: NOT APPLICABLE

Summary of agency analysis

The Regulations do not impose taxes, fees, or levies.

Taxes, fees and levies: 9(f)

Legislation should impose, or authorise the imposition of, a levy to fund an objective or a function only if the amount of the levy is reasonable in relation to both:

• the benefits that the class of payers is likely to derive, or the risks attributable to the class, in connection with the objective or function; and
• the costs of efficiently achieving the objective or providing the function.

Inconsistency identified: NOT APPLICABLE

Summary of agency analysis

The Regulations does not impose taxes, fees, or levies.

Role of courts: 9(g)

Legislation should preserve the courts’ constitutional role of ascertaining the meaning of legislation.

Inconsistency identified: NOT APPLICABLE

Summary of agency analysis

The Regulations do not:

• exclude the court’s ability to judicially review decision-making
• exclude the court’s ability to make declaratory judgments
• introduce alternative appeal or review mechanisms
• interfere with a judicial process before the courts.

Role of courts: 9(h)

Legislation should make rights and liberties, or obligations, dependent on administrative power only if the power is sufficiently defined and subject to appropriate review.

Inconsistency identified: NOT APPLICABLE

Summary of agency analysis

The Regulations do not provide for a decision-maker to exercise an administrative power in relation to a person’s rights, liberties, and obligations.