Summary of Underpinning Analysis: Social Security (Modernisation) Amendment Regulations (No 2) 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 Amendment Regulations went through agency and ministerial consultation with relevant agencies with minor feedback from agencies incorporated for clarity and no ministerial feedback. The Regulatory Impact Statements and Cabinet papers relating to the Social Security (Mandatory Reviews) Amendment Act 2025 (Mandatory Reviews Act) and the Social Security (Modernisation) Amendment Act 2026 (Modernisation Act) were subject to agency and ministerial consultation. 

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

Refer to the Regulatory Impact Statements and addendum prepared for the Mandatory Reviews Act and the Modernisation Act for detail of the mandatory reviews policy.

Holiday period regulations

From 2 March 2026 clients receiving specified benefits have been subject to mandatory reviews.[1] For specified benefits that are not a special benefit, if the mandatory review deadline falls on a date in the week that is or the week immediately before 26 December, the review or reapplication will be moved to the first Monday after 2 January in the immediately following year. Where a client is granted a special benefit that falls on a date on or between 25 December and 15 January, their mandatory review deadline will be moved to the next working day after 15 January. 

This prevents undesirable outcomes such as a client’s benefit being inadvertently suspended and a high volume of reviews during the holiday period. Similar provisions in the Social Security Act 2018 already exist for 26-week reapplications of Jobseeker Support so this would align with broader welfare system settings. An amendment to the Social Security Regulations 2018 (the SSR) is required to ensure that mandatory reviews for specified benefits are moved to the relevant dates above. 

Specific engagements regulations

As part of the mandatory reviews policy settings from 2 March 2026, Cabinet agreed that when a client has an engagement with the Ministry of Social Development (MSD) that confirms all of the same circumstances as their mandatory review, their review date will be moved to 52 weeks from that engagement [ECO-25-MIN-0002 and CAB-25-MIN-0050 refer].[2] This was set out in section 310C of the Mandatory Reviews Act. However, this was not carried through into the Modernisation Act for some clients granted Disability Allowance (DA) and Accommodation Supplement (AS). This amendment to the SSR gives effect to Cabinet’s decision for specific engagements to apply to all clients granted DA and/or AS. 

The Amendment Regulations are assessed as consistent with the principle.

[1] Specified benefits subject to mandatory reviews from 2 March 2026 are Supported Living Payment, Disability Allowance, Accommodation Supplement (excluding clients receiving Youth Payment or Young Parent Payment), Emergency Benefit with an expiry of 52 weeks or longer or no expiry, New Zealand Superannuation with a Non-Qualified Partner.

[2] Specific engagements were added for Orphan’s Benefit and Unsupported Child’s Benefit through the Modernisation Act on 1 July 2026.

Good law-making: 9(k)

Detailed plans and preparations for implementation of mandatory reviews of overseas benefits and Childcare Assistance from 1 October 2026 are in place. The Amendment Regulations are assessed as consistent with the principle.

Inconsistency identified: No

Summary of agency analysis

Detailed plans and preparations for implementation of the specific engagement regulations and the holiday period regulations are in place.

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

Holiday period regulations

Amending the SSR to move mandatory reviews that fall during the holiday period prevents undesired outcomes such as a client’s benefit being inadvertently suspended and a high volume of reviews during the holiday period. This change aligns mandatory reviews with similar existing settings for 26-week reapplications for Jobseeker Support. It also reduces the risk that these clients will request additional assistance due to unforeseen hardship during the holiday period, as they will continue receiving regular payments. 

Specific engagements regulations

The specific engagements policy improves the efficiency of the mandatory reviews scheme by allowing engagements (such as applications for ongoing assistance) to count as a mandatory review where the same information is confirmed. [Redacted to maintain legal professional privilege under s 9(2)(h) of the Official Information Act 1982].

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

Holiday period regulations

As mandatory review start deadlines are specified in the SSR, the most effective option to prevent client hardship during the holiday period is to amend the SSR so that MSD is able to move review start deadlines. 

Specific engagements regulations

The provisions for specific engagements were originally set out in the Mandatory Reviews Act under section 310C which was replaced by the Modernisation Act on 1 July 2026 in sections 176C and 176D of the SSR. However, as the provisions were not carried through for AS and DA, these Amendment Regulations give effect to Cabinet’s previous decision for specific engagements to apply for this cohort.

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 do not adversely affect rights and liberties, impose new obligations, and do not apply retrospectively.

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 on the basis of absolute discretion or 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 authorise 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 Amendment Regulations do not alter the courts’ constitutional role of ascertaining the meaning of legislation.

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.