Social Security Act ^NZ

This Act comes into force on 26 November 2018.

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

1. section 7 (directions):
2. sections 99 to 102 (notices):
3. section 372 (directions):
4. section 380 (orders):
5. sections 418 to 454 (regulations, directions, notices, and orders):
6. clause 54 of Schedule 1 (orders):
7. clause 68 of Schedule 1 (regulations):
8. clauses 15 and 17 of Schedule 3 (rules):
9. clauses 10(3) and 18 of Schedule 6 (regulations and orders).

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.

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

1. all other enactments relevant to the power’s exercise, and that have not yet commenced, must be treated as if they had commenced; and
2. 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.

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

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:

1. sections 109(2)(h) and (j), 165, 168, 275, and 276:
2. the cross-heading above section 165:
3. paragraph (c) of the definition of young person obligation in section 268:
4. section 431(1)(e)(v):
5. clauses 69 to 76 of Schedule 1.

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

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

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

Part 2 contains provisions on assistance, as follows:

Main assistance

1. jobseeker support:
2. sole parent support:
3. supported living payment—
   1. on the ground of restricted work capacity or total blindness; or
   2. on the ground of caring for another person:
4. orphan’s benefit:
5. unsupported child’s benefit:
6. youth payment:
7. young parent payment:
8. emergency benefit:

Supplementary assistance

9. accommodation supplement:
10. winter energy payment:
11. childcare assistance:
12. child disability allowance:
13. disability allowance:
14. funeral grants:

Hardship assistance

15. temporary additional support:

Special assistance

16. special assistance for visitors affected by overseas epidemics:
17. approved special assistance programmes (see the guide in section 15).

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

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).

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

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).

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).

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).

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

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

1. the provisions of specified former 1964 and 1990 enactments in rewritten form; and
2. intended to have the same effect as the corresponding provisions of those former enactments.

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).

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.

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

1. preferred suppliers: transitional or savings provisions directions given under section 372:
2. debt recovery directions given under regulations made under section 444 (see section 444(1), (2)(c), and (3)).

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

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

[Repealed]

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

1. determines (that is, grants, or refuses to grant, on any basis) an application for a benefit:
2. reviews (and suspends, cancels, or varies, from a date determined by MSD) a benefit already granted:
3. determines the rate of benefit (from a date, or dates, determined by MSD):
4. grants, or refuses to grant, on any basis, a payment of a funeral grant (see section 90):
5. grants or refuses to grant, on any basis, a payment under an approved special assistance programme.

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—

1. is living apart from the applicant’s or beneficiary’s spouse or partner; and
2. is not in a de facto relationship.

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.

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.

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

1. a date, determined by MSD, on which the 2 people must be taken as having entered into the de facto relationship:
2. a date, determined by MSD, on which the de facto relationship of the 2 people must be taken to have ended.

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

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:

1. 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. the Social Welfare (Reciprocity Agreements, and New Zealand Artificial Limb Service) Act 1990 (except Part 3 and Schedule 3, which are provisions rewritten and replaced by the Artificial Limb Service Act 2018).

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

The provisions of this Act—

1. are the provisions of those former enactments in rewritten form; and
2. are intended to have the same effect as the corresponding provisions of those former enactments.

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

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.

Subsections (3) to (5) do not apply—

1. to a new law listed in Schedule 11 (identified changes in legislation); or
2. 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.

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:

1. 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. the Social Welfare (Reciprocity Agreements, and New Zealand Artificial Limb Service) Act 1990 (except Part 3 and Schedule 3, which are provisions rewritten and replaced by the Artificial Limb Service Act 2018).

Schedule 12 has the following 3 parts:

1. Part A lists each provision in the Social Security Act 1964 and—
   1. indicates the corresponding provision in this Act or the Residential Care and Disability Support Services Act 2018; or
   2. states that the provision has been omitted:
2. Part B lists each provision in the Social Welfare (Reciprocity Agreements, and New Zealand Artificial Limb Service) Act 1990 and—
   1. indicates the corresponding provision in this Act or the Artificial Limb Service Act 2018; or
   2. states that the provision has been omitted:
3. Part C lists each provision in this Act and the corresponding provision in those former enactments, or states that the provision is new.

Schedule 12—

1. is provided to assist readers to identify corresponding provisions; but
2. must not be interpreted as a definitive guide to the correspondence of provisions.

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.

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

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

A person (P) meets the residential requirement if—

1. 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—
   1. 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
   2. is recognised as a refugee or a protected person in New Zealand under the Immigration Act 2009; or
2. 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.

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.

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).

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

1. is taken to meet the residential requirement; or
2. must be treated, for the purposes of satisfying the residential requirement, as being resident and present in New Zealand; or
3. must not be required to comply with the residential requirement.

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

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

1. an emergency benefit under section 63:
2. childcare assistance under section 77:
3. funeral grants under section 90:
4. temporary additional support under section 96:
5. special assistance under subpart 17.

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

In this section, the specified abatement exemptions means—

1. section 17(3) of the New Zealand Superannuation and Retirement Income Act 2001; and
2. section 173(3) of the Veterans’ Support Act 2014.

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—

1. of the CSP’s spouse or partner; and
2. under the Residential Care and Disability Support Services Act 2018.

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

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

This section is subject to section 205.

A person (P) has a work gap if—

1. P is not in full-time employment; or
2. 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).

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.

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

1. P is receiving jobseeker support at the rate in clause 1(c), (e), or (f) of Part 1 of Schedule 4; and
2. during a temporary period, P engages in full-time employment; and
3. 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.

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

1. no income; or
2. income of less than the amount that would reduce the applicable rate of jobseeker support to zero.

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.

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

1. is in hardship; and
2. is not entitled or eligible to receive any other main benefit under this Act or New Zealand superannuation or a veteran’s pension; and
3. is unable to earn enough income to support P and P’s spouse or partner (if any) and dependent children (if any).

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

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).

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—

1. 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
2. P is in a relationship.

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.

The certificate must be given by a prescribed health practitioner.

The certificate must—

1. certify that A’s capacity for work is affected by health condition, injury, or disability; and
2. 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
3. contain any other information that MSD may require.

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.

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

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

1. whether P’s capacity for work is affected by health condition, injury, or disability; and
2. the extent to which that capacity is so affected; and
3. how long that capacity is likely to continue to be affected.

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

1. the parents are living apart; and
2. each parent is the principal caregiver of 1 or more of the children; and
3. but for this section, both parents would be entitled to sole parent support.

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

1. the parent who is already receiving sole parent support in respect of any of the children; or
2. 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
3. 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.

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—

1. made by a court of competent jurisdiction; and
2. about the role of providing day-to-day care for children.

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

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

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

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.

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

1. P’s sole parent support expires but is not replaced under subsection (2) by jobseeker support; and
2. MSD must instead invite P to apply for jobseeker support.

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:

1. the obligation to work with contracted service providers:
2. work-preparation obligations:
3. social obligations of certain assistance recipients with dependent children:
4. the obligation to undergo a work ability assessment:
5. work-test obligations:
6. 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).

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.

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.

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

1. 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
2. P is not expected to live for that period because P’s condition is terminal.

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.

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.

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

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

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

1. whether P is (or whether there is doubt about whether P is)—
   1. permanently and severely restricted in P’s capacity for work; or
   2. totally blind; and
2. the grounds on which the opinion given in paragraph (a) is based.

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.

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

1. is receiving long-term residential care in a hospital or rest home because P has a disability; and
2. has not been means assessed under Part 6 of the Residential Care and Disability Support Services Act 2018.

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.

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.

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.

This section applies to a person (P) who—

1. is receiving a supported living payment granted on the ground of permanent and severe restriction of capacity for work; but
2. is with MSD’s agreement undertaking open employment for a period agreed with MSD in order to establish whether P can sustain open employment.

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).

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.

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

1. 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
2. C meets the residential requirement; and
3. C is aged—
   1. at least 18 years, in the case of an applicant without a dependent child; or
   2. at least 20 years, in any other case.

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.

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

1. 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
2. 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).

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.

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

1. that P requires C’s full-time care and attention; and
2. that, were it not for that care and attention, P would have to receive institutional care.

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.

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.

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.

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

1. is dead; or
2. is missing; or
3. has a long-term serious disablement.

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.

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

1. P is an eligible caregiver of the child; and
2. either—
   1. the child is both resident and present in New Zealand; or
   2. P has been both resident and present in New Zealand for a continuous period of 12 months at any time.

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.

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.

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—

1. care for the child; or
2. provide fully for the child’s support.

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

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.

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

1. P is an eligible caregiver of the child; and
2. either—
   1. the child is both resident and present in New Zealand; or
   2. P has been both resident and present in New Zealand for a continuous period of 12 months at any time.

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.

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.

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

1. no income; or
2. income of less than the amount that would reduce the applicable rate of youth payment to zero.

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.

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

1. none of P’s parents (and guardians (if any)) is able to support P financially; or
2. 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
3. P was, but is no longer, subject to a CYPFA order or agreement; or
4. MSD is otherwise satisfied that P cannot reasonably be expected to be financially dependent on P’s parents or any other person.

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

1. P has the option of living with a parent or guardian but chooses not to; and
2. MSD is not satisfied that there are good and sufficient reasons for P’s choice.

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.

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.

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,—

1. if the course is a course of secondary education or if the course ends in December, the close of the following 31 March:
2. in any other case, the close of the day that the course ends.

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.

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

1. sole parent support; or
2. an emergency benefit; or
3. jobseeker support; or
4. supported living payment on the ground of caring for another person.

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.

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

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

1. P is a parent or step-parent of at least 1 dependent child; and
2. P is study ready; and
3. P meets the residential requirement; and
4. P has no or minimum income; and
5. P falls into 1 of the following categories:
   1. P is aged 16 or 17 years, has never been in a relationship, and has a parental support gap:
   2. P is aged 18 or 19 years and has never been in a relationship:
   3. 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.

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.

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

1. no income; or
2. income of less than the amount that would reduce the applicable rate of young parent payment to zero.

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.

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.

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.

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,—

1. if the course is a course of secondary education or if the course ends in December, the close of the following 31 March:
2. in any other case, the close of the day that the course ends.

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.

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

1. sole parent support; or
2. an emergency benefit; or
3. jobseeker support; or
4. a supported living payment on the ground of caring for another person.

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.

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

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

1. who is unable to earn enough income for P or P’s dependants (if any); and
2. 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
3. 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.

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.

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

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.

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

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

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.

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

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

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

This section overrides every other provision of this Act.

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

1. P has accommodation costs; and
2. P meets the assets requirement (as set out in regulations made under section 423); and
3. P is not excluded on either of the following grounds:
   1. the social housing exclusion:
   2. the other funding exclusion.

In this subpart, unless the context otherwise requires,—

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—

1. rent paid in respect of premises let by or on behalf of Kāinga Ora–Homes and Communities; or
2. 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
3. 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.

In this section,—

In this section and section 68,—

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,—

1. each couple is treated as 1 joint tenant; and
2. 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
3. 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.

In this section, cash assets—

1. means—
   1. 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:
   2. money invested in securities, bonds, or debentures, or advanced on mortgage:
   3. money withdrawn from a KiwiSaver scheme registered under subpart 2 of Part 4 of the Financial Markets Conduct Act 2013:
   4. money invested in shares in a partnership or limited liability company or other incorporated or unincorporated body; but
2. 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
3. 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).

