Social Security Act 2018

If you need more information about this Act, please contact the administering agency: Ministry of Social Development

Version as at 1 April 2023

Coat of Arms of New Zealand

Social Security Act 2018

Public Act
 
2018 No 32
Date of assent
 
28 September 2018
Commencement
 
see section 2
Note

The Parliamentary Counsel Office has made editorial and format changes to this version using the powers under subpart 2 of Part 3 of the Legislation Act 2019.

Note 4 at the end of this version provides a list of the amendments included in it.

This Act is administered by the Ministry of Social Development.

Contents

1Title
2Commencement
3Purpose of this Act
4Principles
5Guide to this Act
6Definitions are in dictionary in Schedule 2
7Minister may give MSD binding directions
8Determinations person is single or in de facto relationship
9Interpretation: references to old law, and using it as a guide
10Comparative tables of old and new provisions
11Transitional, savings, and related provisions
12Act binds the Crown
13Status of guides or outlines
14Status of examples
15What this Part does
16Residential requirement
17Rates
17AGuide to specified abatement exemptions
18General limitation on receiving more than 1 benefit
19General limitation on receiving benefit: persons unlawfully resident or present in New Zealand and persons holding temporary entry class visa
20Jobseeker support: requirements
21What is work gap
22When person is available for work
23Jobseeker support: age requirement
24Jobseeker support: no or minimum income
25Jobseeker support: discretionary grant on ground of hardship
26Jobseeker support: ineligibility
27Jobseeker support: on ground of health condition, injury, or disability: application must include certificate
28Jobseeker support: on ground of health condition, injury, or disability: medical examination
29Sole parent support: requirements
30What is sole parent requirement
31When dependent child may be regarded as applicant’s child
32Sole parent support: situation of split care
33Expiry of sole parent support, and replacement with jobseeker support, when youngest dependent child turns 14 years old
34Supported living payment: on ground of restricted work capacity or total blindness: requirements
35When person has restricted work capacity
36Supported living payment: on ground of restricted work capacity or total blindness: ineligibility
37Supported living payment: on ground of restricted work capacity or total blindness: medical examination
38Supported living payment: on ground of restricted work capacity or total blindness: payment not apportioned in specified cases
39Supported living payment: on ground of restricted work capacity: encouraging open employment
40Supported living payment: on ground of caring for another person: requirements
41Supported living payment: on ground of caring for another person: application must include certificate
42Supported living payment: on ground of caring for another person: medical examination
43Orphan’s benefit: requirements
44Who is eligible caregiver
45Orphan’s benefit to be used for benefit of child
46Unsupported child’s benefit: requirements
47Who is eligible caregiver
48Unsupported child’s benefit to be used for benefit of child
49Youth payment: requirements
50When person is study ready
51Youth payment: no or minimum income
52When person has parental support gap
53Youth payment: discretionary grant on ground of hardship
54Youth payment: continuation after turning 18 years old
55Youth payment: incentive payments
56Young parent payment: requirements
57When person is study ready
58Young parent payment: no or minimum income
59When person has parental support gap
60Young parent payment: discretionary grant on ground of hardship
61Young parent payment: continuation after turning 20 years old
62Young parent payment: incentive payments
63Emergency benefit: discretionary grant on ground of hardship
64Emergency benefit: grant during epidemic in New Zealand
65Accommodation supplement: discretionary grant
66Social housing exclusion
67Other funding exclusion
68Accommodation supplement: special rules for joint tenants who are in relationship
69Accommodation supplement: refusal, reduction, or cancellation of grant in certain circumstances
70Winter energy payment: purpose
71Winter energy payment: interpretation
72Winter energy payment: requirements
73Winter energy payment: election not to receive
74Winter energy payment: instalments, rates, and payment
75Winter energy payment: termination on review
76Childcare assistance: purpose
77Childcare assistance: eligibility
78Child disability allowance: discretionary grant
79Meaning of child with a serious disability
80Child disability allowance: MSD may require medical certificate
81Child disability allowance: MSD may require medical examination
82Child disability allowance: payment
83Child disability allowance: not payable with other assistance or pension
84Meaning of disability
85Disability allowance: discretionary grant
86Disability allowance: excluded expenses
87Disability allowance: refusal, reduction, or cancellation of grant in certain circumstances
88Disability allowance: medical examination
89Special disability allowance: entitlement in special circumstances
90Funeral grant: general eligibility and definitions
91Funeral grant: eligibility if deceased person has dependants
92Funeral grant: eligibility if deceased person has no dependants
93Funeral grant: eligibility if deceased person is child
94Funeral grant: restrictions on payment
95Temporary additional support: purpose
96Temporary additional support: requirements
97Temporary additional support: refusal, reduction, or cancellation of grant in certain circumstances
98Interpretation
99Overseas epidemics affecting visitors to New Zealand: Minister may give overseas epidemic management notice
100Special assistance for visitors affected by overseas epidemics
101Approved special assistance programmes
102Special assistance: status of, and access to, notices [Repealed]
103Provisions relating to children aged 18 years or over who continue education
104What this Part does
105Failure to comply with obligation under this Part
106MSD must make people affected aware of their obligations, consequences of non-compliance, and their review and appeal rights
107MSD must explain rules relating to absence from New Zealand
108MSD must assist in relation to obtaining overseas pension, etc
109Outline of beneficiary’s general and specific obligations
110When obligations apply
111Beneficiary must hold, and give MSD details of, bank account
112Beneficiary must supply tax file number
113Beneficiary must notify change of circumstances
114Obligation to notify absence from New Zealand
115Obligation to undergo work ability assessment
116Persons subject to work ability assessment
117Persons not subject to work ability assessment
118Work ability assessment
119Person who fails to comply with requirement to undergo work ability assessment is subject to sanction
120Work-preparation obligations
121Persons subject to work-preparation obligations
122Persons not subject to work-preparation obligations
123Persons subject to work-preparation obligations if sufficient capacity to comply
124General obligation to take all steps to prepare for employment
125Work-preparation obligations as required by MSD
126Person who fails to comply with work-preparation obligation subject to sanction
127Obligations in relation to dependent children
128Obligations of beneficiary in relation to dependent children
129Obligations of spouse or partner of beneficiary in relation to dependent children of beneficiary
130Obligations of spouse or partner of beneficiary in relation to dependent children of spouse or partner
131Attendance of dependent child aged 3 to 5 years at early childhood education programme
132Attendance of dependent child aged 5 or 6 years at early childhood education programme or registered school
133Attendance of dependent child aged 6 to 15 years at registered school
134Health care enrolment and compliance with core health checks
135Interviews and reporting
136Person who fails to comply with obligations in relation to dependent children is subject to sanction
137Definitions and attendance: regulations made under section 430
138Work-test obligations
139Purpose of sections 140 to 154
140Persons subject to work-test obligations
141Jobseeker support: work capacity determination and work test
142Person not subject to work-test obligations
143Time when work-test obligation applies
144General obligation to be available for suitable employment, etc
145Meaning of suitable employment
146Work-test obligations as required by MSD
147Obligation to undertake and pass drug test
148Compliant drug test defined
149Failing drug test
150Use of drug test result
151Costs of drug test
152Definitions for drug-testing provisions
153Person who fails to comply with work-test obligations is subject to sanction
154Deemed failure to comply with work-test obligation
155Deferral of work-test obligations
156Effect of deferral of work-test obligations
157Regulations may specify categories of exempt persons and grounds for exemption
158MSD may grant exemption from work-preparation, work-test, or other obligation
159Donors of qualifying organs exempt from work-preparation, work-test, or other obligation while recuperating
160Procedure for grant of exemption
161Person who fails to comply with requirement to attend interview is subject to sanction
162Obligations of young person granted youth support payment
163When education obligation or training obligation begins for young parent
164Obligations of young person granted young parent payment
165Young person aged 18 or 19 years who is receiving jobseeker support in young person’s own right and who is at significant risk of long-term welfare dependency
166Young person aged 16 or 17 years who has no dependent child and who is spouse or partner of specified beneficiary
167Young person aged 16 to 19 years who has dependent child and who is spouse or partner of specified beneficiary
168Young person aged 18 or 19 years, who is receiving jobseeker support as spouse or partner of person granted that benefit, or who is work-tested spouse or partner of specified beneficiary, and who is at significant risk of long-term welfare dependency
169Interpretation
170Obligation to work with contracted service providers
171Person who fails to comply with requirement under section 170(2) subject to sanction
172Interpretation
173Applicant for benefit, etc, to take reasonable steps to obtain overseas pension
174MSD may give notice requiring person to take reasonable steps to obtain overseas pension
175MSD may give notice requiring person to take reasonable steps to obtain overseas pension for dependant
176Failure to comply with MSD’s notice given under section 174 or 175
177Applicant for benefit must provide information as to rate of overseas pension
178MSD may give notice requiring beneficiary to provide information as to rate of overseas pension
179Failure to comply with MSD’s notice given under section 178
180Meaning of rate
181Application of health and safety legislation, etc
182Obligations suspended where MSD has exercised discretion to pay benefit while beneficiary overseas
183What this Part does
184Regulations may prescribe pre-benefit activities
185MSD must explain requirements
186Benefit may be subject to repayment of insurance payment
187Interpretation
188Persons affected by receipt of overseas pension
189Benefit of person affected is reduced by amount of overseas pension
190MSD may enter into arrangement with person affected by receipt of overseas pension
191Treatment of certain overseas benefits, pensions, and allowances that are not overseas pensions
[Repealed]
192MSD must reduce rates of benefits for sole parents for failure to assist child support [Repealed]
193No reduction in certain cases [Repealed]
194Additional reduction in certain cases [Repealed]
195Shared care of dependent child
196Rules for assessing which parent has greater responsibility for dependent child
197Effect of compensation or damages on application for benefit
198Loss of earnings compensation under Accident Compensation Act 2001
199Veteran’s entitlement excludes any other benefit
200Exceptions to rule that veteran’s entitlement excludes any other benefit
201Personal benefit of spouse or partner excludes benefit on behalf of spouse or partner
202MSD may refuse or cancel benefit for failure to take reasonable steps to obtain maintenance
203MSD may refuse or cancel benefit if family protection claim not pursued
204MSD may refuse or cancel benefit if person not ordinarily resident in New Zealand
205Refugee or protected person status
206Hospitalisation
207Benefit of spouse or partner increased after 13th week of hospitalisation
208Beneficiary resident in institution for treatment of alcoholism or drug addiction
209Benefit not payable to person who is subject to warrant of arrest
210Beneficiary and offence defined for section 209
211MSD must give beneficiary notice of unresolved warrant
212Requirements for unresolved warrant notice
213Immediate suspension of benefit at request of New Zealand Police
214Beneficiary and offence defined for section 213
215MSD must give beneficiary notice of immediate suspension
216Effect of non-payment or suspension of benefit
217Benefit not payable during custody in prison or on remand
218Exceptions to rule that benefit not payable during custody in prison or on remand
219General rule: benefit not payable while beneficiary absent from New Zealand
220Special absence rule: winter energy payment
[Repealed]
221Purpose of sections 222 to 224 [Repealed]
222Additional dependent child must not be taken into account in certain cases [Repealed]
223Extended application of additional dependent child rules [Repealed]
224Limited application of additional dependent child rules [Repealed]
225Basic rule: no work-tested benefit for 13 weeks after leaving employment or scheme or loss of employment due to misconduct
226Persons to whom basic rule applies
227What happens if basic rule applies
228MSD’s options in case of misconduct
229Interpretation
230How non-entitlement period, etc, affects supplementary benefits, and spouse or partner
231What this Part does
232Sanctions for failure to comply with certain obligations under this Act
233Obligations that carry sanction for failure to comply
234Hierarchy of sanctions
235Failure, and first, second, and third failure, defined for obligations other than young person or young parent obligations
236Sanction for first failure: reduction in main benefit
237Sanction for second failure: suspension of main benefit
238Sanction for third failure: cancellation of main benefit
239Reduction or suspension of reduced benefit
240Failures that can be counted
241Meaning of continuous payment
242Failures that cannot be counted
243Exclusion of sanction if failure is subject of prosecution under Education and Training Act 2020
244Variation for failure to comply with work-test obligation to accept offer of suitable employment
245Variation for breach of work-test obligation by 1 spouse or partner
246Variation for breach of work-test obligation by both partners or spouses
247Variation for suspension or cancellation of benefit or non-entitlement period affecting couple with 1 or more dependent children
248Variation for suspension or cancellation of main benefit or non-entitlement period affecting sole parent
249Good and sufficient reason for non-compliance: default by MSD
250Good and sufficient reason for failure to comply with drug-testing obligation
251Good and sufficient reason for failure to supervise dependent child
252MSD must give notice of sanction
253Notice relates to single failure
254How notice of sanction may be given
255Breach of obligation in relation to dependent children: additional steps before notice may be given
256When reduction, suspension, or cancellation of benefit takes effect
257Request for evidential drug test if sanction imposed for failing screening drug test
258Effect of request for evidential drug test
259Effect of failure of evidential drug test
260Costs of evidential drug test
261How person recomplies after failure to comply with obligation
262Impossibility of remedying failure of work-test obligation
263How person recomplies after failure to comply with drug-testing obligation
264Drug testing for purposes of recompliance
265Failure of drug test for purposes of recompliance constitutes third failure
266Costs of drug testing for purposes of recompliance
267Case management support for beneficiary in breach of obligation in relation to dependent children
268Failure, and first, second, and third failure, defined for young person or young parent obligations
269Sanction for failure to comply with young person obligation
270Sanction for first or second failure: suspension of in-hand allowance and incentive payments
271Sanction for third failure: cancellation of youth payment and incentive payments
272Effect of cancellation of youth payment on accommodation supplement or temporary additional support
273Effect of cancellation of youth payment on emergency benefit
274Effect of cancellation of youth payment on disability allowance or child disability allowance
275Sanctions for failure by young person required to receive youth services to comply with obligations: money management
276Sanctions for failure by young person required to receive youth services to comply with obligations: other cases
277Sanctions for failure by young spouse or partner of specified beneficiary to comply with obligations: money management
278Sanctions for failure by young spouse or partner of specified beneficiary to comply with obligations: other cases
279Sanction for failure to comply with young parent obligation
280Sanction for first or second failure: suspension of in-hand allowance and incentive payments
281Sanction for third failure: cancellation of young parent payment and incentive payments
282Effect of cancellation of young parent payment
283Effect of cancellation of young parent payment on accommodation supplement or temporary additional support
284Effect of cancellation of young parent payment on emergency benefit
285Effect of cancellation of young parent payment on disability allowance or child disability allowance
286How young person satisfies obligation after failure to comply
287Procedure for imposing sanctions for failure to comply with young person or young parent obligation
288Effect of regrant of youth payment on incentive payment
289MSD may cancel incentive payment
290Offences: false statements, misleading, or attempting to mislead, to receive or continue to receive benefits
291Offences: spouse or partner knowingly benefiting from excess amount obtained by beneficiary’s fraud
292Offence of demanding or accepting fee or other consideration in relation to grant of benefit
293Offence of demanding or accepting acknowledgement or undertaking
294General penalty for offences
295Time for filing charging document
296What this Part does
297Application for benefit: making of, help with, lapse, and deemed receipt
298MSD must inquire into claim for benefit
299Exception during epidemic
300Information gathering, disclosure, and matching
301MSD decides whether to grant benefit
302Immediate provisional grant, and later backdating of other benefit
303After death of applicant
304Review of entitlement and rate payable
305Information for review
306No entitlement, or entitlement only at different rate
307Benefit on another eligibility ground more appropriate
308Another benefit more appropriate
309Termination of winter energy payment
310Certain benefits granted, or granted at rate, not taking into account certain insurance payments
311General
312If applicant paid, but claim fails for, ACC weekly compensation
313Benefits subject to stand down
314Work-tested benefit of applicant subject to non-entitlement period
315Exemptions from stand down, and when certain benefits commence
316Start and calculation of stand-down period
317Minister may consent to backdating
318No consent unless benefit not granted earlier because of error
319Commencement of winter energy payment
320Effect of no longer being subject to work-test or young person obligations
321Effect of no longer being subject to dependent children obligations
322Effect of no longer being subject to work-preparation obligations
323Effect of employment on non-entitlement period
324Effect of participation in certain activities on non-entitlement period
325General rule if person’s entitlement to benefit ceases
326After death of beneficiary receiving specified benefit
327Benefits payable to sole parent who stops caring for dependent child due to sudden and uncontrollable circumstances
328Supported living payment payable to beneficiary who stops caring for another person
329If child ceases to be entitled to orphan’s benefit or unsupported child’s benefit
330Supported living payment on ground of restricted work capacity or total blindness and cancelled on medical grounds
331Expiry date, and specified benefit, defined
332General rule
333Exception for specified benefit expiring in week of or before 26 December
334Exemptions
335MSD must notify or advise beneficiary
336Requirements for regrant
337How benefits are paid
338Weekly instalments
339Payment generally to, or on account of, beneficiary personally
340Required manner of payment: general
341Required manner of payment: money management for certain payments to young people
342Money management for certain payments to young people: exception if young person meets prescribed criteria for managing own payments
343Review and appeal of specified determinations made by MSD under regulations
344Young person beneficiaries may elect money management
345Credit on payment card, etc, at end of money management
346Required manner of payment: payment on death of beneficiary
347Advance payment of instalments of benefit
348Requirement for beneficiary, spouse or partner, or both, to undertake budgeting activity
349Interpretation
350MSD may pay tax on main benefit other than by tax deduction from source deduction payment
351Status of amount for income tax paid by MSD
352Recovery amount paid in excess of amount properly payable
353Debts and deductions
354Recovery of penalty from beneficiary who obtains by fraud amount in excess of entitlement
355Restriction on imposing penalty under section 354: prosecution for offence
356Restriction on imposing penalty under section 354: notice and period to respond
357Restriction on recovering penalty under section 354: decision to be final
358Recovery from spouse or partner who misleads MSD of excess amount beneficiary obtained
359Recovery from spouse or partner of apportioned excess amount beneficiary obtained by fraud
360Obtaining amount by fraud: meaning and proof
361Recovery from spouse or partner of unapportioned excess amount beneficiary obtained by fraud
362MSD’s duty to recover debts
363Duty unaffected by law on mistaken payments
364Ways MSD or person can meet requirement to give notice or other document
365Services to encourage young people to move to and remain in education, training, and employment
366Preferred suppliers: contracts
367Preferred suppliers: determinations
368Preferred suppliers: paying them disability allowance, special assistance, or advance payment
369Preferred suppliers: paying them disability allowance: exception if total benefit payments less than amount required
370Preferred suppliers: paying them disability allowance: exception if allowance granted at maximum rate
371Preferred suppliers: no appeal lies against MSD decisions
372Preferred suppliers: transitional or savings provisions directions
373Administration service providers: contracts
374Administration service providers: contents and form of contracts
375Administration service providers: adoption of existing contracts
376Administration service providers: MSD to ensure information published
377Conduct of provider of services in relation to young people to be treated for specified purposes as if MSD’s conduct
378MSD may assign contracted service provider to young person
379Minister determines rates and conditions of employment and payment
380Orders adopting reciprocity agreements
381Privacy report for orders adopting agreements with mutual assistance provisions
382Interpretation
383Inclusion of mutual assistance provisions in reciprocity agreements
384MSD may use mutual assistance provisions to recover debts
385MSD may use mutual assistance provisions to exchange information
386Adverse action against individual if discrepancy shown by information from other country
387Prosecutions and debt recovery proceedings: representation and fees
388Payment of benefit does not affect right to maintenance
389Maintenance proceedings
390What this Part does
391Right to seek review of specified decision of MSD made under delegation
392Application must be made within 3 months after date of notification or further period allowed
393Benefits review committee
394How to begin, and procedure and powers for, review by benefits review committee
395Appeals only against decision confirmed or varied by benefits review committee or made by chief executive personally
396Authority cannot hear and determine certain appeals on medical or capacity grounds
397Decision under specified social assistance enactments
398Decision under reciprocity agreements
399Decision to recover excess amount
400Appeal must be begun within 60 working days of notification or further allowed period
401Social security appeal authority
402Act does not affect appeals to authority under other enactments
403How to begin, and procedure and powers for, appeal to authority
404Notice, and carrying into effect, of decision
405Right of appeal using case stated on question of law only
406Appeal must be begun, and case stated lodged, within time prescribed or allowed
407How to begin, and procedure for, appeal to High Court
408Orders, etc, on successful appeal
409Appeal, with Court of Appeal’s leave, against High Court’s determination
410Appeal, with Supreme Court’s leave, against High Court’s or Court of Appeal’s determination
411Right of appeal on medical grounds
412Appeal must be begun within 3 months of notification or further allowed period
413Board
414How to apply, and procedure and powers, for appeal to board
415Notice of, and carrying into effect, board’s decision
416What this Part does
417Benefits cannot, in general, be assigned or charged, or pass by operation of law
418Regulations: general
419Regulations: general powers not limited by special powers
420Regulations: effect of duties or powers to give directions
421Regulations: residential requirement
422Regulations: income exemptions
423Regulations: accommodation supplement
424Regulations: childcare assistance
425Regulations: disability allowance: special categories of eligibility
426Regulations: use of disability allowance to fund specified expenses
427Regulations: funeral grants: amounts and methods of payment
428Regulations: temporary additional support
429Regulations: participation allowance for people participating in activities
430Regulations: specific obligations: obligations in relation to dependent children: definitions and attendance
431Regulations: specific obligations: work-test obligations, and deferrals of, or exemptions from, specified obligations
432Regulations: factors affecting benefits: pre-benefit activities
433Regulations: factors affecting benefits: insurance recovery
434Regulations: factors affecting benefits: overseas pensions
435Regulations: factors affecting benefits: issue of warrant to arrest beneficiary
436Regulations: factors affecting benefits: absence from New Zealand
437Regulations: issue and use of entitlement cards
438Regulations: application for benefit: making of, help with, lapse, and deemed receipt
439Regulations: certain benefits granted, or granted at rate, not taking into account certain insurance payments
440Regulations: exemptions from, and calculation of, stand down
441Regulations: expiry and regrant of specified benefits
442Regulations: payments
443Regulations: payments during epidemic in New Zealand
444Regulations: debts and deductions
445Regulations: further provisions on deductions
446Regulations: advance payment of instalments of benefit
447Regulations: budgeting activities due to application for advance payment of instalments of benefit
448Regulations: remittance or suspension of debt
449Regulations: ways MSD or person can meet requirement to give notice or other document
450Regulations: reciprocity agreements with mutual assistance provisions, and adverse action if discrepancy shown by information from other country
451Regulations: how to begin, and procedure and powers for, review or appeal
452Orders in Council: discretionary increases in rates of benefits, etc
452AOrders in Council: mandatory annual average weekly earnings adjustment of rates of main benefits
453Orders in Council: mandatory annual CPI adjustment of rates of certain benefits that are not main benefits
454Certain orders are confirmable instruments [Repealed]
455Social Security Act 1964 repealed
456Social Welfare (Reciprocity Agreements, and New Zealand Artificial Limb Service) Act 1990 repealed
457Department of Social Welfare Act 1971 repealed
458Employment Services and Income Support (Integrated Administration) Act 1998 repealed
459Other enactments amended consequentially
Notes

The Parliament of New Zealand enacts as follows:

 
1 Title

This Act is the Social Security Act 2018.

2 Commencement

(1)

This Act comes into force on 26 November 2018.

(2)

However, the following specified provisions come into force on the day after the date on which this Act receives the Royal assent:

(a)

section 7 (directions):

(b)
(c)

section 372 (directions):

(d)

section 380 (orders):

(e)

sections 418 to 454 (regulations, directions, notices, and orders):

(f)

clause 54 of Schedule 1 (orders):

(g)

clause 68 of Schedule 1 (regulations):

(h)

clauses 15 and 17 of Schedule 3 (rules):

(i)

clauses 10(3) and 18 of Schedule 6 (regulations and orders).

(3)

A power that is conferred by those specified provisions, and that is exercised on or after the day after the date on which this Act receives the Royal assent and before 26 November 2018, may be exercised only with effect on or after 26 November 2018.

(4)

If subsections (2) and (3) are to be, or have been, relied on to exercise a power,—

(a)

all other enactments relevant to the power’s exercise, and that have not yet commenced, must be treated as if they had commenced; and

(b)

a legal position that would be conferred or imposed by an enactment relevant to the power’s exercise, and that has not yet commenced, must be treated as if it has accrued or been imposed.

(5)

This section does not affect the application of the Interpretation Act 1999 to this Act.

(6)

However, the following specified provisions (which relate to 2016 youth services amendments) come into force on a date that is, or is after, 26 November 2018, and is appointed by the Governor-General by Order in Council:

(b)

the cross-heading above section 165:

(c)

paragraph (c) of the definition of young person obligation in section 268:

(e)

clauses 69 to 76 of Schedule 1.

(7)

One or more orders may be made under subsection (6) bringing different provisions into force on different dates.

(8)

An order under subsection (6) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Compare: 1999 No 85 s 11

Legislation Act 2019 requirements for secondary legislation made under this section
PublicationPCO must publish it on the legislation website and notify it in the GazetteLA19 s 69(1)(c)
PresentationThe Minister must present it to the House of RepresentativesLA19 s 114, Sch 1 cl 32(1)(a)
DisallowanceIt may be disallowed by the House of Representatives LA19 ss 115, 116
This note is not part of the Act.

Section 2(8): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Part 1 General provisions

3 Purpose of this Act

The purpose of this Act is—

(a)

to enable the provision of financial and other support as appropriate—

(i)

to help people to support themselves and their dependants while not in paid employment; and

(ii)

to help people to find or retain paid employment; and

(iii)

to help people for whom work is not currently appropriate—because of sickness, injury, disability, or caring responsibilities—to support themselves and their dependants:

(b)

to enable in certain circumstances the provision of financial support to people to help alleviate hardship:

(c)

to ensure that the financial support referred to in paragraphs (a) and (b) is provided to people taking into account—

(i)

that, where appropriate, they should use the resources available to them before seeking financial support under this Act; and

(ii)

any financial support that they are eligible for or already receive, otherwise than under this Act, from publicly funded sources:

(d)

to provide services to encourage and help young people to move to or remain in education, training, and employment, rather than receiving financial support under this Act:

(e)

to impose, on the following specified people or young people, the following specified requirements or obligations:

(i)

on people seeking or receiving financial support under this Act, administrative and, where appropriate, work-related requirements; and

(ii)

on young people who are seeking or receiving financial support under this Act, educational, budget management, and (where appropriate) parenting requirements; and

(iii)

on people receiving certain financial support under this Act, obligations relating to the education and primary health care of their dependent children.

Compare: 1964 No 136 s 1A; 2007 No 20 s 23

4 Principles

Every person performing or exercising a duty, function, or power under this Act must have regard to the following general principles:

(a)

work in paid employment offers the best opportunity for people to achieve social and economic well-being:

(b)

the priority for people of working age should be to find and retain work:

(c)

people for whom work may not currently be an appropriate outcome should be assisted to prepare for work in the future and develop employment-focused skills:

(d)

people for whom work is not appropriate should be supported in accordance with this Act.

Compare: 1964 No 136 s 1B; 2007 No 20 s 23

5 Guide to this Act
General provisions

(1)

Part 1 contains general provisions (for example, on definitions).

Assistance

(2)

Part 2 contains provisions on assistance, as follows:

Main assistance

(a)

jobseeker support:

(b)

sole parent support:

(c)

supported living payment—

(i)

on the ground of restricted work capacity or total blindness; or

(ii)

on the ground of caring for another person:

(d)

orphan’s benefit:

(e)

unsupported child’s benefit:

(f)

youth payment:

(g)

young parent payment:

(h)

emergency benefit:

Supplementary assistance

(i)

accommodation supplement:

(j)

winter energy payment:

(k)

childcare assistance:

(l)

child disability allowance:

(m)

disability allowance:

(n)

funeral grants:

Hardship assistance

(o)

temporary additional support:

Special assistance

(p)

special assistance for visitors affected by overseas epidemics:

(q)

approved special assistance programmes (see the guide in section 15).

Obligations

(3)

Part 3 contains provisions on obligations (for example, MSD’s obligations, and each beneficiary’s obligations—see the guide in section 104).

Factors affecting benefits

(4)

Part 4 contains provisions on factors affecting benefits (for example, insurance, entitlement to overseas pensions, shared care of a dependent child, hospitalisation, being in custody in prison or on remand, and absence from New Zealand—see the guide in section 183).

Enforcement, sanctions, and offences

(5)

Part 5 contains provisions on enforcement, sanctions, and offences (for example, sanctions for failing to meet obligations—see the guide in section 231).

Administration

(6)

Part 6 contains provisions on administration (for example, on applications for and granting of benefits, reviews of entitlement, when benefits commence and end or expire, how benefits are paid, tax on benefits, debts and deductions, notices and communications, and reciprocity agreements with other countries—see the guide in section 296).

Reviews and appeals

(7)

Part 7 contains provisions on reviews and appeals (reviews by benefits review committees and appeals to the appeal authority, to the courts, or to the medical board—see the guide in section 390).

Other provisions

(8)

Part 8 contains other provisions (for example, on powers to make regulations or orders, repeals and revocations, and consequential amendments—see the guide in section 416).

Definitions appear in dictionary

(9)

Schedule 2 lists all terms defined for purposes of this Act, and sets out, or indicates where to find, the definitions.

Act is generally former 1964 and 1990 Acts in rewritten form

(10)

The provisions of this Act, as section 9 indicates, are generally—

(a)

the provisions of specified former 1964 and 1990 enactments in rewritten form; and

(b)

intended to have the same effect as the corresponding provisions of those former enactments.

(11)

Subsection (10) is overridden by section 9(6) (which relates to identified changes in legislation that are specified in Schedule 11, and to amendments to this Act that are made after the beginning of 26 November 2018).

Section 5(4): amended, on 1 April 2020, by section 4 of the Social Assistance Legislation (Budget 2019 Welfare Package) Amendment Act 2019 (2019 No 23).

6 Definitions are in dictionary in Schedule 2

The dictionary in Schedule 2 defines terms used in this Act.

Compare: 1964 No 136 ss 3(1), (5), 10B(5), 11(8), 11G(1), 11H(1), 20A, 39A(1), 60H(1), 60RAB(1) and (4), 61D(1), 61E, 68A(8), 80B, 88A, 126A(1), 157; 2007 No 97 s AA 3, Part Y

7 Minister may give MSD binding directions

(1)

The Minister may give MSD general or special written directions about MSD’s performing or exercising any duties, functions, or powers of MSD under enactments in, or made under, either or both of this Act and the New Zealand Superannuation and Retirement Income Act 2001.

(2)

Directions given under this section cannot do what is done by the following kinds of directions:

(a)

preferred suppliers: transitional or savings provisions directions given under section 372:

(b)

debt recovery directions given under regulations made under section 444 (see section 444(1), (2)(c), and (3)).

(3)

MSD must, in performing or exercising a duty, function, or power, comply with all relevant current directions given under this section.

(4)

A direction under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

(5)

[Repealed]

Compare: 1964 No 136 s 5

Legislation Act 2019 requirements for secondary legislation made under this section
PublicationThe maker must: LA19 ss 73, 74(1)(a), Sch 1 cl 14
• notify it in the Gazette
• publish it on a website maintained by, or on behalf of, MSD
• if it is amended without being replaced, also publish on that website a consolidated version of the notice as at a stated date incorporating the amendments up to that date
PresentationThe Minister must present it to the House of RepresentativesLA19 s 114, Sch 1 cl 32(1)(a)
DisallowanceIt may be disallowed by the House of Representatives LA19 ss 115, 116
This note is not part of the Act.

Section 7(4): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section 7(5): repealed, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

8 Determinations person is single or in de facto relationship

(1)

This section applies to a decision by MSD so far as the decision does all or any of the following:

(a)

determines (that is, grants, or refuses to grant, on any basis) an application for a benefit:

(b)

reviews (and suspends, cancels, or varies, from a date determined by MSD) a benefit already granted:

(c)

determines the rate of benefit (from a date, or dates, determined by MSD):

(d)

grants, or refuses to grant, on any basis, a payment of a funeral grant (see section 90):

(e)

grants or refuses to grant, on any basis, a payment under an approved special assistance programme.

(2)

MSD may make a determination to regard as single, for the purposes of the decision, an applicant or a beneficiary who is married or in a civil union with the applicant’s or beneficiary’s spouse or partner, but—

(a)

is living apart from the applicant’s or beneficiary’s spouse or partner; and

(b)

is not in a de facto relationship.

