New Zealand Legislation: Acts

60Z Effect of compliance or agreement to comply

• (1) If a person complies, the reduction applied to the person's benefit ceases and the person is entitled to be paid the benefit at the rate otherwise payable on and after the date that the person's benefit was first reduced under section 60Y.

  (2) Subject to subsection (4), if a person (other than a person to whom sanctions are being applied under subsection (4)(a)) agrees to comply within a period set by the chief executive, the reduction applied to the person's benefit ceases and the person is entitled to be paid the benefit at the rate otherwise payable on and after the date that the person's benefit was first reduced under section 60Y.

  (3) The chief executive must give to every person to whom subsection (2) applies a notice that—

  • (a) confirms the agreement under subsection (2); and

  • (b) states the period for compliance set under subsection (2) (which must be a period of not less than 10 working days from the date the notice is given in accordance with section 114, which applies with all necessary modifications).

  (4) If a person who has agreed to comply fails to do so within the period set under subsection (2) and the chief executive considers that the person does not have a good and sufficient reason for the failure,—

  • (a) the chief executive must apply the sanctions set out in section 60Y(1), which applies with the following modifications:

    • (i) if the person's benefit was subject to a reduction of 20% under section 60Y(1)(a) immediately before the reduction ceased under subsection (2), that benefit must again be reduced by 20% under section 60Y(1)(a) and, if the person has not complied after 4 weeks from the date on which that subsequent reduction takes effect, the amount of that reduction must be increased under section 60Y(1)(b):

    • (ii) if the person's benefit was subject to a reduction of 50% under section 60Y(1)(b) immediately before the reduction ceased under subsection (2), that benefit must again be reduced by 50% under section 60Y(1)(b):

  • (b) the chief executive is not required to comply with sections 60V to 60X before applying those sanctions, and section 60Y(3) does not apply.

  Section 60Z: inserted, on 10 March 2003, by section 11 of the Social Security (Personal Development And Employment) Amendment Act 2002 (2002 No 28).