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—

1. refuse to grant an accommodation supplement; or
2. reduce the rate of any accommodation supplement already granted; or
3. cancel any accommodation supplement already granted.

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.

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

1. A is a community spouse or partner (as defined in Schedule 2); and
2. A’s spouse or partner is receiving long-term residential care in a hospital or rest home.

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.

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.

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.

In this section, specified lump sum payment means—

1. a payment of an impairment lump sum under Schedule 1 of the Accident Compensation Act 2001; or
2. a lump sum payment of an independence allowance under Part 4 of Schedule 1 of the Accident Insurance Act 1998.

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

1. 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
2. the qualifying benefit (or a portion of it) is payable to the person; and
3. the person is not disqualified under subsection (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,—

1. 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
2. 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
3. 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
4. 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
4. neither paragraph (c) nor paragraph (ca) applies to the person, and the person is—
   1. 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
   2. 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
5. the person has made, and not revoked, an election not to receive the payment (see section 73).

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.

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

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.

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

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

A winter energy payment is payable,—

1. if the person’s qualifying benefit is a main benefit under this Act, in 22 weekly instalments; or
2. if the person’s qualifying benefit is New Zealand superannuation or a veteran’s pension, in 11 fortnightly instalments.

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

1. for recipients of a main benefit under this Act, by 22; or
2. for recipients of New Zealand superannuation or a veteran’s pension, by 11.

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—

1. the person is not entitled to the payment; or
2. the payment is not payable (for example, under section 220).

An instalment must be paid on the relevant payment date.

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

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

1. is a child with a serious disability; and
2. is being cared for—
   1. in the home of C’s principal caregiver or temporary OB or UCB caregiver; or
   2. in approved weekly accommodation (and the child is cared for by C’s parent or guardian during school holidays or weekends).

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

1. that is operated by an approved voluntary organisation; and
2. the cost of which C’s parent or guardian is required to contribute to.

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

1. has a disability; and
2. because of that disability needs constant care and attention; and
3. is likely to need such care and attention permanently or for a period exceeding 12 months.

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—

1. frequent attention in connection with C’s bodily functions; or
2. substantially more attention and supervision than is normally required by a child of the same age and sex; or
3. regular supervision in order to avoid substantial danger to C or to others.

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

1. meets the criteria for eligibility in subsection (2) (or to the dependent spouse or dependent child of that person); or
2. falls into a special category of eligibility specified in regulations made under section 425.

The criteria for eligibility are that—

1. the person has a disability that has resulted in a reduction of the person’s independent function to the extent that the person requires—
   1. ongoing support to undertake the everyday functions of life; or
   2. ongoing supervision or treatment by a health practitioner; and
2. the disability is likely to continue for at least 6 months; and
3. either—
   1. the person is receiving a main benefit under this Act; or
   2. 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
4. 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.

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.

In this section, health practitioner—

1. has the same meaning as in section 5(1) of the Health Practitioners Competence Assurance Act 2003; and
2. includes a person who is receiving training or gaining experience under the supervision of a health practitioner.

A disability allowance is not payable in respect of—

1. 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
2. expenses arising from the disability of a person that are costs of residential care services provided to the person if—
   1. the person has a psychiatric, intellectual, physical, or sensory disability; and
   2. 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.

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

This section applies to a person who—

1. is in a relationship; and
2. is receiving—
   1. New Zealand superannuation or a veteran’s pension; or
   2. a supported living payment on the ground of restricted work capacity or total blindness; or
   3. jobseeker support; or
   4. a related emergency benefit; and
3. has a spouse or partner who is—
   1. 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
   2. 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.

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.

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.

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

In this subpart, unless the context otherwise requires,—

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.

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

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

1. P’s chargeable income is less than P’s essential costs; and
2. P has cash assets of not more than the prescribed amount; and
3. P meets any prescribed criteria and any other requirements set out in regulations made under section 428.

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—

1. the person’s accommodation costs are wholly or partly funded under the Pae Ora (Healthy Futures) Act 2022; or
2. 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.

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

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.

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—

1. arranged that person’s financial affairs in order to qualify for temporary additional support; or
2. failed to take reasonable steps to reduce that person’s costs or increase that person’s chargeable income; or
3. 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.

If this section applies, MSD may—

1. refuse to grant temporary additional support; or
2. grant temporary additional support at a reduced rate; or
3. reduce the rate of temporary additional support already granted; or
4. cancel any temporary additional support already granted.

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.

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

1. the day 3 months after its commencement:
2. a day stated in the notice:
3. a day stated by the Minister by further written notice.

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

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

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

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

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.

The notice must state—

1. the criteria for determining which people are given assistance; and
2. any maximum amounts of assistance to be given; and
3. if different amounts of assistance may be given to different people, the criteria for determining how much assistance people are given; and
4. for how long assistance may be given; and
5. any conditions subject to which assistance is to be given.

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

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

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

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

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

1. must be administered by MSD; and
2. 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.

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.

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

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

1. is not financially independent; and
2. is attending school or a tertiary educational establishment.

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)—

1. grant or continue to pay an orphan’s benefit or unsupported child’s benefit in respect of C:
2. pay any other benefit at the appropriate rate that includes C as a dependent child of the beneficiary.

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.

Subsection (1) does not apply to MSD.

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

1. the obligation to hold, and give MSD details of, a bank account (see section 111):
2. the obligation to supply a tax file number (see section 112):
3. the obligation to notify a change of circumstances (see section 113).

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

1. the obligation to notify absence from New Zealand (see section 114):
2. the obligation to undergo work ability assessments (see sections 115 to 119):
3. work-preparation obligations (see sections 120 to 126):
4. obligations in relation to dependent children (see sections 127 to 137):
5. work-test obligations (see sections 138 to 156):
6. youth payment obligations (see sections 162 and 163):
7. young parent obligations (see sections 164 and 169):
8. 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:
9. 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):
10. obligations (including relating to youth services) of a young person who is the spouse or partner of a beneficiary (see sections 168 and 169):
11. the obligation to work with contracted service providers (see sections 170 and 171):
12. obligations in relation to overseas pensions (see sections 172 to 180).

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,—

1. give MSD details of an existing suitable bank account held by the applicant or beneficiary; or
2. open a bank account, if the applicant or beneficiary does not hold one, and give MSD details of it.

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).

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.

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).

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.

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.

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

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

1. the change affects the beneficiary’s entitlement to receive a benefit; or
2. the change affects the rate of a benefit the beneficiary receives.

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

1. a change in the beneficiary’s relationship status, number of children, income, accommodation, or employment:
2. a change in the relationship status, income, accommodation, or employment of the beneficiary’s spouse or partner:
3. the beneficiary or his or her spouse or partner becoming entitled to an overseas pension.

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

1. entering into a marriage, civil union, or de facto relationship; or
2. ceasing to live together with, or separating from, a spouse or civil union partner; or
3. 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
4. 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).

Subsection (1) is satisfied for a change in a beneficiary’s circumstances that is an information share child support payment made to a beneficiary if the payment is disclosed to MSD under a specified approved information sharing agreement.

In this section,—

However, subsection (4) does not apply if—

1. MSD has in some way notified the beneficiary of the income charging of the payment under Schedule 3 (see the examples given in subsection (7)); and
2. the beneficiary does not notify MSD without delay of a change in the beneficiary’s circumstances that relates to the payment and that is or may be all or any of the review grounds specified in section 304A(1)(a) to (g).

For the purposes of subsection (6)(a), examples of MSD in some way notifying the beneficiary of the income charging under Schedule 3 of the payment include MSD notifying the beneficiary—

1. that information share child support payments are, or will be, charged as income of the beneficiary under Schedule 3; or
2. of a change in amounts or timing of information share child support payments; or
3. of a change in how information share child support payments are charged as income of the beneficiary under Schedule 3.

For the purposes of subsection (6)(b), the review grounds specified in section 304A(1)(a) to (g) include, without limitation, any 1 or more additional grounds prescribed by regulations made under section 418(1)(ja).

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

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

1. subpart 11 of Part 2 (winter energy payment); or
2. sections 21 to 35 of the New Zealand Superannuation and Retirement Income Act 2001; or
3. sections 176 to 196 of the Veterans’ Support Act 2014; or
4. any reciprocity agreement with another country adopted by an order made under section 380.

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:

1. whether the person is entitled to a benefit and, if so, what kind of benefit:
2. if a person granted jobseeker support is subject to a work-test obligation, whether that obligation should be deferred:
3. 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:
4. whether the person should be exempted from a work-preparation or work-test obligation:
5. whether the person has the capacity to comply with a work-preparation or work-test obligation:
6. what is suitable employment for the person for the purposes of section 145:
7. what are suitable activities for the person for the purposes of section 125(d) or 146(1)(d):
8. what assistance and supports are necessary for the person to obtain employment.

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

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.

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

Those obligations are intended—

1. to facilitate the movement into ongoing employment (as their parenting responsibilities and individual circumstances allow) of beneficiaries to whom those obligations apply; and
2. to provide opportunities for them to improve their capabilities and preparation for employment; and
3. to improve social and economic outcomes for them and their dependent children.

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:

1. a person who receives a benefit under section 34 (supported living payment on the ground of restricted work capacity or total blindness):
2. a person who receives a benefit under section 40 (supported living payment on the ground of caring for another person).

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.

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—

1. the beneficiary receives jobseeker support, sole parent support, a supported living payment, or an emergency benefit; and
2. the spouse or partner is not a young person subject to the obligations set out in section 166 or 167.

Subsection (1) applies whether or not—

1. the dependent child of the beneficiary is also the dependent child of the spouse or partner:
2. the spouse or partner receives all or any of the benefit instead of, or as well as, the beneficiary.

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—

1. the beneficiary receives jobseeker support, sole parent support, a supported living payment, or an emergency benefit; and
2. the spouse or partner is not a young person subject to the obligations set out in section 166 or 167.

Subsection (1) applies whether or not—

1. the dependent child of the spouse or partner is also the dependent child of the beneficiary:
2. the spouse or partner receives all or any of the benefit instead of, or as well as, the beneficiary.

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

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

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).

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—

1. 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
2. is enrolled at and regularly attends a registered school (as defined in regulations made under section 430).

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—

1. regulation 6(2)(c) of the Social Security (Exemptions under Section 105) Regulations 1998 (as saved by clause 27 of Schedule 1); or
2. any regulations made under section 431(1)(e).

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).

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.

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).

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—

1. the programme that immediately before 15 July 2013 was known as Well Child; or
2. any similar programme established in its place.

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.

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

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

1. approved early childhood education programme:
2. core check:
3. registered school.

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,—

1. prescribe, for all or any approved early childhood programmes, target numbers of hours of attendance:
2. prescribe different minimum numbers of hours of attendance for all or any different approved early childhood programmes.

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

1. a person who receives jobseeker support (other than jobseeker support on the ground of health condition, injury, or disability):
2. 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:
3. a person who—
   1. is the work-tested spouse or partner of a person who receives jobseeker support; and
   2. is not the spouse or partner of a young person to whom section 166 or 167 applies:
4. a work-tested sole parent support beneficiary:
5. 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:
6. 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.