(3)

A determination under subsection (2) may include a date, determined by MSD, on which the spouses or partners must be taken for the purposes of the decision to have commenced to live apart.

(4)

MSD may make a determination to regard as a party to a de facto relationship, for the purposes of the decision, any 2 people who, not being legally married or in a civil union, have entered into a de facto relationship.

(5)

A determination under subsection (4), for the purposes of the decision, may include either or both of the following dates:

(a)

a date, determined by MSD, on which the 2 people must be taken as having entered into the de facto relationship:

(b)

a date, determined by MSD, on which the de facto relationship of the 2 people must be taken to have ended.

(6)

Every determination under this section also applies for the purposes of every debt-recovery or offence provision in or under this Act.

Compare: 1964 No 136 s 63

9 Interpretation: references to old law, and using it as a guide

(1)

A reference in an enactment or a document to the following former enactments or to a provision of them, is to be interpreted as a reference to this Act, or to the corresponding provision of this Act, to the extent necessary to reflect sensibly the intent of the enactment or document:

(a)

the Social Security Act 1964 (except sections 69FA and 132D, Part 4, and Schedules 27 and 30, which are provisions rewritten and replaced by the Residential Care and Disability Support Services Act 2018):

(2)

Subsection (1) is subject to the consequential amendments in Schedule 10.

(3)

The provisions of this Act—

(a)

are the provisions of those former enactments in rewritten form; and

(b)

are intended to have the same effect as the corresponding provisions of those former enactments.

(4)

Subsection (3) is subject to subsections (5) and (6) and section 11.

(5)

If the meaning of a provision of this Act that comes into force under section 2 (the new law) is unclear or gives rise to absurdity, the wording of a law that is repealed by section 455 or 456 and that corresponds to the new law (the old law) must be used to ascertain the meaning of the new law.

(6)

Subsections (3) to (5) do not apply—

(a)

to a new law listed in Schedule 11 (identified changes in legislation); or

(b)

if a new law is affected by an amendment made after the new law’s commencement under section 2, to that new law after the amendment commences.

Compare: 2007 No 97 s ZA 3(2), (3), (4), (5)

10 Comparative tables of old and new provisions

(1)

Schedule 12 (comparative tables of old and rewritten provisions) sets out corresponding provisions in the following former enactments and this Act as at the beginning of 26 November 2018:

(a)

the Social Security Act 1964 (except sections 69FA and 132D, Part 4, and Schedules 27 and 30, which are provisions rewritten and replaced by the Residential Care and Disability Support Services Act 2018):

(2)

Schedule 12 has the following 3 parts:

(a)

Part A lists each provision in the Social Security Act 1964 and—

(i)

indicates the corresponding provision in this Act or the Residential Care and Disability Support Services Act 2018; or

(ii)

states that the provision has been omitted:

(b)

Part B lists each provision in the Social Welfare (Reciprocity Agreements, and New Zealand Artificial Limb Service) Act 1990 and—

(i)

indicates the corresponding provision in this Act or the Artificial Limb Service Act 2018; or

(ii)

states that the provision has been omitted:

(c)

Part C lists each provision in this Act and the corresponding provision in those former enactments, or states that the provision is new.

(3)

Schedule 12

(a)

is provided to assist readers to identify corresponding provisions; but

(b)

must not be interpreted as a definitive guide to the correspondence of provisions.

Compare: 2007 No 97 s ZA 6

11 Transitional, savings, and related provisions

The transitional, savings, and related provisions set out in Schedule 1 have effect according to their terms.

Compare: 1964 No 136 s 3C, Schedule 32

12 Act binds the Crown

This Act binds the Crown.

13 Status of guides or outlines

All guides or outlines in this Act are by way of explanation only. They do not affect the provisions specified in them.

14 Status of examples

(1)

An example used in an enactment in or made under this Act is only illustrative of the provisions to which it relates. It does not limit those provisions.

(2)

If an example and a provision to which it relates are inconsistent, the provision prevails.

Compare: 1964 No 136 s 3B

Part 2 Assistance

Contents

15What this Part does
16Residential requirement
17Rates
17AGuide to specified abatement exemptions
18General limitation on receiving more than 1 benefit
19General limitation on receiving benefit: persons unlawfully resident or present in New Zealand and persons holding temporary entry class visa
20Jobseeker support: requirements
21What is work gap
22When person is available for work
23Jobseeker support: age requirement
24Jobseeker support: no or minimum income
25Jobseeker support: discretionary grant on ground of hardship
26Jobseeker support: ineligibility
27Jobseeker support: on ground of health condition, injury, or disability: application must include certificate
28Jobseeker support: on ground of health condition, injury, or disability: medical examination
29Sole parent support: requirements
30What is sole parent requirement
31When dependent child may be regarded as applicant’s child
32Sole parent support: situation of split care
33Expiry of sole parent support, and replacement with jobseeker support, when youngest dependent child turns 14 years old
34Supported living payment: on ground of restricted work capacity or total blindness: requirements
35When person has restricted work capacity
36Supported living payment: on ground of restricted work capacity or total blindness: ineligibility
37Supported living payment: on ground of restricted work capacity or total blindness: medical examination
38Supported living payment: on ground of restricted work capacity or total blindness: payment not apportioned in specified cases
39Supported living payment: on ground of restricted work capacity: encouraging open employment
40Supported living payment: on ground of caring for another person: requirements
41Supported living payment: on ground of caring for another person: application must include certificate
42Supported living payment: on ground of caring for another person: medical examination
43Orphan’s benefit: requirements
44Who is eligible caregiver
45Orphan’s benefit to be used for benefit of child
46Unsupported child’s benefit: requirements
47Who is eligible caregiver
48Unsupported child’s benefit to be used for benefit of child
49Youth payment: requirements
50When person is study ready
51Youth payment: no or minimum income
52When person has parental support gap
53Youth payment: discretionary grant on ground of hardship
54Youth payment: continuation after turning 18 years old
55Youth payment: incentive payments
56Young parent payment: requirements
57When person is study ready
58Young parent payment: no or minimum income
59When person has parental support gap
60Young parent payment: discretionary grant on ground of hardship
61Young parent payment: continuation after turning 20 years old
62Young parent payment: incentive payments
63Emergency benefit: discretionary grant on ground of hardship
64Emergency benefit: grant during epidemic in New Zealand
65Accommodation supplement: discretionary grant
66Social housing exclusion
67Other funding exclusion
68Accommodation supplement: special rules for joint tenants who are in relationship
69Accommodation supplement: refusal, reduction, or cancellation of grant in certain circumstances
70Winter energy payment: purpose
71Winter energy payment: interpretation
72Winter energy payment: requirements
73Winter energy payment: election not to receive
74Winter energy payment: instalments, rates, and payment
75Winter energy payment: termination on review
76Childcare assistance: purpose
77Childcare assistance: eligibility
78Child disability allowance: discretionary grant
79Meaning of child with a serious disability
80Child disability allowance: MSD may require medical certificate
81Child disability allowance: MSD may require medical examination
82Child disability allowance: payment
83Child disability allowance: not payable with other assistance or pension
84Meaning of disability
85Disability allowance: discretionary grant
86Disability allowance: excluded expenses
87Disability allowance: refusal, reduction, or cancellation of grant in certain circumstances
88Disability allowance: medical examination
89Special disability allowance: entitlement in special circumstances
90Funeral grant: general eligibility and definitions
91Funeral grant: eligibility if deceased person has dependants
92Funeral grant: eligibility if deceased person has no dependants
93Funeral grant: eligibility if deceased person is child
94Funeral grant: restrictions on payment
95Temporary additional support: purpose
96Temporary additional support: requirements
97Temporary additional support: refusal, reduction, or cancellation of grant in certain circumstances
98Interpretation
99Overseas epidemics affecting visitors to New Zealand: Minister may give overseas epidemic management notice
100Special assistance for visitors affected by overseas epidemics
101Approved special assistance programmes
102Special assistance: status of, and access to, notices [Repealed]
103Provisions relating to children aged 18 years or over who continue education

Subpart 1—Introduction

15 What this Part does

This Part—

(a)

sets out the various types of assistance through which MSD provides people with financial support; and

(b)

specifies the requirements for each type of assistance.

16 Residential requirement

(1)

This section sets out the residential requirement that must be met by applicants for certain types of assistance under this Part.

(2)

A person (P) meets the residential requirement if—

(a)

P is a New Zealand citizen or holds a residence class visa under the Immigration Act 2009, and is ordinarily resident in New Zealand when P first applies for the benefit, and—

(i)

has resided continuously in New Zealand for a period of at least 2 years at any one time after becoming a citizen or resident; or

(ii)

is recognised as a refugee or a protected person in New Zealand under the Immigration Act 2009; or

(b)

P is ordinarily resident in a country with which New Zealand has a reciprocity agreement, and P has resided continuously in New Zealand for a period of at least 2 years before applying for the benefit or before a decision on P’s claim for the benefit is made.

(3)

For the purposes of subsection (2)(b), New Zealand has a reciprocity agreement with another country if there is in force under section 380 an order declaring that the provisions contained in an agreement (for example, a convention) signed by New Zealand and the Government of that country set out in a schedule of the order have force and effect so far as they relate to New Zealand.

(4)

This section does not limit section 204 (MSD may refuse or cancel benefit if person not ordinarily resident in New Zealand), and is subject to section 205 (refugee or protected person status).

(5)

This section is also subject to any regulations made under section 421 that specify circumstances in which a person—

(a)

is taken to meet the residential requirement; or

(b)

must be treated, for the purposes of satisfying the residential requirement, as being resident and present in New Zealand; or

(c)

must not be required to comply with the residential requirement.

Compare: 1964 No 136 s 74AA

17 Rates

(1)

Assistance granted under this Part must be paid at the appropriate rate specified in Schedule 4.

(2)

Subsection (1) does not apply to the following assistance granted under this Part:

(a)

an emergency benefit under section 63:

(b)

childcare assistance under section 77:

(c)

funeral grants under section 90:

(d)

temporary additional support under section 96:

(e)

special assistance under subpart 17.

(3)

Subsection (1) is subject to the provisions of this Act that provide for the reduction, suspension, or cancellation of assistance in certain circumstances.

Compare: 1964 No 136 ss 20G, 29A, 39B, 40I, 61(2), 61CB, 61EC, 61G(3), 61GA(3), 69C, 88M, 163, 169

17A Guide to specified abatement exemptions

(1)

In this section, the specified abatement exemptions means—

(a)

section 17(3) of the New Zealand Superannuation and Retirement Income Act 2001; and

(b)

section 173(3) of the Veterans’ Support Act 2014.

(2)

The specified abatement exemptions ensure that a benefit (for example, an accommodation supplement) payable to a community spouse or partner (CSP) is not subject to abatement in respect of any income of the CSP that has been included in a means assessment—

(a)

of the CSP’s spouse or partner; and

Section 17A: inserted, on 26 November 2022, by section 4 of the Social Security (Accommodation Supplement) Amendment Act 2022 (2022 No 65).

18 General limitation on receiving more than 1 benefit

A person is not entitled to receive at the same time, in his or her own right,—

(a)

more than 1 main benefit under this Act; or

(b)

a main benefit under this Act and New Zealand superannuation; or

(c)

a main benefit under this Act and a veteran’s pension.

Compare: 1964 No 136 s 72(a)

19 General limitation on receiving benefit: persons unlawfully resident or present in New Zealand and persons holding temporary entry class visa

(1)

A person is not entitled or eligible to receive a benefit if the person is—

(a)

unlawfully resident or present in New Zealand; or

(b)

lawfully resident or present in New Zealand but only by virtue of holding a temporary entry class visa.

(2)

This section is subject to section 205.

Compare: 1964 No 136 s 74A(1)

Subpart 2—Jobseeker support

20 Jobseeker support: requirements

A person is entitled to jobseeker support if the person—

(a)

has a work gap; and

(b)

is available for work; and

(c)

meets the age requirement; and

(d)

meets the residential requirement; and

(e)

has no or minimum income.

Compare: 1964 No 136 s 88B(1), (2), (3), (4)

21 What is work gap

(1)

A person (P) has a work gap if—

(a)

P is not in full-time employment; or

(b)

P is in employment but is losing earnings through a health condition or injury (for example, is not working at all or is working reduced hours).

(2)

For the purposes of subsection (1)(b), P may treat as a loss of P’s earnings a payment made to any other person who acts as P’s substitute during the period of P’s health condition or injury.

(3)

Despite subsection (1)(a), P still has a work gap if—

(a)

P is receiving jobseeker support at the rate in clause 1(c), (e), or (f) of Part 1 of Schedule 4; and

(b)

during a temporary period, P engages in full-time employment; and

(c)

the income from that employment and P’s other income (if any) when calculated over a 52-week period is less than the amount that would, under the appropriate income test, reduce the applicable rate of jobseeker support to zero.

Compare: 1964 No 136 s 88B(1), (6), (7)

22 When person is available for work

A person (P) is available for work if P—

(a)

is available for and seeking full-time employment and—

(i)

is willing and able to undertake it; and

(ii)

has taken reasonable steps to find it; or

(b)

would satisfy paragraph (a) were it not for circumstances that would qualify P for an exemption under the regulations referred to in section 157 from some or all of the work-test obligations; or

(c)

is willing and able to undertake full-time employment but, because of a health condition, injury, or disability, is limited in P’s capacity to seek, undertake, or be available for it.

Compare: 1964 No 136 s 88B(1)

23 Jobseeker support: age requirement

An applicant for jobseeker support meets the age requirement if the applicant is—

(a)

at least 18 years old, in the case of an applicant without a dependent child:

(b)

at least 20 years old, in any other case.

Compare: 1964 No 136 s 88B(2)

24 Jobseeker support: no or minimum income

(1)

In this subpart, a person (P) has no or minimum income if P has—

(a)

no income; or

(b)

income of less than the amount that would reduce the applicable rate of jobseeker support to zero.

(2)

If, during a temporary period, P has enough income to reduce the applicable rate of jobseeker support to zero, but P otherwise meets the requirements for jobseeker support, P’s entitlement to jobseeker support is not affected by that income.

Compare: 1964 No 136 s 88B(4), (5)

25 Jobseeker support: discretionary grant on ground of hardship

(1)

MSD may grant jobseeker support to a person (P) who is eligible under subsection (2), (3), or (4) if P—

(a)

is in hardship; and

(b)

is not entitled or eligible to receive any other main benefit under this Act or New Zealand superannuation or a veteran’s pension; and

(c)

is unable to earn enough income to support P and P’s spouse or partner (if any) and dependent children (if any).

(2)

P is eligible under this subsection if P meets the requirements in section 20(a), (b), and (c).

(3)

P is eligible under this subsection, during the period between the end of one academic year and the start of the next, if P is a full-time student and meets the requirements in section 20(c) and (d).

(4)

P is eligible under this subsection, during the period between the end of one academic year and the start of the next, if P is a full-time student who is aged 16 or 17 years and MSD is satisfied that—

(a)

P has a parental support gap (as defined in section 52(1)(a), (b), or (c), but not as defined in section 52(1)(d)); or

(b)

P is in a relationship.

Compare: 1964 No 136 s 88C

26 Jobseeker support: ineligibility

A person (P) is not entitled to, or eligible to be granted, jobseeker support if—

(a)

P is a full-time student (unless P is eligible under section 25); or

(b)

P is unemployed because of P’s participation, or participation by fellow members of the same union at the same place of employment, in a strike; or

(c)

MSD reasonably believes that P became unemployed or took leave with or without pay from P’s employment for the purpose of undertaking employment-related training.

Compare: 1964 No 136 s 88D

27 Jobseeker support: on ground of health condition, injury, or disability: application must include certificate

(1)

An applicant (A) for jobseeker support on the ground of health condition, injury, or disability must include in the application a certificate that complies with this section.

(2)

The certificate must be given by a prescribed health practitioner.

(3)

The certificate must—

(a)

certify that A’s capacity for work is affected by health condition, injury, or disability; and

(b)

indicate the nature of the health condition, injury, or disability, the extent to which A’s capacity for work is affected by it, and the length of time that effect is likely to last; and

(c)

contain any other information that MSD may require.

Compare: 1964 No 136 s 88E(1)–(3)

28 Jobseeker support: on ground of health condition, injury, or disability: medical examination

(1)

MSD may at any time require an applicant for, or a person receiving, jobseeker support on the ground of health condition, injury or disability (P) to undergo an examination by a prescribed health practitioner.

(2)

The prescribed health practitioner must be agreed for the purpose between P and MSD or, failing agreement, must be nominated by MSD.

(3)

The prescribed health practitioner must prepare, and must send MSD a copy of, a report that indicates—

(a)

whether P’s capacity for work is affected by health condition, injury, or disability; and

(b)

the extent to which that capacity is so affected; and

(c)

how long that capacity is likely to continue to be affected.

Compare: 1964 No 136 s 88E(4), (5)

Subpart 3—Sole parent support

29 Sole parent support: requirements

A person is entitled to sole parent support if the person—

(a)

meets the sole parent requirement; and

(b)

either—

(i)

is not in a situation of split care (see section 32); or

(ii)

is in a situation of split care and is the 1 parent who is entitled to sole parent support (see section 32); and

(c)

meets the residential requirement; and

(d)

is aged 20 years or over.

Compare: 1964 No 136 s 20D

30 What is sole parent requirement

A person (P) meets the sole parent requirement if P is the mother or father of, and caring for, at least 1 dependent child aged under 14 years and—

(a)

P is single; or

(b)

P’s spouse or partner has died; or

(c)

P’s marriage or civil union has been dissolved; or

(d)

P is living apart from, and has lost the support of or is being inadequately maintained by, P’s spouse or partner; or

(e)

P has lost the regular support of P’s spouse or partner because that spouse or partner—

(i)

is subject to a sentence of imprisonment and is serving the sentence in a prison or is subject to release conditions that prevent that spouse or partner from undertaking employment; or

(ii)

is subject to a sentence of supervision, intensive supervision, or home detention and is subject to conditions (including post-detention conditions of a sentence of home detention) that prevent that spouse or partner from undertaking employment.

Compare: 1964 No 136 s 20A

Section 30(1) and (2): replaced, on 8 November 2021, by section 4 of the Social Security (Subsequent Child Policy Removal) Amendment Act 2021 (2021 No 38).

31 When dependent child may be regarded as applicant’s child

For the purposes of this subpart, MSD may regard a dependent child as being a child of an applicant (A), and A as being the mother or father of the child, if—

(a)

the child is being maintained by A and was at any time maintained by A’s spouse or partner; or

(b)

neither an orphan’s benefit nor an unsupported child’s benefit is payable in respect of the child, but—

(i)

section 43(2) is complied with for each of the child’s parents (as that term is defined in section 43(3)); or

(ii)

section 46(1) and (2) is complied with for each of the child’s parents (as that term is defined in section 46(3)) for care for the child and full provision for the child’s support; or

(c)

the child’s parents are unwilling to support the child because of circumstances MSD considers exceptional.

Compare: 1964 No 136 s 20B

32 Sole parent support: situation of split care

(1)

This section applies to the parents of 2 or more dependent children if—

(a)

the parents are living apart; and

(b)

each parent is the principal caregiver of 1 or more of the children; and

(c)

but for this section, both parents would be entitled to sole parent support.

(2)

Only 1 of the 2 parents is entitled to sole parent support, and the parent who is entitled to sole parent support must be—

(a)

the parent who is already receiving sole parent support in respect of any of the children; or

(b)

if no parent is already receiving sole parent support in respect of any of the children, the parent who MSD considers was the principal caregiver in respect of the children immediately before the parents began living apart; or

(c)

if neither parent was the principal caregiver in respect of the children before they began living apart, or MSD is unable to ascertain which parent was the principal caregiver in respect of the children immediately before they began living apart, the parent who is the principal caregiver in respect of the youngest child.

(3)

This section does not apply if each parent has become the principal caregiver in respect of at least 1 child under 1 or more orders—

(a)

made by a court of competent jurisdiction; and

(b)

about the role of providing day-to-day care for children.

(4)

In this section, child means a dependent child of the parents—

(a)

born of their relationship; or

(b)

adopted by the parents, or by 1 of the parents, during their relationship.

Compare: 1964 No 136 s 20C

33 Expiry of sole parent support, and replacement with jobseeker support, when youngest dependent child turns 14 years old

(1)

This section applies to a person (P) who is receiving sole parent support.

(2)

On the date that the youngest dependent child in P’s care turns 14, P’s sole parent support expires and is replaced with jobseeker support that commences on that date and is taken to be granted to P as if P had applied for it.

(3)

However, if MSD reasonably believes that on that date P would not meet the conditions of entitlement to jobseeker support,—

(a)

P’s sole parent support expires but is not replaced under subsection (2) by jobseeker support; and

(b)

MSD must instead invite P to apply for jobseeker support.

(4)

Obligations or exemptions that apply to P immediately before the expiry of P’s sole parent support continue after that expiry in respect of the jobseeker support to which P is transferred under subsection (2) if those obligations or exemptions are any of the following:

(a)

the obligation to work with contracted service providers:

(b)

work-preparation obligations:

(c)

social obligations of certain assistance recipients with dependent children:

(d)

the obligation to undergo a work ability assessment:

(e)

work-test obligations:

(f)

an exemption from work-test obligations or from obligations to prepare for employment (other than any exemption that, under regulations made under section 431, is not available to a person receiving jobseeker support).

(5)

This section does not preclude a review under subpart 3 of Part 6 (review of entitlement to, or rate of, benefit granted) of whether P satisfies the conditions of entitlement to jobseeker support.

Compare: 1964 No 136 s 20H

Subpart 4—Supported living payment

Supported living payment on ground of restricted work capacity or total blindness

34 Supported living payment: on ground of restricted work capacity or total blindness: requirements

A person is entitled to the supported living payment if the person—

(a)

has restricted work capacity or is totally blind; and

(b)

meets the residential requirement; and

(c)

is aged 16 years or over.

Compare: 1964 No 136 s 40B(1)–(1B)

35 When person has restricted work capacity

(1)

A person (P) has restricted work capacity if P is permanently and severely restricted in P’s capacity for work because of a health condition, or because of injury or disability arising (in either case) from an accident or existing from birth.

(2)

P is permanently restricted in P’s capacity for work if MSD is satisfied that—

(a)

the restricting health condition, injury, or disability is expected to continue for at least the period set out in regulations made under section 418(1)(b); or

(b)

P is not expected to live for that period because P’s condition is terminal.

(3)

P is severely restricted in P’s capacity for work if MSD is satisfied that P is incapable of regularly working at least 15 hours a week in open employment.

Compare: 1964 No 136 s 40B(1), (2), (3)

36 Supported living payment: on ground of restricted work capacity or total blindness: ineligibility

A person (P) must not be granted a supported living payment if MSD is satisfied that P’s restricted capacity for work or total blindness was self-inflicted and brought about by P with a view to qualifying for a benefit.

Compare: 1964 No 136 s 40B(5)

37 Supported living payment: on ground of restricted work capacity or total blindness: medical examination

(1)

This section applies to a person (P) who is an applicant for, or who is receiving, a supported living payment on the ground of restricted work capacity or total blindness.

(2)

MSD may at any time require P to undergo an examination by a prescribed health practitioner.

(3)

The prescribed health practitioner must be agreed for the purpose between P and MSD or, failing agreement, must be nominated by MSD.

(4)

The prescribed health practitioner must prepare, and must send MSD a copy of, a report that indicates—

(a)

whether P is (or whether there is doubt about whether P is)—

(i)

permanently and severely restricted in P’s capacity for work; or

(ii)

totally blind; and

(b)

the grounds on which the opinion given in paragraph (a) is based.

(5)

The report must, in the case of doubt referred to in subsection (4)(a), and may, in any other case, indicate a date for review of the permanency or severity, or both, of P’s health condition, injury, or disability.

Compare: 1964 No 136 s 40C

38 Supported living payment: on ground of restricted work capacity or total blindness: payment not apportioned in specified cases

(1)

This section applies to a person (P) who is in a relationship and who—

(a)

is receiving long-term residential care in a hospital or rest home because P has a disability; and

(b)

has not been means assessed under Part 6 of the Residential Care and Disability Support Services Act 2018.

(2)

A supported living payment payable to P is not apportioned and must be paid at half of the appropriate rate in Part 3 of Schedule 4.

(3)

A supported living payment payable to P’s spouse or partner (S) (if S is not receiving long-term residential care in a hospital or rest home) is not apportioned and must be paid at the rate in Part 3 of Schedule 4 that would be appropriate if S were entitled to a supported living payment in S’s own right and were single.

Compare: 1964 No 136 s 40I(3)–(5)

39 Supported living payment: on ground of restricted work capacity: encouraging open employment

(1)

The purpose of this section is to encourage specified recipients of a supported living payment to undertake open employment in order to establish whether they can sustain that employment and cease receiving that benefit.

(2)

This section applies to a person (P) who—

(a)

is receiving a supported living payment granted on the ground of permanent and severe restriction of capacity for work; but

(b)

is with MSD’s agreement undertaking open employment for a period agreed with MSD in order to establish whether P can sustain open employment.

(3)

The period of open employment agreed with MSD must not exceed 26 weeks (even if that employment is, or is expected to be, for a period that is longer than the agreed period).

(4)

P does not lose P’s entitlement to a supported living payment by reason only of working 15 or more hours a week in open employment during the agreed period.

Compare: 1964 No 136 s 40K

Supported living payment on ground of caring for another person

40 Supported living payment: on ground of caring for another person: requirements

(1)

A person (C) is entitled to the supported living payment if—

(a)

MSD is satisfied that C is required to give full-time care and attention at home to a person (P) who would otherwise have to receive institutional care (and who is not C’s spouse or partner); and

(b)

C meets the residential requirement; and

(c)

C is aged—

(i)

at least 18 years, in the case of an applicant without a dependent child; or

(ii)

at least 20 years, in any other case.

(2)

MSD may continue a payment granted under this section for a period of not more than 28 days even though P was not during that period in the full-time care of C.

(3)

In this subpart, institutional care means care that is, or is equivalent to,—

(a)

hospital care, rest home care, or residential disability care, as defined in section 4(1) of the Health and Disability Services (Safety) Act 2001; or

(b)

care of the kind referred to in section 141 of the Oranga Tamariki Act 1989 (which relates to care of severely disabled children and young persons).

Compare: 1964 No 136 s 40D

41 Supported living payment: on ground of caring for another person: application must include certificate

(1)

A person (C) who applies for a supported living payment on the ground of caring for another person (P) must include in the application a certificate that complies with this section.

(2)

The certificate must be given by a prescribed health practitioner and must certify—

(a)

that P requires C’s full-time care and attention; and

(b)

that, were it not for that care and attention, P would have to receive institutional care.

Compare: 1964 No 136 s 40E(1)

42 Supported living payment: on ground of caring for another person: medical examination

(1)

When considering an application for, or reviewing under subpart 3 of Part 6, a supported living payment on the ground of caring for another person, MSD may require that the person being cared for be examined by a prescribed health practitioner nominated for the purpose by MSD.

(2)

A prescribed health practitioner nominated under subsection (1) must assess whether the person would, were it not for the applicant’s full-time care and attention, have to receive institutional care.

Compare: 1964 No 136 s 40E(2)–(3)

Subpart 5—Orphan’s benefit

43 Orphan’s benefit: requirements

(1)

This section applies if, because of the circumstances specified in subsection (2), a child has no parent (as defined in subsection (3)) who is able to care for the child.

(2)

The circumstances are that each of the child’s parents (as defined in subsection (3))—

(a)

is dead; or

(b)

is missing; or

(c)

has a long-term serious disablement.

(3)

A parent, in relation to a child, and for the purposes only of this subpart and section 31(b)(i), means a natural parent or an adoptive parent (and so excludes, for those purposes, a step-parent) of the child.

(4)

A person (P) is entitled to an orphan’s benefit for the child if—

(a)

P is an eligible caregiver of the child; and

(b)

either—

(i)

the child is both resident and present in New Zealand; or

(ii)

P has been both resident and present in New Zealand for a continuous period of 12 months at any time.

Compare: 1964 No 136 s 28

44 Who is eligible caregiver

A person (P) is an eligible caregiver of a child if—

(a)

P is aged 18 years or over; and

(b)

P is not a parent (as defined in section 43(3)) of the child; and

(c)

the child is a dependent child of P; and

(d)

P is a principal caregiver or principal temporary caregiver of the child.

(e)
[Repealed]

Compare: 1964 No 136 s 28

Section 44(d): amended, on 1 July 2021, by section 4(1) of the Social Security (Financial Assistance for Caregivers) Amendment Act 2021 (2021 No 25).

Section 44(e): repealed, on 1 July 2021, by section 4(2) of the Social Security (Financial Assistance for Caregivers) Amendment Act 2021 (2021 No 25).

45 Orphan’s benefit to be used for benefit of child

(1)

The purpose of the orphan’s benefit is to provide financial support for the cost of caring for a child who is not the caregiver’s own.

(2)

A caregiver who is granted an orphan’s benefit must use the benefit for the benefit of the child in respect of whom it was granted, including the child’s maintenance and education.

Compare: 1964 No 136 s 31

Subpart 6—Unsupported child’s benefit

46 Unsupported child’s benefit: requirements

(1)

This section applies if, because of the circumstances specified in subsection (2), a child has no parent (as defined in subsection (3)) who is able to—

(a)

care for the child; or

(b)

provide fully for the child’s support.

(2)

The circumstances are that there has been a breakdown in the child’s family.

(3)

A parent, in relation to a child, and for the purposes only of this subpart and section 31(b)(ii), means a natural parent, an adoptive parent, or a step-parent of the child.

(4)

A person (P) is entitled to an unsupported child’s benefit for the child if—

(a)

P is an eligible caregiver of the child; and

(b)

either—

(i)

the child is both resident and present in New Zealand; or

(ii)

P has been both resident and present in New Zealand for a continuous period of 12 months at any time.

Compare: 1964 No 136 s 29

47 Who is eligible caregiver

A person (P) is an eligible caregiver of a child if—

(a)

P is aged 18 years or over; and

(b)

P is not a parent (as defined in section 46(3)) of the child; and

(c)

the child is a dependent child of P; and

(d)

P is a principal caregiver or principal temporary caregiver of the child.

(e)
[Repealed]

Compare: 1964 No 136 s 29

Section 47(d): amended, on 1 July 2021, by section 5(1) of the Social Security (Financial Assistance for Caregivers) Amendment Act 2021 (2021 No 25).

Section 47(e): repealed, on 1 July 2021, by section 5(2) of the Social Security (Financial Assistance for Caregivers) Amendment Act 2021 (2021 No 25).

48 Unsupported child’s benefit to be used for benefit of child

(1)

The purpose of the unsupported child’s benefit is to provide financial support for the cost of caring for a child who is not the caregiver’s own.

(2)

A caregiver who is granted an unsupported child’s benefit must use the benefit for the benefit of the child in respect of whom it was granted, including the child’s maintenance and education.

Compare: 1964 No 136 s 31

Subpart 7—Youth payment

49 Youth payment: requirements

A person (P) is entitled to a youth payment if—

(a)

P is aged 16 or 17 years; and

(b)

P is study ready; and

(c)

P has no dependent children; and

(d)

P meets the residential requirement; and

(e)

P has no or minimum income; and

(f)

either—

(i)

P has never been in a relationship and has a parental support gap; or

(ii)

P is or has been in a relationship, but is not currently in a relationship with a specified beneficiary.

Compare: 1964 No 136 ss 158, 159(1), 160

50 When person is study ready

In this subpart, a person is study ready if the person—

(a)

is undertaking or is available for full-time education or training leading to—

(i)

NCEA level 2; or

(ii)

an equivalent (in MSD’s opinion) or higher qualification; or

(b)

would be available for full-time education or training were it not for circumstances that would qualify the person for an exemption under the regulations referred to in section 157 from the obligation to undertake education or training.

Compare: 1964 No 136 s 158(2)(c)

51 Youth payment: no or minimum income

(1)

In this subpart, a person (P) has no or minimum income if P has—

(a)

no income; or

(b)

income of less than the amount that would reduce the applicable rate of youth payment to zero.

(2)

If, during a temporary period, P has enough income to reduce the applicable rate of youth payment to zero, but P otherwise meets the requirements for a youth payment, P’s entitlement to a youth payment is not affected by that income.

Compare: 1964 No 136 s 158(2)(e), (3)

52 When person has parental support gap

(1)

In this subpart, a person (P) has a parental support gap if—

(a)

none of P’s parents (and guardians (if any)) is able to support P financially; or

(b)

P’s relationship with P’s parents (and guardians (if any)) has broken down, and none of them is prepared to support P financially; or

(c)

P was, but is no longer, subject to a CYPFA order or agreement; or

(d)

MSD is otherwise satisfied that P cannot reasonably be expected to be financially dependent on P’s parents or any other person.

