Summary of Underpinning Analysis: Social Security (Exemption from Stand Down — Parental Income Requirement) 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 Social Security (Exemption from Stand Down—Parental Income Requirement) Amendment Regulations 2026 (the Amendment Regulations) ensure the effective implementation of the Parental Assistance Test being introduced by Part 1 of the Social Security (Jobseeker Support and Accommodation Supplement) Amendment Act 2026 which underwent public submissions and Select Committee scrutiny during May to August 2026. The Amendment Regulations are assessed as consistent with the 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 Amendment Regulations provide for a new exemption from the stand-down^[1] requirements in relation to the Parental Assistance Test^[2] being introduced by Part 1 of the Social Security (Jobseeker Support and Accommodation Supplement) Amendment Act 2026. These regulations will ensure the effective implementation of the test as part of the overarching tightening eligibility policy.^[3] Progressing a non-regulatory change was not possible because the exemptions from stand-down requirements are set out in the Social Security Regulations 2018. It is expected that, rather than creating a detriment, the stand-down exemption will prevent any unintended negative impacts on spouses or partners in relation to the Parental Assistance Test. The exemption will ensure that, when a qualifying client’s relevant benefit is cancelled due to the Parental Assistance Test,^[4] the spouse or partner included in their benefit can apply for and receive another relevant benefit without being subject to a stand down. This in turn will ensure that the previously included spouse or partner, who is eligible in their own right, will be able to have continued access to benefit and will not face a gap of up to two weeks before a replacement relevant benefit could be paid to them. The Amendment Regulations are assessed as consistent with the principle.

[1] Under sections 313 to 316 of the Social Security Act 2018, if a benefit that a person becomes entitled to is subject to a stand-down requirement, it means that the person’s benefit cannot commence or be paid for up to two weeks after their benefit is granted. The length of the stand-down period depends on the client’s previous income and family circumstances.

[2] Note, the ‘Parental Assistance Test’ is referred to as the ‘parental income requirement’ in the Social Security (Jobseeker Support and Accommodation Supplement) Amendment Act 2026, and in the Social Security (Exemption from Stand Down—Parental Income Requirement) Amendment Regulations 2026.

[3] Policy to tighten the eligibility criteria for Jobseeker Support and the equivalent benefit for 18- and 19-year-olds, and a very small cohort of young people aged 16 and 17 in certain circumstances. Applies to young people without dependent children or who are not receiving Foster Care Allowance for a child in their care. The policy introduces a new ongoing eligibility criterion where young people must meet a Parental Assistance Test to be granted or regranted a relevant benefit from 2 November 2026.

[4] Cancelled because either the qualifying client did not meet the Parental Assistance Test (for example, because the Ministry of Social Development (MSD) determined that their parental income increased beyond the parental income limit), or they did not provide the required information for MSD to determine whether they meet this test.

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

The Ministry of Social Development is the agency responsible for the implementation of the regulatory changes coming into effect on 2 November 2026. Funding for the required IT changes and other implementation costs relating to the overarching tightening eligibility policy were approved via Budget 2025. The Ministry is providing training to staff to ensure that the new changes are effectively implemented, and will also provide clear and concise information about the changes to relevant stakeholders. The Amendment Regulations are assessed as consistent with the 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

As covered in Good law-making: 9(j) above, the Amendment Regulations would prevent any unintended negative impacts on spouses or partners if there is a Parental Assistance Test-related cancellation of the qualifying client’s relevant benefit. The Amendment Regulations are assessed as consistent with the 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

The Amendment Regulations were identified as the only effective response available because the exemptions from stand-down requirements are set out in the Social Security Regulations 2018, making it infeasible to progress any non-regulatory change. The Amendment Regulations are assessed as consistent with the principle.

Rule of Law: 9(a)(i)

The law should be clear and accessible.

Inconsistency identified: NO

Summary of agency analysis

The Amendment Regulations are assessed as being clear and accessible to those who are bound by it. They will be available free of charge and published on the New Zealand Legislation website besides being notified in the New Zealand Gazette. The Amendment Regulations are assessed as consistent with the 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 Amendment Regulations come into force on 2 November 2026, and do not retrospectively affect any rights or impose any obligations. The regulations apply only from the commencement date of 2 November 2026, which aligns with the commencement date of Part 1 of the Social Security (Jobseeker Support and Accommodation Supplement) Amendment Act 2026 that implements the Parental Assistance Test. From this date, the regulatory changes will apply to all those who are subject to the Parental Assistance Test requirements (subject to any relevant exceptions and transitional arrangements provided for by legislation). The Amendment Regulations are assessed as consistent with the principle.

Rule of Law: 9(a)(iii)

Every person is equal before the law.

Inconsistency identified: NO

Summary of agency analysis

The Amendment Regulations bind the Crown and apply uniformly to all persons who are subject to it. The Amendment Regulations are assessed as consistent with the principle.

Rule of Law: 9(a)(iv)

There should be an independent impartial judiciary.

Inconsistency identified: NOT APPLICABLE

Summary of agency analysis

The Amendment Regulations do not 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 Amendment Regulations do not confer any powers to make arbitrary decisions, including decisions made on the basis of absolute discretion or a similarly unconstrained basis. The regulations also do not limit or remove the right to judicial review or appeals. The Amendment Regulations are assessed as consistent with the 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 Amendment Regulations do not diminish a person’s liberty, personal security, freedom of choice or action, or rights to own, use, and dispose of property. The Amendment Regulations are assessed as consistent with the 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 Amendment 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 Amendment Regulations do not impose any 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 Amendment Regulations do not impose, nor authorize, the imposition of any 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 Amendment Regulations do not impose, nor authorise, the imposition of any 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 Amendment Regulations do not make rights and liberties, or obligations, dependent on administrative power.