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—

1. 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
2. full-time employment, in any other case.

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).

MSD—

1. must make a determination under subsection (1) promptly after granting the person that benefit; and
2. may make a determination under subsection (1) at any later time.

A determination under subsection (1) must be made after having had regard to—

1. the relevant certificate given under section 27, and any relevant report obtained under section 28; and
2. any relevant work ability assessment under sections 115 to 119.

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.

The date specified in a written notice given under subsection (4),—

1. in the case of a new grant of jobseeker support, may be the date on which that benefit is first paid; but
2. in any case, must not be a date before the date on which MSD reasonably considers the person will receive the notice.

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).

An obligation set out in section 144 or 146 applies on—

1. a day that is a day between Monday and Friday (inclusive); or
2. a prescribed day of the week (see section 418(1)(e)).

An obligation set out in section 144 or 146 applies,—

1. 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:
2. in any other case, from the date on which the relevant benefit is first paid.

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

1. undertake planning for employment:
2. attend and participate in an interview with an MSD employee or a person on behalf of MSD:
3. 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:
4. 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:
   1. a work assessment:
   2. a programme or seminar to increase particular skills or enhance motivation:
   3. a work-experience or work-exploration activity:
   4. employment-related training:
   5. any other activity (including rehabilitation) other than medical treatment, recognised voluntary work, or activity in the community:
5. undertake and pass a drug test in accordance with sections 147 to 151.

Subsection (1)(d) applies whether or not a person is subject to a sanction for failing to comply with a work-test obligation.

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.

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—

1. a potential employer or training provider requests the drug test; and
2. the drug test is lawfully requested and undertaken; and
3. the drug test is a compliant drug test (see section 148).

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).

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.

A drug test under this section is presumed to be lawfully requested and undertaken unless the contrary is proved.

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.

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.

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).

Consent of a person who has undertaken a drug test under section 147 to disclosure under subsection (2) is not required.

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.

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).

MSD may defer a person’s work-test obligations in accordance with regulations made under section 431 permitting it to do so.

MSD must defer a person’s work-test obligations in accordance with regulations made under section 431 requiring it to do so.

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.

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.

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.

MSD may grant the exemption for a period set by MSD, and may make the exemption subject to conditions set by MSD.

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.

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.

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.

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.

A young person who has been granted a youth support payment must do the following things:

1. 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—
   1. NCEA level 2; or
   2. a qualification that in MSD’s opinion is equivalent to NCEA level 2; or
   3. a higher qualification:
2. as required by MSD, participate in and complete a budgeting programme approved by MSD for the purpose:
3. as required by MSD, attend and participate in any interview with an MSD employee or a person on behalf of MSD:
4. as required by a contracted service provider assigned to the person, attend and participate in any interview with that provider:
5. 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):
6. 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:
7. attend and participate in regular discussions on budgeting with an MSD employee or a contracted service provider:
8. at budgeting discussions and otherwise as required by MSD, provide details of—
   1. the young person’s accommodation costs, service costs, and other lawful debts and liabilities:
   2. how the young person has spent the young person’s youth support payments and, if applicable, young parent payments:
9. 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:
   1. details of the young person’s accommodation costs and service costs and other lawful debts and liabilities; and
   2. any other information reasonably required by MSD to effect money management under section 341.

In this section,—

In this section and in sections 166 and 167,—

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).

A failure without good and sufficient reason to comply with obligations under this section is subject to sanctions, as provided in Part 5.

This section applies to a young person—

1. who receives a young parent payment; and
2. who is principal caregiver of the young person’s youngest dependent child.

The obligation set out in section 162(1)(a) begins to apply to the young person only on the earlier of the following days:

1. the first day on which—
   1. the child is at least 6 months old; and
   2. a suitable place is available for the young person in a teen parent unit; and
   3. MSD is satisfied that there are no special circumstances justifying the obligation's beginning to apply later:
2. the day on which the child becomes 12 months old.

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).

A young person who has been granted a young parent payment must also do the following things:

1. as required by MSD, participate to MSD’s satisfaction in a parenting education programme approved by MSD for the purpose:
2. 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):
3. take all reasonable steps to ensure that each dependent child under the age of 5 years is up to date with core checks under—
   1. the programme that immediately before 15 July 2013 was known as Well Child; or
   2. any similar programme established in its place:
4. 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.

A failure without good and sufficient reason to comply with obligations under this section is subject to sanctions, as provided in Part 5.

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.

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).

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).

However, before requiring the young person to receive youth services, MSD must take reasonable steps to consult the young person about—

1. the young person’s risk of long-term welfare dependency (as that risk is defined in subsection (9)); and
2. the proposal to require the young person to receive youth services.

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—

1. 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
2. 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,—
   1. if the course is a course of secondary instruction or if the course ends in December, the close of the following 31 March:
   2. in any other case, the close of the day on which the course ends.

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.

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:

1. 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:
2. 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:
3. section 288:
4. sections 341 and 378:
5. 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).

MSD may from time to time review a requirement placed on a young person under subsection (2) and may confirm or revoke it.

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.

This section applies to a young person (P) who—

1. is 16 or 17 years old; and
2. is the spouse or partner of a specified beneficiary; and
3. has no dependent children.

P must do the following things:

1. 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—
   1. NCEA level 2; or
   2. a qualification that in MSD’s opinion is equivalent to NCEA level 2; or
   3. a higher qualification:
2. as required by MSD, participate in and complete a budgeting programme approved by MSD for the purpose:
3. as required by MSD, attend and participate in any interview with an MSD employee or a person on behalf of MSD:
4. as required by a contracted service provider assigned to the person, attend and participate in any interview with that provider:
5. 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):
6. 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:
7. attend and participate in regular discussions on budgeting with an MSD employee or a contracted service provider.

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.

P is not subject to the work test, or to work-preparation obligations.

If P is aged under 18 years when the obligations in subsection (2) start to apply to him or her, those obligations continue—

1. 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
2. if P, on the day when he or she turns 18, is continuing in a course of education, training, or work-based learning, until,—
   1. if the course is a course of secondary instruction or if the course ends in December, the close of the following 31 March; or
   2. in any other case, the close of the day on which the course ends.

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.

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.

This section applies to a young person (P) who—

1. is 16 to 19 years old; and
2. is the spouse or partner of a specified beneficiary; and
3. has 1 or more dependent children.

P must do the following things:

1. 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—
   1. NCEA level 2; or
   2. a qualification that in MSD’s opinion is equivalent to NCEA level 2; or
   3. a higher qualification:
2. as required by MSD, participate in and complete a budgeting programme approved by MSD for the purpose:
3. as required by MSD, attend and participate in any interview with an MSD employee or a person on behalf of MSD:
4. as required by a contracted service provider assigned to the person, attend and participate in any interview with that provider:
5. 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):
6. 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:
7. attend and participate in regular discussions on budgeting with an MSD employee or a contracted service provider.

P must also—

1. as required by MSD, participate to MSD’s satisfaction in a parenting education programme approved by MSD for the purpose:
2. 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):
3. take all reasonable steps to ensure that each dependent child under the age of 5 years is up to date with core checks under—
   1. the programme that immediately before 15 July 2013 was known as Well Child; or
   2. any similar programme established in its place:
4. 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.

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.

P is not subject to the work test, or to work-preparation obligations.

If P is aged under 20 years when the obligations in subsections (2) and (3) start to apply to P, those obligations continue—

1. 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
2. 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,—
   1. if the course is a course of secondary instruction or if the course ends in December, the close of the following 31 March; or
   2. in any other case, the close of the day on which the course ends.

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.

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.

This section applies to a young person (P) aged 18 or 19 years without dependent children who—

1. is receiving jobseeker support under sections 20 to 24 as the spouse or partner of the person granted the benefit; or
2. is the work-tested spouse or partner of a specified beneficiary (other than a spouse or partner described in paragraph (a)).

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).

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).

However, before requiring the young person to receive youth services, MSD must take reasonable steps to consult the young person about—

1. the young person’s risk of long-term welfare dependency (as that risk is defined in subsection (8)); and
2. the proposal to require the young person to receive youth services.

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—

1. 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
2. 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,—
   1. if the course is a course of secondary instruction or if the course ends in December, the close of the following 31 March:
   2. in any other case, the close of the day on which the course ends.

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:

1. 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:
2. 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:
3. section 288:
4. sections 339, 340, 341, and 378:
5. 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).

MSD may from time to time review a requirement placed on a young person under subsection (2) and may confirm or revoke it.

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.

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:

1. jobseeker support:
2. sole parent support:
3. a supported living payment:
4. an emergency benefit.

P must, when required by MSD,—

1. attend and participate in any interview with a contracted service provider specified by MSD:
2. attend and participate in any assessment of P undertaken on behalf of MSD by a contracted service provider specified by MSD:
3. 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:
   1. conditions of an emergency benefit that MSD imposes or determines under section 63(5):
   2. work-preparation obligations (see sections 124 and 125):
   3. obligations in relation to dependent children (see sections 131 to 135):
   4. work-test obligations (see sections 144 and 146):
4. 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.

This section applies if—

1. a person (A) is an applicant for a benefit under the NZ benefits legislation; and
2. 1 or more of the following persons may be entitled to an overseas pension or may be granted an overseas pension:
   1. A:
   2. A’s spouse or partner:
   3. A’s dependant.

If this section applies,—

1. 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
2. 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.

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:

1. an applicant (A) for a benefit under the NZ benefits legislation:
2. a recipient (R) of a benefit under the NZ benefits legislation:
3. the spouse or partner of A or R.

The notice must—

1. be in writing; and
2. specify that the person to whom the notice is given must take all reasonable steps to obtain the overseas pension for that person; and
3. specify the period during which the person must take the necessary steps.

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:

1. an applicant for a benefit under the NZ benefits legislation:
2. a recipient of a benefit under any of those enactments.

The notice must—

1. be in writing; and
2. 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
3. specify the period during which the person must take the necessary steps.

This section applies if a person to whom a notice has been given under section 174 or 175 fails to comply with that notice.

MSD may—

1. in the case of an applicant for a benefit, refuse to grant the benefit:
2. in the case of a beneficiary or his or her spouse or partner, suspend the benefit.

A benefit suspended under subsection (2)(b) remains suspended until—

1. 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
2. MSD cancels the benefit under subsection (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.

This section applies if a person (A) applies for a benefit under the NZ benefits legislation.

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:

1. A:
2. A’s spouse or partner:
3. A’s dependant.

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.

This section applies if a person (P) receives a benefit under the NZ benefits legislation.

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:

1. P:
2. P’s spouse or partner:
3. P’s dependant.

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.

MSD may suspend the benefit, which remains suspended until—

1. the beneficiary establishes to MSD’s satisfaction the rate of the overseas pension; or
2. MSD cancels the benefit under subsection (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.

This section applies if a person (P)—

1. 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
2. is a beneficiary and is doing work as part of an employment-related activity or activity in the community arranged by MSD.

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—

1. a worker in B’s business or undertaking; or
2. B’s employee.

Except as provided in subsection (2), nothing in this Part creates or implies an employment relationship between P and B.

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.

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.

This Part sets out the factors that may affect a benefit.