(2)

However, P does not have a parental support gap if—

(a)

P has the option of living with a parent or guardian but chooses not to; and

(b)

MSD is not satisfied that there are good and sufficient reasons for P’s choice.

Compare: 1964 No 136 s 159(2)

53 Youth payment: discretionary grant on ground of hardship

MSD may grant a youth payment to a young person (P) who meets all of the requirements in section 49 except for the residential requirement if P—

(a)

is in hardship; and

(b)

is not entitled or eligible to receive any other main benefit under this Act or New Zealand superannuation or a veteran’s pension; and

(c)

is unable to earn enough income to support P and P’s spouse or partner (if any).

Compare: 1964 No 136 s 161

54 Youth payment: continuation after turning 18 years old

(1)

This section sets out the circumstances in which, despite section 49(a), a youth payment granted to a person (P) continues (if P is otherwise entitled to it) after P turns 18.

(2)

If a youth payment begins less than 6 months before P turns 18, the payment continues until the close of the day that is 6 months after it began.

(3)

If P is continuing in a course of education or training or approved work-based learning when P turns 18, P’s youth payment continues until,—

(a)

if the course is a course of secondary education or if the course ends in December, the close of the following 31 March:

(b)

in any other case, the close of the day that the course ends.

(4)

If subsections (2) and (3) both apply to P, P’s youth payment continues until the later of the 2 dates that apply under those subsections.

(5)

While a youth payment continues under subsection (2), P is not eligible to be granted—

(a)

sole parent support; or

(b)

an emergency benefit; or

(c)

jobseeker support; or

(d)

supported living payment on the ground of caring for another person.

Compare: 1964 No 136 s 162

55 Youth payment: incentive payments

(1)

If a young person to whom a youth payment is payable meets the criteria prescribed for the purposes of this section by regulations made under section 418(1)(c), the person is also entitled to be paid the appropriate incentive payment stated in subpart 3 of Part 6 of Schedule 4.

(2)

The entitlement in subsection (1) is subject to sections 288 and 289.

Compare: 1964 No 136 s 163(2), (3)

Subpart 8—Young parent payment

56 Young parent payment: requirements

(1)

A person (P) is entitled to a young parent payment if—

(a)

P is a parent or step-parent of at least 1 dependent child; and

(b)

P is study ready; and

(c)

P meets the residential requirement; and

(d)

P has no or minimum income; and

(e)

P falls into 1 of the following categories:

(i)

P is aged 16 or 17 years, has never been in a relationship, and has a parental support gap:

(ii)

P is aged 18 or 19 years and has never been in a relationship:

(iii)

P is aged 16 to 19 years and is or has been in a relationship, but is not currently in a relationship with a specified beneficiary.

(2)

For the purposes of subsection (1)(a), a dependent child of a young person’s spouse or partner must also be treated as a dependent child of the young person.

Compare: 1964 No 136 ss 164, 165(2), 166

57 When person is study ready

In this subpart, a person is study ready if the person—

(a)

is undertaking or is available for full-time education or training leading to—

(i)

NCEA level 2; or

(ii)

an equivalent (in MSD’s opinion) or higher qualification; or

(b)

would be available for full-time education or training were it not for circumstances—

(i)

under which the obligation to undertake education or training does not, under section 163, for the time being apply to the young person; or

(ii)

that would qualify the person for an exemption under the regulations referred to in section 157 from the obligation to undertake education or training.

Compare: 1964 No 136 s 164(2)(c)

58 Young parent payment: no or minimum income

(1)

In this subpart, a person (P) has no or minimum income if P has—

(a)

no income; or

(b)

income of less than the amount that would reduce the applicable rate of young parent payment to zero.

(2)

If, during a brief period, P has enough income to reduce the applicable rate of young parent payment to zero, but P otherwise meets the requirements for a young parent payment, P’s entitlement to a young parent payment is not affected by that income.

Compare: 1964 No 136 s 164(2)(e), (3)

59 When person has parental support gap

In this subpart, a person (P) has a parental support gap if—

(a)

P is not living with a parent or guardian and—

(i)

none of P’s parents (and guardians (if any)) is able to support P financially; or

(ii)

P’s relationship with P’s parents (and guardians (if any)) has broken down and none of them is prepared to support P financially; or

(iii)

P was, but is no longer, subject to a CYPFA order or agreement; or

(iv)

MSD is satisfied that P cannot reasonably be expected to be financially dependent on P’s parents or any other person; or

(b)

P is living with or being financially supported by a parent or guardian (F) and the family scheme income (within the meaning of the Income Tax Act 2007) of F and the spouse or partner of F is less than the amount that would, under sections MD 1 and MD 13 of that Act, reduce the amount of F’s family tax credit entitlement under that Act to zero.

Compare: 1964 No 136 s 165(2), (3)

60 Young parent payment: discretionary grant on ground of hardship

MSD may grant a young parent payment to a young person (P) who meets all of the requirements in section 56 except for the residential requirement if P—

(a)

is in hardship; and

(b)

is not entitled or eligible to receive any other main benefit under this Act or New Zealand superannuation or a veteran’s pension; and

(c)

is unable to earn enough income to support P and P’s spouse or partner (if any) and dependent children.

Compare: 1964 No 136 s 167

61 Young parent payment: continuation after turning 20 years old

(1)

This section sets out the circumstances in which, despite section 56(1)(e), a young parent payment granted to a person (P) continues (if P is otherwise entitled to it) after P turns 20.

(2)

If a young parent payment begins less than 6 months before P turns 20, the payment continues until the close of the day that is 6 months after it began.

(3)

If P is continuing in a course of education or training or work-based learning when P turns 20, P’s young parent payment continues until,—

(a)

if the course is a course of secondary education or if the course ends in December, the close of the following 31 March:

(b)

in any other case, the close of the day that the course ends.

(4)

If subsections (2) and (3) both apply to P, P’s young parent payment continues until the later of the 2 dates that apply under those subsections.

(5)

While a young parent payment continues under subsection (2), P is not eligible to be granted—

(a)

sole parent support; or

(b)

an emergency benefit; or

(c)

jobseeker support; or

(d)

a supported living payment on the ground of caring for another person.

Compare: 1964 No 136 s 168

62 Young parent payment: incentive payments

(1)

If a young person to whom a young parent payment is payable meets the criteria prescribed for the purposes of this section by regulations made under section 418(1)(d), the person is also entitled to be paid the appropriate incentive payment stated in subpart 3 of Part 6 of Schedule 4.

(2)

The entitlement in subsection (1) is subject to sections 288 and 289.

Compare: 1964 No 136 s 169(2), (3)

Subpart 9—Emergency benefit

63 Emergency benefit: discretionary grant on ground of hardship

(1)

MSD may grant an emergency benefit on the ground of hardship to a person (P)—

(a)

who is unable to earn enough income for P or P’s dependants (if any); and

(b)

who is not entitled to a main benefit under this Act (other than an emergency benefit) or to New Zealand superannuation or a veteran’s pension; and

(c)

to whom MSD has determined not to grant 1 of the following benefits on ground of hardship: jobseeker support, youth payment, or young parent payment.

(2)

Despite subsection (1)(b), MSD may grant an emergency benefit to a person (P) instead of or in substitution for a supported living payment, sole parent support, or jobseeker support.

(3)

The rate of an emergency benefit is at the discretion of MSD.

(4)

However, the rate of an emergency benefit must not exceed the rate of the equivalent benefit, that is, the main benefit under this Act (other than an emergency benefit) that MSD would grant to a person entitled to the benefit in circumstances similar to P’s.

(5)

MSD may, on a case-by-case basis, make the grant of an emergency benefit subject to any conditions imposed by MSD.

Compare: 1964 No 136 s 61

64 Emergency benefit: grant during epidemic in New Zealand

(1)

This section applies while a domestic epidemic management notice is in force, and for any period notified under subsection (3A).

(2)

When this section applies, MSD may, with the written approval of the Minister, grant emergency benefits to people who would not otherwise be entitled to be granted emergency benefits.

(3)

Payments made under a benefit granted under subsection (2) are subject to regulations made under section 442(2)(d).

(3A)

The Minister may, by notice, apply this section for any further period after a domestic epidemic management notice expires that the Minister thinks reasonable.

(3B)

A notice under subsection (3A) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

(4)

This section overrides every other provision of this Act.

Compare: 1964 No 136 s 61CC(1), (3)

Legislation Act 2019 requirements for secondary legislation made under this section
PublicationIt is not required to be publishedLA19 s 73(2)
PresentationIt is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019LA19 s 114, Sch 1 cl 32(1)(a)
DisallowanceIt may be disallowed by the House of Representatives LA19 ss 115, 116
This note is not part of the Act.

Section 64(1): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section 64(3A): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section 64(3B): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Subpart 10—Accommodation supplement

65 Accommodation supplement: discretionary grant

(1)

MSD may grant a person (P), for the period that MSD determines, an accommodation supplement if—

(a)

P has accommodation costs; and

(b)

P meets the assets requirement (as set out in regulations made under section 423); and

(c)

P is not excluded on either of the following grounds:

(i)

the social housing exclusion:

(ii)

the other funding exclusion.

(2)

In this subpart, unless the context otherwise requires,—

accommodation costs, in relation to any person for any given period, means,—

(a)

in relation to premises rented by the person, the amount payable by the person for rent of the premises, excluding any service costs included in that rent and any arrears:

(b)

in relation to premises that are owned by the person, the total amount of all payments (including essential repairs and maintenance, local authority rates, and house insurance premiums, but excluding any service costs and any arrears) that,—

(i)

subject to clause 18 of Schedule 3, are required to be made under any mortgage security for money advanced under that security to acquire the premises, or to repay advances similarly secured; or

(ii)

MSD is satisfied are reasonably required to be made:

(c)

in relation to a person who is a boarder or lodger in any premises, 62% of the amount paid for board or lodging (excluding any arrears):

(d)

if a person is a joint tenant of, or an owner in common of, any premises with another person or other persons living in the premises, that applicant’s accommodation costs are the share of the total accommodation costs of the jointly tenanted, or commonly owned, premises that MSD is satisfied the person is paying

service costs, in relation to any premises,—

(a)

means the cost as reasonably determined by MSD of any services (for example, electricity supply, gas supply, telephone network connection, or broadband Internet connection) provided to or in connection with the premises for consumption or use by the occupants of the premises; but

(b)

does not include the cost of water supplied to the premises.

Compare: 1964 No 136 ss 61E, 61EA, 61EC(3)

66 Social housing exclusion

(1)

A person is ineligible for an accommodation supplement (on the ground of the social housing exclusion) if the person’s accommodation costs (as defined in section 65) include—

(a)

rent paid in respect of premises let by or on behalf of Kāinga Ora–Homes and Communities; or

(b)

rent paid in respect of premises let by or on behalf of a registered community housing provider (but only if that person has been allocated those premises as social housing); or

(c)

payments, required to be made under a mortgage security to Kāinga Ora–Homes and Communities or the Crown in right of Te Puni Kōkiri, that MSD believes are required to be made at a concessionary rate.

(2)

In this section,—

Kāinga Ora–Homes and Communities means Kāinga Ora–Homes and Communities established by the Kāinga Ora–Homes and Communities Act 2019

registered community housing provider has the same meaning as in section 2 of the Public and Community Housing Management Act 1992

social housing has the same meaning as in section 2 of the Public and Community Housing Management Act 1992.

(3)

In this section and section 68,—

premises, in relation to a person,—

(a)

means the place that the person occupies as a home; and

(b)

if the person is a boarder or lodger, includes a room, or other accommodation, that the person occupies as a home

tenant, in relation to rented premises, includes a person who pays rent, whether or not the person is a party to the tenancy agreement or lease of the premises.

Compare: 1964 No 136 ss 61E(1), 61EA(2)

Section 66(1)(a): amended, on 1 October 2019, by section 33 of the Kāinga Ora–Homes and Communities Act 2019 (2019 No 50).

Section 66(1)(c): amended, on 1 October 2019, by section 33 of the Kāinga Ora–Homes and Communities Act 2019 (2019 No 50).

Section 66(2) Kāinga Ora–Homes and Communities: inserted, on 1 October 2019, by section 33 of the Kāinga Ora–Homes and Communities Act 2019 (2019 No 50).

Section 66(2) registered community housing provider: amended, on 1 October 2019, by section 33 of the Kāinga Ora–Homes and Communities Act 2019 (2019 No 50).

Section 66(2) social housing: amended, on 1 October 2019, by section 33 of the Kāinga Ora–Homes and Communities Act 2019 (2019 No 50).

67 Other funding exclusion

A person (P) is ineligible for an accommodation supplement (on the ground of the other funding exclusion) if—

(a)

P is the spouse or partner of a person who is already receiving an accommodation supplement (except as provided in section 68); or

(b)

P—

(i)

is receiving a basic grant or an independent circumstances grant under the Student Allowances Regulations 1998 (or under other regulations made under section 645 of the Education and Training Act 2020); or

(ii)

would be eligible to receive one of those grants if P were to apply for the grant; or

(iii)

would be eligible to receive one of those grants were it not for the level of income of P or of P’s parent or parents or spouse or partner; or

(c)

P is a resident assessed as requiring care in respect of whom a funder is paying some or all of the cost of contracted care services under section 54, 55, 56, 57, or 58 of the Residential Care and Disability Support Services Act 2018; or

(d)

P has a psychiatric, intellectual, physical, or sensory disability, and—

(i)

P’s accommodation costs are wholly or partly funded under the Pae Ora (Healthy Futures) Act 2022; or

(ii)

P’s care (other than care in P’s own home) is funded wholly or partly under that Act; or

(e)

P is receiving New Zealand superannuation or a veteran’s pension and—

(i)

if P is not a community spouse or partner (as defined in Schedule 2), the total income of P and P’s spouse or partner (if any) is more than the applicable amount specified in Part 2 of Schedule 5; or

(ii)

if P is a community spouse or partner (as so defined), the total income of P alone (disregarding any income of P’s spouse or partner who is receiving long-term residential care in a hospital or rest home) is more than the applicable amount specified in Part 2 of Schedule 5.

Compare: 1964 No 136 s 61EA(3), (4)

Section 67(b)(i): amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).

Section 67(d)(i): amended, on 1 July 2022, by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).

Section 67(e): replaced, on 26 November 2022, by section 5 of the Social Security (Accommodation Supplement) Amendment Act 2022 (2022 No 65).

68 Accommodation supplement: special rules for joint tenants who are in relationship

(1)

If premises are occupied by 2 or more joint tenants that include 1 or more couples who are in a relationship, then, for the purposes of determining the rate of an accommodation supplement,—

(a)

each couple is treated as 1 joint tenant; and

(b)

despite the definition of accommodation costs in section 65, the accommodation costs of that 1 joint tenant are the total of the accommodation costs of both members of the couple; and

(c)

the cash assets and income of that 1 joint tenant are the total of the cash assets and income respectively of both members of the couple.

(2)

In this section, cash assets

(a)

means—

(i)

money saved with a bank or other institution, money invested with a bank or other institution, or money banked with a bank or other institution:

(ii)

money invested in securities, bonds, or debentures, or advanced on mortgage:

(iii)

money withdrawn from a KiwiSaver scheme registered under subpart 2 of Part 4 of the Financial Markets Conduct Act 2013:

(iv)

money invested in shares in a partnership or limited liability company or other incorporated or unincorporated body; but

(b)

does not include any contributions to, or any member’s interest in, any KiwiSaver scheme that is registered under subpart 2 of Part 4 of the Financial Markets Conduct Act 2013; and

(c)

does not include any item or kind of cash assets or any amount of cash assets exempted by regulations made under section 423(1)(b).

Compare: 1964 No 136 ss 61E, 61EB

69 Accommodation supplement: refusal, reduction, or cancellation of grant in certain circumstances

(1)

If MSD is satisfied that an applicant for an accommodation supplement (A), or A’s spouse or partner, has not realised any assets available for A’s personal use, MSD may—

(a)

refuse to grant an accommodation supplement; or

(b)

reduce the rate of any accommodation supplement already granted; or

(c)

cancel any accommodation supplement already granted.

(2)

For the purposes of this section and the assets requirement in regulations made under section 423 (see section 65(1)(b)), the assets of A include the assets of A’s spouse or partner, if any.

(2A)

Subsection (2) applies, without limitation, even if—

(a)

A is a community spouse or partner (as defined in Schedule 2); and

(b)

A’s spouse or partner is receiving long-term residential care in a hospital or rest home.

(2B)

However, subsection (2) does not limit section 67(c), under which a person (P, who may, or may not, be A’s spouse or partner) is ineligible for an accommodation supplement if P is a resident assessed as requiring care in respect of whom a funder is paying some or all of the cost of contracted care services under section 54, 55, 56, 57, or 58 of the Residential Care and Disability Support Services Act 2018.

(3)

For the period of 12 months after A or A’s spouse or partner receives a specified lump sum payment, subsection (1) does not apply to that specified lump sum payment.

(4)

This section does not limit MSD’s discretion to refuse to grant, to reduce the rate of, or to cancel an accommodation supplement in accordance with the other provisions of this Act.

(5)

In this section, specified lump sum payment means—

(a)

a payment of an impairment lump sum under Schedule 1 of the Accident Compensation Act 2001; or

(b)

a lump sum payment of an independence allowance under Part 4 of Schedule 1 of the Accident Insurance Act 1998.

Compare: 1964 No 136 s 61EC(4), (4A), (5)

Section 69(2): replaced, on 26 November 2022, by section 6 of the Social Security (Accommodation Supplement) Amendment Act 2022 (2022 No 65).

Section 69(2A): inserted, on 26 November 2022, by section 6 of the Social Security (Accommodation Supplement) Amendment Act 2022 (2022 No 65).

Section 69(2B): inserted, on 26 November 2022, by section 6 of the Social Security (Accommodation Supplement) Amendment Act 2022 (2022 No 65).

Subpart 11—Winter energy payment

70 Winter energy payment: purpose

The purpose of the winter energy payment is to provide targeted financial assistance to help certain people meet their household heating costs during the winter period.

Compare: 1964 No 136 s 61FE

71 Winter energy payment: interpretation

In this subpart, section 220, and Part 8 of Schedule 4, unless the context otherwise requires,—

qualifying benefit means—

(a)

a main benefit under this Act; or

(b)

New Zealand superannuation; or

(c)

veteran’s pension

relevant payment date, for a person who is receiving a qualifying benefit (or a portion of it), either as the person granted that benefit or as the spouse or partner of that person, for 1 or more days during the winter period, means the date on which the person is paid a weekly or fortnightly instalment of the person’s qualifying benefit (or a portion of it) for those days

winter period, for a calendar year, means the 22-week period starting on 1 May.

Compare: 1964 No 136 s 61FF

72 Winter energy payment: requirements

(1)

A person is entitled to a winter energy payment for 1 or more days during the winter period if, for those days,—

(a)

the person is receiving a qualifying benefit (or a portion of it), either as the person granted that benefit or as the spouse or partner of that person; and

(b)

the qualifying benefit (or a portion of it) is payable to the person; and

(c)

the person is not disqualified under subsection (2).

(2)

However, the person is not entitled to a winter energy payment for 1 or more days during the winter period if, for those days,—

(a)

the qualifying benefit is payable at a rate prescribed in respect of a person who is in a relationship, and MSD has determined under subsection (3) that the person’s spouse or partner is entitled to a winter energy payment; or

(b)

the rate of the person’s qualifying benefit is required by section 206(2) to be reduced to the rate payable to long-term hospital patients, and the payment has been reviewed under section 304 and terminated under section 75 (see also section 309); or

(c)

the person is aged 65 years or over, is a qualifying person as defined in section 12 of the Residential Care and Disability Support Services Act 2018, and must under section 17 of that Act pay a contribution based on income towards the cost of that person’s LTR contracted care that is less than the maximum contribution (as defined in section 15(2) of that Act); or

(ca)

the person is aged 50 to 64 years, is a 50+ single person as defined in section 21 of the Residential Care and Disability Support Services Act 2018, and is under section 22 of that Act liable to make a contribution based on income towards the cost of the person’s LTR contracted care that is less than the maximum contribution (as defined in section 15(2) of that Act); or

(d)

neither paragraph (c) nor paragraph (ca) applies to the person, and the person is—

(i)

receiving, in relation to the person’s disability or long-term chronic health condition, residential care services that are partly funded under the Pae Ora (Healthy Futures) Act 2022; and

(ii)

contributing to the cost of those services by a payment redirected under section 339(1)(a) or (c)(i), or sections 341 and 344, of this Act; or

(e)

the person has made, and not revoked, an election not to receive the payment (see section 73).

(3)

If the qualifying benefit is payable at a rate prescribed in respect of a person who is in a relationship, MSD must determine which 1 of the spouses or partners is (as only 1 of them can be) entitled to a winter energy payment.

Compare: 1964 No 136 s 61FG

Section 72(2)(c): replaced, on 1 May 2019, by section 4 of the Social Security (Winter Energy Payment) Amendment Act 2019 (2019 No 13).

Section 72(2)(ca): inserted, on 1 May 2019, by section 4 of the Social Security (Winter Energy Payment) Amendment Act 2019 (2019 No 13).

Section 72(2)(d): replaced, on 1 May 2019, by section 4 of the Social Security (Winter Energy Payment) Amendment Act 2019 (2019 No 13).

Section 72(2)(d)(i): amended, on 1 July 2022, by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).

73 Winter energy payment: election not to receive

(1)

A person entitled to a winter energy payment may make an election not to receive the payment.

(2)

If the payment would be payable at a rate prescribed in respect of a person who is in a relationship, MSD must be satisfied that the election has been made by both spouses or partners.

(3)

The election must be made, and may be revoked, in a form and manner approved by MSD.

(4)

Unless it is revoked, the election stops the person from being entitled to the payment for any days after the election is made.

Compare: 1964 No 136 s 61FH

74 Winter energy payment: instalments, rates, and payment

(1)

A winter energy payment is payable,—

(a)

if the person’s qualifying benefit is a main benefit under this Act, in 22 weekly instalments; or

(b)

if the person’s qualifying benefit is New Zealand superannuation or a veteran’s pension, in 11 fortnightly instalments.

(2)

The amount of an instalment is ascertained by dividing the appropriate rate per winter period set out in Part 8 of Schedule 4,—

(a)

for recipients of a main benefit under this Act, by 22; or

(b)

for recipients of New Zealand superannuation or a veteran’s pension, by 11.

(3)

However, the amount ascertained under subsection (2) must be rounded up to the nearest whole cent, and then reduced to reflect any 1 or more days of the week or fortnight covered by the instalment that are days for which—

(a)

the person is not entitled to the payment; or

(b)

the payment is not payable (for example, under section 220).

(4)

An instalment must be paid on the relevant payment date.

(5)

This section overrides sections 297, 311(1), and 338.

Compare: 1964 No 136 s 61FI

75 Winter energy payment: termination on review

MSD may terminate a winter energy payment if satisfied, after reviewing the payment under section 304 (see also section 309), that—

(a)

the rate of the beneficiary’s qualifying benefit (under section 72(1)(a)) is required by section 206 to be reduced to the rate payable to long-term hospital patients (even if MSD pays a higher rate under section 206(2)); and

(b)

continuing the payment is not consistent with the purpose stated in section 70.

Compare: 1964 No 136 s 81(5)

Subpart 12—Childcare assistance

76 Childcare assistance: purpose

The purpose of childcare assistance is to provide targeted financial assistance to help certain people meet the costs of childcare.

Compare: 1964 No 136 s 61GA(1)

77 Childcare assistance: eligibility

The principal caregiver or temporary OB or UCB caregiver of a dependent child is eligible for childcare assistance at the prescribed rate if that caregiver meets the criteria and other requirements set out in regulations made under section 424.

Compare: 1964 No 136 s 61GA(2)

Section 77: amended, on 1 July 2021, by section 8 of the Social Security (Financial Assistance for Caregivers) Amendment Act 2021 (2021 No 25).

Subpart 13—Child disability allowance

78 Child disability allowance: discretionary grant

(1)

MSD may grant a child disability allowance for a child (C) if C—

(a)

is a child with a serious disability; and

(b)

is being cared for—

(i)

in the home of C’s principal caregiver or temporary OB or UCB caregiver; or

(ii)

in approved weekly accommodation (and the child is cared for by C’s parent or guardian during school holidays or weekends).

(2)

In subsection (1), approved weekly accommodation means accommodation—

(a)

that is operated by an approved voluntary organisation; and

(b)

the cost of which C’s parent or guardian is required to contribute to.

Compare: 1964 No 136 s 39A(3)

Section 78(1)(b)(i): amended, on 1 July 2021, by section 8 of the Social Security (Financial Assistance for Caregivers) Amendment Act 2021 (2021 No 25).

79 Meaning of child with a serious disability

(1)

In this subpart, child with a serious disability means a dependent child who—

(a)

has a disability; and

(b)

because of that disability needs constant care and attention; and

(c)

is likely to need such care and attention permanently or for a period exceeding 12 months.

(2)

In determining for subsection (1)(b) whether a child needs constant care and attention, MSD must consider whether the child (C) requires from another person—

(a)

frequent attention in connection with C’s bodily functions; or

(b)

substantially more attention and supervision than is normally required by a child of the same age and sex; or

(c)

regular supervision in order to avoid substantial danger to C or to others.

Compare: 1964 No 136 s 39A(1), (2)

80 Child disability allowance: MSD may require medical certificate

MSD may require that an application for a child disability allowance be supported by a medical certificate that certifies whether or not, in the opinion of a prescribed health practitioner, the child is a child with a serious disability within the meaning of section 79.

Compare: 1964 No 136 s 39C(1)

81 Child disability allowance: MSD may require medical examination

Before granting a child disability allowance, MSD may require the child to be examined by a prescribed health practitioner nominated for the purpose by MSD.

Compare: 1964 No 136 s 39C(2)

82 Child disability allowance: payment

MSD may pay a child disability allowance granted under section 78(1) to the principal caregiver or temporary OB or UCB caregiver for the child or, if there is no such person, to the person for the time being having the care and control of the child.

Compare: 1964 No 136 s 39E

Section 82: amended, on 1 July 2021, by section 8 of the Social Security (Financial Assistance for Caregivers) Amendment Act 2021 (2021 No 25).

83 Child disability allowance: not payable with other assistance or pension

A child disability allowance is not payable in addition to—

(a)

any benefit granted to the child under this Act (except an orphan’s benefit, an unsupported child’s benefit, or a disability allowance):

(b)

any pension or allowance granted to the child under the Veterans’ Support Act 2014 (except a children’s pension):

(c)

weekly compensation payable to the child under the Accident Compensation Act 2001.

Compare: 1964 No 136 s 39D

Subpart 14—Disability allowance

84 Meaning of disability

In this subpart, disability has the same meaning as in section 21(1)(h) of the Human Rights Act 1993.

Compare: 1964 No 136 s 69C(8)

85 Disability allowance: discretionary grant

(1)

MSD may grant a disability allowance to or on account of a person who—

(a)

meets the criteria for eligibility in subsection (2) (or to the dependent spouse or dependent child of that person); or

(b)

falls into a special category of eligibility specified in regulations made under section 425.

(2)

The criteria for eligibility are that—

(a)

the person has a disability that has resulted in a reduction of the person’s independent function to the extent that the person requires—

(i)

ongoing support to undertake the everyday functions of life; or

(ii)

ongoing supervision or treatment by a health practitioner; and

(b)

the disability is likely to continue for at least 6 months; and

(c)

either—

(i)

the person is receiving a main benefit under this Act; or

(ii)

the person’s income (including the income of the person’s spouse or partner and any New Zealand superannuation or veteran’s pension payable to the person or the person’s spouse or partner) is less than the appropriate amount in Part 3 of Schedule 5; and

(d)

the person has additional expenses of an ongoing kind arising from the person’s disability (subject to clause 19 of Schedule 3) and the assistance towards those expenses available under this Act or any other enactment is insufficient to meet them.

(3)

Regulations made under section 425 may override subsection (1) of this section by requiring MSD to grant a disability allowance to or on account of a person who falls into a special category of eligibility specified in those regulations.

(4)

In this section, health practitioner

(a)

has the same meaning as in section 5(1) of the Health Practitioners Competence Assurance Act 2003; and

(b)

includes a person who is receiving training or gaining experience under the supervision of a health practitioner.

Compare: 1964 No 136 s 69C(1), (2), (2A), (8)

86 Disability allowance: excluded expenses

(1)

A disability allowance is not payable in respect of—

(a)

expenses arising from the disability of a person who is a resident assessed as requiring care in respect of whom a funder is paying some or all of the cost of contracted care services under section 54, 55, 56, 57, or 58 of the Residential Care and Disability Support Services Act 2018; or

(b)

expenses arising from the disability of a person that are costs of residential care services provided to the person if—

(i)

the person has a psychiatric, intellectual, physical, or sensory disability; and

(ii)

the person’s accommodation costs or care (other than care in the person’s own home) is wholly or partly funded under the Pae Ora (Healthy Futures) Act 2022.

(2)

Regulations made under section 426 (use of disability allowance to fund specified expenses) must not be inconsistent with this section.

Compare: 1964 No 136 s 69C(2B)

Section 86(b)(ii): amended, on 1 July 2022, by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).

87 Disability allowance: refusal, reduction, or cancellation of grant in certain circumstances

Despite anything to the contrary in section 85, MSD may refuse to grant a disability allowance or may cancel a disability allowance or may grant a disability allowance at a reduced rate if, in respect of a disability that gives rise to an application for a disability allowance, the applicant is receiving—

(a)

a disablement pension under Part 3, or an entitlement under Part 4, of the Veterans’ Support Act 2014; or

(b)

an entitlement under the Accident Compensation Act 2001; or

(c)

a pension, or a periodical allowance, that—

(i)

is granted elsewhere than in New Zealand; and

(ii)

is analogous to an entitlement to medical treatment or rehabilitation or other cost of disability-related items under Part 5 of the Veterans’ Support Act 2014 or under the Accident Compensation Act 2001; or

(iii)

is otherwise analogous to a disability allowance.

Compare: 1964 No 136 s 69C(4)

88 Disability allowance: medical examination

Before granting a disability allowance, MSD may require the applicant (or the spouse or partner or child of the applicant, whichever applies) to be examined by a prescribed health practitioner appointed by MSD.

Compare: 1964 No 136 s 69C(3)

89 Special disability allowance: entitlement in special circumstances

(1)

This section applies to a person who—

(a)

is in a relationship; and

(b)

is receiving—

(i)

New Zealand superannuation or a veteran’s pension; or

(ii)

a supported living payment on the ground of restricted work capacity or total blindness; or

(iii)

jobseeker support; or

(iv)

a related emergency benefit; and

(c)

has a spouse or partner who is—

(i)

a patient in a hospital and receiving a reduced benefit under section 19 of the New Zealand Superannuation and Retirement Income Act 2001 or under section 206; or

(ii)

a qualifying person or a special case person, and in respect of whom a funder is paying some or all of the cost of contracted care services under section 18, 24, 26, 54, or 55 of the Residential Care and Disability Support Services Act 2018.

(2)

MSD must grant a special disability allowance at the rate specified in clause 3 in Part 9 of Schedule 4 to a person to whom this section applies for the purpose of assisting with expenses arising from the hospitalisation of the person’s spouse or partner.

(3)

In this section, qualifying person and special case person have the same meanings as in section 5 of the Residential Care and Disability Support Services Act 2018.

Compare: 1964 No 136 s 69C(5)

Section 89(1)(c): replaced, on 9 November 2020, by section 36(1) of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).

Section 89(3): inserted, on 9 November 2020, by section 36(2) of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).

Subpart 15—Funeral grants

90 Funeral grant: general eligibility and definitions

(1)

MSD may pay a funeral grant in respect of a deceased person if the person meets the criteria in section 91, 92, or 93.

