New Zealand Legislation: Acts

15 Annual adjustment of standard rates of New Zealand superannuation

• (1) In this section,—

  CPI means the consumers price index-all groups published by the Department of Statistics

  standard tax means the amount of tax reckoned on a weekly basis that would be deductible in accordance with the tax code “M” stated in section 24B of the Tax Administration Act 1994.

  (2) Subject to subsection (3), the rates of New Zealand superannuation stated in paragraphs (a), (b), and (c) of clause 1 and paragraph (b) of clause 2 of Schedule 1 must be adjusted, by Order in Council, as at 1 April each year so that in each case the new rate (after the deduction of standard tax) is the rate at that date (after the deduction of standard tax and before the adjustment under this section is made) adjusted by any percentage movement upwards in the CPI between the CPI for the quarter ended with 31 December one year before the immediately preceding 31 December and the CPI for the quarter ended with the immediately preceding 31 December.

  (3) Every Order in Council made under subsection (2) must adjust the rates of New Zealand superannuation, subject to subsection (4),—

  • (a) so that the weekly amounts referred to in section 16 are set in accordance with that section; and

  • (b) so that the rate of New Zealand superannuation stated in paragraph (b) of clause 2 of Schedule 1 preserves its proportional relationship (after the deduction of standard tax) to the rates stated in paragraphs (a), (b), and (c) of clause 1 of that schedule.

  (4) An adjustment under this section must not reduce the weekly amounts payable under this section.

  (5) Subsections (3) to (6) of section 61H of the Social Security Act 1964 apply to every Order in Council made under subsection (2) as if that Order in Council were made under that section.

  (6) Every Order in Council made under subsection (2) comes into force or is considered to come into force on 1 April of the calendar year in which it is made, and applies to New Zealand superannuation payable on and after that date.

  Compare: 1990 No 26 s 13A(1), (2), (3)(d), (3A), (4), (5)

  Section 15(1) earner premium: repealed, on 11 May 2005, by section 63(2) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act (No 2) 2005 (2005 No 45).

  Section 15(1) standard tax: amended, on 1 April 2008 (effective for 2008–09 income year and later), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).