The factors affecting a benefit are:

1. pre-benefit activities:
2. insurance recovery:
3. entitlement to an overseas pension:
4. [Repealed]
5. shared care of a dependent child:
6. compensation or damages:
7. the grant of a veteran’s entitlement:
8. a personal benefit excluding a benefit on behalf of a spouse or partner:
9. a maintenance claim:
10. a family protection claim:
11. not being ordinarily resident in New Zealand:
12. refugee or protected person status:
13. hospitalisation:
14. alcohol and drug treatment:
15. the issue of a warrant for a beneficiary’s arrest:
16. custody in prison or on remand:
17. absence from New Zealand:
18. [Repealed]
19. voluntary unemployment or loss of employment through misconduct, etc:
20. a non-entitlement period, stand down, or 100% suspension of benefit.

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.

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.

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—

1. 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
2. the person’s spouse or partner is entitled to receive or receives (as referred to in section 188(b)).

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.

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—

1. 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
2. any of the person’s dependants is entitled to receive or receives (as referred to in section 188(c)).

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.

This section applies to a benefit, pension, or periodical allowance, or any part of it, that—

1. is granted elsewhere than in New Zealand; and
2. is administered by or on behalf of the Government of the country from which the benefit, pension, or periodical allowance is received; and
3. is determined by MSD to be in the nature of, and paid for similar purposes as,—
   1. 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
   2. 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
   3. a disability allowance.

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).

This section applies if—

1. the parents of a dependent child live apart; and
2. both parents receive benefits; and
3. each parent has the primary responsibility for the care of the child for at least 40% of the time.

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.

In subsection (2), the primarily responsible parent is—

1. the parent who MSD decides has the greater responsibility for the child; or
2. 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
3. if MSD is unable to make a decision under paragraph (a) or (b), the parent who the parents agree is the primarily responsible parent.

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.

This section applies if—

1. a person (P) applies for a benefit; and
2. P has been paid or has a claim for compensation or damages from any other person in respect of—
   1. any disability caused by accident or disease; or
   2. wrongful or unjustifiable dismissal.

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.

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.

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—

1. constitutes a charge on the compensation or damages; and
2. 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
3. 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.

In this section, compensation or damages—

1. includes any ex gratia payment made in settlement or on account of a claim for compensation or damages; but
2. does not include any impairment lump sum received under Schedule 1 of the Accident Compensation Act 2001.

This section applies if—

1. a person (P) is entitled to a specified benefit as defined in subsection (3); and
2. either of the following persons is entitled to receive or receives weekly loss of earnings compensation:
   1. P, on P’s own account or in respect of P’s spouse or partner or of P’s dependent child:
   2. P’s spouse or partner.

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).

In this section,—

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.

Subsection (1) is subject to section 200.

Section 199(1) does not apply if the entitlement under the Veterans’ Support Act 2014 is any of the following:

1. a pension or allowance granted to P on the ground of P’s disablement:
2. a pension or allowance under Part 6 of the Veterans’ Support Act 2014:
3. a surviving spouse or partner pension granted under Part 3 of the Veterans’ Support Act 2014:
4. 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.

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:

1. a supported living payment on the ground of restricted work capacity or total blindness:
2. jobseeker support on the ground of health condition, injury, or disability:
3. 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:
4. a child disability allowance.

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.

The part must not be paid for a period when a personal benefit is payable in respect of P’s spouse or partner.

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).

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.

MSD may refuse to grant a benefit, cancel or reduce a benefit already granted, or grant a benefit at a reduced rate.

This section applies if a person (P) who is a beneficiary or an applicant for a benefit, in MSD’s view,—

1. 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
2. has failed to take reasonable steps to advance that claim, including bringing or participating in court proceedings to enforce P’s claim.

MSD may refuse to grant the benefit, grant it at a reduced rate, or cancel a benefit already granted.

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.

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.

This section does not apply to—

1. 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
2. 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
3. a veteran’s pension being paid overseas under section 182 of the Veterans’ Support Act 2014 (see section 189(3) of that Act); or
4. 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):
5. a benefit payable under any reciprocity agreement with another country adopted by an order made under section 380.

This section applies if MSD is satisfied that a person (P) is any of the following:

1. 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:
2. a person who is recognised as a refugee or protected person:
3. 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.

MSD may grant P—

1. an emergency benefit under section 63:
2. temporary additional support under section 96.

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).

The main benefit under this Act of a person (P) is affected by hospitalisation if P—

1. is in hospital for a period of more than 13 weeks; and
2. has a spouse or partner but no dependent children or is single.

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.

The rate of benefit that is paid to P under subsection (2) is not affected by any absence or absences from hospital of P—

1. after the 13th week of hospitalisation; and
2. lasting no longer than 28 days.

This section applies if—

1. a person’s (P’s) main benefit under this Act is reduced under section 206; and
2. P has a spouse or partner who is not in hospital or has been in hospital for less than 13 weeks; and
3. a specified benefit is payable to or in respect of P’s spouse or partner.

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—

1. the maximum rate of that specified benefit that is payable to a single person; and
2. 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.

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.

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.

In this section, specified benefit means—

1. a main benefit under this Act; or
2. New Zealand superannuation; or
3. a veteran’s pension.

This section applies if a person (P) is—

1. a beneficiary; and
2. a resident of an institution for the treatment of alcoholism or drug addiction.

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.

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.

A benefit is not payable to a person (P) if MSD is satisfied that—

1. P is a beneficiary who receives a main benefit under this Act, New Zealand superannuation, or a veteran’s pension; and
2. criminal proceedings have been commenced against P in a New Zealand court for an offence; and
3. 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
4. the warrant has not been resolved and at least 28 days have elapsed since the date on which the warrant was issued.

However, MSD must not stop under this section payment of P’s benefit unless MSD has first—

1. followed the procedure set out in sections 211 and 212; and
2. considered P’s response, if any, to the unresolved warrant notice given under section 211.

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.

Nothing in this section affects the power of MSD to suspend immediately the benefit of a person under section 213.

An unresolved warrant notice must—

1. specify a period of 10 working days within which the person to whom the notice is delivered (P) may—
   1. dispute that P is the person to whom the warrant applies; or
   2. take steps to resolve the warrant; and
2. specify the steps that P may take to dispute that P is the subject of the warrant or to resolve the warrant; and
3. specify the consequences if P fails to resolve the warrant within the 10-working-day period.

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.

This section applies if under section 213 MSD suspends immediately a benefit payable to a person (P).

As soon as reasonably practicable, MSD must give P a written notice that—

1. states that the benefit has been suspended; and
2. states the reason for the suspension; and
3. specifies the steps that P may take to dispute that P is the subject of the warrant or to resolve the warrant.

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:

1. section 230:
2. section 245:
3. section 246:
4. section 248.

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.

Subsection (1)(b) does not apply if—

1. the person whose benefit is suspended under section 213 is not receiving a main benefit under this Act; or
2. 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.

A benefit is not payable to a person (P) for any period during which P is—

1. in custody in prison; or
2. in custody on remand; or
3. an escapee from custody in prison.

In this section and section 218,—

For the purposes of this section,—

1. 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
2. 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.

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.

MSD may pay all or part of a benefit to—

1. the spouse or partner of a person in custody in prison or of an escapee from that custody; or
2. any responsible person for the benefit of—
   1. that spouse or partner; or
   2. the dependent child or children of a person in custody in prison or of an escapee from that custody.

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.

For any period during which a person is absent from New Zealand, a benefit is not payable to that person.

However, this section does not apply to a benefit payable under—

1. subpart 11 of Part 2 (winter energy payment); or
2. sections 21 to 35 of the New Zealand Superannuation and Retirement Income Act 2001; or
3. sections 176 to 196 of the Veterans' Support Act 2014; or
4. any reciprocity agreement with another country adopted by an order made under section 380.

This section is also subject to the exceptions, or other contrary or related provisions, contained in regulations made under section 436.

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).

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—

1. the payment would be payable to the beneficiary were it not for those days of those absences; and
2. MSD is satisfied that those days of those absences do not affect the beneficiary’s eligibility for the payment under section 72.

Sections 219 and 436 do not apply to the winter energy payment.

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—

1. left that employment voluntarily without good and sufficient reason; or
2. lost that employment because of misconduct as an employee.

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—

1. has been receiving payments under the scheme and has voluntarily ceased to participate in the scheme without good and sufficient reason; or
2. has ceased to participate in the scheme because of misconduct.

This section is subject to section 323.

If the basic rule applies to a person (P),—

1. MSD must cancel the benefit (if granted); and
2. must not grant P the benefit in any other case; and
3. P is not entitled, during the 13-week period, to the cancelled benefit or a work-tested benefit.

However, under section 228, MSD may decide not to apply subsection (1).

Subsection (1) is subject to sections 246 to 248, 320, 323, and 324.

If the basic rule applies to a person (P) because of misconduct, MSD has 2 additional options:

1. MSD may decide that the basic rule should not apply to P; or
2. 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.

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.

This section applies while a person is subject to—

1. a non-entitlement period; or
2. a stand down under section 316 (start and calculation of stand-down period); or
3. a sanction of suspension of 100% of a benefit under section 237, 270, or 280.

The person is not entitled to receive—

1. an emergency benefit; or
2. an accommodation supplement; or
3. temporary additional support.

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.

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.

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.

The sanction is 1 of the following (in accordance with section 234):

1. reduction in a main benefit:
2. suspension of a main benefit:
3. cancellation of a main benefit.

For a first failure by a person (P), MSD must—

1. reduce P’s main benefit by half until P recomplies; and
2. if P fails to recomply within 4 weeks after the initial reduction takes effect, reduce P’s main benefit to zero until P complies.

This section is subject to sections 245 to 248 and 320 to 324.

For a second failure by a person (P), MSD must suspend P’s main benefit until P recomplies.

This section is subject to sections 245 to 248 and 320 to 324.

For a third failure by a person (P), MSD must cancel P’s main benefit.

On cancellation under this section of P’s main benefit,—

1. P is not entitled to receive any main benefit under this Act for 13 weeks from the date of cancellation; and
2. 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.

This section is subject to sections 245 to 248 and 320 to 324.

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.

For the purposes of subsection (1), MSD must treat as the same benefit:

1. a specified benefit that expires under section 332; and
2. a specified benefit regranted to the beneficiary under section 336.

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—

1. one of those 2 or more different main benefits is a youth payment or a young parent payment; and
2. 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.

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—

1. are failures by a young person who is receiving a youth payment or a young parent payment; and
2. are failures, without good and sufficient reason, to comply with an obligation placed on the young person by section 162 or 164; and
3. occur during a period of continuous payment in respect of the young person of—
   1. the same benefit (that is, a youth payment or a young parent payment); or
   2. 2 or more different benefits (that is a youth payment and a young parent payment, in whatever sequence paid).

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.

In subsection (3), working day means a day on which a person was required to work in the employment in question.

A failure cannot be counted if it occurred more than 12 months before the failure for which the calculation is made.

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.

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.

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)).

This section overrides sections 234 to 238.

This section applies when—

1. a main benefit is payable at a work-test couple rate; and
2. the benefit is reduced, suspended, or cancelled under section 227 or 232; and
3. 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.