(2)

In this subpart, unless the context otherwise requires,—

assessable estate means the estate of a deceased person, including a deceased child; but does not include—

(a)

any asset that MSD considers is impracticable to realise; or

(b)

any administration expenses; or

(c)

any non-assessable assets, if section 91 or 93 applies

child includes a still-born child as defined in section 2 of the Births, Deaths, Marriages, and Relationships Registration Act 1995

non-assessable assets, in relation to a deceased person, a spouse or partner, or the parents or any other person who was liable in law to maintain a deceased child on the date of death, are—

(a)

that person’s estate or interest, on the date of death of the deceased, in the person’s own principal place of residence, including any estate or interest in the land on which it is erected, and any other buildings or improvements on that land that are used mainly for the purposes of that person’s household; and

(b)

chattels that the person owned or that were in the person’s possession under a hire purchase agreement, a conditional sale agreement, or an agreement for lease or hire, on the date of death of the deceased, and that are—

(i)

furniture, appliances, tools, ornaments, or other articles used mainly for the purposes of the deceased’s household; or

(ii)

motor vehicles, caravans, trailers, or boats used mainly for family purposes; and

(c)

any undivided beneficial interest in common in Māori land.

(3)

In sections 91 and 93, the annual income of any person is that person’s estimated income for the 52-week period commencing on the day following the date of death of the deceased in respect of whom the application is made.

(4)

This section is subject to section 94 (restrictions on payments).

Compare: 1964 No 136 ss 61D, 61DA, 61DB, 61DC, 61DD

91 Funeral grant: eligibility if deceased person has dependants

A deceased person meets the criteria in this section if—

(a)

the person is survived by—

(i)

a spouse or partner; or

(ii)

a child or children whom the person is liable in law to maintain; or

(iii)

any other dependent child or dependent children (whether dependent on the deceased or any other person) aged 16 years or 17 years of whom the deceased person was the parent; and

(b)

the person’s funeral expenses cannot be paid from the total of—

(i)

the person’s assessable estate before the payment of any other debts; and

(ii)

the assets, other than non-assessable assets, of any spouse or partner who survives the deceased person in excess of the amount in clause 2 of Part 1 of Schedule 5; and

(c)

the annual income of any spouse or partner who survives the deceased person is less than 52 times the appropriate amount in Part 2 of Schedule 5.

Compare: 1964 No 136 s 61DB

92 Funeral grant: eligibility if deceased person has no dependants

A deceased person meets the criteria in this section if—

(a)

the person is not a child; and

(b)

the person’s funeral expenses cannot be paid from the person’s assessable estate before the payment of any other debts.

Compare: 1964 No 136 s 61DC

93 Funeral grant: eligibility if deceased person is child

A deceased person meets the criteria in this section if—

(a)

the person is a child; and

(b)

the person’s funeral expenses cannot be paid from the total of—

(i)

the deceased person’s assessable estate before the payment of any other debts; and

(ii)

the combined assets, other than non-assessable assets, of the person’s parents, or of any other person or persons, who were liable in law to maintain the deceased person on the date of death in excess of the amount in clause 2 of Part 1 of Schedule 5; and

(c)

the combined annual income of the person’s parents, or any other person or persons, who were liable in law to maintain the deceased child on the date of death is less than 52 times the appropriate amount in Part 2 of Schedule 5.

Compare: 1964 No 136 s 61DD

94 Funeral grant: restrictions on payment

A funeral grant is not payable under section 90 if—

(a)

clause 64 of Schedule 1 of the Accident Compensation Act 2001 or subpart 8 of Part 5 of the Veterans’ Support Act 2014 applies in respect of the deceased person; or

(b)

a payment under section 174 of the Veterans’ Support Act 2014 is payable in respect of the deceased person; or

(c)

a payment under Part 5 of the Veterans’ Support Act 2014 is payable in respect of the deceased person; or

(d)

the deceased person, including a deceased child, was not ordinarily resident in New Zealand on the date of death.

Compare: 1964 No 136 s 61DA

Subpart 16—Hardship assistance

95 Temporary additional support: purpose

The purpose of temporary additional support is to provide temporary financial assistance as a last resort to alleviate the financial hardship of people whose essential costs cannot be met from their chargeable income and other resources, while ensuring that people seeking or granted that assistance take reasonable steps to reduce their costs or increase their chargeable incomes.

Compare: 1964 No 136 s 61G(1)

96 Temporary additional support: requirements

(1)

A person (P) is entitled to temporary additional support if—

(a)

P’s chargeable income is less than P’s essential costs; and

(b)

P has cash assets of not more than the prescribed amount; and

(c)

P meets any prescribed criteria and any other requirements set out in regulations made under section 428.

(2)

However, temporary additional support must not be granted in respect of the cost of residential care services supplied to a person who has a psychiatric, intellectual, physical, or sensory disability if—

(a)

the person’s accommodation costs are wholly or partly funded under the Pae Ora (Healthy Futures) Act 2022; or

(b)

the person’s care (other than care in the person’s own home) is wholly or partly funded under the Pae Ora (Healthy Futures) Act 2022.

(3)

Temporary additional support granted under subsection (1) must be granted in the prescribed amount and for the prescribed period.

(4)

This section is subject to clause 20 (how commitments for temporary additional support may be affected by debt, or health or disability, insurance payment) of Schedule 3.

Compare: 1964 No 136 s 61G(2), (3), (4)

Section 96(2)(a): amended, on 1 July 2022, by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).

Section 96(2)(b): amended, on 1 July 2022, by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).

97 Temporary additional support: refusal, reduction, or cancellation of grant in certain circumstances

(1)

This section applies in respect of an applicant for temporary additional support if MSD is at any time satisfied that a person who is the applicant, or the applicant’s spouse or partner, has—

(a)

arranged that person’s financial affairs in order to qualify for temporary additional support; or

(b)

failed to take reasonable steps to reduce that person’s costs or increase that person’s chargeable income; or

(c)

failed to take all necessary steps to obtain any assistance towards that person’s essential costs from any other source from which that person may be entitled to assistance.

(2)

If this section applies, MSD may—

(a)

refuse to grant temporary additional support; or

(b)

grant temporary additional support at a reduced rate; or

(c)

reduce the rate of temporary additional support already granted; or

(d)

cancel any temporary additional support already granted.

Compare: 1964 No 136 s 61G(5), (6)

98 Interpretation

In this subpart and in section 428,—

allowable costs has the meaning prescribed in regulations made under section 428, but does not include standard costs

applicant includes a recipient of temporary additional support

cash assets has the meaning prescribed in regulations made under section 428

chargeable income has the meaning prescribed in regulations made under section 428

essential costs means the sum of a person’s allowable costs and standard costs

standard costs has the same meaning as in section 428(2)(b)

tax credit means a credit of tax, or an amount, received under—

(a)

subparts MA to MG and MZ of the Income Tax Act 2007; or

(b)

subpart KD of the Income Tax Act 2004; or

(c)

subpart KD of the Income Tax Act 1994.

Compare: 1964 No 136 s 61G(7)

Subpart 17—Special assistance

99 Overseas epidemics affecting visitors to New Zealand: Minister may give overseas epidemic management notice

(1)

The Minister may, by written notice, declare that the effects of an outbreak outside New Zealand of a stated quarantinable disease are likely to cause hardship to people temporarily in New Zealand by preventing or hindering their prompt return to stated places.

(2)

The notice comes into force on its commencement, and expires on the earliest of the following:

(a)

the day 3 months after its commencement:

(b)

a day stated in the notice:

(c)

a day stated by the Minister by further written notice.

(3)

Before or after the notice expires, the Minister can give a new notice in respect of the same disease.

(4)

The Minister must not give the notice except on, and after considering, the written recommendation of the chief executive of the Ministry of Health.

(5)

In subsection (1), quarantinable disease has the same meaning as in section 2(1) of the Health Act 1956.

(6)

A notice under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Compare: 1964 No 136 s 61CE

Legislation Act 2019 requirements for secondary legislation made under this section
PublicationThe maker must: LA19 ss 73, 74(1)(a), Sch 1 cl 14
• notify it in the Gazette
• publish it on a website maintained by, or on behalf of, MSD
• if it is amended without being replaced, also publish on that website a consolidated version of the notice as at a stated date incorporating the amendments up to that date
PresentationThe Minister must present it to the House of RepresentativesLA19 s 114, Sch 1 cl 32(1)(a)
DisallowanceIt may be disallowed by the House of Representatives LA19 ss 115, 116
This note is not part of the Act.

Section 99(6): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

100 Special assistance for visitors affected by overseas epidemics

(1)

The Minister may, in respect of any period for which an overseas epidemic management notice is in force, by written notice establish programmes of special assistance for visitors to New Zealand who are prevented or hindered from returning promptly to places stated in the notice by the outbreak outside New Zealand of the disease stated in the notice.

(2)

The notice must state—

(a)

the criteria for determining which people are given assistance; and

(b)

any maximum amounts of assistance to be given; and

(c)

if different amounts of assistance may be given to different people, the criteria for determining how much assistance people are given; and

(d)

for how long assistance may be given; and

(e)

any conditions subject to which assistance is to be given.

(3)

The programme, and the matters stated in the notice establishing it, override every other provision of this Act.

(4)

The Crown may incur, without further appropriation than this subsection, expenses or capital expenditure for the purpose of providing special assistance under this section.

(5)

A notice under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Compare: 1964 No 136 ss 61CF, 124(1C)

Legislation Act 2019 requirements for secondary legislation made under this section
PublicationThe maker must: LA19 ss 73, 74(1)(a), Sch 1 cl 14
• notify it in the Gazette
• publish it on a website maintained by, or on behalf of, MSD
• if it is amended without being replaced, also publish on that website a consolidated version of the notice as at a stated date incorporating the amendments up to that date
PresentationThe Minister must present it to the House of RepresentativesLA19 s 114, Sch 1 cl 32(1)(a)
DisallowanceIt may be disallowed by the House of Representatives LA19 ss 115, 116
This note is not part of the Act.

Section 100(5): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

101 Approved special assistance programmes

(1)

The Minister may from time to time, by written notice, approve and establish welfare programmes for the purpose of granting special assistance.

(2)

A welfare programme approved and established by the Minister under subsection (1)—

(a)

must be administered by MSD; and

(b)

may provide for any specified provision of this Act to apply to the programme and to any specified class or classes of person as if the special assistance authorised by the programme were a benefit under this Act.

(3)

This section is subject to clause 21 (how costs, etc, for approved programme of special assistance may be affected by debt, or health or disability, insurance payment) of Schedule 3.

(4)

A notice under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Compare: 1964 No 136 s 124(1)(d), (1A), (1B)

Legislation Act 2019 requirements for secondary legislation made under this section
PublicationThe maker must: LA19 ss 73, 74(1)(a), Sch 1 cl 14
• notify it in the Gazette
• publish it on a website maintained by, or on behalf of, MSD
• if it is amended without being replaced, also publish on that website a consolidated version of the notice as at a stated date incorporating the amendments up to that date
PresentationThe Minister must present it to the House of RepresentativesLA19 s 114, Sch 1 cl 32(1)(a)
DisallowanceIt may be disallowed by the House of Representatives LA19 ss 115, 116
This note is not part of the Act.

Section 101(4): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

102 Special assistance: status of, and access to, notices
[Repealed]

Section 102: repealed, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Subpart 18—Extended payment of benefits for children aged 18 years or over who continue education

103 Provisions relating to children aged 18 years or over who continue education

(1)

This section applies where a child (C) aged 18 years—

(a)

is not financially independent; and

(b)

is attending school or a tertiary educational establishment.

(2)

Despite C being 18, MSD may for such period as MSD determines (expiring not later than the pay day immediately after 31 December in the year in which C turns 18)—

(a)

grant or continue to pay an orphan’s benefit or unsupported child’s benefit in respect of C:

(b)

pay any other benefit at the appropriate rate that includes C as a dependent child of the beneficiary.

Compare: 1964 No 136 s 63A

Part 3 Obligations

Contents

104What this Part does
105Failure to comply with obligation under this Part
106MSD must make people affected aware of their obligations, consequences of non-compliance, and their review and appeal rights
107MSD must explain rules relating to absence from New Zealand
108MSD must assist in relation to obtaining overseas pension, etc
109Outline of beneficiary’s general and specific obligations
110When obligations apply
111Beneficiary must hold, and give MSD details of, bank account
112Beneficiary must supply tax file number
113Beneficiary must notify change of circumstances
114Obligation to notify absence from New Zealand
115Obligation to undergo work ability assessment
116Persons subject to work ability assessment
117Persons not subject to work ability assessment
118Work ability assessment
119Person who fails to comply with requirement to undergo work ability assessment is subject to sanction
120Work-preparation obligations
121Persons subject to work-preparation obligations
122Persons not subject to work-preparation obligations
123Persons subject to work-preparation obligations if sufficient capacity to comply
124General obligation to take all steps to prepare for employment
125Work-preparation obligations as required by MSD
126Person who fails to comply with work-preparation obligation subject to sanction
127Obligations in relation to dependent children
128Obligations of beneficiary in relation to dependent children
129Obligations of spouse or partner of beneficiary in relation to dependent children of beneficiary
130Obligations of spouse or partner of beneficiary in relation to dependent children of spouse or partner
131Attendance of dependent child aged 3 to 5 years at early childhood education programme
132Attendance of dependent child aged 5 or 6 years at early childhood education programme or registered school
133Attendance of dependent child aged 6 to 15 years at registered school
134Health care enrolment and compliance with core health checks
135Interviews and reporting
136Person who fails to comply with obligations in relation to dependent children is subject to sanction
137Definitions and attendance: regulations made under section 430
138Work-test obligations
139Purpose of sections 140 to 154
140Persons subject to work-test obligations
141Jobseeker support: work capacity determination and work test
142Person not subject to work-test obligations
143Time when work-test obligation applies
144General obligation to be available for suitable employment, etc
145Meaning of suitable employment
146Work-test obligations as required by MSD
147Obligation to undertake and pass drug test
148Compliant drug test defined
149Failing drug test
150Use of drug test result
151Costs of drug test
152Definitions for drug-testing provisions
153Person who fails to comply with work-test obligations is subject to sanction
154Deemed failure to comply with work-test obligation
155Deferral of work-test obligations
156Effect of deferral of work-test obligations
157Regulations may specify categories of exempt persons and grounds for exemption
158MSD may grant exemption from work-preparation, work-test, or other obligation
159Donors of qualifying organs exempt from work-preparation, work-test, or other obligation while recuperating
160Procedure for grant of exemption
161Person who fails to comply with requirement to attend interview is subject to sanction
162Obligations of young person granted youth support payment
163When education obligation or training obligation begins for young parent
164Obligations of young person granted young parent payment
165Young person aged 18 or 19 years who is receiving jobseeker support in young person’s own right and who is at significant risk of long-term welfare dependency
166Young person aged 16 or 17 years who has no dependent child and who is spouse or partner of specified beneficiary
167Young person aged 16 to 19 years who has dependent child and who is spouse or partner of specified beneficiary
168Young person aged 18 or 19 years, who is receiving jobseeker support as spouse or partner of person granted that benefit, or who is work-tested spouse or partner of specified beneficiary, and who is at significant risk of long-term welfare dependency
169Interpretation
170Obligation to work with contracted service providers
171Person who fails to comply with requirement under section 170(2) subject to sanction
172Interpretation
173Applicant for benefit, etc, to take reasonable steps to obtain overseas pension
174MSD may give notice requiring person to take reasonable steps to obtain overseas pension
175MSD may give notice requiring person to take reasonable steps to obtain overseas pension for dependant
176Failure to comply with MSD’s notice given under section 174 or 175
177Applicant for benefit must provide information as to rate of overseas pension
178MSD may give notice requiring beneficiary to provide information as to rate of overseas pension
179Failure to comply with MSD’s notice given under section 178
180Meaning of rate
181Application of health and safety legislation, etc
182Obligations suspended where MSD has exercised discretion to pay benefit while beneficiary overseas

Subpart 1—Introduction

Guide to this Part

104 What this Part does

This Part sets out the obligations of—

(a)

MSD:

(b)

beneficiaries and their partners.

105 Failure to comply with obligation under this Part

(1)

A person who is subject to an obligation under this Part and who fails to comply with that obligation without good and sufficient reason is liable to a sanction under Part 5.

(2)

Subsection (1) does not apply to MSD.

Compare: 1964 No 136 s 170(5)

Subpart 2—MSD’s obligations

Steps to make people affected aware of their obligations, etc

106 MSD must make people affected aware of their obligations, consequences of non-compliance, and their review and appeal rights

MSD must take reasonable and appropriate steps to make a person to whom an obligation under this Part applies—

(a)

aware of that obligation; and

(b)

aware of the consequences of failure to comply with that obligation and, in particular, the sanctions that may be imposed under Part 5; and

(c)

aware of that person’s rights under sections 391 and 397 to review and appeal decisions relating to the obligation.

Compare: 1964 No 136 ss 60GAG(2), 60R, 60RB, 100D, 105C, 172

Steps to explain overseas absence rules

107 MSD must explain rules relating to absence from New Zealand

MSD must take reasonable and appropriate steps to explain, to every person who is, or appears to MSD to be likely to be, affected by them,—

(a)

the rules about absence from New Zealand contained in the following provisions:

(i)

section 219 (general rule: benefit not payable while beneficiary absent from New Zealand):

(ii)

regulations made under section 436 (regulations that contain exceptions, and other contrary or related provisions); and

(b)

how those rules do or may affect payment of benefits.

Compare: 1964 No 136 s 77A

Steps to assist compliance with overseas pensions obligations

108 MSD must assist in relation to obtaining overseas pension, etc

MSD must take all reasonable steps to assist any person to comply with that person’s obligations under sections 173 and 177.

Compare: 1964 No 136 s 69I

Subpart 3—Beneficiaries’ obligations

Beneficiaries: general and specific obligations

109 Outline of beneficiary’s general and specific obligations

(1)

The general obligations of a beneficiary, that is, obligations that apply to all beneficiaries, are the following:

(a)

the obligation to hold, and give MSD details of, a bank account (see section 111):

(b)

the obligation to supply a tax file number (see section 112):

(c)

the obligation to notify a change of circumstances (see section 113).

(2)

The specific obligations that apply to some beneficiaries only, are the following:

(a)

the obligation to notify absence from New Zealand (see section 114):

(b)

the obligation to undergo work ability assessments (see sections 115 to 119):

(c)

work-preparation obligations (see sections 120 to 126):

(d)

obligations in relation to dependent children (see sections 127 to 137):

(e)

work-test obligations (see sections 138 to 156):

(f)

youth payment obligations (see sections 162 and 163):

(g)

young parent obligations (see sections 164 and 169):

(h)

obligations under section 165(7) of a young person aged 18 or 19 years who is receiving jobseeker support, who is at significant risk of long-term welfare dependency (see sections 165 and 169), and who is required under section 165(2) to receive youth services:

(i)

obligations (including relating to instruction, education, training, or learning) of a young person who is the spouse or partner of a beneficiary (see sections 166, 167, and 169):

(j)

obligations (including relating to youth services) of a young person who is the spouse or partner of a beneficiary (see sections 168 and 169):

(k)

the obligation to work with contracted service providers (see sections 170 and 171):

(l)

obligations in relation to overseas pensions (see sections 172 to 180).

110 When obligations apply

An obligation applies from the time that the benefit in question is paid, except in the case of—

(a)

the applicant’s or beneficiary’s obligation to hold, and give MSD details of, a bank account (see section 111); and

(b)

the section 162(1)(a) education or training obligation of a young parent who is the principal caregiver of that young parent’s youngest dependent child who is under 12 months old (see section 163(2)).

Compare: 1964 No 136 ss 82(7), 170(3), (4)

General obligations: holding, and giving details of, bank account

111 Beneficiary must hold, and give MSD details of, bank account

(1)

It is a condition of every benefit, unless MSD in a particular case determines otherwise, that the applicant or beneficiary must, by the deadline (specified by regulations made under section 438(2)(a)(ii)) for receipt by MSD of any supporting evidence reasonably required by MSD,—

(a)

give MSD details of an existing suitable bank account held by the applicant or beneficiary; or

(b)

open a bank account, if the applicant or beneficiary does not hold one, and give MSD details of it.

(2)

Bank account, in this section, means an account with a bank that is a registered bank (as defined in section 2(1) of the Banking (Prudential Supervision) Act 1989), a private savings bank, a credit union, a building society, or a non-bank deposit taker (as defined in section 5 of the Non-bank Deposit Takers Act 2013).

Compare: 1964 No 136 s 82(7); 1994 No 166 s 184A(4); 2006 No 40 s 221(4)

Section 111(2): amended, on 1 July 2022, by section 300(1) of the Reserve Bank of New Zealand Act 2021 (2021 No 31).

General obligations: supplying tax file number

112 Beneficiary must supply tax file number

(1)

MSD may in writing request an applicant for a benefit or a beneficiary to provide evidence, to the satisfaction of MSD, of the tax file number of the applicant or beneficiary.

(2)

MSD may refuse to grant a benefit and must suspend payment of a benefit if satisfactory evidence of the tax file number of the applicant or the beneficiary is not received within 10 working days after the date on which the request is made (the deadline).

(3)

MSD may in writing extend the deadline if an applicant or a beneficiary provides a reasonable explanation for not providing the evidence within the deadline.

(4)

This section does not apply to a beneficiary who is unable to provide satisfactory evidence of the beneficiary’s tax file number within the deadline or extended deadline specified because of any health condition, injury, or disability.

(5)

In this section, tax file number has the same meaning as in section YA 1 of the Income Tax Act 2007.

Compare: 1964 No 136 s 82A

General obligations: notification of change of circumstances

113 Beneficiary must notify change of circumstances

(1)

A beneficiary must without delay notify MSD of a change in the beneficiary’s circumstances if—

(a)

the change affects the beneficiary’s entitlement to receive a benefit; or

(b)

the change affects the rate of a benefit the beneficiary receives.

(2)

Examples of a change in a beneficiary’s circumstances include—

(a)

a change in the beneficiary’s relationship status, number of children, income, accommodation, or employment:

(b)

a change in the relationship status, income, accommodation, or employment of the beneficiary’s spouse or partner:

(c)

the beneficiary or his or her spouse or partner becoming entitled to an overseas pension.

(3)

In subsection (2)(a), a change in the beneficiary’s relationship status means the beneficiary’s—

(a)

entering into a marriage, civil union, or de facto relationship; or

(b)

ceasing to live together with, or separating from, a spouse or civil union partner; or

(c)

ceasing to live together (as a couple in a relationship in the nature of marriage or civil union) with, or separating from, a de facto partner; or

(d)

ceasing to be in a marriage, civil union, or de facto relationship, because it has ended by reason of an event not specified in paragraph (b) or (c) (for example, by dissolution, or on a spouse’s or partner’s death).

Compare: 1964 No 136 s 80A

Specific obligations: notification of absence from New Zealand

114 Obligation to notify absence from New Zealand

(1)

A beneficiary who intends to be absent from New Zealand must before leaving New Zealand notify MSD of the beneficiary’s intended absence.

(2)

However, subsection (1) does not apply to a person who receives a benefit payable under—

(a)

subpart 11 of Part 2 (winter energy payment); or

(b)

sections 21 to 35 of the New Zealand Superannuation and Retirement Income Act 2001; or

(c)

sections 176 to 196 of the Veterans’ Support Act 2014; or

(d)

any reciprocity agreement with another country adopted by an order made under section 380.

Compare: 1964 No 136 ss 61FJ(3), 77(6), (9)

Specific obligations: work ability assessment

115 Obligation to undergo work ability assessment

Sections 116 to 119 set out the obligation of a person to undergo a work ability assessment.

116 Persons subject to work ability assessment

The following persons must comply with a requirement under section 118 by MSD that they undergo a work ability assessment:

(a)

a person who receives any of the following benefits: jobseeker support, sole parent support, a supported living payment (except as provided in section 117), or an emergency benefit; or

(b)

the spouse or partner of a person listed in paragraph (a).

Compare: 1964 No 136 s 100B(1)

117 Persons not subject to work ability assessment

MSD must not require a person who receives a supported living payment on the ground of restricted work capacity to undergo a work ability assessment if, in MSD’s opinion, that person—

(a)

is terminally ill; or

(b)

has little or no capacity for work, and the person’s condition is deteriorating or not likely to improve.

Compare: 1964 No 136 s 100B(2)

118 Work ability assessment

(1)

MSD may at any time require a person to whom this section applies to attend and participate in a work ability assessment to determine, or help determine, all or any of the following matters:

(a)

whether the person is entitled to a benefit and, if so, what kind of benefit:

(b)

if a person granted jobseeker support is subject to a work-test obligation, whether that obligation should be deferred:

(c)

if a person is granted jobseeker support on the ground of health condition, injury, or disability, whether that person has the capacity for part-time work:

(d)

whether the person should be exempted from a work-preparation or work-test obligation:

(e)

whether the person has the capacity to comply with a work-preparation or work-test obligation:

(f)

what is suitable employment for the person for the purposes of section 145:

(g)

what are suitable activities for the person for the purposes of section 125(d) or 146(1)(d):

(h)

what assistance and supports are necessary for the person to obtain employment.

(2)

The assessment must be made in accordance with the procedure determined by MSD.

(3)

A person who has been assessed under subsection (1) may be required by MSD to undergo a reassessment under that subsection as MSD thinks appropriate.

Compare: 1964 No 136 ss 100B(3), (4), 100C(1), (2)

119 Person who fails to comply with requirement to undergo work ability assessment is subject to sanction

A person (P) is subject to a sanction under section 236, 237, or 238 if MSD is satisfied that P has, without a good and sufficient reason, failed to comply with a requirement under section 118 to attend and participate in a work ability assessment or reassessment.

Compare: 1964 No 136 s 116B(1)(d)

Specific obligations: work preparation

120 Work-preparation obligations

(1)

Sections 121 to 126 set out a person’s work-preparation obligations.

(2)

Those obligations are intended—

(a)

to facilitate the movement into ongoing employment (as their parenting responsibilities and individual circumstances allow) of beneficiaries to whom those obligations apply; and

(b)

to provide opportunities for them to improve their capabilities and preparation for employment; and

(c)

to improve social and economic outcomes for them and their dependent children.

Compare: 1964 No 136 s 60P

121 Persons subject to work-preparation obligations

The following persons must comply with section 124 and may be required to do any of the things set out in section 125:

(a)

a person who receives sole parent support and whose youngest dependent child is under the age of 3 years:

(b)
[Repealed]

(c)

a person who is a work-tested beneficiary and who has been granted under regulations made under section 431 a deferral of that person’s work-test obligations:

(d)

a person who—

(i)

is the spouse or partner of a person who—

(A)

receives an emergency benefit or jobseeker support paid at a work-test couple rate; and

(B)

has a youngest dependent child aged under 3 years; and

(ii)

is not the spouse or partner of a young person to whom section 166 or 167 applies:

(e)

the spouse or partner of a person who—

(i)

receives a supported living payment on the ground of restricted work capacity or total blindness; and

(ii)

has a youngest dependent child aged under 3 years:

(f)

a person under the age of 65 granted an emergency benefit under section 17(2)(c) of the New Zealand Superannuation and Retirement Act 2001.

Compare: 1964 No 136 ss 20E(a), 40G(1), (2)(a), 60Q(1), (1A), 88G(a), 61A(1)

Section 121(b): repealed, on 8 November 2021, by section 5 of the Social Security (Subsequent Child Policy Removal) Amendment Act 2021 (2021 No 38).

122 Persons not subject to work-preparation obligations

The following persons are not required to comply with section 124 and must not be required to do any of the things set out in section 125:

(a)

a person who is a work-tested beneficiary:

(b)

a person who is currently exempted under section 158(1) from all the person’s work-test obligations.

Compare: 1964 No 136 s 60Q(1)

123 Persons subject to work-preparation obligations if sufficient capacity to comply

(1)

The following persons are not required to comply with section 124 but may be required to do any of the things set out in section 125 if MSD decides that the person is capable of complying with the obligation in question:

(a)

a person who receives a benefit under section 34 (supported living payment on the ground of restricted work capacity or total blindness):

(b)

a person who receives a benefit under section 40 (supported living payment on the ground of caring for another person).

(2)

A person referred to in subsection (1)(a) or (b) may be required to attend and participate in an interview with an MSD employee or a person on behalf of MSD for the purpose of helping MSD decide whether the person is capable of complying with any of the work-preparation obligations set out in section 125.

Compare: 1964 No 136 ss 40F(a), 40H(a), 60Q(1)(bb), (bc), (1B)

124 General obligation to take all steps to prepare for employment

A person to whom this section applies must take all steps that are reasonably practicable in the person’s circumstances to prepare for employment.

Compare: 1964 No 136 s 60Q(2)

125 Work-preparation obligations as required by MSD

A person to whom this section applies must, as required by MSD from time to time,—

(a)

undertake planning for employment:

(b)

attend and participate in an interview with an MSD employee or a person on behalf of MSD:

(c)

report to MSD or a person on behalf of MSD on the person’s compliance with the work-preparation obligations set out in this section, and must do so as often as, and in the manner that, MSD reasonably requires:

(d)

participate in or undertake any of the following activities specified by MSD that MSD considers suitable for improving the person’s work-readiness or prospects for employment:

(i)

a work assessment:

(ii)

a programme or seminar to increase particular skills or enhance motivation:

(iii)

a work-experience or work-exploration activity:

(iv)

employment-related training:

(v)

an education programme:

(vi)

any other activity (including rehabilitation) other than medical treatment, recognised voluntary work, or activity in the community.

Compare: 1964 No 136 s 60Q(3)

126 Person who fails to comply with work-preparation obligation subject to sanction

A person (P) is subject to a sanction under section 236, 237, or 238 if MSD is satisfied that P has, without a good and sufficient reason, failed to comply with a work-preparation obligation.

Compare: 1964 No 136 s 116B(1)(c)

Specific obligations: social obligations in relation to dependent children

127 Obligations in relation to dependent children

Sections 128 to 135 set out obligations in relation to the dependent children of—

(a)

a beneficiary receiving certain main benefits under this Act; and

(b)

the beneficiary’s spouse or partner.

128 Obligations of beneficiary in relation to dependent children

A beneficiary is subject to the obligations set out in sections 131 to 135 in relation to the beneficiary’s dependent children or the dependent children of the beneficiary’s spouse or partner if the beneficiary—

(a)

receives jobseeker support, sole parent support, a supported living payment, or an emergency benefit; and

(b)

is not a young person subject to the obligations set out in section 164.

Compare: 1964 No 136 ss 20E(b), 40F(b), 40H(b), 40HA(a), 60RA(1), 61AA, 88F(8)

129 Obligations of spouse or partner of beneficiary in relation to dependent children of beneficiary

(1)

The spouse or partner of a beneficiary is subject to the obligations set out in sections 131 to 135 in relation to each dependent child of the beneficiary if—

(a)

the beneficiary receives jobseeker support, sole parent support, a supported living payment, or an emergency benefit; and

(b)

the spouse or partner is not a young person subject to the obligations set out in section 166 or 167.

(2)

Subsection (1) applies whether or not—

(a)

the dependent child of the beneficiary is also the dependent child of the spouse or partner:

(b)

the spouse or partner receives all or any of the benefit instead of, or as well as, the beneficiary.

Compare: 1964 No 136 ss 40G(1), (2)(b), 60RA(1)(b), (2), 88G(b)

130 Obligations of spouse or partner of beneficiary in relation to dependent children of spouse or partner

(1)

The spouse or partner of a beneficiary is subject to the obligations set out in sections 131 to 135 in relation to each dependent child of the spouse or partner if—

(a)

the beneficiary receives jobseeker support, sole parent support, a supported living payment, or an emergency benefit; and

(b)

the spouse or partner is not a young person subject to the obligations set out in section 166 or 167.

(2)

Subsection (1) applies whether or not—

(a)

the dependent child of the spouse or partner is also the dependent child of the beneficiary:

(b)

the spouse or partner receives all or any of the benefit instead of, or as well as, the beneficiary.

Compare: 1964 No 136 ss 40HA, 60RA(1)(b), (2), 61A(3)

131 Attendance of dependent child aged 3 to 5 years at early childhood education programme

(1)

A person to whom this section applies must take all reasonable steps to ensure that each dependent child aged 3 to 5 years—

(a)

is enrolled in an approved early childhood education programme (as that term is defined in regulations made under section 430); and

(b)

attends that programme in the manner and to the minimum extent prescribed by regulations made under section 430.

(2)

This section does not apply if the dependent child is enrolled at and regularly attends a registered school (as defined in regulations made under section 430).

Compare: 1964 No 136 s 60RA(3)(a)

132 Attendance of dependent child aged 5 or 6 years at early childhood education programme or registered school

(1)

A person to whom this section applies (A) must take all reasonable steps to ensure that each dependent child aged 5 or 6 years either—

(a)

is enrolled in an approved early childhood education programme (as defined in regulations made under section 430) and attends that programme in the manner and to the minimum extent prescribed by regulations made under section 430; or

(b)

is enrolled at and regularly attends a registered school (as defined in regulations made under section 430).

