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Budget Measures (Financial Support for Newborn Children) Bill (Consistent) (Section 19(1)) [2014] NZBORARp 12 (29 April 2014)

Last Updated: 24 March 2019

Budget Measures (Financial Support for Newborn Children) Bill

29 April 2014

Hon Christopher Finlayson QC, Attorney-General

Legal Advice

Consistency with the New Zealand Bill of Rights Act 1990: Budget Measures (Financial Support for Newborn Children) Bill

1. We have considered whether the Budget Measures (Financial Support for Newborn

Children) Bill (PCO 18350/1.0) (‘the Bill’) is consistent with the rights and freedoms affirmed in the New Zealand Bill of Rights Act 1990 (‘the Bill of Rights Act’). We understand that the Bill will be considered by the Cabinet Legislation Committee at its meeting on Wednesday, 7 May 2014.

2. We understand that the Bill may be subject to further amendments before it is submitted to the Cabinet Legislation Committee. We will provide you with further advice if necessary.
   
3. The Bill is an omnibus Bill that is designed to implement fiscal measures that were part of the Budget 2014 announcement in line with the Budget Policy Statement 2014. The Bill implements the following measures that are intended to provide increased targeted support for working parents with new born children:
   
   • Part 1 of the Bill will become the Parental Leave and Employment Protection Amendment Bill to amend the Parental Leave and Employment Protection Act 1987. It will increase paid parental leave to 18 weeks in two stages.
   • Part 2 of the Bill will become the Income Tax Act 2007 Amendment Bill to amend the Income Tax Act 2007. It will increase the Parental Tax Credit to $220 per week, for the first 20 weeks following birth, for lower and middle income working families.
   • Part 2 of the Bill will also change the abatement formula for the Parental Tax Credit. The change will mean that the Parental Tax Credit amount will reduce faster as families’ income increases.
     

Discrimination based on employment, sex and marital status

4. The Bill benefits working parents with new born children. We considered whether the Bill could give rise to issues of discrimination under section 19(1) of the Bill of Rights Act, namely freedom from discrimination on the grounds of employment, sex, and marital status.
   
5. The Bill increases existing terms of paid parental leave and the amount of tax credits. It does not materially alter the eligibility of those schemes. Having regard to the degree of deference that is appropriately allowed to the government in dealing with complex social policy issues, we consider that the Bill does not introduce discrimination that is so unreasonable as to be considered "unjustified" in terms of section 5 of the Bill of Rights Act.

Differential treatment based on income status

6. The Bill introduces an abatement rate for the Parental Tax Credit which reduces the tax credit amount faster as income increases. We considered whether such scheme that differentiates on the basis of income amounts to discrimination under section 19(1) of the Bill of Rights Act.7.The rights concerned under section 19(1) of the Bill of Rights Act is based on the prohibited grounds of discrimination set out in section 21 of the Human Rights Act 1993. Income level of a person is not one of the prohibited grounds and as such, we conclude that it does not amount to discrimination under section 19(1) of the Bill of Rights Act.
   

Conclusion

8.We have concluded that the Bill appears to be consistent with the rights and freedoms affirmed in the Bill of Rights Act.

Tania Warburton

Acting Chief Legal Counsel Office of Legal Counsel

Disclaimer

In addition to the general disclaimer for all documents on this website, please note the following: This advice was prepared to assist the Attorney-General to determine whether a report should be made to Parliament under s 7 of the New Zealand Bill of Rights Act 1990 in relation to the Measures (Financial Support for Newborn Children) Bill. It should not be used or acted upon for any other purpose. The advice does no more than assess whether the Bill complies with the minimum guarantees contained in the New Zealand Bill of Rights Act. The release of this advice should not be taken to indicate that the Attorney-General agrees with all aspects of it, nor does its release constitute a general waiver of legal professional privilege in respect of this or any other matter. Whilst care has been taken to ensure that this document is an accurate reproduction of the advice provided to the Attorney-General, neither the Ministry of Justice nor the Crown Law Office accepts any liability for any errors or omissions.