In a case to which this section applies,—

1. the reduction, suspension, or cancellation applies to only half the applicable rate of main benefit before any reduction on account of income; and
2. 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).

This section applies when—

1. a main benefit is payable at a work-test couple rate; and
2. the benefit is reduced, suspended, or cancelled under section 227 or 232; and
3. 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
4. the couple have no dependent children.

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.

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.

This section applies when—

1. a main benefit is payable at a work-test couple rate; and
2. the benefit is reduced, suspended, or cancelled under section 227 or 232; and
3. the reduction, suspension, or cancellation results from—
   1. the failure of both spouses or partners to comply with 1 or more specified obligations under this Act; or
   2. the application of section 227 to both spouses or partners; and
4. the couple have 1 or more dependent children.

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.

In a case to which this section applies,—

1. 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
2. the spouses or partners are entitled to receive half that rate (and the appropriate income test applies to that rate).

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).

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.

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.

In a case to which this section applies,—

1. the suspension or cancellation applies to only half the applicable rate of main benefit before any reduction on account of income; and
2. 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.

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—

1. is addicted to, or dependent on, 1 or more controlled drugs; or
2. is undertaking addiction treatment; or
3. is awaiting assessment for, or an opportunity to undertake, addiction treatment; or
4. is taking, in the dosage prescribed, a controlled drug lawfully prescribed for P by a health practitioner; or
5. falls within another ground or grounds prescribed for the purposes of this subsection by regulations made under section 418(1)(j).

In subsection (1), addiction treatment means treatment that—

1. is for addiction to, or dependence on, 1 or more controlled drugs; and
2. 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
3. is of a kind approved by MSD.

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).

The notice must—

1. state that P has failed to comply with a specified obligation under this Act; and
2. specify the nature of P’s failure to comply; and
3. state that, on the basis of P’s failure, MSD is reducing, suspending, or cancelling P’s benefit; and
4. specify the date on which the reduction, suspension, or cancellation is to take effect; and
5. in the case of a reduction or suspension, state the nature and duration of the reduction or suspension; and
6. state that P has 5 working days from the giving of the notice to dispute the reduction, suspension, or cancellation; and
7. advise P to contact MSD if P wants to dispute or discuss the decision to reduce, suspend, or cancel the benefit; and
8. 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.

A notice of a sanction given to a person (P) may specify more than 1 instance of failure.

Each specified instance may relate to the same obligation, or to 2 or more different obligations.

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.

MSD may give a person (P) a section 252 notice—

1. by delivering it to P personally; or
2. 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
3. by leaving it—
   1. at P’s usual or last known place of residence or business; or
   2. at the address given in the most recent application or other document received by MSD from P; or
4. by posting it in a letter addressed to P at that place of residence or business or at that address.

The notice is given to P when it is delivered, left, or posted, as the case may be.

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.

P’s request for an evidential drug test—

1. must be in writing in a form approved by MSD for the purpose; and
2. must include the necessary consents and authorisations; and
3. may be made only after P has disputed the sanction specified in the section 252 notice in accordance with section 252(2)(f); and
4. must be made within a reasonable period, as specified by MSD, of disputing the sanction.

In this section and in section 258, necessary consents and authorisations means any consent or authority—

1. of any employer, training provider, or drug-testing provider; and
2. that MSD specifies as necessary for arranging the evidential drug test and providing the result to MSD.

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).

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:

1. any sanction imposed on P under section 232 for failing the associated prior screening drug test is suspended:
2. any failure for the purposes of sections 240(1) and 262 based on P failing the associated prior screening drug test is suspended:
3. 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.

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.

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).

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.

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:

1. the actual and reasonable costs incurred by a drug-testing provider in doing that evidential drug test; and
2. the actual and reasonable costs (if any) reimbursed to the employer under section 151 of P’s associated prior screening drug test.

A person (P) recomplies after a failure to comply with an obligation if P remedies the failure.

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.

This section does not apply to recompliance with a drug-testing obligation.

In this section, drug test failure means a failure by a person (P) to comply with a drug-testing obligation.

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).

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.

MSD must take reasonable and appropriate steps to make a person who has given an undertaking under subsection (3) aware of the following matters:

1. the consequences of failing to comply with the undertaking; and
2. the location of an appropriate drug-testing provider; and
3. the matters in sections 264(5) and 266 (which relate to the costs of drug testing for the purpose of recompliance).

A person (P) who has given an undertaking under section 263(3) must comply with both subsections (2) and (3).

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—

1. a screening drug test and, if P fails that test, an evidential drug test; or
2. an evidential drug test without any associated prior screening drug test.

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.

In this section, start date means the date of P’s undertaking.

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.

MSD must pay the actual and reasonable costs of a drug test undertaken on only 1 occasion in accordance with section 264(2).

Those costs are a debt due to the Crown from the beneficiary for the purpose of regulations made under section 444.

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.

MSD may give P a notice that MSD is to intensify its case management support for P.

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.

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.

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).

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.

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.

For P’s third failure, MSD must cancel P’s youth payment and any incentive payments.

On cancellation of P’s youth payment under this section,—

1. P is not entitled to receive any main benefit under this Act for 13 weeks from the date of cancellation; and
2. 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.

This section is subject to sections 320 to 324.

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:

1. if P is not already in part-time work, participation in part-time work or work experience:
2. participation in recognised voluntary work (as defined in Schedule 2):
3. participation in any other activity that MSD considers will enhance skills or improve motivation.

This section overrides every other provision of this Act.

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).

If P is single, P is not entitled to receive an accommodation supplement or temporary additional support.

If P is not single, and P’s spouse’s or partner’s youth payment is not also cancelled under section 271(2),—

1. 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
2. any accommodation supplement or temporary additional support otherwise payable to P’s spouse or partner must be reduced by half.

If P is not single, and the youth payment of P’s spouse or partner is also cancelled under section 271(2),—

1. P is not entitled to receive an accommodation supplement or temporary additional support otherwise payable to P; and
2. P’s spouse or partner is not entitled to receive an accommodation supplement or temporary additional support payable to P’s spouse or partner.

This section applies to a young person—

1. who has been required to receive youth services under section 165(2) or 168(2); and
2. whose benefit is subject to money management under section 344; and
3. 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—
   1. an obligation in section 166(2)(b) and (d) to (g); or
   2. the work test (in the case of a work-tested beneficiary); or
   3. a work-preparation obligation under section 124 or 125 (in the case of a beneficiary who is required to comply with section 124).

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.

This section applies to a young person—

1. who has been required to receive youth services under section 165(2) or 168(2); and
2. whose benefit is not subject to money management under section 344; and
3. 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—
   1. an obligation in section 166(2)(b) and (d) to (g); or
   2. the work test (in the case of a work-tested beneficiary); or
   3. a work-preparation obligation under section 124 or 125 (in the case of a beneficiary who is required to comply with section 124).

MSD must treat the young person’s failure referred to in subsection (1)(c)(i), (ii), or (iii),—

1. 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
2. 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.

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:

1. 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
2. cancel the young person’s incentive payments (if any) (if that sanction is the cancellation of the young person’s benefit).

This section applies to a young person—

1. who is—
   1. aged 16 or 17 years, without dependent children, and is the spouse or partner of a specified beneficiary; or
   2. aged 16 to 19 years, with a dependent child or children, and is the spouse or partner of a specified beneficiary; and
2. whose benefit is subject to money management; and
3. 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).

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.

This section applies to a young person—

1. who is—
   1. aged 16 or 17 years, without dependent children, and is the spouse or partner of a specified beneficiary; or
   2. aged 16 to 19 years, with a dependent child or children, and is the spouse or partner of a specified beneficiary; and
2. whose benefit is not subject to money management; and
3. 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).

MSD must treat the young person’s failure referred to in subsection (1)(c),—

1. 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
2. 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.

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,—

1. 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
2. cancel the young person’s incentive payments (if any) (if that sanction is the cancellation of the young person’s benefit).

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.

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).

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.

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.

For P’s third failure, MSD must cancel P’s young parent payment and any incentive payments.

This section overrides every other provision of this Act.

On cancellation of P’s young parent payment under section 281(2),—

1. P is not entitled to receive any main benefit under this Act for 13 weeks from the date of cancellation; and
2. 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.

Subsection (1) is subject to subsection (3) and to sections 320 to 324 (restoration of entitlement after suspension, reduction, cancellation, or non-entitlement).

However, during the period of cancellation,—

1. 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
2. no incentive payments are payable; and
3. the amounts payable must be paid to the young person, or on the young person’s account, personally (see section 339).

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:

1. if P is not already in part-time work, participation in part-time work or work experience:
2. participation in recognised voluntary work (as defined in Schedule 2):
3. participation in any other activity that MSD considers will enhance skills or improve motivation.

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).

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).

If P is a sole parent, cancellation has no effect on P’s entitlement to receive any accommodation supplement or temporary additional support.

If P is not single, and P’s spouse’s or partner’s young parent payment is not also cancelled under section 281(2),—

1. 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
2. any accommodation supplement or temporary additional support otherwise payable to P’s spouse or partner must be reduced by half.

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.

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.

On cancellation, the young person is not eligible to receive the incentive payment again until MSD decides that it may be regranted.

A person (P) commits an offence if—

1. P makes a statement knowing that it is false in a material particular; and
2. P’s statement—
   1. is made for the purpose of receiving or continuing to receive an advantage (whether for P or another person); or
   2. results in P or another person receiving or continuing to receive an advantage.

A person (P) commits an offence if—

1. 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
2. P’s act, statement, or omission—
   1. is done or made for the purpose of receiving or continuing to receive an advantage (whether for P or another person); or
   2. results in P or another person receiving or continuing to receive an advantage.

In this section, advantage means—

1. 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
2. any exemption from an obligation under this Act; or
3. any payment from a Crown Bank Account in accordance with this Act; or
4. any entitlement card issued under regulations made under section 437; or
5. 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
6. 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.

A person who commits an offence under this section is liable on conviction to a penalty that is either or both:

1. imprisonment for a term not exceeding 12 months:
2. a fine not exceeding $5,000.

This section does not limit section 72 of the Residential Care and Disability Support Services Act 2018.

A person (the spouse or partner) commits an offence if the person—

1. is a spouse or partner of a person (the beneficiary) who obtains an excess amount by fraud; and
2. 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—
   1. in excess of the amount to which the beneficiary is by law entitled or to which the beneficiary has no entitlement; and
   2. obtained by the beneficiary by fraud.

Subsection (1)(b) applies to the amount or part even if the spouse or partner—

1. does not benefit from it knowingly; and
2. does not know at all or exactly its value; and
3. 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.

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.

The excess amount is obtained by the beneficiary by fraud for the purposes of subsection (1) if—

1. the beneficiary obtained that amount by fraud; or
2. the beneficiary is convicted of a specified offence in respect of obtaining that amount.

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:

1. section 228 (dishonestly taking or using document):
2. sections 240 and 241 (obtaining by deception or causing loss by deception):
3. section 256(1) and (2) (forgery):
4. section 257 (using forged documents):
5. section 258 (altering, concealing, destroying, or reproducing documents with intent to deceive):
6. section 259 (using altered or reproduced document with intent to deceive).

Subsections (4) and (5) do not limit—

1. the generality of the references in subsection (1) to fraud; or
2. the operation of section 49 (conviction as evidence in criminal proceedings) of the Evidence Act 2006.