(2)

This section does not apply if A qualifies for an exemption from his or her work-test obligations on the active teaching out of school grounds specified by—

(a)

regulation 6(2)(c) of the Social Security (Exemptions under Section 105) Regulations 1998 (as saved by clause 27 of Schedule 1); or

(b)

any regulations made under section 431(1)(e).

Compare: 1964 No 136 ss 60RA(3)(b), 60RAB(2)

133 Attendance of dependent child aged 6 to 15 years at registered school

(1)

A person to whom this section applies must take all reasonable steps to ensure that each dependent child aged 6 to 15 years is enrolled at and regularly attends a registered school (as defined by regulations made under section 430).

(2)

This section does not apply if the child is exempted under section 38, 39, or 41 of the Education and Training Act 2020 from enrolment at a registered school.

Compare: 1964 No 136 s 60RA(3)(c)

Section 133(2): amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).

134 Health care enrolment and compliance with core health checks

(1)

A person to whom this section applies must take all reasonable steps to ensure that each dependent child is enrolled with a primary health care provider (for example, a primary health organisation, or a prescribed health practitioner who is a provider of primary health care).

(2)

A person to whom this section applies must take all reasonable steps to ensure that a dependent child under the age of 5 years is up to date with core checks under—

(a)

the programme that immediately before 15 July 2013 was known as Well Child; or

(b)

any similar programme established in its place.

Compare: 1964 No 136 s 60RA(3)(d), (e)

135 Interviews and reporting

A person to whom this section applies must, as required by MSD,—

(a)

attend and participate in an interview with an MSD employee or a person on behalf of MSD:

(b)

report to MSD or a person on behalf of MSD on the person’s compliance with the obligations in relation to dependent children set out in sections 131 to 134, and must do so as often as, and in the manner that, MSD reasonably requires.

Compare: 1964 No 136 s 60RA(3)(f), (g)

136 Person who fails to comply with obligations in relation to dependent children is subject to sanction

(1)

A person (P) is subject to a sanction under section 236, 237, or 238 if MSD is satisfied that P has, without a good and sufficient reason, failed to comply with an obligation in relation to dependent children under sections 131 to 135.

(2)

However, P is not subject to a sanction under section 233(c) if imposition of a sanction is precluded by section 243 or 255.

Compare: 1964 No 136 s 116B(1)(b)

137 Definitions and attendance: regulations made under section 430

(1)

Regulations made under section 430 may prescribe, for the purposes of sections 131 to 134, the meaning of the following terms:

(a)

approved early childhood education programme:

(b)

core check:

(c)

registered school.

(2)

Regulations made under section 430 that prescribe, for the purposes of sections 131(1)(b) and 132(1)(a), the minimum extent of, or other required manner of, attending an approved early childhood education programme may, without limitation,—

(a)

prescribe, for all or any approved early childhood programmes, target numbers of hours of attendance:

(b)

prescribe different minimum numbers of hours of attendance for all or any different approved early childhood programmes.

Compare: 1964 No 136 s 60RAB(1), (3), (4)

Specific obligations: work-test obligations

138 Work-test obligations

Sections 140 to 154 set out the work-test obligations.

139 Purpose of sections 140 to 154

The purpose of sections 140 to 154 is—

(a)

to ensure that work-tested beneficiaries maintain an unrelenting focus on entering, retaining, or returning to, employment; and

(b)

to reinforce the continuing obligation of work-tested beneficiaries to take reasonable steps to support themselves and their families; and

(c)

to identify the activities that work-tested beneficiaries may be required to undertake to meet their obligations arising from work-tested benefits being paid in respect of them; and

(d)

to provide a work test structure applying to all work-tested beneficiaries that is sufficiently flexible to take account of an individual beneficiary’s circumstances.

Compare: 1964 No 136 s 101

140 Persons subject to work-test obligations

(1)

The following persons must comply with section 144 and may be required to do any of the things set out in section 146:

(a)

a person who receives jobseeker support (other than jobseeker support on the ground of health condition, injury, or disability):

(b)

a person who receives jobseeker support on the ground of health condition, injury, or disability, if MSD has determined under section 141(1) that the person has the capacity to seek, undertake, and be available for part-time work:

(c)

a person who—

(i)

is the work-tested spouse or partner of a person who receives jobseeker support; and

(ii)

is not the spouse or partner of a young person to whom section 166 or 167 applies:

(d)

a work-tested sole parent support beneficiary:

(e)

the work-tested spouse or partner of a person granted an emergency benefit or a supported living payment on the ground of restricted work capacity or total blindness at a work-test couple rate:

(f)

a person under the age of 65 years granted an emergency benefit under section 17(2)(c) of the New Zealand Superannuation and Retirement Income Act 2001, if that person is a work-tested spouse or partner.

(2)

MSD may, by notice in writing, require the spouse or partner of a person granted an emergency benefit at a work-test couple rate to comply with the work test if MSD is satisfied that it is appropriate and reasonable to require that spouse or partner to seek, undertake, and be available for—

(a)

part-time work, in the case of a spouse or partner whose youngest dependent child is aged 3 years or older but under 14 years; or

(b)

full-time employment, in any other case.

Compare: 1964 No 136 ss 20E(c), 88F(1), (4), 88G(c), 61A(1), (1A), (2)(b)

141 Jobseeker support: work capacity determination and work test

(1)

MSD makes every determination under this subsection whether a person granted jobseeker support on the ground of health condition, injury, or disability has, while receiving that benefit, the capacity to seek, undertake, and be available for part-time work (as defined in Schedule 2).

(2)

MSD—

(a)

must make a determination under subsection (1) promptly after granting the person that benefit; and

(b)

may make a determination under subsection (1) at any later time.

(3)

A determination under subsection (1) must be made after having had regard to—

(a)

the relevant certificate given under section 27, and any relevant report obtained under section 28; and

(b)

any relevant work ability assessment under sections 115 to 119.

(4)

The consequence of a determination under subsection (1) that the person has, while receiving that benefit, the capacity to seek, undertake, and be available for part-time work is that the person is required to comply with the work test on and after a date specified in a written notice (of the determination’s making and effects) that MSD must give the person.

(5)

The date specified in a written notice given under subsection (4),—

(a)

in the case of a new grant of jobseeker support, may be the date on which that benefit is first paid; but

(b)

in any case, must not be a date before the date on which MSD reasonably considers the person will receive the notice.

(6)

MSD may at any time, whether on the application of the person or otherwise, review a determination under subsection (1) and may confirm, amend, revoke, or replace it and any related written notice given under subsection (4).

Compare: 1964 No 136 s 88F(2)–(6)

142 Person not subject to work-test obligations

A person (P) who is otherwise subject to a work-test obligation is not subject to that obligation if—

(a)

the obligation has been deferred under regulations made under section 431; or

(b)

P has been exempted from the obligation under section 158; or

(c)

MSD is satisfied that P is undertaking employment of the kind required to satisfy the work test for P.

Compare: 1964 No 136 ss 88J, 102(2)

143 Time when work-test obligation applies

(1)

An obligation set out in section 144 or 146 applies on—

(a)

a day that is a day between Monday and Friday (inclusive); or

(b)

a prescribed day of the week (see section 418(1)(e)).

(2)

An obligation set out in section 144 or 146 applies,—

(a)

in the case of a person who receives jobseeker support on the ground of health condition, injury, or disability, from the date specified in MSD’s notice given under section 141(4) that the person has the capacity to seek, undertake, and be available for part-time work:

(b)

in any other case, from the date on which the relevant benefit is first paid.

Compare: 1964 No 136 s 102(1), (3)

144 General obligation to be available for suitable employment, etc

A person to whom this section applies must—

(a)

be available for, and take reasonable steps to obtain, suitable employment; and

(b)

accept any offer of suitable employment, including temporary employment or employment that is seasonal or subsidised; and

(c)

attend and participate in an interview for any opportunity of suitable employment to which the beneficiary is referred by MSD.

Compare: 1964 No 136 s 102A(1)(a)–(c)

145 Meaning of suitable employment

In section 144, suitable employment, in relation to a person (P), means employment that MSD is satisfied is suitable for P to undertake for a specific number of hours per week that MSD determines, having regard to the employment required to satisfy the work test for P.

Compare: 1964 No 136 s 3(1)

146 Work-test obligations as required by MSD

(1)

A person to whom this section applies must, as required by MSD from time to time,—

(a)

undertake planning for employment:

(b)

attend and participate in an interview with an MSD employee or a person on behalf of MSD:

(c)

report to MSD or a person on behalf of MSD on the person’s compliance with the work-test obligations set out in this section or sections 144 and 147, and must do so as often as, and in the manner that, MSD reasonably requires:

(d)

participate in or undertake any of the following activities specified by MSD that MSD considers suitable for improving the person’s work-readiness or prospects for employment:

(i)

a work assessment:

(ii)

a programme or seminar to increase particular skills or enhance motivation:

(iii)

a work-experience or work-exploration activity:

(iv)

employment-related training:

(v)

any other activity (including rehabilitation) other than medical treatment, recognised voluntary work, or activity in the community:

(e)

undertake and pass a drug test in accordance with sections 147 to 151.

(2)

Subsection (1)(d) applies whether or not a person is subject to a sanction for failing to comply with a work-test obligation.

(3)

If MSD requires a person to undertake an activity under subsection (1)(d), MSD must take reasonable steps to arrange for the person to undertake that activity.

Compare: 1964 No 136 s 102A(1)(d)–(g), (2)–(5)

147 Obligation to undertake and pass drug test

(1)

A person to whom an obligation under section 144(a), 144(c), 146(1)(d)(ii), or 146(1)(d)(iv) applies must undertake and pass a drug test by a specified date if—

(a)

a potential employer or training provider requests the drug test; and

(b)

the drug test is lawfully requested and undertaken; and

(c)

the drug test is a compliant drug test (see section 148).

(2)

The obligation under subsection (1) to undertake and pass a drug test is included in, forms part of, and does not arise apart from, the obligation under section 144(a), 144(c), 146(1)(d)(ii), or 146(1)(d)(iv).

(3)

A drug test is lawfully requested and undertaken if it is requested and undertaken for a lawful purpose (for example, for a lawful health or safety purpose), and it does not matter that the employer or provider requesting the drug test is not authorised or required by or under this Act to compel the person to undertake it.

(4)

A drug test under this section is presumed to be lawfully requested and undertaken unless the contrary is proved.

Compare: 1964 No 136 ss 102A(1A), 102B(1), (3)

148 Compliant drug test defined

A compliant drug test is a drug test that complies with the requirements prescribed by regulations made under section 431.

Compare: 1964 No 136 s 102B(2)

149 Failing drug test

(1)

For the purposes of this Act, a person is taken to have failed an evidential drug test requested under section 257 if the person fails a screening test and waives the right to an associated evidential drug test.

(2)

A potential employer or training provider may disclose, or authorise the drug test provider to disclose, to MSD that a person who has undertaken a drug test under section 147 has failed the drug test.

(3)

MSD may act on the information disclosed under subsection (2) unless MSD has reason to believe that it is not reliable (for example, MSD may have evidence to the contrary).

(4)

Consent of a person who has undertaken a drug test under section 147 to disclosure under subsection (2) is not required.

Compare: 1964 No 136 ss 102B(4), (5), 102C(2)

150 Use of drug test result

MSD may, in accordance with regulations made under section 431, use the result of a drug test undertaken under section 147 and disclosed to MSD under section 149.

Compare: 1964 No 136 s 102E

151 Costs of drug test

(1)

MSD may, in accordance with regulations made under section 431(1)(c), reimburse a potential employer for the costs of a drug test undertaken by a person under section 147 requested by that employer.

(2)

Subsection (1) does not apply to the costs of an evidential drug test if the person waives the right to the evidential drug test in the situation specified in section 149(1).

Compare: 1964 No 136 s 102C(3)–(5)

152 Definitions for drug-testing provisions

In this section and in sections 147 to 151, unless the context otherwise requires,—

controlled drug has the same meaning as in section 2(1) of the Misuse of Drugs Act 1975

drug test, for a person, means a test to detect the presence in the person’s body of 1 or more controlled drugs

evidential drug test, for a person, means a drug test that, when undertaken by the person, complies with a standard that is—

(a)

a standard for drug tests for evidential purposes; and

(b)

a New Zealand standard, joint Australian/New Zealand standard, or other national or international standard; and

(c)

prescribed (whether under sections 29 to 32 of the Standards and Accreditation Act 2015 or otherwise) in regulations made under section 418(1)(f)

fail, for a person and a drug test, means—

(a)

if the drug test is a screening drug test or an evidential drug test, not to pass the drug test; or

(b)

if the drug test is an evidential drug test, to waive the right to that test in the situation specified in section 149(1), and so under that section be taken for the purposes of this Act to have failed that test

pass, for a person and a drug test, means to undertake the drug test with the consequence that the drug test produces a valid result that,—

(a)

if the drug test is a screening drug test, does not indicate the presence in the person’s body of 1 or more controlled drugs at or above the minimum level identified in the standard (prescribed in regulations made under section 418(1)(g)) with which the test complies; and

(b)

if the drug test is an evidential drug test, does not detect for evidential purposes the presence in the person’s body of 1 or more controlled drugs at or above the minimum level identified in the standard (prescribed in regulations made under section 418(1)(g)) with which the test complies

screening drug test, for a person, means a drug test that—

(a)

may indicate the presence in the person’s body of 1 or more controlled drugs; and

(b)

is quicker, less formal, and less expensive than, and is designed for use in conjunction with, an evidential drug test; and

(c)

complies with a standard that is—

(i)

a standard for drug tests for evidential purposes; and

(ii)

a New Zealand standard, joint Australian/New Zealand standard, or other national or international standard; and

(iii)

prescribed (whether under sections 29 to 32 of the Standards and Accreditation Act 2015, or otherwise) in regulations made under section 418(1)(h).

Compare: 1964 No 136 s 88A

153 Person who fails to comply with work-test obligations is subject to sanction

A person is subject to a sanction (see section 233(d)) for a breach of a work-test obligation under section 144 or 146 if MSD is satisfied that the person—

(a)

has failed without a good and sufficient reason to comply with the obligation; or

(b)

is under section 154 deemed to have failed without a good and sufficient reason to comply with the obligation.

Compare: 1964 No 136 s 116B(1)(e)–(h)

154 Deemed failure to comply with work-test obligation

A person (P) is deemed to have failed without a good and sufficient reason to comply with a work-test obligation under section 144 or 146 if—

(a)

P, without a good and sufficient reason, fails to apply for suitable employment that requires candidates to undertake drug tests; or

(b)

P is a full-time work-tested beneficiary and leaves, without a good and sufficient reason, or is dismissed for misconduct from, part-time work or employment averaging less than part-time work; or

(c)

P is a part-time work-tested beneficiary who leaves, without a good and sufficient reason, or is dismissed for misconduct from, employment averaging less than part-time work.

Compare: 1964 No 136 s 116B(1)(f)–(h)

Deferral of work-test obligations

155 Deferral of work-test obligations

(1)

MSD may defer a person’s work-test obligations in accordance with regulations made under section 431 permitting it to do so.

(2)

MSD must defer a person’s work-test obligations in accordance with regulations made under section 431 requiring it to do so.

Compare: 1964 No 136 ss 88F(7), 88H, 88I(1)–(3), (5)–(7)

156 Effect of deferral of work-test obligations

(1)

A person’s work-test obligations are deferred for the period specified in MSD’s notice of deferral and sections 106 and 138 to 146 apply to that person as if he or she were not a person subject to work-test obligations.

(2)

A person whose work-test obligations are deferred in accordance with regulations made under section 431 must notify MSD as soon as practicable of any change in the person’s circumstances that may affect the person’s entitlement to the deferral.

Compare: 1964 No 136 ss 88J, 88K

Exemptions: work-preparation, work-test, and other obligations

157 Regulations may specify categories of exempt persons and grounds for exemption

Regulations made under section 431 may specify—

(a)

categories of persons who may be exempted from some or all of a work-preparation obligation, a work-test obligation, or an obligation under section 162, 164, 166, or 167; and

(b)

the grounds, and any required circumstances, for the grant of an exemption.

Compare: 1964 No 136 s 123D

158 MSD may grant exemption from work-preparation, work-test, or other obligation

(1)

A person may apply to MSD for an exemption from some or all of the person’s work-preparation obligations, work-test obligations, or obligations under section 162, 164, 166, or 167 and MSD may grant the exemption if satisfied that the person qualifies for an exemption under regulations made under section 431.

(2)

MSD may grant the exemption for a period set by MSD, and may make the exemption subject to conditions set by MSD.

(3)

A person granted an exemption under subsection (1) must notify MSD as soon as practicable of any change in the person’s circumstances that may affect the person’s entitlement to the exemption.

(4)

MSD may from time to time require a person granted an exemption under subsection (1) to attend an interview with an MSD employee or a person on behalf of MSD.

Compare: 1964 No 136 s 105(1), (2), (4), (5), (5A)

159 Donors of qualifying organs exempt from work-preparation, work-test, or other obligation while recuperating

Sections 158, 160, and 411 are subject to sections 14 and 15 of the Compensation for Live Organ Donors Act 2016.

160 Procedure for grant of exemption

The procedure for the granting of an exemption under section 158, including the review, extension, variation, or revocation of the exemption, is prescribed in regulations made under section 431.

Compare: 1964 No 136 s 105(3), (6), (7)

161 Person who fails to comply with requirement to attend interview is subject to sanction

(1)

A person (P) is subject to a sanction (see section 233(e)) if MSD is satisfied that P has failed, without a good and sufficient reason, to comply with a requirement under section 158(4) to attend an interview.

(2)

However, P is not subject to a sanction under section 233(e) if P is a young person to whom subpart 3 of Part 5 applies.

Compare: 1964 No 136 ss 105(5), 116B(1)(i)

Specific obligations: young person granted youth support payment

162 Obligations of young person granted youth support payment

(1)

A young person who has been granted a youth support payment must do the following things:

(a)

be enrolled in and undertake to MSD’s satisfaction, or be available for, a full-time course of secondary instruction or tertiary education or approved training or work-based learning leading to—

(i)

NCEA level 2; or

(ii)

a qualification that in MSD’s opinion is equivalent to NCEA level 2; or

(iii)

a higher qualification:

(b)

as required by MSD, participate in and complete a budgeting programme approved by MSD for the purpose:

(c)

as required by MSD, attend and participate in any interview with an MSD employee or a person on behalf of MSD:

(d)

as required by a contracted service provider assigned to the person, attend and participate in any interview with that provider:

(e)

as required by MSD or a contracted service provider assigned to the person, report to MSD or the service provider on the person’s compliance with the obligations set out in paragraphs (a) to (d):

(f)

co-operate with MSD or a contracted service provider assigned to the person, in managing the spending of the young person’s youth payments or young parent payments:

(g)

attend and participate in regular discussions on budgeting with an MSD employee or a contracted service provider:

(h)

at budgeting discussions and otherwise as required by MSD, provide details of—

(i)

the young person’s accommodation costs, service costs, and other lawful debts and liabilities:

(ii)

how the young person has spent the young person’s youth support payments and, if applicable, young parent payments:

(i)

give to MSD or to a contracted service provider assigned to the young person (within 20 working days starting on the day after the date on which MSD informs the young person of the requirement) the following information:

(i)

details of the young person’s accommodation costs and service costs and other lawful debts and liabilities; and

(ii)

any other information reasonably required by MSD to effect money management under section 341.

(2)

In this section,—

accommodation costs, in relation to any young person, has the same meaning as in section 65 except that, in relation to a person who is a boarder or lodger in any premises, it means 100% of the amount paid for board or lodging

service costs has the same meaning as in section 65.

(3)

In this section and in sections 166 and 167,—

approved training means an employment-related training course approved by MSD

full-time course has the same meaning as in—

(a)

regulation 2(1) of the Student Allowances Regulations 1998; or

(b)

the corresponding provision of replacement regulations made under all or any of sections 645 and 646 and clause 3 of Schedule 9 of the Education and Training Act 2020.

(4)

In this section and in sections 164 to 167 and 200, work-based learning, in relation to any person, means a course or programme undertaken (or to be undertaken), in the course of or by virtue of his or her employment, that comprises, or includes a component of, practical or on-the-job vocational learning (for example, an industry training programme or apprenticeship).

(5)

A failure without good and sufficient reason to comply with obligations under this section is subject to sanctions, as provided in Part 5.

Compare: 1964 No 136 ss 157, 170(1)(a), (b), (d)–(g)

Section 162(3) full-time course paragraph (b): amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).

163 When education obligation or training obligation begins for young parent

(1)

This section applies to a young person—

(a)

who receives a young parent payment; and

(b)

who is principal caregiver of the young person’s youngest dependent child.

(2)

The obligation set out in section 162(1)(a) begins to apply to the young person only on the earlier of the following days:

(a)

the first day on which—

(i)

the child is at least 6 months old; and

(ii)

a suitable place is available for the young person in a teen parent unit; and

(iii)

MSD is satisfied that there are no special circumstances justifying the obligation’s beginning to apply later:

(b)

the day on which the child becomes 12 months old.

(3)

In this section, teen parent unit means an educational facility for teenage parents attached to a State school (within the meaning of the Education and Training Act 2020).

Compare: 1964 No 136 s 170(4)

Section 163(3): amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).

Specific obligations: social obligations of young person granted young parent payment

164 Obligations of young person granted young parent payment

(1)

A young person who has been granted a young parent payment must also do the following things:

(a)

as required by MSD, participate to MSD’s satisfaction in a parenting education programme approved by MSD for the purpose:

(b)

enrol each dependent child with a primary health care provider (for example, a primary health organisation, or a prescribed health practitioner who is a provider of primary health care):

(c)

take all reasonable steps to ensure that each dependent child under the age of 5 years is up to date with core checks under—

(i)

the programme that immediately before 15 July 2013 was known as Well Child; or

(ii)

any similar programme established in its place:

(d)

ensure that each dependent child under the age of 5 years attends an approved early childhood education programme or other suitable childcare while the young person is in education, training, work-based learning, or part-time work.

(2)

A failure without good and sufficient reason to comply with obligations under this section is subject to sanctions, as provided in Part 5.

Compare: 1964 No 136 s 170(1)(c), (2)

Specific obligations: young person aged 18 or 19 years who is receiving jobseeker support and who is at significant risk of long-term welfare dependency

165 Young person aged 18 or 19 years who is receiving jobseeker support in young person’s own right and who is at significant risk of long-term welfare dependency

(1)

This section applies to a young person (P) aged 18 or 19 years without dependent children who is receiving jobseeker support under sections 20 to 24 in the young person’s own right.

(2)

If MSD determines that P is at significant risk of long-term welfare dependency (as that risk is defined in subsection (9)), MSD may require P to receive services of a kind referred to in section 373(1)(a) (youth services).

(3)

In exercising the discretion under subsection (2), MSD may consider factors that affect MSD’s ability to provide the young person with youth services (for example, funding and capacity to provide the services in the young person’s area).

(4)

However, before requiring the young person to receive youth services, MSD must take reasonable steps to consult the young person about—

(a)

the young person’s risk of long-term welfare dependency (as that risk is defined in subsection (9)); and

(b)

the proposal to require the young person to receive youth services.

(5)

A requirement under subsection (2) that is placed on a young person who is aged 19 years at the time the requirement is made continues—

(a)

until the close of the day that is 6 months after the date on which the requirement was placed on the young person, even if the young person turns 20 during that 6-month period; or

(b)

in the case of a young person who, on the day on which he or she turns 20, is continuing in a course of education, training, or work-based learning, until,—

(i)

if the course is a course of secondary instruction or if the course ends in December, the close of the following 31 March:

(ii)

in any other case, the close of the day on which the course ends.

(6)

If paragraphs (a) and (b) of subsection (5) both apply to the young person, the requirement continues until the later of the 2 dates that apply under those paragraphs.

(7)

The following apply to a young person who is required to receive youth services under subsection (2) as if the person’s jobseeker support, or the portion of the jobseeker support or the specified beneficiary’s benefit payable to the young person under section 337, were a youth payment:

(a)

the obligations in section 162(1)(b) to (i) in addition to the young person’s work-test obligations or obligations under sections 121 to 125:

(b)

sections 55 and 289 as if the appropriate incentive payments were those set out in clauses 8 and 9 in subpart 3 of Part 6 of Schedule 4:

(d)
(e)

regulations 4 and 5 and Part 2 of the Social Security (Criteria for Incentive Payments and Money Management) Regulations 2012 (as saved by clauses 12 and 41(3) of Schedule 1), or regulations made under section 418(1)(c), (d), (k), and (l).

(8)

MSD may from time to time review a requirement placed on a young person under subsection (2) and may confirm or revoke it.

(9)

In this section, risk of long-term welfare dependency, in relation to a person, means the risk, determined using risk factors set by the Minister for the purposes of this section and section 168 by direction under section 7, that the person will, for an indefinite period, not be able to obtain full-time employment and will be likely to remain wholly or largely dependent for the person’s financial support on all or part of a main benefit under this Act.

Compare: 1964 No 136 s 171A

Obligations of, and incentives for, young person who is spouse or partner of beneficiary

166 Young person aged 16 or 17 years who has no dependent child and who is spouse or partner of specified beneficiary

(1)

This section applies to a young person (P) who—

(a)

is 16 or 17 years old; and

(b)

is the spouse or partner of a specified beneficiary; and

(c)

has no dependent children.

(2)

P must do the following things:

(a)

be enrolled in and undertake to MSD’s satisfaction, or be available for, a full-time course of secondary instruction or tertiary education or approved training or work-based learning leading to—

(i)

NCEA level 2; or

(ii)

a qualification that in MSD’s opinion is equivalent to NCEA level 2; or

(iii)

a higher qualification:

(b)

as required by MSD, participate in and complete a budgeting programme approved by MSD for the purpose:

(c)

as required by MSD, attend and participate in any interview with an MSD employee or a person on behalf of MSD:

(d)

as required by a contracted service provider assigned to the person, attend and participate in any interview with that provider:

(e)

as required by MSD or a contracted service provider assigned to P, report to MSD or the service provider on P’s compliance with the obligations set out in paragraphs (a) to (d):

(f)

co-operate with MSD, or a contracted service provider assigned to P, in managing the spending of the benefit received by P, as if that benefit were a youth support benefit:

(g)

attend and participate in regular discussions on budgeting with an MSD employee or a contracted service provider.

(3)

If P meets the criteria prescribed in regulations made for the purposes of section 55 under section 418(1)(c), P is entitled to receive the appropriate incentive payment (if any) stated in subpart 3 of Part 6 of Schedule 4 as if he or she were receiving a youth payment.

(4)

P is not subject to the work test, or to work-preparation obligations.

(5)

If P is aged under 18 years when the obligations in subsection (2) start to apply to him or her, those obligations continue—

(a)

until the close of the day that is 6 months after the date on which the obligations start to apply to P, even if he or she turns 18 during that 6-month period; or

(b)

if P, on the day when he or she turns 18, is continuing in a course of education, training, or work-based learning, until,—

(i)

if the course is a course of secondary instruction or if the course ends in December, the close of the following 31 March; or

(ii)

in any other case, the close of the day on which the course ends.

(6)

If paragraphs (a) and (b) of subsection (5) both apply to P, those obligations continue until the later of the 2 dates that apply under those paragraphs.

(7)

While P is subject to obligations under subsection (2) (being obligations to which P became subject on or after 25 October 2016), sections 341 and 342 and the obligation in section 162(1)(i) apply to P as if he or she were receiving a youth support payment.

Compare: 1964 No 136 ss 170(1)(a), (b), (d)–(g), 171(1), (4)

167 Young person aged 16 to 19 years who has dependent child and who is spouse or partner of specified beneficiary

(1)

This section applies to a young person (P) who—

(a)

is 16 to 19 years old; and

(b)

is the spouse or partner of a specified beneficiary; and

(c)

has 1 or more dependent children.

(2)

P must do the following things:

(a)

be enrolled in and undertake to MSD’s satisfaction, or be available for, a full-time course of secondary instruction or tertiary education or approved training or work-based learning leading to—

(i)

NCEA level 2; or

(ii)

a qualification that in MSD’s opinion is equivalent to NCEA level 2; or

(iii)

a higher qualification:

(b)

as required by MSD, participate in and complete a budgeting programme approved by MSD for the purpose:

(c)

as required by MSD, attend and participate in any interview with an MSD employee or a person on behalf of MSD:

(d)

as required by a contracted service provider assigned to the person, attend and participate in any interview with that provider:

(e)

as required by MSD or a contracted service provider assigned to the person, report to MSD or the service provider on the person’s compliance with the obligations set out in paragraphs (a) to (d):

(f)

co-operate with MSD, or a contracted service provider assigned to the person, in managing the spending of the benefit received by the person, as if that benefit were a youth support benefit:

(g)

attend and participate in regular discussions on budgeting with an MSD employee or a contracted service provider.

(3)

P must also—

(a)

as required by MSD, participate to MSD’s satisfaction in a parenting education programme approved by MSD for the purpose:

(b)

enrol each dependent child with a primary health care provider (for example, a primary health organisation, or a prescribed health practitioner who is a provider of primary health care):

(c)

take all reasonable steps to ensure that each dependent child under the age of 5 years is up to date with core checks under—

(i)

the programme that immediately before 15 July 2013 was known as Well Child; or

(ii)

any similar programme established in its place:

(d)

ensure that each dependent child under the age of 5 years attends an approved early childhood education programme or other suitable childcare while the young person is in education, training, work-based learning, or part-time work.

(4)

If P meets the criteria prescribed in regulations made for the purposes of section 62 under section 418(1)(d), P is entitled to receive the appropriate incentive payment (if any) stated in subpart 3 of Part 6 of Schedule 4 as if he or she were receiving a young parent payment.

(5)

P is not subject to the work test, or to work-preparation obligations.

(6)

If P is aged under 20 years when the obligations in subsections (2) and (3) start to apply to P, those obligations continue—

(a)

until the close of the day that is 6 months after the date on which the obligations started to apply to P, even if he or she turns 20 during that 6-month period; or

(b)

if P, on the day on which he or she turns 20, is continuing in a course of education, training, or work-based learning, until,—

(i)

if the course is a course of secondary instruction or if the course ends in December, the close of the following 31 March; or

(ii)

in any other case, the close of the day on which the course ends.

(7)

If paragraphs (a) and (b) of subsection (6) both apply to P, those obligations continue until the later of the 2 dates that apply under those paragraphs.

(8)

While P is subject to obligations under subsection (2) or (3) (being obligations to which P became subject on or after 25 October 2016), sections 341 and 342 and the obligation in section 162(1)(i) apply to P as if he or she were receiving a youth support payment.

Compare: 1964 No 136 ss 170(1)(a)–(f) and (g)(i), 170(2), 171(2), (5)

168 Young person aged 18 or 19 years, who is receiving jobseeker support as spouse or partner of person granted that benefit, or who is work-tested spouse or partner of specified beneficiary, and who is at significant risk of long-term welfare dependency

(1)

This section applies to a young person (P) aged 18 or 19 years without dependent children who—

(a)

is receiving jobseeker support under sections 20 to 24 as the spouse or partner of the person granted the benefit; or

(b)

is the work-tested spouse or partner of a specified beneficiary (other than a spouse or partner described in paragraph (a)).

(2)

If MSD determines that P is at significant risk of long-term welfare dependency (as that risk is defined in subsection (8)), MSD may require P to receive services of a kind referred to in section 373(1)(a) (youth services).

(3)

In exercising the discretion under subsection (2), MSD may consider factors that affect MSD’s ability to provide the young person with youth services (for example, funding and capacity to provide the services in the young person’s area).

(4)

However, before requiring the young person to receive youth services, MSD must take reasonable steps to consult the young person about—

(a)

the young person’s risk of long-term welfare dependency (as that risk is defined in subsection (8)); and

(b)

the proposal to require the young person to receive youth services.

(5)

A requirement under subsection (2) that is placed on a young person who is aged 19 years at the time the requirement is made continues—

(a)

until the close of the day that is 6 months after the date on which the requirement was placed on the young person, even if the young person turns 20 during that 6-month period; or

(b)

in the case of a young person who, on the day on which he or she turns 20, is continuing in a course of education, training, or work-based learning, until,—

(i)

if the course is a course of secondary instruction or if the course ends in December, the close of the following 31 March:

(ii)

in any other case, the close of the day on which the course ends.

(6)

The following apply to a young person who is required to receive youth services under subsection (2) as if the person’s jobseeker support, or the portion of the jobseeker support or the specified beneficiary’s benefit payable to the young person under section 337, were a youth payment:

(a)

the obligations in section 162(1)(b) to (i) in addition to the young person’s work-test obligations or obligations under sections 124 and 125:

(b)

sections 55 and 289 as if the appropriate incentive payments were those set out in clauses 8 and 9 in subpart 3 of Part 6 of Schedule 4:

(d)
(e)

regulations 4 and 5 and Part 2 of the Social Security (Criteria for Incentive Payments and Money Management) Regulations 2012 (as saved by clauses 12 and 41(3) of Schedule 1), or replacement regulations made under section 418(1)(c), (d), (l), and (m).

(7)

MSD may from time to time review a requirement placed on a young person under subsection (2) and may confirm or revoke it.

(8)

In this section, risk of long-term welfare dependency, in relation to a person, means the risk, determined using risk factors set by the Minister for the purposes of section 165 and this section by direction under section 7, that the person will, for an indefinite period, not be able to obtain full-time employment and will be likely to remain wholly or largely dependent for the person’s financial support on all or part of a main benefit under this Act.

Compare: 1964 No 136 s 171A

169 Interpretation

In sections 164 to 167,—

approved early childhood education programme means an early childhood education programme approved by regulations made under section 424

core check means a check of a child’s health and well-being that is—

(a)

done under, and identified in contract or funding arrangements as an essential part of, the programme in question; and

(b)

funded, directly or indirectly, through Vote Health

specified beneficiary means a person who is in a relationship and receives in his or her own right—

(a)

an emergency benefit, supported living payment under section 34, or jobseeker support; or

(b)

New Zealand superannuation paid at a rate specified in clause 1 of Part 2 of Schedule 1 of the New Zealand Superannuation and Retirement Income Act 2001; or

(c)

a veteran’s pension at the relationship (partner not receiving superannuation or pension) rate specified in regulations referred to in section 169 of the Veterans’ Support Act 2014.

Compare: 1964 No 136 ss 60RAB(1), (4), 157

Section 169 specified beneficiary paragraph (b): replaced, on 9 November 2020, by section 37 of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).

Section 169 specified beneficiary paragraph (c): replaced, on 9 November 2020, by section 37 of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).

Specific obligations: obligation to work with contracted service providers

170 Obligation to work with contracted service providers

(1)

This section applies to a person (P) who receives 1 of the following benefits, whether in P’s own right or on behalf of P’s spouse or partner:

(a)

jobseeker support:

(b)

sole parent support:

(c)

a supported living payment:

(d)

an emergency benefit.

(2)

P must, when required by MSD,—

(a)

attend and participate in any interview with a contracted service provider specified by MSD:

(b)

attend and participate in any assessment of P undertaken on behalf of MSD by a contracted service provider specified by MSD:

(c)

co-operate with a contracted service provider specified by MSD in facilitating the provision of the services that the provider has been contracted to provide in relation to P’s obligations under all or any of the following:

(i)

conditions of an emergency benefit that MSD imposes or determines under section 63(5):

(ii)

work-preparation obligations (see sections 124 and 125):

(iii)

obligations in relation to dependent children (see sections 131 to 135):

(iv)

work-test obligations (see sections 144 and 146):

(d)

report to a contracted service provider specified by MSD on P’s compliance with P’s obligations under this Act as often as, and in the manner that, the provider reasonably requires.

Compare: 1964 No 136 s 60GAG(1)

171 Person who fails to comply with requirement under section 170(2) subject to sanction

A person (P) is subject to a sanction (see section 233(f)) if MSD is satisfied that P has, without a good and sufficient reason, failed to comply with a requirement to take any of the steps listed in section 170(2).

Compare: 1964 No 136 s 60GAG(3)

General obligations: obligations in relation to overseas pensions

172 Interpretation

In sections 173 to 180,—

NZ benefits legislation means all or any of the following enactments:

(a)

this Act:

(c)

Part 6 of the Veterans’ Support Act 2014

overseas pension has the same meaning given to it by section 187 for the purposes of sections 187 to 190.

173 Applicant for benefit, etc, to take reasonable steps to obtain overseas pension

(1)

This section applies if—

(a)

a person (A) is an applicant for a benefit under the NZ benefits legislation; and

(b)

1 or more of the following persons may be entitled to an overseas pension or may be granted an overseas pension:

(i)

A:

(ii)

A’s spouse or partner:

(iii)

A’s dependant.

(2)

If this section applies,—

(a)

A and A’s spouse or partner must take all reasonable steps to obtain the overseas pension to which either or both of them may be entitled or that may be granted to either or both of them; and

(b)

A must take all reasonable steps to obtain the overseas pension to which A’s dependant may be entitled or that may be granted to A’s dependant.

Compare: 1964 No 136 s 69G(1)

174 MSD may give notice requiring person to take reasonable steps to obtain overseas pension

(1)

MSD may give a notice to any of the following persons requiring that person to take all reasonable steps to obtain an overseas pension to which that person may be entitled or which that person may be granted:

(a)

an applicant (A) for a benefit under the NZ benefits legislation:

(b)

a recipient (R) of a benefit under the NZ benefits legislation:

(c)

the spouse or partner of A or R.

(2)

The notice must—

(a)

be in writing; and

(b)

specify that the person to whom the notice is given must take all reasonable steps to obtain the overseas pension for that person; and

(c)

specify the period during which the person must take the necessary steps.

Compare: 1964 No 136 s 69G(2)

175 MSD may give notice requiring person to take reasonable steps to obtain overseas pension for dependant

(1)

MSD may give a notice to any of the following persons requiring that person to take all reasonable steps to obtain an overseas pension to which his or her dependant may be entitled or which his or her dependant may be granted:

(a)

an applicant for a benefit under the NZ benefits legislation:

(b)

a recipient of a benefit under any of those enactments.

(2)

The notice must—

(a)

be in writing; and

(b)

specify that the person to whom the notice is given must take all reasonable steps to obtain the overseas pension for his or her dependant; and

(c)

specify the period during which the person must take the necessary steps.

Compare: 1964 No 136 s 69G(3)

176 Failure to comply with MSD’s notice given under section 174 or 175

(1)

This section applies if a person to whom a notice has been given under section 174 or 175 fails to comply with that notice.

(2)

MSD may—

(a)

in the case of an applicant for a benefit, refuse to grant the benefit:

(b)

in the case of a beneficiary or his or her spouse or partner, suspend the benefit.

(3)

A benefit suspended under subsection (2)(b) remains suspended until—

(a)

the beneficiary or his or her spouse or partner satisfies MSD that he or she has taken all reasonable steps to obtain the overseas pension; or

(b)

MSD cancels the benefit under subsection (4).

(4)

MSD may, not less than 40 working days after suspension of a benefit under subsection (2)(b), cancel the benefit from the date that MSD determines.

Compare: 1964 No 136 s 69G(4), (5)

177 Applicant for benefit must provide information as to rate of overseas pension

(1)

This section applies if a person (A) applies for a benefit under the NZ benefits legislation.

(2)

A must provide MSD with information establishing to MSD’s satisfaction the rate of any overseas pension that is received by any of the following persons:

(a)

A:

(b)

A’s spouse or partner:

(c)

A’s dependant.

(3)

MSD may refuse to grant a benefit to an applicant who has not complied with subsection (2) within 10 working days after applying for the benefit.

Compare: 1964 No 136 s 69H(1), (2)

178 MSD may give notice requiring beneficiary to provide information as to rate of overseas pension

(1)

This section applies if a person (P) receives a benefit under the NZ benefits legislation.

(2)

MSD may give P a written notice requiring P to provide MSD with information establishing to MSD’s satisfaction the rate of any overseas pension that is received by any of the following persons:

(a)

P:

(b)

P’s spouse or partner:

(c)

P’s dependant.

Compare: 1964 No 136 s 69H(3)

179 Failure to comply with MSD’s notice given under section 178

(1)

This section applies if a person to whom a notice has been given under section 178 fails to comply with that notice within 10 working days after the notice has been given.

(2)

MSD may suspend the benefit, which remains suspended until—

(a)

the beneficiary establishes to MSD’s satisfaction the rate of the overseas pension; or

(b)

MSD cancels the benefit under subsection (3).

(3)

MSD may, not less than 40 working days after suspension of a benefit under subsection (2), cancel the benefit from the date that MSD determines.

Compare: 1964 No 136 s 69H(4), (5)

180 Meaning of rate

In sections 177 to 179, rate, in relation to an overseas pension, means the rate of that pension in the currency of the country paying that pension.

Compare: 1964 No 136 s 69H(6)

Miscellaneous

181 Application of health and safety legislation, etc

(1)

This section applies if a person (P)—

(a)

is doing work as part of a job search activity in accordance with P’s work-test obligations or under section 261 or 324; or

(b)

is a beneficiary and is doing work as part of an employment-related activity or activity in the community arranged by MSD.

(2)

The Health and Safety at Work Act 2015 and the Human Rights Act 1993 apply to P, and to the person (B) providing the work that person P is doing, as if P were—

(a)

a worker in B’s business or undertaking; or

(b)

B’s employee.

(3)

Except as provided in subsection (2), nothing in this Part creates or implies an employment relationship between P and B.

Compare: 1964 No 136 s 123C

182 Obligations suspended where MSD has exercised discretion to pay benefit while beneficiary overseas

(1)

This section applies if MSD has exercised its discretion under any regulations made under section 436 to pay a benefit to a person (P) for a period of absence by P from New Zealand.

(2)

During the period of absence for which the benefit is paid, P is not required to comply with his or her work-test or work-preparation obligations or young person or young parent obligations.

Part 4 Factors affecting benefits

Contents

183What this Part does
184Regulations may prescribe pre-benefit activities
185MSD must explain requirements
186Benefit may be subject to repayment of insurance payment
187Interpretation
188Persons affected by receipt of overseas pension
189Benefit of person affected is reduced by amount of overseas pension
190MSD may enter into arrangement with person affected by receipt of overseas pension
191Treatment of certain overseas benefits, pensions, and allowances that are not overseas pensions
[Repealed]
192MSD must reduce rates of benefits for sole parents for failure to assist child support [Repealed]
193No reduction in certain cases [Repealed]
194Additional reduction in certain cases [Repealed]
195Shared care of dependent child
196Rules for assessing which parent has greater responsibility for dependent child
197Effect of compensation or damages on application for benefit
198Loss of earnings compensation under Accident Compensation Act 2001
199Veteran’s entitlement excludes any other benefit
200Exceptions to rule that veteran’s entitlement excludes any other benefit
201Personal benefit of spouse or partner excludes benefit on behalf of spouse or partner
202MSD may refuse or cancel benefit for failure to take reasonable steps to obtain maintenance
203MSD may refuse or cancel benefit if family protection claim not pursued
204MSD may refuse or cancel benefit if person not ordinarily resident in New Zealand
205Refugee or protected person status
206Hospitalisation
207Benefit of spouse or partner increased after 13th week of hospitalisation
208Beneficiary resident in institution for treatment of alcoholism or drug addiction
209Benefit not payable to person who is subject to warrant of arrest
210Beneficiary and offence defined for section 209
211MSD must give beneficiary notice of unresolved warrant
212Requirements for unresolved warrant notice
213Immediate suspension of benefit at request of New Zealand Police
214Beneficiary and offence defined for section 213
215MSD must give beneficiary notice of immediate suspension
216Effect of non-payment or suspension of benefit
217Benefit not payable during custody in prison or on remand
218Exceptions to rule that benefit not payable during custody in prison or on remand
219General rule: benefit not payable while beneficiary absent from New Zealand
220Special absence rule: winter energy payment
[Repealed]
221Purpose of sections 222 to 224 [Repealed]
222Additional dependent child must not be taken into account in certain cases [Repealed]
223Extended application of additional dependent child rules [Repealed]
224Limited application of additional dependent child rules [Repealed]
225Basic rule: no work-tested benefit for 13 weeks after leaving employment or scheme or loss of employment due to misconduct
226Persons to whom basic rule applies
227What happens if basic rule applies
228MSD’s options in case of misconduct
229Interpretation
230How non-entitlement period, etc, affects supplementary benefits, and spouse or partner

Subpart 1—Guide to this Part

183 What this Part does

(1)

This Part sets out the factors that may affect a benefit.

(2)

The factors affecting a benefit are:

(a)

pre-benefit activities:

(b)

insurance recovery:

(c)

entitlement to an overseas pension:

(d)
[Repealed]

(e)

shared care of a dependent child:

(f)

compensation or damages:

(g)

the grant of a veteran’s entitlement:

(h)

a personal benefit excluding a benefit on behalf of a spouse or partner:

(i)

a maintenance claim:

(j)

a family protection claim:

(k)

not being ordinarily resident in New Zealand:

(l)

refugee or protected person status:

(m)

hospitalisation:

(n)

alcohol and drug treatment:

(o)

the issue of a warrant for a beneficiary’s arrest:

(p)

custody in prison or on remand:

(q)

absence from New Zealand:

(r)
[Repealed]

(s)

voluntary unemployment or loss of employment through misconduct, etc:

(t)

a non-entitlement period, stand down, or 100% suspension of benefit.

Section 183(2)(d): repealed, on 1 April 2020, by section 5 of the Social Assistance Legislation (Budget 2019 Welfare Package) Amendment Act 2019 (2019 No 23).

Section 183(2)(r): repealed, on 8 November 2021, by section 6 of the Social Security (Subsequent Child Policy Removal) Amendment Act 2021 (2021 No 38).

Subpart 2—Factors affecting benefits

Factors affecting benefits: pre-benefit activities

184 Regulations may prescribe pre-benefit activities

MSD may, in accordance with regulations made under section 432,—

(a)

require a person who contacts MSD requesting financial assistance under this Act or that person’s spouse or partner (if any) to undertake 1 or more pre-benefit activities; and

(b)

impose consequences for non-compliance, without a good and sufficient reason, with a requirement to undertake the 1 or more pre-benefit activities.

Compare: 1964 No 136 ss 11E, 11G, 11H

185 MSD must explain requirements

MSD must take reasonable and appropriate steps to make every person on whom any requirements are placed under regulations made under section 432 (the regulations) aware of the following:

(a)

the person’s obligations (as set out in the regulations) in relation to the requirements; and

(b)

the consequences (as set out in the regulations) of failure to comply with the requirements; and

(c)

when a requirement is to be, or has been, revoked, and when the revocation takes, or took, effect.

Compare: 1964 No 136 s 11F

Factors affecting benefits: insurance recovery

186 Benefit may be subject to repayment of insurance payment

MSD may, in accordance with regulations made under section 433, make the grant of a benefit or the rate of the benefit subject to repayment to MSD of all or part of an insurance payment of a kind or description, or that falls within a class or definition, prescribed by those regulations.

Compare: 1964 No 136 s 68A

Factors reducing benefits: entitlement to overseas pensions

187 Interpretation

In this section and in sections 188 to 190,—

NZ benefits legislation means all or any of the following enactments:

(a)

this Act:

(b)

Part 1 of the New Zealand Superannuation and Retirement Income Act 2001:

(c)

Part 6 of the Veterans’ Support Act 2014

overseas pension means a benefit, pension, or periodical allowance, or any part of it, that—

(a)

is granted elsewhere than in New Zealand; and

(b)

is determined by MSD to be a payment that is part of a programme that—

(i)

provides benefits, pensions, or periodical allowances for any of the contingencies for which benefits, pensions, or allowances may be paid under NZ benefits legislation; and

(ii)

is administered by or on behalf of the Government of the country from which the benefit, pension, or periodical allowance is received; and

(c)

is not a Government occupational pension (as defined in Schedule 2); and

(d)

is not determined by MSD to be in the nature of, and paid for similar purposes as,—

(i)

compensation for injury or death for which payment could be made under the Accident Compensation Act 2001 if the injury or death had occurred in New Zealand after the commencement of that Act; or

(ii)

a war pension or allowance granted under the Veterans’ Support Act 2014 of a type that would not affect any recipient’s entitlement to a benefit under sections 18 and 199 to 201 of this Act unless the pension or allowance is a pension or payment granted under Part 6 of the Veterans’ Support Act 2014; or

(iii)

a disability allowance; and

(e)

is not determined by MSD to be attributable to any voluntary contributions made by or on behalf of the person to whom it is granted or the person’s spouse, partner, or parent.

Compare: 1964 No 136 s 70(1), (1A), (1B), (2)

Section 187 overseas pension paragraph (e): inserted, on 9 November 2020, by section 38 of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).

188 Persons affected by receipt of overseas pension

A person (P) is a person affected by the receipt of an overseas pension if P is a person who is qualified to receive a benefit under the NZ benefits legislation and—

(a)

P is entitled to receive or receives an overseas pension in respect of any of the following persons:

(i)

P:

(ii)

P’s spouse or partner:

(iii)

any dependant of P; or

(b)

P’s spouse or partner is entitled to receive or receives an overseas pension; or

(c)

any of P’s dependants is entitled to receive or receives an overseas pension.

Compare: 1964 No 136 s 70(1)(a)

189 Benefit of person affected is reduced by amount of overseas pension

(1)

The rate of the benefit or benefits that would otherwise be payable under the NZ benefits legislation to a person affected by the receipt of an overseas pension must be reduced by the amount of the overseas pension as determined by MSD under regulations made under section 434.

(2)

The rate of New Zealand superannuation or a veteran’s pension that a person is qualified to receive must not be reduced under this section by any amount of an overseas pension if the New Zealand superannuation or veteran’s pension is payable to the person overseas under section 26 of the New Zealand Superannuation and Retirement Income Act 2001 or section 182 of the Veterans’ Support Act 2014.

(3)

The rate of New Zealand superannuation or a veteran’s pension, or related winter energy payment, that a person is qualified to receive must not be reduced under this section by any amount of an overseas pension that—

(a)

the person is entitled to receive or receives in respect of the person’s spouse or partner (as referred to in section 188(a)(ii)); or

(b)

the person’s spouse or partner is entitled to receive or receives (as referred to in section 188(b)).

(4)

See clause 82 of Schedule 1 in relation to the application of subsection (3) to persons who are qualified to receive New Zealand superannuation or a veteran’s pension at certain grandparented rates.

(5)

The rate of New Zealand superannuation or a veteran’s pension, or related winter energy payment, that a person is qualified to receive must not be reduced under this section by any amount of an overseas pension that—

(a)

the person is entitled to receive or receives in respect of any of the person’s dependants (as referred to in section 188(a)(iii)); or

(b)

any of the person’s dependants is entitled to receive or receives (as referred to in section 188(c)).

(6)

In this section, a person is qualified to receive a related winter energy payment if the person is entitled to receive a winter energy payment under section 72 because New Zealand superannuation or a veteran’s pension is payable to the person.

Compare: 1964 No 136 s 70(1)

Section 189(2): replaced, on 9 November 2020, by section 39 of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).

Section 189(3): inserted, on 9 November 2020, by section 39 of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).

Section 189(4): inserted, on 9 November 2020, by section 39 of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).

Section 189(5): inserted, on 9 November 2020, by section 39 of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).

Section 189(6): inserted, on 9 November 2020, by section 39 of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).

190 MSD may enter into arrangement with person affected by receipt of overseas pension

MSD may, in accordance with regulations made under section 434, enter into an arrangement with a person affected by the receipt of an overseas pension (P) to pay P the rate of a benefit or benefits under the NZ benefits legislation in consideration of MSD receiving an amount that is equivalent to the amount of the overseas pension in question.

Compare: 1964 No 136 s 70(3)–(4)

191 Treatment of certain overseas benefits, pensions, and allowances that are not overseas pensions

(1)

This section applies to a benefit, pension, or periodical allowance, or any part of it, that—

(a)

is granted elsewhere than in New Zealand; and

(b)

is administered by or on behalf of the Government of the country from which the benefit, pension, or periodical allowance is received; and

(c)

is determined by MSD to be in the nature of, and paid for similar purposes as,—

(i)

compensation for injury or death for which payment could be made under the Accident Compensation Act 2001 if the injury or death had occurred in New Zealand after the commencement of that Act; or

(ii)

a war pension or allowance granted under the Veterans’ Support Act 2014 of a type that would not affect any recipient’s entitlement to a benefit under sections 18 and 199 to 201 of this Act unless the pension or allowance is a pension or payment granted under Part 6 of the Veterans’ Support Act 2014; or

(iii)

a disability allowance.

(2)

MSD must treat a benefit, pension, or periodical allowance, or any part of it, to which this section applies as if it were in fact the relevant compensation, pension, or allowance specified in subsection (1)(c) (see, for example, sections 18, 87, and 199 to 201).

Compare: 1964 No 136 s 70(1)

Factors reducing benefits: failure to assist child support[Repealed]

Heading: repealed, on 1 April 2020, by section 6(b) of the Social Assistance Legislation (Budget 2019 Welfare Package) Amendment Act 2019 (2019 No 23).

192 MSD must reduce rates of benefits for sole parents for failure to assist child support
[Repealed]

Section 192: repealed, on 1 April 2020, by section 6(a) of the Social Assistance Legislation (Budget 2019 Welfare Package) Amendment Act 2019 (2019 No 23).

193 No reduction in certain cases
[Repealed]

Section 193: repealed, on 1 April 2020, by section 6(a) of the Social Assistance Legislation (Budget 2019 Welfare Package) Amendment Act 2019 (2019 No 23).

194 Additional reduction in certain cases
[Repealed]

Section 194: repealed, on 1 April 2020, by section 6(a) of the Social Assistance Legislation (Budget 2019 Welfare Package) Amendment Act 2019 (2019 No 23).

Factors affecting eligibility for benefit: shared care of dependent child

195 Shared care of dependent child

(1)

This section applies if—

(a)

the parents of a dependent child live apart; and

(b)

both parents receive benefits; and

(c)

each parent has the primary responsibility for the care of the child for at least 40% of the time.

(2)

In assessing the benefit and rate of benefit of each parent, MSD must treat the child as a dependent child in assessing the benefit and rate of the primarily responsible parent only.

(3)

In subsection (2), the primarily responsible parent is—

(a)

the parent who MSD decides has the greater responsibility for the child; or

(b)

if MSD is unable to make a decision under paragraph (a), the parent who MSD decides was the child’s principal caregiver immediately before the parents began living apart; or

(c)

if MSD is unable to make a decision under paragraph (a) or (b), the parent who the parents agree is the primarily responsible parent.

(4)

If the primarily responsible parent cannot be identified under subsection (3), MSD must not take the child into account in assessing the benefit and rate of benefit of either parent until the parents agree who is the primarily responsible parent.

Compare: 1964 No 136 s 70B(1), (3), (4)

196 Rules for assessing which parent has greater responsibility for dependent child

For the purposes of deciding under section 195(3)(a) which parent has greater responsibility for the child, MSD must have regard primarily to the time that the child is in the care of each parent and then to the following factors:

(a)

how the responsibility for decisions about the daily activities of the child is shared; and

(b)

who is responsible for taking the child to and from school and supervising that child’s leisure activities; and

(c)

how decisions about the education or health care of the child are made; and

(d)

the financial arrangements for the child’s material support; and

(e)

which parent pays for which expenses of the child.

Compare: 1964 No 136 s 70B(2)

Factors reducing benefits: compensation or damages

197 Effect of compensation or damages on application for benefit

(1)

This section applies if—

(a)

a person (P) applies for a benefit; and

(b)

P has been paid or has a claim for compensation or damages from any other person in respect of—

(i)

any disability caused by accident or disease; or

(ii)

wrongful or unjustifiable dismissal.

(2)

If P has been paid compensation or damages, MSD may refuse the benefit or grant a reduced benefit for the period of disability or loss of expectation of employment for which the compensation or damages have been paid or deemed by MSD to have been paid.

(3)

If P has a claim for compensation or damages, MSD may grant the benefit on the condition that MSD may require P to repay MSD all or part of the benefit out of the compensation or damages that are paid to P as a result of the claim.

(4)

If a benefit or part of a benefit is granted on the condition set out in subsection (3), the benefit or the part of it—

(a)

constitutes a charge on the compensation or damages; and

(b)

is a debt due to the Crown under regulations made under section 444 from the beneficiary or any person liable for the payment of the compensation or damages; and

(c)

is subject to recovery under regulations made under section 444 from the beneficiary or any person liable for the payment of the compensation or damages.

(5)

In this section, compensation or damages

(a)

includes any ex gratia payment made in settlement or on account of a claim for compensation or damages; but

(b)

does not include any impairment lump sum received under Schedule 1 of the Accident Compensation Act 2001.

Compare: 1964 No 136 s 71

198 Loss of earnings compensation under Accident Compensation Act 2001

(1)

This section applies if—

(a)

a person (P) is entitled to a specified benefit as defined in subsection (3); and

(b)

either of the following persons is entitled to receive or receives weekly loss of earnings compensation:

(i)

P, on P’s own account or in respect of P’s spouse or partner or of P’s dependent child:

(ii)

P’s spouse or partner.

(2)

MSD must reduce the rate of the specified benefit payable to P by the amount of weekly loss of earnings compensation received by P or P’s spouse or partner (unless this subsection does not apply because of the exception in clause 31 of Schedule 1).

(3)

In this section,—

specified benefit means a main benefit under this Act, an orphan’s benefit, an unsupported child’s benefit, and a veteran’s pension subject to abatement under section 171 of the Veterans’ Support Act 2014

weekly loss of earnings compensation means weekly compensation for loss of earnings or loss of potential earning capacity payable to a person under the Accident Compensation Act 2001.

Compare: 1964 No 136 s 71A(1)–(3)

Factors affecting benefit: veteran’s entitlement

199 Veteran’s entitlement excludes any other benefit

(1)

A person (P) who is granted an entitlement under the Veterans’ Support Act 2014 or in respect of whom an entitlement under that Act is payable is not entitled to any other benefit under this Act.

(2)

Subsection (1) is subject to section 200.

Compare: 1964 No 136 s 72(b)

200 Exceptions to rule that veteran’s entitlement excludes any other benefit

(1)

Section 199(1) does not apply if the entitlement under the Veterans’ Support Act 2014 is any of the following:

(a)

a pension or allowance granted to P on the ground of P’s disablement:

(b)

a pension or allowance under Part 6 of the Veterans’ Support Act 2014:

(c)

a surviving spouse or partner pension granted under Part 3 of the Veterans’ Support Act 2014:

(d)

an allowance for services rendered as an attendant on a disabled member of the New Zealand or any other Commonwealth forces or of the Emergency Reserve Corps or of the New Zealand mercantile marine.

(2)

Section 199(1) does not exclude a person who is paid a children’s pension under section 72 of the Veterans’ Support Act 2014 from eligibility for any of the following benefits:

(a)

a supported living payment on the ground of restricted work capacity or total blindness:

(b)

jobseeker support on the ground of health condition, injury, or disability:

(c)

a youth payment or young parent payment granted to a person who qualifies for an exemption from the obligation to undertake education or training or work-based learning (as defined in section 162(4)) on the ground of the person’s health condition (for example, sickness), injury, or disability:

(d)

a child disability allowance.

Compare: 1964 No 136 s 72(b)

Factors affecting benefit: personal benefit excludes benefit on behalf

201 Personal benefit of spouse or partner excludes benefit on behalf of spouse or partner

(1)

This section applies to a part of a benefit if the part is payable in respect of a person’s (P’s) spouse or partner.

(2)

The part must not be paid for a period when a personal benefit is payable in respect of P’s spouse or partner.

(3)

This section is subject to regulations made under section 442(2)(e) (regulations: payments: apportionment) for the purposes of section 337 (how benefits are paid).

Compare: 1964 No 136 s 72(c)

Factors affecting benefit: maintenance claim

202 MSD may refuse or cancel benefit for failure to take reasonable steps to obtain maintenance

(1)

This section applies if MSD is satisfied an applicant has failed to take reasonable steps to obtain, or has foregone rights to, maintenance the applicant may be entitled to in respect of the applicant under the Family Proceedings Act 1980 or any other Act.

(2)

MSD may refuse to grant a benefit, cancel or reduce a benefit already granted, or grant a benefit at a reduced rate.

Compare: 1964 No 136 s 74(1)(e)

Factors affecting benefit: family protection claim

203 MSD may refuse or cancel benefit if family protection claim not pursued

(1)

This section applies if a person (P) who is a beneficiary or an applicant for a benefit, in MSD’s view,—

(a)

has a tenable claim under the Family Protection Act 1955 for a share of or provision out of the estate of a deceased relative; and

(b)

has failed to take reasonable steps to advance that claim, including bringing or participating in court proceedings to enforce P’s claim.

(2)

MSD may refuse to grant the benefit, grant it at a reduced rate, or cancel a benefit already granted.

(3)

MSD may intervene in court proceedings for enforcing P’s claim under the Family Protection Act 1955 and may give evidence or make submissions in support of P’s claim.

Compare: 1964 No 136 s 73

Factors affecting benefit: person not ordinarily resident in New Zealand

204 MSD may refuse or cancel benefit if person not ordinarily resident in New Zealand

(1)

MSD may refuse to grant a benefit, cancel or reduce a benefit already granted, or grant a benefit at a reduced rate, if MSD is satisfied that the applicant, or the spouse or partner of the applicant or any person in respect of whom the benefit or any part of the benefit is or would be payable, is not ordinarily resident in New Zealand.

(2)

This section does not apply to—

(a)

New Zealand superannuation being paid overseas under section 26 of the New Zealand Superannuation and Retirement Income Act 2001 (see section 29(4A) of that Act); or

(b)

New Zealand superannuation payable to a person resident in a specified Pacific country under section 31 of the New Zealand Superannuation and Retirement Income Act 2001 (see section 35(2) of that Act); or

(c)

a veteran’s pension being paid overseas under section 182 of the Veterans’ Support Act 2014 (see section 189(3) of that Act); or

(d)

a veteran’s pension payable to a person resident in a specified Pacific country under section 191 of the Veterans’ Support Act 2014 (see section 195(2) of that Act):

(e)

a benefit payable under any reciprocity agreement with another country adopted by an order made under section 380.

Compare: 1964 No 136 s 74(1)(a); 2001 No 84 ss 29(4A), 35(2); 2014 No 56 ss 189(3), 195(2)

Factors affecting benefit: refugee or protected person status

205 Refugee or protected person status

(1)

This section applies if MSD is satisfied that a person (P) is any of the following:

(a)

a person lawfully present in New Zealand who is awaiting the outcome of the person’s claim for recognition as a refugee or a protected person:

(b)

a person who is recognised as a refugee or protected person:

(c)

a person applying for a residence class visa under the Immigration Act 2009 who is compelled to remain in New Zealand because of unforeseen circumstances.

(2)

MSD may grant P—

(a)

an emergency benefit under section 63:

(b)

temporary additional support under section 96.

(3)

This section overrides section 16 (residential requirement) and section 19 (general limitation on receiving benefit: persons unlawfully resident or present in New Zealand and persons holding temporary entry class visa).

Compare: 1964 No 136 s 74A(1A), (1B)

Factors affecting benefit: hospitalisation

206 Hospitalisation

(1)

The main benefit under this Act of a person (P) is affected by hospitalisation if P—

(a)

is in hospital for a period of more than 13 weeks; and

(b)

has a spouse or partner but no dependent children or is single.

(2)

The rate of P’s benefit after the 13th week is the rate specified in Part 12 of Schedule 4 except that MSD may pay P a higher rate after taking into account P’s personal financial circumstances.

(3)

The rate of benefit that is paid to P under subsection (2) is not affected by any absence or absences from hospital of P—

(a)

after the 13th week of hospitalisation; and

(b)

lasting no longer than 28 days.

Compare: 1964 No 136 s 75(2)–(4), (6)

207 Benefit of spouse or partner increased after 13th week of hospitalisation

(1)

This section applies if—

(a)

a person’s (P’s) main benefit under this Act is reduced under section 206; and

(b)

P has a spouse or partner who is not in hospital or has been in hospital for less than 13 weeks; and

(c)

a specified benefit is payable to or in respect of P’s spouse or partner.

(2)

The specified benefit of P’s spouse or partner must be increased, starting on the date on which P’s main benefit is reduced, by an amount equal to the difference between—

(a)

the maximum rate of that specified benefit that is payable to a single person; and

(b)

the maximum rate of that specified benefit that is payable to a person who has a spouse or partner and whose spouse or partner is receiving a main benefit of the kind reduced.

(2A)

See section 19 of the New Zealand Superannuation and Retirement Income Act 2001, under which a spouse’s or partner’s specified benefit is similarly increased when P is the beneficiary of New Zealand superannuation that is payable, as a result of P’s hospitalisation, at a reduced rate.