A person who commits an offence under this section is liable on conviction to a penalty that is either or both:

1. imprisonment for a term not exceeding 12 months:
2. a fine not exceeding $5,000.

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.

A person who commits an offence under this section is liable on conviction to a fine not exceeding $100.

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.

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.

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.

Subsection (1) overrides section 25 of the Criminal Procedure Act 2011.

An application for a benefit must be completed, may be assisted, may lapse, and is taken to have been received for benefit commencement and stand-down purposes, in accordance with regulations made under section 438.

This section does not prevent MSD under section 312 (if applicant paid, but claim fails for, ACC weekly compensation) treating an application for a benefit as having been made at the later of the dates specified in section 312(2)(a) and (b).

MSD must inquire into every claim for a benefit made by or on behalf of an applicant for a benefit.

Subsection (1) is subject to—

1. section 299 (inquiry: exception during epidemic):
2. section 303 (grant: after death of applicant):
3. regulations made under section 432(1) and (3)(e) (pre-benefit activities: consequences of non-compliance by applicant).

MSD may inquire into the circumstances of a person who has been receiving a benefit as those circumstances existed—

1. immediately before the benefit was granted; or
2. during the period or periods that the benefit was paid.

Subsection (3) does not limit—

1. subsection (1); or
2. subpart 3 (review of entitlement to, or rate of, benefit granted).

This subsection applies to any period comprising—

1. the period when a domestic epidemic management notice is in force; and
2. a period after the notice expires that the Minister thinks reasonable in the circumstances.

During a period to which subsection (1) applies, MSD may grant a benefit to a person even if the claim for it has not been at all, or has not been fully, inquired into as required by section 298.

Provisions on information gathering, disclosure, and matching are set out in Schedule 6.

Rights of complaint are given by the following clauses of Schedule 6:

1. clause 12 (code of conduct for information or documents requirements):
2. clause 21 (disclosure for young person’s functions or service provider’s contract).

This section applies to an applicant for a benefit of kind A (for example, a supported living payment on the ground of restricted work capacity or total blindness) if MSD considers—

1. quick completion of MSD’s inquiry into the applicant’s claim for a benefit of kind A is unlikely (for example, quick completion is unlikely because of the need to obtain, or to obtain further, medical evidence about whether the applicant is under section 35, because of a health condition, permanently and severely restricted in the applicant’s capacity for work); but
2. the applicant is entitled to a benefit of kind B (for example, jobseeker support).

MSD may grant the applicant a benefit of kind B on the basis that a benefit of kind A will be granted retroactively if—

1. MSD completes its inquiry into the applicant’s claim to a benefit of kind A; and
2. MSD’s completed inquiry shows that the applicant is entitled to a benefit of kind A.

If MSD’s completed inquiry into the applicant’s claim to a benefit of kind A shows that the applicant is entitled to a benefit of kind A, MSD may—

1. grant the applicant a benefit of kind A, and commencing on the date on which it would have commenced if the inquiry had been completed before the benefit of kind B was granted; and
2. cancel the benefit of kind B on that date.

This section applies if an applicant for a benefit dies before MSD completes its inquiry into the claim, made by or on behalf of the applicant, for a benefit.

MSD may grant the benefit as if the applicant had not died.

If MSD under this section grants the benefit as if the applicant had not died, sections 90 to 94 (funeral grants) and regulations made under section 427 apply as if the applicant were receiving the benefit at the time the applicant died.

This section does not limit section 346 (required manner of payment: payment on death of beneficiary).

MSD may review a benefit that has been granted to ascertain all or any of the following:

1. whether the beneficiary is, or remains, entitled to receive the benefit, or rate of benefit, that is being paid to the beneficiary:
2. whether the beneficiary was not entitled to receive the benefit, or rate of benefit, that was paid to the beneficiary.

MSD may review under this subpart whether a person’s information share child support payment is or was all or any of their weekly income under Part 3A of Schedule 3, but only on all or any of the review grounds specified in section 304A(1)(a) to (g) for the purposes of this subsection.

For the purposes of subsection (1A), the review grounds specified in section 304A(1)(a) to (g) for the purposes of subsection (1A) include, without limitation, any 1 or more additional grounds prescribed by regulations made under section 418(1)(ja).

This subpart applies, so far as applicable and with all necessary modifications, to special assistance granted under a programme approved under section 100 or 101.

Rights to seek a review of, or to appeal against, a decision on a review under this subpart are given by the following subparts of Part 7:

1. subpart 2 (reviews by benefits review committee):
2. subpart 3 (appeals to appeal authority):
3. subpart 4 (appeals to courts):
4. subpart 5 (appeals to medical board).

Subsection (3) is by way of explanation only.

For the purposes of section 304(1A), the specified grounds are that MSD is satisfied of all or any of the following:

1. the person did not receive all or any of the payment before or on the deemed receipt (as defined in clause 15D of Schedule 3):
2. the person is or was unable to access all or any of the payment for reasons that are or include exceptional circumstances:
3. MSD has charged under Part 3A of Schedule 3 an amount of weekly income that is not the correct amount for reasons that are or include all or any of the following:
   1. the information share is incorrect due to an error by the Commissioner or an officer of the Department (as those terms are defined in the Tax Administration Act 1994):
   2. the information share is correct but read incorrectly by an automated electronic system:
   3. the information share is correct but due to a person’s error is inputted incorrectly into a system used by MSD:
4. a person has been incorrectly identified, or not identified, as the proper recipient of the payment (whether that mis- or non-identification was by an automated electronic system or a person):
5. for reasons that are or include a disruption to an automated electronic system, information about the payment is not shared with MSD on the transaction date (as defined in clause 15C of Schedule 3), with the result that the payment is charged as weekly income under Part 3A of Schedule 3 after an affected benefit payment, or other assistance payment, has been made:
6. the person to whom the payment was made has died, and their benefit—
   1. is specified in section 326(1)(a) to (h); and
   2. will end, or has ended, under section 326(2) or (3):
7. any 1 or more additional grounds prescribed, for the purposes of this paragraph, by regulations made under section 418(1)(ja).

In this section,—

MSD may for the review require the beneficiary or the beneficiary’s spouse or partner to provide information, or answer questions,—

1. in a way MSD specifies; and
2. by a reasonable deadline MSD specifies.

If the beneficiary or spouse or partner fails to comply with a requirement under subsection (1), MSD may suspend, cancel, or vary the rate of benefit from a date MSD determines.

This section does not limit sections 42, 113, 290, 300, and clause 2 of Schedule 6.

This section applies if MSD is satisfied because of the review that the beneficiary—

1. was not or is not entitled (at all, rather than on another eligibility ground for that benefit) to receive the benefit; or
2. was or is entitled to receive the benefit at a different rate.

MSD may suspend, cancel, or vary the rate of the benefit from a date MSD reasonably determines.

This section applies if MSD is satisfied because of the review that the beneficiary—

1. was granted the benefit on a stated eligibility ground for that benefit; and
2. is more appropriately entitled to receive that benefit on another eligibility ground for that benefit.

MSD may cancel the benefit as granted on the stated eligibility ground, and grant the beneficiary that benefit on the other eligibility ground commencing from the date of cancellation.

This section applies if MSD is satisfied because of the review that the beneficiary is more appropriately entitled to receive another benefit.

MSD may cancel the benefit, and grant the beneficiary the other benefit commencing from the date of cancellation.

This section applies if MSD is satisfied because of the review that the beneficiary has been granted a benefit, or has been granted a benefit at a rate, that does not take into account certain insurance payments specified in regulations made under section 439.

MSD may, in accordance with those regulations, suspend, cancel, or vary the rate of, the benefit, from a date MSD determines.

In this section, benefit includes special assistance granted under a programme approved under section 100 or 101.

For the purposes of this section, the amount of an insurance payment must, to the extent MSD so determines, be reduced by the amount of any costs incurred by an applicant for a benefit or a beneficiary in obtaining receipt of that payment.

A benefit commences on the later of the following dates:

1. the date the applicant became entitled to receive the benefit; and
2. the date the application for the benefit was received.

This section is subject to—

1. section 302 (immediate provisional grant, and later backdating of other benefit); and
2. sections 74, 312 to 317, and 319 (which contain exceptions and special rules relating to commencement of benefits); and
3. Part 6 of the Veterans’ Support Act 2014; and
4. Part 1 of the New Zealand Superannuation and Retirement Income Act 2001.

This section applies to a person if—

1. a claim is made by or on behalf of the person for weekly compensation under the Accident Compensation Act 2001 in respect of incapacity of the person; and
2. weekly compensation under that Act is paid in respect of the claim by or on behalf of—
   1. the Accident Compensation Corporation; or
   2. an accredited employer (within the meaning of section 181 of that Act); and
3. the person later fails to establish that claim, but would otherwise have been entitled, if that claim had been accepted, to a benefit during all or a part of the period in respect of which the compensation would have been paid.

MSD may treat an application for a benefit made by or on behalf of the person as having been made on the later of the following dates:

1. the date of first occurrence of the incapacity of the person in respect of which the claim was made under the Accident Compensation Act 2001; and
2. the date that the person would have become entitled to that benefit.

A benefit is subject to a stand down, and commences on a date calculated under section 316, if—

1. the benefit is a work-tested benefit or a youth payment or a young parent payment (other than a youth payment or a young parent payment granted to a person undertaking employment-related training or who is enrolled in a course of secondary instruction) and the applicant is not subject to a non-entitlement period (as defined in Schedule 2); or
2. the benefit is sole parent support, jobseeker support on the ground of health condition, injury, or disability, or a supported living payment.

This section is subject to section 315 (exemptions from stand down) and to regulations made under section 443.

A work-tested benefit granted to an applicant who is subject to a non-entitlement period is subject to a stand down, and is a benefit that commences on a date calculated under section 316, if—

1. the work-tested benefit is granted to the applicant conditionally under section 324; and
2. the applicant is subject to the non-entitlement period because of the application of section 225; and
3. section 225 applies to the applicant because the applicant is a person described in section 226(a).

Any other work-tested benefit granted to an applicant who is subject to a non-entitlement period is a benefit that commences on the later of—

1. the date the applicant became entitled to receive it; and
2. the date the application for it was received.

A benefit to which a person has become entitled, and that section 313 or 314 requires to commence on a date calculated under this section, is subject to a stand-down period that—

1. starts on the later of—
   1. the date on which the person became entitled to the benefit; and
   2. if, before the person applied for the benefit, the person’s employment terminated or the person is given notice of termination of employment, the day after the date on which the person’s employment ceased; and
2. is calculated under regulations made under section 440.

The benefit commences on the day after the stand-down period ends if the application for the benefit is received within 28 days after the date on which the person becomes entitled to the benefit, and the benefit is—

1. sole parent support; or
2. a supported living payment; or
3. jobseeker support granted on the ground of health condition, injury, or disability; or
4. jobseeker support granted to a sole parent, or to a person to whom section 30(e) (which relates to having lost the regular support of a spouse or partner who is subject to a sentence of imprisonment, etc) applies; or
5. jobseeker support granted to a person who has recently lost the financial support of the person’s spouse or partner because of death, the spouses or partners commencing to live apart, or the ending of a de facto relationship; or
6. a youth payment; or
7. a young parent payment.

If the benefit is not one specified in subsection (2)(a) to (g), the benefit commences on the later of the following days:

1. the day after the stand-down period ends:
2. the day on which the application for the benefit is received.

This section is subject to any regulations made under section 440, and relating to exceptional cases, for example—

1. of delayed redundancy and retirement payments; or
2. of seasonal workers who are made redundant after a benefit commences.

A benefit (or a benefit of a stated kind) may, with the Minister’s consent, commence at a time—

1. earlier than the time at which an application for it was made; but
2. not earlier than the time at which the person to whom it is granted became eligible for it.

The Minister may give consent in relation to a particular applicant, or applicants of a stated kind or description.

Consent in relation to applicants of a stated kind or description does not necessarily allow all the benefits concerned to commence at the same time.

If the Minister delegates to MSD the exercise of the power to consent conferred by subsection (1), its exercise by MSD (or a refusal by MSD to exercise it) is a decision under this Part for the purposes of subparts 2 to 5 of Part 7 (reviews and appeals).

The Minister must not give consent under section 317 unless satisfied that,—

1. in the case of a particular applicant, the particular applicant—
   1. could not reasonably have been expected to apply at the earlier time because of some erroneous action or inaction by MSD; or
   2. at or before the earlier time, tried to apply, or applied incompletely, and did not proceed because of an erroneous action or inaction by MSD; or
2. in the case of applicants of a stated kind or description,—
   1. applicants of that kind or description could not reasonably have been expected to apply at earlier times because of an erroneous action or inaction by MSD in relation to applicants of that kind or description; or
   2. at earlier times, some applicants of that kind or description tried to apply, or applied incompletely, and did not proceed because of an erroneous action or inaction by MSD.

Examples of erroneous action or inaction, for the purposes of subsection (1), include—

1. giving wrong advice:
2. failing or refusing to provide information, help, or some document or form.

In this section, action or inaction by MSD includes action or inaction by a contracted service provider contracted under section 373(1)(a) to provide services in relation to young people.

This section applies to a person whose benefit has been suspended or reduced, or who is subject to a 13-week period of non-entitlement to a main benefit, under section 225, 236, 237, 270, or 280, if the person—

1. ceases to be a work-tested beneficiary (other than because of the imposition of that suspension, reduction, or 13-week period); or
2. ceases to be a beneficiary who is required to comply with obligations under section 162, 164, 166, or 167 (other than because of the imposition of that suspension, reduction, or 13-week period); or
3. obtains, under section 158, an exemption from the work test or from obligations under section 162, 164, 166, or 167.

From the date on which MSD decides it is satisfied that this section applies to a person,—

1. the period of suspension or reduction of the benefit ends; or
2. the person is no longer subject to the 13-week period and that period lapses.

If a person to whom subsection (2)(b) applies wishes to again become entitled to a main benefit under this Act, the person must apply for the benefit and establish the person's eligibility to receive it.

In subsection (1), benefit includes part of a benefit.

This section applies to a sanction imposed on a person—

1. under section 236, 237, or 238 (as applied by section 136); and
2. in respect of an obligation that the person had under any of sections 131 to 135.

The sanction ceases to apply to the person on the person ceasing to have that obligation.

This section applies to a sanction imposed on a person—

1. under section 236, 237, or 238 (as applied by section 126); and
2. in respect of—
   1. a general obligation of the person under section 124; or
   2. an obligation of the person under section 123 or 125 to comply with a requirement under section 125.

The sanction ceases to apply to the person on the person ceasing to have that obligation.

This section applies to a person who is not entitled to (or to a part of) a main benefit under this Act for 13 weeks because of the operation of section 225 or 238.

If a person to whom this section applies completes an approved period of employment, the remainder of the 13-week period lapses.

Approved period of employment, in subsection (2), means a period of employment—

1. of not less than 6 weeks; and
2. approved by MSD for the purposes of this section.

This section applies to a person who is subject to a 13-week period of non-entitlement under section 225, 238, 271, or 282, and is participating in 1 or more approved activities, which are any of the following approved by MSD for the purpose:

1. activities of the kind referred to in section 146(1)(d):
2. recognised voluntary work (as defined in Schedule 2):
3. part-time work (in the case of a part-time work-tested beneficiary).

If a person to whom this section applies participates satisfactorily in the approved activity or activities for a continuous period of 6 weeks,—

1. the remainder of the period of non-entitlement lapses; and
2. if the person wishes to again become entitled to a main benefit under this Act, the person must apply for the benefit and establish the person’s eligibility for it.

Despite subsection (2)(b), if the person applies for a main benefit under this Act, MSD must grant the person a main benefit under this Act during the person's satisfactory participation in the approved activity or activities.

Payment of a benefit granted under subsection (3) is subject to the condition that the person is liable to repay the whole of any amount paid during the non-entitlement period if the person fails—

1. to complete a continuous period of 6 weeks of satisfactory participation in an approved activity or activities; or
2. (if the period remaining until the end of the non-entitlement period is less than 6 weeks) to continue satisfactory participation until the end of the non-entitlement period.

No obligation to repay under subsection (4) arises if the reason for the person's failure is that the person—

1. ceases to be a work-tested beneficiary or a beneficiary who is required to comply with obligations under section 162, 164, 166, or 167; or
2. obtains, under section 158, an exemption from the work test or from obligations under section 162, 164, 166, or 167.

If the person is still entitled to the benefit at the end of the period of satisfactory participation or non-entitlement (as the case may be), payment of the benefit is no longer subject to the condition in subsection (4).

Any amount the person is liable to repay under this section is a debt due to the Crown under regulations made under section 444, and subject to recovery under regulations made under section 444, from the person.

If a person’s entitlement to a benefit ceases, the benefit ends on a date that is set by MSD and is—

1. not earlier than the pay day before the date on which the person’s entitlement ceases; and
2. not later than the pay day after the date on which the person’s entitlement ceases.

This section is subject to sections 326 to 330.

This section applies to a person who, when the person died, was receiving one of the following benefits:

1. New Zealand superannuation:
2. a veteran’s pension:
3. sole parent support:
4. a supported living payment:
5. jobseeker support:
6. a youth payment:
7. a young parent payment:
8. an emergency benefit related to a benefit specified in any of paragraphs (a) to (g).

The benefit ends on the 28th day after the date of the death if the person leaves a spouse or partner, or a child, not entitled to a lump sum payment under—

1. section 56 of the Accident Rehabilitation and Compensation Insurance Act 1992; or
2. section 444 of the Accident Insurance Act 1998; or
3. section 382 of the Accident Compensation Act 2001.

In every other case, the benefit ends on a date set by MSD and that is not later than 28 days after the date of the death.

This section applies to a benefit, or a rate of benefit, payable to a beneficiary who—

1. is or was a sole parent in respect of a dependent child; but
2. stops caring for the child because of a change of circumstances that is sudden and beyond the beneficiary’s control.

The benefit or rate of benefit ends 28 days after the day on which the beneficiary stops caring for the child.

This section applies to a supported living payment under section 40, or a rate of that benefit, payable to a beneficiary who stops caring for the other person concerned because that person dies, is admitted to hospital, or enters residential care.

The benefit or rate of benefit ends 28 days after the day on which the beneficiary stops caring for the other person.

This section applies to a supported living payment on the ground of restricted work capacity or total blindness, and that is cancelled on medical grounds.

The benefit ends on a date set by MSD and that is after, but not later than 28 days after, the date of cancellation of that benefit.

In this section and sections 332 to 336,—

Regulations made under section 441(1) that declare sole parent support, supported living payment, or emergency benefit not to be a specified benefit may, without limitation, declare not to be a specified benefit for the purposes of this section and sections 332 to 336 any of those benefits—

1. as granted on only 1 or more specified available eligibility grounds:
2. as granted to only 1 or more specified categories, classes, or kinds of beneficiaries.

A beneficiary’s entitlement to a specified benefit ceases not later than, and the specified benefit expires on, the expiry date for that specified benefit.

This section is subject to sections 334 and 336.

This section applies to a specified benefit that expires under section 332 in the week that is, or is the week immediately before, the week that includes 26 December in a year.

The benefit must continue to be paid until the first Monday after 2 January in the immediately following year.

This section overrides sections 325 and 332.

MSD may in any prescribed circumstances exempt from expiry under section 332 all or any specified benefits of—

1. an identified beneficiary; or
2. all beneficiaries who fall within an identified class or description.

The exemption must be until an identified event or situation or time, and may be on any identified conditions.

MSD’s exemption power is exercisable only by notice in writing copied as soon as practicable to every beneficiary concerned.

In subsection (1), prescribed circumstances means any circumstances that are—

1. circumstances in which an exemption from expiry may be considered; and
2. prescribed for the purposes of this section by regulations made under section 441(1).

MSD must, not less than 20 working days before the expiry date for a specified benefit, give the affected beneficiary a notice that states—

1. that entitlement to that benefit will cease unless the beneficiary reapplies for that benefit and it is regranted; and
2. the date on which entitlement to that benefit will cease; and
3. what the beneficiary must do to reapply for that benefit, and the period within which the beneficiary must do so.

Subsection (1) does not apply if, at the time that MSD is required to give a notice under that subsection, the specified benefit—

1. is suspended because the beneficiary is undertaking temporary employment; or
2. is not for the time being payable under this Act, for example, under—
   1. section 217 (benefit not payable during custody in prison or on remand); or
   2. section 219 (general rule: benefit not payable while beneficiary absent from New Zealand); or
3. is suspended under any provision of this Act other than section 237 (sanction for second failure: suspension of main benefit).

However, if at any time before the expiry date for that benefit any of the circumstances described in subsection (2) no longer exist, MSD must, as soon as practicable, take reasonable steps to advise the beneficiary of the matters set out in subsection (1)(a) to (c).

The specified benefit may be regranted if that beneficiary reapplies for it in accordance with requirements for regrant of it.

The requirements for regrant of the specified benefit may be in this Act or in regulations made under section 441(1).

A benefit is payable in instalments of a number of weeks’ benefit.

The number of weeks’ benefit is as determined from time to time by MSD.

The instalments are payable on 1 or more days or dates in the month.

The 1 or more days or dates in the month is or are as determined from time to time by MSD.

A main benefit under this Act and the winter energy payment are payable in respect of a 7-day week.

This section is subject to section 74 (winter energy payment: instalments, rates, and payment) and section 341 (required manner of payment: money management for certain payments to young people).

All or part of an instalment of a benefit is paid to, or on account of, the beneficiary personally, or, if MSD for good cause directs,—

1. to, or on account of, some other person authorised by the beneficiary; or
2. for a beneficiary who lacks sufficient capacity in law, to a person appointed by MSD for the purpose of receiving it; or
3. with or without the consent of the beneficiary—
   1. to a person in payment of the beneficiary’s lawful debts or other liabilities:
   2. to, or for the benefit of, the spouse or partner of the beneficiary or a dependent child or children of the beneficiary.