(3)

Nothing in this section entitles a single person or a couple who are in a relationship to be paid a greater amount of benefit, as a result of hospitalisation, than would otherwise have been payable.

(4)

In this section, specified benefit means—

(a)

a main benefit under this Act; or

(b)

New Zealand superannuation; or

(c)

a veteran’s pension.

Compare: 1964 No 136 s 75(5), (7)

Section 207(1)(c): amended, on 9 November 2020, by section 40(1) of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).

Section 207(2): replaced, on 9 November 2020, by section 40(2) of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).

Section 207(2A): inserted, on 9 November 2020, by section 40(2) of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).

Section 207(4): inserted, on 9 November 2020, by section 40(3) of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).

Factors affecting benefit: alcohol and drug treatment

208 Beneficiary resident in institution for treatment of alcoholism or drug addiction

(1)

This section applies if a person (P) is—

(a)

a beneficiary; and

(b)

a resident of an institution for the treatment of alcoholism or drug addiction.

(2)

The rate of any benefit payable to P while a resident of the institution is determined by MSD after taking into account P’s personal financial circumstances.

(3)

In subsection (1), institution for the treatment of alcoholism or drug addiction means a treatment centre under the Substance Addiction (Compulsory Assessment and Treatment) Act 2017 (the 2017 Act) (not being a psychiatric security institution within the meaning of the Mental Health (Compulsory Assessment and Treatment) Act 1992) or any institution that fulfils a similar purpose to a treatment centre under the 2017 Act.

Compare: 1964 No 136 s 75A

Factors affecting benefit: issue of warrant for beneficiary’s arrest

209 Benefit not payable to person who is subject to warrant of arrest

(1)

A benefit is not payable to a person (P) if MSD is satisfied that—

(a)

P is a beneficiary who receives a main benefit under this Act, New Zealand superannuation, or a veteran’s pension; and

(b)

criminal proceedings have been commenced against P in a New Zealand court for an offence; and

(c)

a warrant has been issued by a New Zealand court (or judge or registrar of a New Zealand court) for P’s arrest in connection with those proceedings; and

(d)

the warrant has not been resolved and at least 28 days have elapsed since the date on which the warrant was issued.

(2)

However, MSD must not stop under this section payment of P’s benefit unless MSD has first—

(a)

followed the procedure set out in sections 211 and 212; and

(b)

considered P’s response, if any, to the unresolved warrant notice given under section 211.

(3)

A benefit the payment of which is stopped under this section remains not payable until MSD is satisfied that P is not the subject of the warrant or that the warrant has been resolved.

(4)

Nothing in this section affects the power of MSD to suspend immediately the benefit of a person under section 213.

Compare: 1964 No 136 s 75B(1), (6)

210 Beneficiary and offence defined for section 209

In section 209,—

beneficiary excludes a person who is 1 of the following:

(a)

a young person (as defined in section 2(1) of the Oranga Tamariki Act 1989):

(b)

a person who falls within a class, description, or kind of beneficiary that is excluded from the operation of section 209 by regulations made under section 435

offence excludes an offence of a class, description, or kind excluded from the operation of section 209 by regulations made under section 435.

Compare: 1964 No 136 s 75B(2)

211 MSD must give beneficiary notice of unresolved warrant

As soon as practicable after MSD is notified of the issue of the warrant, MSD must give P a notice for the purposes of this section (an unresolved warrant notice) that complies with section 212.

Compare: 1964 No 136 s 75B(3)

212 Requirements for unresolved warrant notice

(1)

An unresolved warrant notice must—

(a)

specify a period of 10 working days within which the person to whom the notice is delivered (P) may—

(i)

dispute that P is the person to whom the warrant applies; or

(ii)

take steps to resolve the warrant; and

(b)

specify the steps that P may take to dispute that P is the subject of the warrant or to resolve the warrant; and

(c)

specify the consequences if P fails to resolve the warrant within the 10-working-day period.

(2)

An unresolved warrant notice that involves information supplied by the Ministry of Justice under clause 15 of Schedule 6 may be combined with a notice of adverse action given under section 181(1) of the Privacy Act 2020.

Compare: 1964 No 136 s 75B(3), (4)

Section 212(2): amended, on 1 December 2020, by section 217 of the Privacy Act 2020 (2020 No 31).

213 Immediate suspension of benefit at request of New Zealand Police

MSD may suspend immediately a benefit payable to a person (P) if—

(a)

MSD is satisfied that—

(i)

criminal proceedings have been commenced against P in a New Zealand court for an offence; and

(ii)

a warrant has been issued in New Zealand for P’s arrest in connection with those proceedings; and

(iii)

the warrant has not been resolved; and

(b)

the New Zealand Police has given MSD a written notice that—

(i)

states that the Commissioner of Police considers on reasonable grounds that P is a risk to public safety; and

(ii)

requests MSD on the ground of that risk to suspend the benefit payable to P; and

(iii)

is signed by the Commissioner or by a constable who occupies a position of the level of inspector or above.

Compare: 1964 No 136 s 75B(7)

214 Beneficiary and offence defined for section 213

In section 213,—

beneficiary excludes a person who is 1 of the following:

(a)

a young person (as defined in section 2(1) of the Oranga Tamariki Act 1989):

(b)

a person who falls within a class, description, or kind of beneficiary that is excluded from the operation of section 213 by regulations made under section 435

offence excludes an offence of a class, description, or kind excluded from the operation of section 213 by regulations made under section 435.

Compare: 1964 No 136 s 75B(2)

215 MSD must give beneficiary notice of immediate suspension

(1)

This section applies if under section 213 MSD suspends immediately a benefit payable to a person (P).

(2)

As soon as reasonably practicable, MSD must give P a written notice that—

(a)

states that the benefit has been suspended; and

(b)

states the reason for the suspension; and

(c)

specifies the steps that P may take to dispute that P is the subject of the warrant or to resolve the warrant.

Compare: 1964 No 136 s 75B(8)

216 Effect of non-payment or suspension of benefit

(1)

The following sections apply to a benefit (as if it had been suspended under section 232) that is not payable under section 209 or is suspended under section 213:

(2)

However, section 245 (which protects a spouse or partner) ceases to apply under subsection (1)(b) to the benefit at the close of the 28th day after the date on which it becomes not payable or is suspended.

(3)

Subsection (1)(b) does not apply if—

(a)

the person whose benefit is suspended under section 213 is not receiving a main benefit under this Act; or

(b)

the spouse or partner of the person whose benefit is suspended under section 213 is receiving a main benefit under this Act in the spouse’s or partner’s own right.

Compare: 1964 No 136 s 75B(9), (10)

Factors affecting benefit: custody in prison or on remand

217 Benefit not payable during custody in prison or on remand

(1)

A benefit is not payable to a person (P) for any period during which P is—

(a)

in custody in prison; or

(b)

in custody on remand; or

(c)

an escapee from custody in prison.

(2)

In this section and section 218,—

custody in prison means custody in prison under a sentence of imprisonment or preventive detention

custody on remand means custody on remand by a court pending a further appearance before a court.

(3)

For the purposes of this section,—

(a)

MSD may regard as time spent in custody in prison or custody on remand time spent by a beneficiary in a hospital during a period of custody; and

(b)

a person does not cease to be in custody by being released for a period of 24 hours or less for a purpose authorised by the Corrections Act 2004.

Compare: 1964 No 136 s 76(1), (5), (6)

218 Exceptions to rule that benefit not payable during custody in prison or on remand

(1)

MSD may continue payment to a beneficiary of New Zealand superannuation or a veteran’s pension for 2 pay days after the first day of custody in prison.

(2)

MSD may pay all or part of a benefit to—

(a)

the spouse or partner of a person in custody in prison or of an escapee from that custody; or

(b)

any responsible person for the benefit of—

(i)

that spouse or partner; or

(ii)

the dependent child or children of a person in custody in prison or of an escapee from that custody.

(3)

MSD may pay all or part of a benefit to a beneficiary in custody on remand after taking into account the beneficiary’s personal financial circumstances.

Compare: 1964 No 136 s 76(2)–(4)

Factors affecting benefit: absence from New Zealand

219 General rule: benefit not payable while beneficiary absent from New Zealand

(1)

For any period during which a person is absent from New Zealand, a benefit is not payable to that person.

(2)

However, this section does not apply to a benefit payable under—

(a)

subpart 11 of Part 2 (winter energy payment); or

(b)

sections 21 to 35 of the New Zealand Superannuation and Retirement Income Act 2001; or

(c)

sections 176 to 196 of the Veterans’ Support Act 2014; or

(d)

any reciprocity agreement with another country adopted by an order made under section 380.

(3)

This section is also subject to the exceptions, or other contrary or related provisions, contained in regulations made under section 436.

Compare: 1964 No 136 ss 61FJ(3), 77; 2001 No 84 s 35(2); 2014 No 56 s 195(2)

220 Special absence rule: winter energy payment

(1)

The winter energy payment is not payable for 1 or more days while a beneficiary is absent from New Zealand unless it is so payable under subsection (2).

(2)

The winter energy payment is payable to a beneficiary for up to a maximum of 28 days of any 1 or more absences (however long each absence lasts in total) of the beneficiary from New Zealand during the winter period (as defined in section 71) if—

(a)

the payment would be payable to the beneficiary were it not for those days of those absences; and

(b)

MSD is satisfied that those days of those absences do not affect the beneficiary’s eligibility for the payment under section 72.

(3)

Sections 219 and 436 do not apply to the winter energy payment.

Compare: 1964 No 136 s 61FJ(1), (2)

Section 220(2): replaced, on 1 May 2019, by section 5 of the Social Security (Winter Energy Payment) Amendment Act 2019 (2019 No 13).

Factors affecting benefit: additional dependent child[Repealed]

Heading: repealed, on 8 November 2021, by section 7 of the Social Security (Subsequent Child Policy Removal) Amendment Act 2021 (2021 No 38).

221 Purpose of sections 222 to 224
[Repealed]

Section 221: repealed, on 8 November 2021, by section 7 of the Social Security (Subsequent Child Policy Removal) Amendment Act 2021 (2021 No 38).

222 Additional dependent child must not be taken into account in certain cases
[Repealed]

Section 222: repealed, on 8 November 2021, by section 7 of the Social Security (Subsequent Child Policy Removal) Amendment Act 2021 (2021 No 38).

223 Extended application of additional dependent child rules
[Repealed]

Section 223: repealed, on 8 November 2021, by section 7 of the Social Security (Subsequent Child Policy Removal) Amendment Act 2021 (2021 No 38).

224 Limited application of additional dependent child rules
[Repealed]

Section 224: repealed, on 8 November 2021, by section 7 of the Social Security (Subsequent Child Policy Removal) Amendment Act 2021 (2021 No 38).

Factors affecting benefit: voluntary unemployment or loss of employment through misconduct, etc

225 Basic rule: no work-tested benefit for 13 weeks after leaving employment or scheme or loss of employment due to misconduct

(1)

A person is not entitled to a work-tested benefit for a period of 13 weeks after ceasing employment if MSD is satisfied that the person has—

(a)

left that employment voluntarily without good and sufficient reason; or

(b)

lost that employment because of misconduct as an employee.

(2)

A person is not entitled to a work-tested benefit for a period of 13 weeks after ceasing to participate in a scheme if MSD is satisfied that the person—

(a)

has been receiving payments under the scheme and has voluntarily ceased to participate in the scheme without good and sufficient reason; or

(b)

has ceased to participate in the scheme because of misconduct.

(3)

This section is subject to section 323.

Compare: 1964 No 136 s 60H(3), (4)

226 Persons to whom basic rule applies

The basic rule applies to the following persons:

(a)

a work-tested beneficiary:

(b)

an applicant for a benefit who would become a work-tested beneficiary if the benefit were granted:

(c)

the spouse or partner of an applicant for a couple rate of benefit who would become a work-tested spouse or partner if the benefit were granted:

(d)

an applicant for jobseeker support on the ground of health condition, injury, or disability who has the capacity for part-time work.

Compare: 1964 No 136 s 60H(2)

227 What happens if basic rule applies

(1)

If the basic rule applies to a person (P),—

(a)

MSD must cancel the benefit (if granted); and

(b)

must not grant P the benefit in any other case; and

(c)

P is not entitled, during the 13-week period, to the cancelled benefit or a work-tested benefit.

(2)

However, under section 228, MSD may decide not to apply subsection (1).

(3)

Subsection (1) is subject to sections 246 to 248, 320, 323, and 324.

Compare: 1964 No 136 s 60H(4), (5)

228 MSD’s options in case of misconduct

(1)

If the basic rule applies to a person (P) because of misconduct, MSD has 2 additional options:

(a)

MSD may decide that the basic rule should not apply to P; or

(b)

MSD may decide that the benefit should be paid to P, or paid without reduction, subject to the condition that MSD may require P to repay the benefit or part of it if a court or person or body authorised by law to determine the matter determines the misconduct to be proved.

(2)

Any amount that MSD requires P to repay under subsection (1)(b) is a debt due to the Crown under regulations made under section 444 and may be recovered from P under regulations made under section 444.

Compare: 1964 No 136 s 60H(6), (7)

229 Interpretation

For the purposes of this section and sections 225 to 228,—

basic rule means the rule set out in section 225

benefit means a work-tested benefit

employment,—

(a)

in the case of an applicant for a work-tested benefit, means—

(i)

full-time employment; or

(ii)

part-time employment if MSD is satisfied that, for a period of not less than 13 weeks preceding the termination of the employment, the income from that employment was sufficient to maintain the person; and

(b)

in the case of a part-time work-tested beneficiary, means regular part-time work; and

(c)

in the case of any other work-tested beneficiary, means full-time employment; but

(d)

does not include redundancy

scheme means a Government-assisted scheme that MSD considers analogous to a benefit.

Compare: 1964 No 136 s 60H(1)

Factors affecting benefits: non-entitlement period, stand down, or 100% suspension of benefit

230 How non-entitlement period, etc, affects supplementary benefits, and spouse or partner

(1)

This section applies while a person is subject to—

(a)

a non-entitlement period; or

(b)

a stand down under section 316 (start and calculation of stand-down period); or

(c)

a sanction of suspension of 100% of a benefit under section 237, 270, or 280.

(2)

The person is not entitled to receive—

(a)

an emergency benefit; or

(b)

an accommodation supplement; or

(c)

temporary additional support.

(3)

However, an accommodation supplement that an applicant was receiving immediately before the applicant applied for a benefit continues, despite subsections (1)(b) and (2)(b), at the same rate for the period of non-entitlement.

(4)

If a person’s spouse or partner is under section 316 (start and calculation of stand-down period) not entitled to a benefit, then (under this subsection, and despite any contrary provision of this Act) the person is also not entitled to the benefit.

Compare: 1964 No 136 s 80C

Part 5 Enforcement: sanctions and offences

Contents

231What this Part does
232Sanctions for failure to comply with certain obligations under this Act
233Obligations that carry sanction for failure to comply
234Hierarchy of sanctions
235Failure, and first, second, and third failure, defined for obligations other than young person or young parent obligations
236Sanction for first failure: reduction in main benefit
237Sanction for second failure: suspension of main benefit
238Sanction for third failure: cancellation of main benefit
239Reduction or suspension of reduced benefit
240Failures that can be counted
241Meaning of continuous payment
242Failures that cannot be counted
243Exclusion of sanction if failure is subject of prosecution under Education and Training Act 2020
244Variation for failure to comply with work-test obligation to accept offer of suitable employment
245Variation for breach of work-test obligation by 1 spouse or partner
246Variation for breach of work-test obligation by both partners or spouses
247Variation for suspension or cancellation of benefit or non-entitlement period affecting couple with 1 or more dependent children
248Variation for suspension or cancellation of main benefit or non-entitlement period affecting sole parent
249Good and sufficient reason for non-compliance: default by MSD
250Good and sufficient reason for failure to comply with drug-testing obligation
251Good and sufficient reason for failure to supervise dependent child
252MSD must give notice of sanction
253Notice relates to single failure
254How notice of sanction may be given
255Breach of obligation in relation to dependent children: additional steps before notice may be given
256When reduction, suspension, or cancellation of benefit takes effect
257Request for evidential drug test if sanction imposed for failing screening drug test
258Effect of request for evidential drug test
259Effect of failure of evidential drug test
260Costs of evidential drug test
261How person recomplies after failure to comply with obligation
262Impossibility of remedying failure of work-test obligation
263How person recomplies after failure to comply with drug-testing obligation
264Drug testing for purposes of recompliance
265Failure of drug test for purposes of recompliance constitutes third failure
266Costs of drug testing for purposes of recompliance
267Case management support for beneficiary in breach of obligation in relation to dependent children
268Failure, and first, second, and third failure, defined for young person or young parent obligations
269Sanction for failure to comply with young person obligation
270Sanction for first or second failure: suspension of in-hand allowance and incentive payments
271Sanction for third failure: cancellation of youth payment and incentive payments
272Effect of cancellation of youth payment on accommodation supplement or temporary additional support
273Effect of cancellation of youth payment on emergency benefit
274Effect of cancellation of youth payment on disability allowance or child disability allowance
275Sanctions for failure by young person required to receive youth services to comply with obligations: money management
276Sanctions for failure by young person required to receive youth services to comply with obligations: other cases
277Sanctions for failure by young spouse or partner of specified beneficiary to comply with obligations: money management
278Sanctions for failure by young spouse or partner of specified beneficiary to comply with obligations: other cases
279Sanction for failure to comply with young parent obligation
280Sanction for first or second failure: suspension of in-hand allowance and incentive payments
281Sanction for third failure: cancellation of young parent payment and incentive payments
282Effect of cancellation of young parent payment
283Effect of cancellation of young parent payment on accommodation supplement or temporary additional support
284Effect of cancellation of young parent payment on emergency benefit
285Effect of cancellation of young parent payment on disability allowance or child disability allowance
286How young person satisfies obligation after failure to comply
287Procedure for imposing sanctions for failure to comply with young person or young parent obligation
288Effect of regrant of youth payment on incentive payment
289MSD may cancel incentive payment
290Offences: false statements, misleading, or attempting to mislead, to receive or continue to receive benefits
291Offences: spouse or partner knowingly benefiting from excess amount obtained by beneficiary’s fraud
292Offence of demanding or accepting fee or other consideration in relation to grant of benefit
293Offence of demanding or accepting acknowledgement or undertaking
294General penalty for offences
295Time for filing charging document

Subpart 1—Guide to this Part

231 What this Part does

This Part sets out—

(a)

the sanctions that may be imposed for a breach of an obligation under this Act:

(b)

the offences that are created by this Act.

Subpart 2—Sanctions for breach of obligations other than young person or young parent obligations

Types of sanction

232 Sanctions for failure to comply with certain obligations under this Act

(1)

MSD must under this section impose a sanction if MSD considers that a person has failed without good and sufficient reason to comply with 1 or more obligations under this Act that are specified in section 233.

(2)

The sanction is 1 of the following (in accordance with section 234):

(a)

reduction in a main benefit:

(b)

suspension of a main benefit:

(c)

cancellation of a main benefit.

Compare: 1964 No 136 s 116B

233 Obligations that carry sanction for failure to comply

The obligations referred to in section 232(1) are the following:

(a)

obligation to comply with a requirement under section 118 to attend and participate in a work ability assessment or reassessment:

(b)

obligation to comply with a work-preparation obligation under section 124 or 125:

(c)

obligation to comply with an obligation under sections 131 to 135 in relation to dependent children:

(d)

obligation to comply with a work-test obligation under section 144 or 146:

Example

A work-test obligation—

(a)

under section 144(a), 144(c), 146(1)(d)(ii), or 146(1)(d)(iv); and

(b)

that, under section 147(2), includes the obligation under section 147(1) to undertake and pass a drug test.

(e)

obligation to comply with a requirement under section 158(4) to attend an interview:

(f)

obligation to comply with a requirement under section 170(2) in relation to working with contracted service providers.

Compare: 1964 No 136 s 116B

Hierarchy of sanctions

234 Hierarchy of sanctions

The sanction that MSD must impose under section 232(1) is,—

(a)

for a first failure, reduction in a main benefit:

(b)

for a second failure, suspension of a main benefit:

(c)

for a third failure, cancellation of a main benefit.

Compare: 1964 No 136 s 117

235 Failure, and first, second, and third failure, defined for obligations other than young person or young parent obligations

In this subpart,—

failure means a failure to comply with an obligation for which MSD must impose a sanction

first failure means the first failure to comply with an obligation for which MSD must impose a sanction

second failure means a failure that occurs after a person has recomplied with the obligation to which a first failure related

third failure means a failure that occurs after a person has recomplied with the obligation to which a second failure related.

Compare: 1964 No 136 s 117

236 Sanction for first failure: reduction in main benefit

(1)

For a first failure by a person (P), MSD must—

(a)

reduce P’s main benefit by half until P recomplies; and

(b)

if P fails to recomply within 4 weeks after the initial reduction takes effect, reduce P’s main benefit to zero until P complies.

(2)

This section is subject to sections 245 to 248 and 320 to 324.

Compare: 1964 No 136 s 117(1)(a)

237 Sanction for second failure: suspension of main benefit

(1)

For a second failure by a person (P), MSD must suspend P’s main benefit until P recomplies.

(2)

This section is subject to sections 245 to 248 and 320 to 324.

Compare: 1964 No 136 s 117(1)(b)

238 Sanction for third failure: cancellation of main benefit

(1)

For a third failure by a person (P), MSD must cancel P’s main benefit.

(2)

On cancellation under this section of P’s main benefit,—

(a)

P is not entitled to receive any main benefit under this Act for 13 weeks from the date of cancellation; and

(b)

to be again entitled to a main benefit under this Act, P must apply for the benefit and establish that P is eligible for it.

(3)

This section is subject to sections 245 to 248 and 320 to 324.

Compare: 1964 No 136 s 117(1)(c), (2), (3)

239 Reduction or suspension of reduced benefit

If a person’s specified benefit (as defined in section 331) is reduced under section 236 or suspended under section 237, and the person is regranted a specified benefit under section 336, the reduction or suspension continues to apply to the regranted specified benefit on and after its commencement until the person recomplies.

Compare: 1964 No 136 s 117(4)

How number of failures is counted

240 Failures that can be counted

(1)

A failure can be counted if it occurs during a period of continuous payment of a main benefit, whether or not it is the same benefit.

(2)

For the purposes of subsection (1), MSD must treat as the same benefit:

(a)

a specified benefit that expires under section 332; and

(b)

a specified benefit regranted to the beneficiary under section 336.

Compare: 1964 No 136 s 119(1)(a), (1A), (3A)

241 Meaning of continuous payment

(1)

For the purposes of section 240(1), 2 or more different main benefits paid to a beneficiary do not give rise to a period of continuous payment in respect of the beneficiary of those 2 or more different main benefits if—

(a)

one of those 2 or more different main benefits is a youth payment or a young parent payment; and

(b)

the other of, or (as the case may be) the rest of, those 2 or more different main benefits is 1 or more or all of sole parent support, supported living payment, jobseeker support, and emergency benefit.

(2)

Subsection (1) does not affect section 240(1) applying (under section 287) with all necessary modifications to the imposition of sanctions under subpart 3 in respect of failures that—

(a)

are failures by a young person who is receiving a youth payment or a young parent payment; and

(b)

are failures, without good and sufficient reason, to comply with an obligation placed on the young person by section 162 or 164; and

(c)

occur during a period of continuous payment in respect of the young person of—

(i)

the same benefit (that is, a youth payment or a young parent payment); or

(ii)

2 or more different benefits (that is a youth payment and a young parent payment, in whatever sequence paid).

(3)

In determining whether a main benefit has been continuously paid, MSD must disregard any period during which the benefit was cancelled or suspended because the beneficiary commenced in employment that continued for less than 10 working days.

(4)

In subsection (3), working day means a day on which a person was required to work in the employment in question.

Compare: 1964 No 136 s 119(1A), (1B), (3), (5)

242 Failures that cannot be counted

(1)

A failure cannot be counted if it occurred more than 12 months before the failure for which the calculation is made.

(2)

For the purposes of subsection (1), a failure occurs on the date MSD decides that the beneficiary has failed, without a good and sufficient reason, to comply with the appropriate obligation.

(3)

This section does not affect the implementation, after the 12-month period, of a sanction based on any prior calculation of the number of failures by a person to comply with the appropriate work-test obligation or other obligation imposed by this Act.

Compare: 1964 No 136 s 119(1)(b)(ii), (2), (4)

Special cases: variations on ordinary sanctions rules

243 Exclusion of sanction if failure is subject of prosecution under Education and Training Act 2020

MSD must not impose a sanction for a person’s failure to comply with the obligation under section 133(1) (which relates to the attendance of a dependent child aged 6 to 15 years at a registered school) if—

(a)

the failure is the subject of a prosecution against P for an offence under section 243(1) or 244(1) of the Education and Training Act 2020, as the case may be; and

(b)

the prosecution has not been withdrawn before being finally resolved.

Compare: 1964 No 136 s 60RC(2)

Section 243 heading: amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).

Section 243(a): amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).

244 Variation for failure to comply with work-test obligation to accept offer of suitable employment

(1)

MSD must, under section 238, cancel a main benefit for any failure to comply with the work-test obligation to accept any offer of suitable employment (see section 144(b)).

(2)

This section overrides sections 234 to 238.

Compare: 1964 No 136 s 117(1B), (1C)

245 Variation for breach of work-test obligation by 1 spouse or partner

(1)

This section applies when—

(a)

a main benefit is payable at a work-test couple rate; and

(b)

the benefit is reduced, suspended, or cancelled under section 227 or 232; and

(c)

the reduction, suspension, or cancellation results from the failure of one spouse or partner to comply with a work-test obligation or results from the application of section 227.

(2)

In a case to which this section applies,—

(a)

the reduction, suspension, or cancellation applies to only half the applicable rate of main benefit before any reduction on account of income; and

(b)

the other spouse or partner is entitled to receive half that rate (and the appropriate income test applies to that rate, but at half the abatement rate in that test).

Compare: 1964 No 136 s 120(1)

246 Variation for breach of work-test obligation by both partners or spouses

(1)

This section applies when—

(a)

a main benefit is payable at a work-test couple rate; and

(b)

the benefit is reduced, suspended, or cancelled under section 227 or 232; and

(c)

the reduction, suspension, or cancellation results from the failure of both partners or spouses to comply with a work-test obligation or results from the application of section 227; and

(d)

the couple have no dependent children.

(2)

The reduction, suspension, or cancellation in respect of each spouse or partner applies to only half the applicable rate of main benefit before reduction on account of income that is payable in respect of that spouse or partner.

(3)

Any amount of the main benefit payable to the spouses or partners after the reduction, suspension, or cancellation is applied is subject to the appropriate income test but at half the abatement rate in that test.

Compare: 1964 No 136 s 120(1A)

247 Variation for suspension or cancellation of benefit or non-entitlement period affecting couple with 1 or more dependent children

(1)

This section applies when—

(a)

a main benefit is payable at a work-test couple rate; and

(b)

the benefit is reduced, suspended, or cancelled under section 227 or 232; and

(c)

the reduction, suspension, or cancellation results from—

(i)

the failure of both spouses or partners to comply with 1 or more specified obligations under this Act; or

(ii)

the application of section 227 to both spouses or partners; and

(d)

the couple have 1 or more dependent children.

(2)

This section also applies when, under sections 225 and 227, a person with 1 or more dependent children who is in a relationship has not been granted a main benefit and is not entitled for a period of 13 weeks to a work-tested benefit that would be payable at the work-test couple rate.

(3)

In a case to which this section applies,—

(a)

the reduction, suspension, cancellation, or non-entitlement period applies to only half the applicable rate of main benefit before any reduction on account of income; and

(b)

the spouses or partners are entitled to receive half that rate (and the appropriate income test applies to that rate).

(4)

Subsection (3)(b) is subject to regulations made under section 442(2)(e) (regulations: payments: apportionment) for the purposes of section 337 (how benefits are paid).

Compare: 1964 No 136 s 120(2), (3)

248 Variation for suspension or cancellation of main benefit or non-entitlement period affecting sole parent

(1)

This section applies when the main benefit of a person (P) who is a sole parent is suspended or cancelled under section 227 or 232.

(2)

This section also applies when, under sections 225 and 227, a sole parent (P) has not been granted a main benefit and is not entitled for a period of 13 weeks to a work-tested benefit.

(3)

In a case to which this section applies,—

(a)

the suspension or cancellation applies to only half the applicable rate of main benefit before any reduction on account of income; and

(b)

P is entitled during the period of suspension, cancellation, or non-entitlement to receive only half of that rate, and the appropriate income test applies to that rate but at half the abatement rate in that income test.

Compare: 1964 No 136 s 121

Good and sufficient reason for non-compliance

249 Good and sufficient reason for non-compliance: default by MSD

A good and sufficient reason for failure to comply with a requirement or obligation set out in section 233 includes default by MSD if—

(a)

compliance was dependent on any assistance specified by MSD; and

(b)

MSD failed to provide that assistance, whether at all or to the extent or in the manner specified.

Compare: 1964 No 136 s 116C(1)

250 Good and sufficient reason for failure to comply with drug-testing obligation

(1)

A person (P) has a good and sufficient reason for not complying with a drug-testing obligation, or for failing to apply for suitable employment that requires candidates to undertake drug tests, or for both, if MSD is satisfied that P—

(a)

is addicted to, or dependent on, 1 or more controlled drugs; or

(b)

is undertaking addiction treatment; or

(c)

is awaiting assessment for, or an opportunity to undertake, addiction treatment; or

(d)

is taking, in the dosage prescribed, a controlled drug lawfully prescribed for P by a health practitioner; or

(e)

falls within another ground or grounds prescribed for the purposes of this subsection by regulations made under section 418(1)(j).

(2)

In subsection (1), addiction treatment means treatment that—

(a)

is for addiction to, or dependence on, 1 or more controlled drugs; and

(b)

is provided by a health practitioner, or other person, who is professionally engaged in the treatment or rehabilitation of people who are using, or have used, controlled drugs; and

(c)

is of a kind approved by MSD.

Compare: 1964 No 136 s 116C(2)

251 Good and sufficient reason for failure to supervise dependent child

A good and sufficient reason for failure to comply with an obligation under section 146(1)(d) includes supervision of a dependent child during hours when it would be unreasonable to expect a dependent child of the person in question to be without that person’s supervision.

Compare: 1964 No 136 s 116C(3)

Procedure for imposing sanction

252 MSD must give notice of sanction

(1)

MSD must not under section 232 reduce, suspend, or cancel a benefit payable to a person (P) unless MSD has first given P a written notice for the purposes of this section (a section 252 notice) that complies with subsection (2).

(2)

The notice must—

(a)

state that P has failed to comply with a specified obligation under this Act; and

(b)

specify the nature of P’s failure to comply; and

(c)

state that, on the basis of P’s failure, MSD is reducing, suspending, or cancelling P’s benefit; and

(d)

specify the date on which the reduction, suspension, or cancellation is to take effect; and

(e)

in the case of a reduction or suspension, state the nature and duration of the reduction or suspension; and

(f)

state that P has 5 working days from the giving of the notice to dispute the reduction, suspension, or cancellation; and

(g)

advise P to contact MSD if P wants to dispute or discuss the decision to reduce, suspend, or cancel the benefit; and

(h)

contain a clear statement of P’s right, under section 391, to apply for a review of the decision, and of the procedure for applying for a review.

Compare: 1964 No 136 s 113(1), (2)

253 Notice relates to single failure

(1)

A notice of a sanction given to a person (P) may specify more than 1 instance of failure.

(2)

Each specified instance may relate to the same obligation, or to 2 or more different obligations.

(3)

However, for the purposes of imposing a sanction, the combined specified instances are (if at least 2 of them are not disputed by P) treated as a single failure.

Compare: 1964 No 136 ss 113(2A), 117(1AA)

254 How notice of sanction may be given

(1)

MSD may give a person (P) a section 252 notice—

(a)

by delivering it to P personally; or

(b)

by delivering it to P by electronic means (with the individual’s express or inferred consent) in accordance with Part 4 (Electronic transactions) of the Contract and Commercial Law Act 2017; or

(c)

by leaving it—

(i)

at P’s usual or last known place of residence or business; or

(ii)

at the address given in the most recent application or other document received by MSD from P; or

(d)

by posting it in a letter addressed to P at that place of residence or business or at that address.

(2)

The notice is given to P when it is delivered, left, or posted, as the case may be.

Compare: 1964 No 136 s 114

255 Breach of obligation in relation to dependent children: additional steps before notice may be given

MSD must not give a person (P) a section 252 notice in relation to a failure to comply with an obligation in relation to dependent children under sections 131 to 135 unless MSD is satisfied that, on at least 3 previous occasions, MSD has had communication (of any kind, and in any manner) with P in respect of P’s compliance with, or an actual or potential failure of P to comply with, any obligation P has under sections 131 to 135.

Compare: 1964 No 136 s 60RC(3)

256 When reduction, suspension, or cancellation of benefit takes effect

The reduction, suspension, or cancellation of a benefit under section 232 must not take effect before the close of the 5 working days specified in the section 252 notice in accordance with section 252(2)(f).

Compare: 1964 No 136 s 113(3)

Evidential drug test

257 Request for evidential drug test if sanction imposed for failing screening drug test

(1)

A person (P) who has failed a screening drug test and has been given a section 252 notice (the section 252 notice) of a sanction on the basis of failing that test may request that P’s sample taken for the screening drug test be subjected to an evidential drug test.

(2)

P’s request for an evidential drug test—

(a)

must be in writing in a form approved by MSD for the purpose; and

(b)

must include the necessary consents and authorisations; and

(c)

may be made only after P has disputed the sanction specified in the section 252 notice in accordance with section 252(2)(f); and

(d)

must be made within a reasonable period, as specified by MSD, of disputing the sanction.

(3)

In this section and in section 258, necessary consents and authorisations means any consent or authority—

(a)

of any employer, training provider, or drug-testing provider; and

(b)

that MSD specifies as necessary for arranging the evidential drug test and providing the result to MSD.

(4)

This section is subject to section 149(1) (which provides that a person is taken to have failed an evidential drug test requested under this section if the person fails a screening test and waives an associated evidential drug test).

Compare: 1964 No 136 s 102D(1)–(4)

258 Effect of request for evidential drug test

(1)

A request by a person (P) for an evidential drug test that complies with the requirements set out in section 257(2) has the following effect until the result of the test is notified to MSD:

(a)

any sanction imposed on P under section 232 for failing the associated prior screening drug test is suspended:

(b)

any failure for the purposes of sections 240(1) and 262 based on P failing the associated prior screening drug test is suspended:

(c)

P is not liable under section 260 for the actual and reasonable costs (if any) of P’s associated prior screening drug test that have been reimbursed to the employer under section 151.

(2)

If a request for an evidential drug test does not comply with the requirements set out in section 257(2), MSD may proceed to impose the appropriate sanction as if the request had not been made.

(3)

This section is subject to section 149(1) (which provides that a person is taken to have failed an evidential drug test requested under section 257 if the person fails a screening test and waives an associated evidential drug test).

Compare: 1964 No 136 s 102D(5), (6)

259 Effect of failure of evidential drug test

Failure of an evidential drug test that is requested by a person under section 257 must be treated for the purposes of section 233(d) as a new failure of the beneficiary’s work-test obligations.

Compare: 1964 No 136 s 102D(8)

260 Costs of evidential drug test

(1)

MSD must pay the actual and reasonable costs incurred by a drug-testing provider in doing an evidential drug test arranged by MSD in accordance with a request under section 257.

(2)

If a person (P) fails an evidential drug test arranged by MSD in accordance with a request under section 257, the following are a debt due to the Crown from P for the purpose of regulations made under section 444:

(a)

the actual and reasonable costs incurred by a drug-testing provider in doing that evidential drug test; and

(b)

the actual and reasonable costs (if any) reimbursed to the employer under section 151 of P’s associated prior screening drug test.

Compare: 1964 No 136 ss 102C(6), 102D(7), (9)

Recompliance

261 How person recomplies after failure to comply with obligation

(1)

A person (P) recomplies after a failure to comply with an obligation if P remedies the failure.

(2)

If a section 252 notice specifies more than 1 failure of the same obligation, or a failure of more than 1 obligation, P recomplies if P remedies all the failures.

(3)

This section does not apply to recompliance with a drug-testing obligation.

Compare: 1964 No 136 s 122(1)

262 Impossibility of remedying failure of work-test obligation

If it is impossible to remedy a failure to comply with a work-test obligation, a person (P) recomplies if P undertakes, to MSD’s satisfaction, an activity that is the same as, or substantially similar to, the activity that P failed to undertake under the work-test obligation in question.

Compare: 1964 No 136 s 122(2)

263 How person recomplies after failure to comply with drug-testing obligation

(1)

In this section, drug test failure means a failure by a person (P) to comply with a drug-testing obligation.

(2)

In the case of a first drug test failure within a 12–month period, P recomplies if P undertakes, in a manner that is satisfactory to MSD, not to use any controlled drugs (except any particular controlled drugs that are lawfully prescribed, and only at the dosage that is lawfully prescribed, for P by a health practitioner).

(3)

In the case of a second drug test failure within a 12-month period of the first failure, P recomplies if P undertakes, in a manner satisfactory to MSD, to undergo drug testing in accordance with section 264.

(4)

MSD must take reasonable and appropriate steps to make a person who has given an undertaking under subsection (3) aware of the following matters:

(a)

the consequences of failing to comply with the undertaking; and

(b)

the location of an appropriate drug-testing provider; and

(c)

the matters in sections 264(5) and 266 (which relate to the costs of drug testing for the purpose of recompliance).

Compare: 1964 No 136 s 122(3), (5)

264 Drug testing for purposes of recompliance

(1)

A person (P) who has given an undertaking under section 263(3) must comply with both subsections (2) and (3).

(2)

Within 25 working days after the start date, P must attend at the location of a drug-testing provider for the purpose of undertaking a drug test that is—

(a)

a screening drug test and, if P fails that test, an evidential drug test; or

(b)

an evidential drug test without any associated prior screening drug test.

(3)

Within 30 working days after the start date, P must provide evidence to the satisfaction of MSD that P has passed a screening drug test or evidential drug test, as the case may be.

(4)

In this section, start date means the date of P’s undertaking.

(5)

A person who fails a screening drug test or an evidential drug test, or both, that is performed within the testing period may (in order to try to comply with the person’s undertaking despite that failure) undertake, at the person’s own expense, further drug testing within the testing period.

Compare: 1964 No 136 s 122A(1), (2), (4)

265 Failure of drug test for purposes of recompliance constitutes third failure

A person who fails a drug test stated in section 264(2)(a) or (b) must be treated, for purposes of the imposition of a sanction, as a person who has failed for a third time within a 12-month period to comply with a drug-testing obligation.

Compare: 1964 No 136 s 122A(5)

266 Costs of drug testing for purposes of recompliance

(1)

MSD must pay the actual and reasonable costs of a drug test undertaken on only 1 occasion in accordance with section 264(2).

(2)

Those costs are a debt due to the Crown from the beneficiary for the purpose of regulations made under section 444.

Compare: 1964 No 136 s 122A(3)

Miscellaneous

267 Case management support for beneficiary in breach of obligation in relation to dependent children

(1)

This section applies if a sanction has been imposed on a person (P) for failure to comply with an obligation in relation to dependent children.

(2)

MSD may give P a notice that MSD is to intensify its case management support for P.

(3)

If MSD has given P a notice under subsection (2), P must, as reasonably required by MSD, attend and participate in any interview with an MSD employee or a person on behalf of MSD.

Compare: 1964 No 136 s 60RC(4)–(6)

Subpart 3—Sanctions for breach of young person or young parent obligations

Interpretation

268 Failure, and first, second, and third failure, defined for young person or young parent obligations

In this subpart,—

failure means a failure to comply with a young person obligation or a young parent obligation

first failure means the first failure of a young person or young parent obligation

second failure means a failure that occurs after the young person concerned has satisfied the obligation to which a first failure related

third failure means a failure that occurs after the young person concerned has satisfied the obligation to which a second failure related

young parent obligation means—

(a)

an obligation, under Part 3, of a young person who is receiving a young parent payment; or

(b)

an obligation under section 167 (young person aged 16 to 19 years with dependent child and who is spouse or partner of specified beneficiary)

young parent payment, in relation to a young person who is the spouse or partner of a specified beneficiary and is subject to obligations under section 167, means—

(a)

a young parent payment payable under subpart 8 of Part 2; and

(b)

the portion of the specified beneficiary’s main benefit the young person receives

young person obligation means—

(a)

an obligation, under Part 3, of a young person receiving a youth payment; or

(b)

an obligation under section 166 (young person aged 16 or 17 years with no dependent child who is spouse or partner of specified beneficiary); or

(c)

for the purposes only of sections 275 and 276, an obligation, under Part 3, of a young person on whom section 165(7)(a) or 168(6)(a) imposes that obligation as if the young person’s jobseeker support, or the portion of the jobseeker support or the specified beneficiary’s benefit payable to the young person under section 337, were a youth payment

youth payment, in relation to a young person who is a spouse or partner of a specified beneficiary and is subject to obligations under section 166, means—

(a)

a youth payment payable under subpart 7 of Part 2; and

(b)

the portion of the specified beneficiary’s main benefit the young person receives.

Compare: 1964 No 136 s 176(3)

Sanctions: young person obligations

269 Sanction for failure to comply with young person obligation

The sanction for failure to comply with a young person obligation depends on whether the failure is a first or second failure or a third failure.

270 Sanction for first or second failure: suspension of in-hand allowance and incentive payments

(1)

This section applies if MSD is satisfied that a young person (P) who is receiving a youth payment has, without good and sufficient reason, failed to comply with a young person obligation for a first or second time.

(2)

For P’s first or second failure, MSD must first suspend P’s in-hand allowance and any incentive payments until P satisfies the obligation (or all the relevant obligations, if P has failed to comply with more than 1).

(3)

If P has not satisfied the obligation or obligations within 4 weeks after the suspension takes effect, MSD must suspend the whole of P’s youth payment and any incentive payments until P satisfies the obligation or obligations.

Compare: 1964 No 136 s 173(1)(a)

271 Sanction for third failure: cancellation of youth payment and incentive payments

(1)

This section applies if MSD is satisfied that a young person (P) who is receiving a youth payment has, without good and sufficient reason, failed to comply with a young person obligation for a third time.

(2)

For P’s third failure, MSD must cancel P’s youth payment and any incentive payments.

(3)

On cancellation of P’s youth payment under this section,—

(a)

P is not entitled to receive any main benefit under this Act for 13 weeks from the date of cancellation; and

(b)

to be again entitled to a main benefit under this Act, P must apply for the benefit and establish that P is eligible for it.

(4)

This section is subject to sections 320 to 324.

(5)

For the purposes of section 320, an approved activity for P during the period of non-entitlement is any of the following approved by MSD:

(a)

if P is not already in part-time work, participation in part-time work or work experience:

(b)

participation in recognised voluntary work (as defined in Schedule 2):

(c)

participation in any other activity that MSD considers will enhance skills or improve motivation.

(6)

This section overrides every other provision of this Act.

Compare: 1964 No 136 s 173(1)(b), (2)–(5)

272 Effect of cancellation of youth payment on accommodation supplement or temporary additional support

(1)

The cancellation under section 271(2) of the youth payment payable to a young person (P) has the effect set out in subsections (2) to (4).

(2)

If P is single, P is not entitled to receive an accommodation supplement or temporary additional support.

(3)

If P is not single, and P’s spouse’s or partner’s youth payment is not also cancelled under section 271(2),—

(a)

any accommodation supplement or temporary additional support otherwise payable to P must be reduced by half and be paid to P’s spouse or partner; and

(b)

any accommodation supplement or temporary additional support otherwise payable to P’s spouse or partner must be reduced by half.

(4)

If P is not single, and the youth payment of P’s spouse or partner is also cancelled under section 271(2),—

(a)

P is not entitled to receive an accommodation supplement or temporary additional support otherwise payable to P; and

(b)

P’s spouse or partner is not entitled to receive an accommodation supplement or temporary additional support payable to P’s spouse or partner.

Compare: 1964 No 136 s 175(1)

273 Effect of cancellation of youth payment on emergency benefit

A young person whose youth payment is cancelled under section 271(2) is not entitled to receive an emergency benefit.

Compare: 1964 No 136 s 175(5)

274 Effect of cancellation of youth payment on disability allowance or child disability allowance

Despite the cancellation under section 271(2) of the youth payment payable to a young person (P), P must be treated as continuing to receive a youth payment for the purposes of section 85(1)(a) and (2)(c)(i) and the cancellation has no effect on P’s entitlement to receive a disability allowance or child disability allowance.

Compare: 1964 No 136 s 175(6)

275 Sanctions for failure by young person required to receive youth services to comply with obligations: money management

(1)

This section applies to a young person—

(a)

who has been required to receive youth services under section 165(2) or 168(2); and

(b)

whose benefit is subject to money management under section 344; and

(c)

who MSD is satisfied has, without good and sufficient reason, failed to comply with an obligation that applies to the young person under section 165(7)(a) or 168(6)(a), and that is—

(i)
(ii)

the work test (in the case of a work-tested beneficiary); or

(iii)

a work-preparation obligation under section 124 or 125 (in the case of a beneficiary who is required to comply with section 124).

(2)

MSD must treat the failure as if it were a failure to comply with an obligation under section 166, and sections 270 and 271 apply (and require MSD to impose sanctions for the failure) accordingly.

Compare: 1964 No 136 s 174AB(1), (2)

276 Sanctions for failure by young person required to receive youth services to comply with obligations: other cases

(1)

This section applies to a young person—

(a)

who has been required to receive youth services under section 165(2) or 168(2); and

(b)

whose benefit is not subject to money management under section 344; and

(c)

who MSD is satisfied has, without good and sufficient reason, failed to comply with an obligation that applies to the young person under section 165(7)(a) or 168(6)(a), and that is—

(i)
(ii)

the work test (in the case of a work-tested beneficiary); or

(iii)

a work-preparation obligation under section 124 or 125 (in the case of a beneficiary who is required to comply with section 124).

(2)

MSD must treat the young person’s failure referred to in subsection (1)(c)(i), (ii), or (iii),—

(a)

in the case of a young person who is subject to the work test, as a failure to comply with the work test for the purposes of sections 233 and 236 to 239; and

(b)

in the case of a young person who is required to comply with section 124, as a failure to comply with a work-preparation obligation under section 124 or 125 for the purposes of sections 233 and 236 to 239.

(3)

MSD must, in the case of a young person who is subject to a sanction under sections 233 and 236 to 239 for a failure that subsection (2)(a) or (b) of this section requires to be treated as having occurred:

(a)

suspend the young person’s incentive payments (if any) (if that sanction is a reduction or suspension of the young person’s benefit) until the young person recomplies; or

(b)

cancel the young person’s incentive payments (if any) (if that sanction is the cancellation of the young person’s benefit).

Compare: 1964 No 136 s 174AB(3), (4)

277 Sanctions for failure by young spouse or partner of specified beneficiary to comply with obligations: money management

(1)

This section applies to a young person—

(a)

who is—

(i)

aged 16 or 17 years, without dependent children, and is the spouse or partner of a specified beneficiary; or

(ii)

aged 16 to 19 years, with a dependent child or children, and is the spouse or partner of a specified beneficiary; and

(b)

whose benefit is subject to money management; and

(c)

who MSD is satisfied has, without good and sufficient reason, failed to comply with an obligation that applies to the young person under section 166(2) or 167(2) and (3).

(2)

The sanctions in sections 270 and 271 apply (and sections 272 to 274 and 283 to 288 apply) as if the young person’s benefit were a youth support payment.

Compare: 1964 No 136 s 174A(1), (2)

278 Sanctions for failure by young spouse or partner of specified beneficiary to comply with obligations: other cases

(1)

This section applies to a young person—

(a)

who is—

(i)

aged 16 or 17 years, without dependent children, and is the spouse or partner of a specified beneficiary; or

(ii)

aged 16 to 19 years, with a dependent child or children, and is the spouse or partner of a specified beneficiary; and

(b)

whose benefit is not subject to money management; and

(c)

who MSD is satisfied has, without good and sufficient reason, failed to comply with an obligation that applies to the young person under section 166(2) or 167(2) and (3).

(2)

MSD must treat the young person’s failure referred to in subsection (1)(c),—

(a)

in the case of a young person who would, but for section 166(4) or 167(5), be subject to the work test, as a failure to comply with the work test for the purposes of sections 233 and 236 to 239; and

(b)

in the case of a young person who would, but for section 166(4) or 167(5), be required to comply with section 124, as a failure to comply with a work-preparation obligation under section 124 or 125 for the purposes of sections 233 and 236 to 239.

(3)

MSD must, in the case of a young person who is subject to a sanction under sections 233 and 236 to 239 for a failure that subsection (2)(a) or (b) of this section requires to be treated as having occurred,—

(a)

suspend the young person’s incentive payments (if any) (if that sanction is a reduction or suspension of the young person’s benefit) until the young person recomplies; or

(b)

cancel the young person’s incentive payments (if any) (if that sanction is the cancellation of the young person’s benefit).

Compare: 1964 No 136 s 174A(3), (4)

Sanctions: young parent obligations

279 Sanction for failure to comply with young parent obligation

The sanction for failure to comply with a young parent obligation depends on whether the failure is a first or second failure or a third failure.

280 Sanction for first or second failure: suspension of in-hand allowance and incentive payments

(1)

This section applies if MSD is satisfied that a young person (P) who is receiving a young parent payment has, without good and sufficient reason, failed to comply with a young parent obligation for a first or second time.

(2)

For P’s first or second failure, MSD must first suspend P’s in-hand allowance and any incentive payments until P satisfies the obligation (or all the relevant obligations, if P has failed to comply with more than 1).

(3)

If P has not satisfied the obligation or obligations within 4 weeks after the suspension takes effect, MSD must suspend the whole of P’s young parent payment and any incentive payments until P satisfies the obligation or obligations.

Compare: 1964 No 136 s 174(1)(a)

281 Sanction for third failure: cancellation of young parent payment and incentive payments

(1)

This section applies if MSD is satisfied that a young person (P) who is receiving a young parent payment has, without good and sufficient reason, failed to comply with a young parent obligation for a third time.

(2)

For P’s third failure, MSD must cancel P’s young parent payment and any incentive payments.

(3)

This section overrides every other provision of this Act.

Compare: 1964 No 136 s 174(1)(b)

282 Effect of cancellation of young parent payment

(1)

On cancellation of P’s young parent payment under section 281(2),—

(a)

P is not entitled to receive any main benefit under this Act for 13 weeks from the date of cancellation; and

(b)

to be again entitled to a main benefit under this Act, P must apply for the benefit and establish that P is eligible for it.

(2)

Subsection (1) is subject to subsection (3) and to sections 320 to 324 (restoration of entitlement after suspension, reduction, cancellation, or non-entitlement).

(3)

However, during the period of cancellation,—

(a)

P is entitled to receive half of the applicable rate of the young parent payment and only half the abatement rate in clause 11 or 12 of Part 6 of Schedule 4 (as the case requires) applies to that rate; but

(b)

no incentive payments are payable; and

(c)

the amounts payable must be paid to the young person, or on the young person’s account, personally (see section 339).

(4)

For the purposes of section 324, an approved activity for P during the period of non-entitlement is any of the following approved by MSD:

(a)

if P is not already in part-time work, participation in part-time work or work experience:

(b)

participation in recognised voluntary work (as defined in Schedule 2):

(c)

participation in any other activity that MSD considers will enhance skills or improve motivation.

(5)

In order to satisfy itself that a young person has established continued eligibility for a young parent payment, MSD may require the young person to comply with the requirements of section 297(1) as if applying for a young parent payment (and that section, with all necessary modifications, applies accordingly).

Compare: 1964 No 136 ss 174(2)–(5), 177(1), (2)

283 Effect of cancellation of young parent payment on accommodation supplement or temporary additional support

(1)

The cancellation under section 281(2) of the young parent payment payable to a young person (P) affects an entitlement to an accommodation supplement or temporary additional support as provided in subsections (3) to (5).

(2)

If P is a sole parent, cancellation has no effect on P’s entitlement to receive any accommodation supplement or temporary additional support.

(3)

If P is not single, and P’s spouse’s or partner’s young parent payment is not also cancelled under section 281(2),—

(a)

any accommodation supplement or temporary additional support otherwise payable to P must be reduced by half and be paid to P’s spouse or partner; and

(b)

any accommodation supplement or temporary additional support otherwise payable to P’s spouse or partner must be reduced by half.

(4)

If P is not single, and the young parent payment of P’s spouse or partner is also cancelled under section 281(2), P and P’s spouse or partner are each entitled to receive only half of any accommodation supplement or temporary additional support that would otherwise be payable to P or P’s spouse or partner.

Compare: 1964 No 136 s 175(2)–(4)

284 Effect of cancellation of young parent payment on emergency benefit

A young person whose young parent payment is cancelled under section 281(2) is not entitled to receive an emergency benefit.

Compare: 1964 No 136 s 175(5)

285 Effect of cancellation of young parent payment on disability allowance or child disability allowance

Despite the cancellation under section 281(2) of the young parent payment payable to a young person (P), P must be treated as continuing to receive a young parent payment for the purposes of section 85(1)(a) and (2)(c)(i) and the cancellation has no effect on P’s entitlement to receive any disability allowance or child disability allowance.

Compare: 1964 No 136 s 175(6)

How obligation satisfied

286 How young person satisfies obligation after failure to comply

For the purposes of sections 270, 271, 280, and 281, a young person (P) satisfies an obligation after failure to comply if—

(a)

P remedies the failure concerned; or

(b)

where in the opinion of MSD that it is not possible to remedy the failure, P undertakes to MSD’s satisfaction an activity that is in MSD’s opinion the same as or substantially similar to the performance of the obligation.

Compare: 1964 No 136 s 176(1)

Procedure

287 Procedure for imposing sanctions for failure to comply with young person or young parent obligation

Sections 240 to 242 (how number of failures is counted) and sections 252 to 256 (procedure for imposing sanctions) apply with all necessary modifications to the imposition of sanctions under sections 270, 271, 280, and 281.

Compare: 1964 No 136 s 176(2)

Incentive payments

288 Effect of regrant of youth payment on incentive payment

If a young person whose youth support payment has been cancelled under section 271(2) or 281(2) is again granted a youth support payment,—

(a)

except as provided in paragraph (b), any incentive payments that were payable to the young person before the cancellation must be paid with the youth payment or young parent payment; but

(b)

if the failure that led to the cancellation was a failure to comply with section 162(1)(a), an education incentive payment is payable only if the young person again meets the conditions of entitlement to that payment (see section 55 or 62, and those conditions of entitlement as they are set out in regulations made under section 418(1)(c) or (d)).

Compare: 1964 No 136 s 176(4)

289 MSD may cancel incentive payment

(1)

MSD may cancel an incentive payment if satisfied that the young person concerned has intentionally acted in a way that is inconsistent with the purpose for which it was granted.

(2)

On cancellation, the young person is not eligible to receive the incentive payment again until MSD decides that it may be regranted.

Compare: 1964 No 136 s 178

Subpart 4—Offences

290 Offences: false statements, misleading, or attempting to mislead, to receive or continue to receive benefits

(1)

A person (P) commits an offence if—

(a)

P makes a statement knowing that it is false in a material particular; and

(b)

P’s statement—

(i)

is made for the purpose of receiving or continuing to receive an advantage (whether for P or another person); or

(ii)

results in P or another person receiving or continuing to receive an advantage.

(2)

A person (P) commits an offence if—

(a)

P wilfully does or says anything, or omits to do or say anything, for the purpose of misleading or attempting to mislead a person; and

(b)

P’s act, statement, or omission—

(i)

is done or made for the purpose of receiving or continuing to receive an advantage (whether for P or another person); or

(ii)

results in P or another person receiving or continuing to receive an advantage.

(3)

In this section, advantage means—

(a)

any benefit under this Act, Part 6 of the Veterans’ Support Act 2014, or Part 1 of the New Zealand Superannuation and Retirement Income Act 2001; or

(b)

any exemption from an obligation under this Act; or

(c)

any payment from a Crown Bank Account in accordance with this Act; or

(d)

any entitlement card issued under regulations made under section 437; or

(e)

a more favourable means assessment under Part 6 (and all related provisions) of the Residential Care and Disability Support Services Act 2018 than P would otherwise have been entitled to; or

(f)

a more favourable means assessment under Part 8 (and all related provisions) of the Residential Care and Disability Support Services Act 2018 than P would otherwise have been entitled to.

(4)

A person who commits an offence under this section is liable on conviction to a penalty that is either or both:

(a)

imprisonment for a term not exceeding 12 months:

(b)

a fine not exceeding $5,000.

(5)

This section does not limit section 72 of the Residential Care and Disability Support Services Act 2018.

Compare: 1964 No 136 s 127

291 Offences: spouse or partner knowingly benefiting from excess amount obtained by beneficiary’s fraud

(1)

A person (the spouse or partner) commits an offence if the person—

(a)

is a spouse or partner of a person (the beneficiary) who obtains an excess amount by fraud; and

(b)

benefits directly or indirectly from the amount or a part of it knowing that, or being reckless about whether, the amount or part is an amount or part—

(i)

in excess of the amount to which the beneficiary is by law entitled or to which the beneficiary has no entitlement; and

(ii)

obtained by the beneficiary by fraud.

(2)

Subsection (1)(b) applies to the amount or part even if the spouse or partner—

(a)

does not benefit from it knowingly; and

(b)

does not know at all or exactly its value; and

(c)

does not know, or (as the case requires) is not reckless about, the precise way in which it was obtained by the beneficiary by fraud.

(3)

The beneficiary obtains an excess amount for the purposes of subsection (1) if the beneficiary obtains any payment, or receives any credit or advance, in excess of the amount to which the beneficiary is by law entitled or to which the beneficiary has no entitlement.

(4)

The excess amount is obtained by the beneficiary by fraud for the purposes of subsection (1) if—

(a)

the beneficiary obtained that amount by fraud; or

(b)

the beneficiary is convicted of a specified offence in respect of obtaining that amount.

(5)

In subsection (4)(b), specified offence means an offence against section 290 (offences: false statements, misleading, or attempting to mislead, to receive or continue to receive benefits) of this Act, or an offence against all or any of the following provisions of the Crimes Act 1961:

(a)

section 228 (dishonestly taking or using document):

(b)

sections 240 and 241 (obtaining by deception or causing loss by deception):

(c)
(d)

section 257 (using forged documents):

(e)

section 258 (altering, concealing, destroying, or reproducing documents with intent to deceive):

(f)

section 259 (using altered or reproduced document with intent to deceive).

(6)

Subsections (4) and (5) do not limit—

(a)

the generality of the references in subsection (1) to fraud; or

(b)

the operation of section 49 (conviction as evidence in criminal proceedings) of the Evidence Act 2006.

(7)

A person who commits an offence under this section is liable on conviction to a penalty that is either or both:

(a)

imprisonment for a term not exceeding 12 months:

(b)

a fine not exceeding $5,000.

Compare: 1964 No 136 s 127A

292 Offence of demanding or accepting fee or other consideration in relation to grant of benefit

A person commits an offence if the person demands or accepts from any applicant for a benefit or from any other person any fee or other consideration for procuring or endeavouring to procure the grant of a benefit.

Compare: 1964 No 136 s 12(3)

293 Offence of demanding or accepting acknowledgement or undertaking

(1)

A person commits an offence if the person demands or accepts from a beneficiary an acknowledgment or undertaking where that demand, acceptance, acknowledgment, or undertaking would constitute a legal or an equitable assignment of, or a charge on, a benefit if the benefit were capable of being legally assigned or charged.

(2)

A person who commits an offence under this section is liable on conviction to a fine not exceeding $100.

Compare: 1964 No 136 s 84(2)

294 General penalty for offences

(1)

This section applies to a person who commits an offence against this Act or any regulations made under this Act for which no penalty is provided elsewhere than in this section.

(2)

The person is liable on conviction to a fine not exceeding $1,000 and, if the offence is a continuing one, to a further fine not exceeding $50 for every day or part of a day during which the offence continues.

Compare: 1964 No 136 s 129

295 Time for filing charging document

(1)

The limitation period in respect of an offence against this Act or any regulations made under this Act ends on the date that is 12 months after the date on which the facts alleged in the charging document are brought to the knowledge of any officer concerned in the administration of this Act.

(2)

Subsection (1) overrides section 25 of the Criminal Procedure Act 2011.

Compare: 1964 No 136 s 128

Part 6 Administration

Contents

296What this Part does
297Application for benefit: making of, help with, lapse, and deemed receipt
298MSD must inquire into claim for benefit
299Exception during epidemic
300Information gathering, disclosure, and matching
301MSD decides whether to grant benefit
302Immediate provisional grant, and later backdating of other benefit
303After death of applicant
304Review of entitlement and rate payable
305Information for review
306No entitlement, or entitlement only at different rate
307Benefit on another eligibility ground more appropriate
308Another benefit more appropriate
309Termination of winter energy payment
310Certain benefits granted, or granted at rate, not taking into account certain insurance payments
311General
312If applicant paid, but claim fails for, ACC weekly compensation
313Benefits subject to stand down
314Work-tested benefit of applicant subject to non-entitlement period
315Exemptions from stand down, and when certain benefits commence
316Start and calculation of stand-down period
317Minister may consent to backdating
318No consent unless benefit not granted earlier because of error
319Commencement of winter energy payment
320Effect of no longer being subject to work-test or young person obligations
321Effect of no longer being subject to dependent children obligations
322Effect of no longer being subject to work-preparation obligations
323Effect of employment on non-entitlement period
324Effect of participation in certain activities on non-entitlement period
325General rule if person’s entitlement to benefit ceases
326After death of beneficiary receiving specified benefit
327Benefits payable to sole parent who stops caring for dependent child due to sudden and uncontrollable circumstances
328Supported living payment payable to beneficiary who stops caring for another person
329If child ceases to be entitled to orphan’s benefit or unsupported child’s benefit
330Supported living payment on ground of restricted work capacity or total blindness and cancelled on medical grounds
331Expiry date, and specified benefit, defined
332General rule
333Exception for specified benefit expiring in week of or before 26 December
334Exemptions
335MSD must notify or advise beneficiary
336Requirements for regrant
337How benefits are paid
338Weekly instalments
339Payment generally to, or on account of, beneficiary personally
340Required manner of payment: general
341Required manner of payment: money management for certain payments to young people
342Money management for certain payments to young people: exception if young person meets prescribed criteria for managing own payments
343Review and appeal of specified determinations made by MSD under regulations
344Young person beneficiaries may elect money management
345Credit on payment card, etc, at end of money management
346Required manner of payment: payment on death of beneficiary
347Advance payment of instalments of benefit
348Requirement for beneficiary, spouse or partner, or both, to undertake budgeting activity
349Interpretation
350MSD may pay tax on main benefit other than by tax deduction from source deduction payment
351Status of amount for income tax paid by MSD
352Recovery amount paid in excess of amount properly payable
353Debts and deductions
354Recovery of penalty from beneficiary who obtains by fraud amount in excess of entitlement
355Restriction on imposing penalty under section 354: prosecution for offence
356Restriction on imposing penalty under section 354: notice and period to respond
357Restriction on recovering penalty under section 354: decision to be final
358Recovery from spouse or partner who misleads MSD of excess amount beneficiary obtained
359Recovery from spouse or partner of apportioned excess amount beneficiary obtained by fraud
360Obtaining amount by fraud: meaning and proof
361Recovery from spouse or partner of unapportioned excess amount beneficiary obtained by fraud
362MSD’s duty to recover debts
363Duty unaffected by law on mistaken payments
364Ways MSD or person can meet requirement to give notice or other document
365Services to encourage young people to move to and remain in education, training, and employment
366Preferred suppliers: contracts
367Preferred suppliers: determinations
368Preferred suppliers: paying them disability allowance, special assistance, or advance payment
369Preferred suppliers: paying them disability allowance: exception if total benefit payments less than amount required
370Preferred suppliers: paying them disability allowance: exception if allowance granted at maximum rate
371Preferred suppliers: no appeal lies against MSD decisions
372Preferred suppliers: transitional or savings provisions directions
373Administration service providers: contracts
374Administration service providers: contents and form of contracts
375Administration service providers: adoption of existing contracts
376Administration service providers: MSD to ensure information published
377Conduct of provider of services in relation to young people to be treated for specified purposes as if MSD’s conduct
378MSD may assign contracted service provider to young person
379Minister determines rates and conditions of employment and payment
380Orders adopting reciprocity agreements
381Privacy report for orders adopting agreements with mutual assistance provisions
382Interpretation
383Inclusion of mutual assistance provisions in reciprocity agreements
384MSD may use mutual assistance provisions to recover debts
385MSD may use mutual assistance provisions to exchange information
386Adverse action against individual if discrepancy shown by information from other country
387Prosecutions and debt recovery proceedings: representation and fees
388P