Subsection (1) is subject to contrary provisions in, or in regulations made under, this Act (for example,—

1. exceptions provided for in regulations made under section 442; and
2. sections 341 and 344, on when certain payments to a young person are or may be subject to money management; and
3. section 351, which requires an amount for tax paid under section 350(2) by MSD to the Commissioner of Inland Revenue to be considered to be a payment of a benefit made on account of, and received by, the beneficiary; and
4. sections 368 to 370, on when MSD must pay a disability allowance, special assistance granted under a programme approved under section 100 or 101, or an advance payment, to a preferred supplier of goods or services).

All or part of an instalment of a benefit must be paid in a manner from time to time determined by MSD.

Subsection (1) is subject to contrary provisions in, or in regulations made under, this Act (for example,—

1. section 341, on the manner of payment of specified youth support payments; and
2. default determinations, and exceptions, provided for in regulations made under section 442).

A determination made by MSD under this section of a required manner of payment—

1. may be reviewed under subpart 3 of this Part; but
2. cannot be reviewed, or appealed against, under Part 7.

Regulations made under section 418(1)(k) for the purposes of this section may prescribe a manner of payment designed to assist certain young people to manage their money effectively (a money management manner of payment).

A money management manner of payment may (but need not) include crediting an amount to a payment card, voucher, or device, that enables a young person to obtain goods or services from a particular supplier and enables the supplier to obtain payment from MSD for the goods or services.

The following must be paid in a money management manner of payment:

1. any youth support payment (including the in-hand allowance up to the maximum amount set out in clause 7 in Part 6 of Schedule 4):
2. any WFF tax credit payable to a young person by MSD:
3. the amount of any child disability allowance or disability allowance to which a young person is entitled:
4. any other benefit or payment under this Act to which a young person is entitled specified for the purposes of this paragraph by the regulations made under section 418(1)(k).

Subsection (3)—

1. is subject to the exception set out in section 342; and
2. overrides section 80KS of the Tax Administration Act 1994.

This section applies to a young person only if MSD considers the young person has met the criteria—

1. for managing the young person’s own payments; and
2. stated for the purposes of this section in regulations made under section 418(1)(k).

All or a part of the payments referred to in section 341(3)(a) to (d) may be paid to or on account of the young person personally (in line with section 339(1)) until a sanction is imposed on the young person under section 270, 271, 280, or 281.

A young person to whom section 166 or 167 applies may elect to have all or any amounts stated in subsection (3) payable to the young person paid in a money management manner of payment.

However, the election may be made by the young person only—

1. to the extent that regulations made under section 418(1)(l) for the purposes of this section allow; and
2. subject to any conditions prescribed by the regulations.

The amounts are—

1. any part of a specified beneficiary’s benefit:
2. any part of any other benefit payable under regulations made under section 442(2)(e) (regulations: payments, and debts and deductions: apportionment) for the purposes of section 337 (how benefits are paid):
3. any WFF tax credit:
4. any child disability allowance or disability allowance:
5. any other benefit or payment under this Act to which the young person is entitled.

The young person may revoke the election at any time.

This section applies to a young person if—

1. the young person ceases to be subject to a money management manner of payment; and
2. the young person has a payment card, voucher, or device to which an amount or amounts payable to the young person have been credited for the purchase of goods or services; and
3. the amount on the card, voucher, or device has not been fully spent.

MSD may, after receiving an oral or a written application to do so made (in any form, and using any wording, that is reasonable for the purpose) by or on behalf of a young person to whom this section applies,—

1. cancel the young person’s payment card, voucher, or device; and
2. pay the amount standing to the credit of the young person on the payment card, voucher, or device (after the deduction of any debt recoverable from the young person) to the young person under section 339.

MSD may make an advance payment of all or part of 1 or more instalments of a benefit (and that are instalments that are not yet due) if, and only if,—

1. the benefit is a main benefit, an orphan’s benefit, an unsupported child’s benefit, New Zealand superannuation, or a veteran’s pension; and
2. MSD is satisfied that an advance payment of the benefit would best meet the beneficiary’s immediate needs; and
3. the beneficiary has applied for an advance payment of the benefit.

The beneficiary’s application must be made in a manner and form specified in regulations made under section 446, and makes the beneficiary subject to section 348 (requirement for beneficiary, spouse or partner, or both, to undertake budgeting activity).

The amount so paid in advance is a debt due to the Crown under regulations made under section 444, and subject to recovery under regulations made under section 444, from the beneficiary.

This section applies to a beneficiary who has applied for an advance payment under section 347 of a benefit.

MSD may, in circumstances prescribed by regulations made under section 447, require the beneficiary, the beneficiary’s spouse or partner, or both, to undertake to MSD’s satisfaction a budgeting activity of a kind specified in regulations made under section 447.

This section applies to a source deduction payment that is an instalment or a payment of a main benefit.

MSD may, instead of making a tax deduction from the source deduction payment, pay to the Commissioner of Inland Revenue, at a time the Commissioner determines in consultation with MSD, an amount for income tax payable on that payment, that is calculated under subsection (3).

The amount for income tax payable on a source deduction payment is the amount of the tax deduction that would be made, at the rate determined under the appropriate specified provision, if the payment were increased by an amount that, after the tax deduction were made, would result in an amount equal to the source deduction payment.

This section applies if, as a result of the review, suspension, or cancellation of a main benefit, MSD determines that an amount for tax on the benefit has been paid under section 350(2) to the Commissioner in excess of the amount that is properly payable under section 350(2).

MSD cannot recover the excess amount under regulations made under section 444, but may recover that amount by—

1. making an adjustment to an amount later payable to the Commissioner under section 350(2) in respect of the source deduction payments for that or any other benefit payable to that beneficiary; or
2. making other arrangements for its refund that are agreed with the Commissioner.

This section applies to a person if—

1. the person obtained a payment, or received a credit or an advance, in excess of the amount to which the person was entitled; and
2. in MSD’s opinion, that payment, credit, or advance in excess, was obtained by fraud.

MSD may recover from the person, by way of penalty that is a debt due to the Crown, an amount not exceeding 3 times the amount in excess.

MSD’s discretion may be exercised in respect of a particular case, or in respect of a particular class, or any particular classes, of case.

This section does not relieve the person from any other liability in respect of any fraud committed by the person.

A person must be taken for the purposes of this section to have obtained a payment, credit, or advance by fraud if the person—

1. has made a statement knowing it to be false in a material particular, or has knowingly said or done anything or omitted to do or say anything for the purpose of misleading MSD in the administration of this Act, for the purpose of obtaining a payment, credit, or advance, under this Act; and
2. has, as a result of that statement, action, or omission, received that payment, credit, or advance.

MSD cannot impose a penalty on a person under section 354 unless MSD has given to the person a written notice advising—

1. of MSD’s intention to impose a penalty under section 354; and
2. of the amount proposed to be imposed by way of penalty; and
3. of the particulars of fact on which MSD’s intention is based; and
4. that the person has 5 working days after the date of receipt of the notice to show cause why the action should not be taken.

MSD cannot impose a penalty on a person under section 354 until after the expiration of those 5 working days.

This section applies to a beneficiary’s (B’s) spouse or partner (S) if, in MSD’s opinion,—

1. S makes a false statement to, or otherwise misleads, MSD in the administration of this Act, in relation to any matter; and
2. the benefit or an instalment of benefit is, as a result of the statement or misleading, paid in excess of the amount to which B is by law entitled.

The amount so paid in excess is a debt due to the Crown, and subject to recovery under section 362, from S.

The excess amount may be recovered under this section from S on the basis that S is jointly and severally liable.

This section therefore does not limit or affect—

1. recovery under section 362 from B of the excess amount recoverable under this section and section 362 from S:
2. any other civil or criminal liability of B, under any other laws, in respect of that excess amount.

This section applies to a benefit apportioned between spouses or partners so that—

1. one proportion of the benefit (proportion B) is paid to one spouse or partner (B); and
2. another proportion of the benefit (proportion S) is paid to the other spouse or partner (S); and
3. the beneficiary entitled to the benefit, for the purposes of those regulations, is either B or S.

However, this section does not apply to the apportioned benefit unless—

1. all or part of proportion B is—
   1. an amount in excess of the amount to which B is by law entitled or to which B has no entitlement; and
   2. an amount obtained by fraud by B; and
   3. a debt due to the Crown, and subject to recovery under section 362, from B; and
2. all or part of proportion S either is, or is not,—
   1. an amount in excess of the amount to which S is by law entitled or to which S has no entitlement; and
   2. an amount obtained by fraud by S; and
   3. a debt due to the Crown, and subject to recovery under section 362, from S; and
3. S either knew, or ought to have known (even if S did not know), of the fraud by B.

S is jointly and severally liable for B’s debt referred to in subsection (2)(a)(iii), and that amount is a debt due to the Crown, and subject to recovery under section 362, from S.

This section does not limit or affect any civil or criminal liability under any other law—

1. of B for, or in respect of, the debt referred to in subsection (2)(a)(iii); or
2. of S for, or in respect of, the debt referred to in subsection (2)(b)(iii).

An amount is obtained by fraud by a person (whether B or S) for the purposes of sections 354, 359, and 361, and clause 9 of Schedule 6 if the person—

1. obtained that amount by—
   1. making any statement to MSD knowing the statement to be false in a material particular; or
   2. knowingly saying or doing anything or omitting to do or say anything for the purpose of misleading MSD in administering this Act; or
2. is convicted of a specified offence (as defined in section 291(5)) in respect of obtaining that amount.

This section does not limit references to fraud in sections 354, 359, and 361, and clause 9 of Schedule 6.

This section does not limit the operation of section 49 (conviction as evidence in criminal proceedings) of the Evidence Act 2006.

This section applies to a beneficiary’s (B’s) spouse or partner (S) if—

1. B has obtained or received an amount (payment, credit, or advance)—
   1. in excess of the amount to which B was entitled; or
   2. to which B has no entitlement; and
2. B, in MSD’s opinion, obtained that amount (payment, credit, or advance) in excess by fraud; and
3. none of the amount in excess has been apportioned to S; and
4. S, in MSD’s opinion, either—
   1. knowingly benefited directly or indirectly from B’s fraud; or
   2. ought to have known (even if B did not know) that S was benefiting directly or indirectly from B’s fraud.

The amount in excess that S obtained by B’s fraud is a debt due to the Crown, and subject to recovery under section 362, from S.

The excess amount may be recovered under this section from S on the basis that S is jointly and severally liable.

This section therefore does not limit or affect—

1. recovery under section 362 from B of the excess amount recoverable under this section and section 362 from S:
2. any other civil or criminal liability of B, under any other laws, in respect of that excess amount.

MSD is under a duty imposed by this section to take all reasonably practicable steps to recover sums (for example, identified overpayments, or penalties) that are specified (in this Act, or in regulations made under this Act) as debts due to the Crown.

The duty is subject to the exceptions specified in regulations made under section 444(2)(b).

MSD may approve the use of an automated electronic system by a specified person to make any decision, exercise any power, comply with any obligation, or take any other related action under any specified provision.

In this subpart,—

The specified provision must be about how an information share child support payment is or affects any person’s assets, income, or other means of any kind (however described), for the purposes of, or for any purpose related to,—

1. a benefit; or
2. any other assistance under this Act.

MSD may approve the use of an automated electronic system only if—

1. the system is under the responsible department’s control; and
2. MSD is satisfied that the system has the capacity to make the decision, exercise the power, comply with the obligation, or take the related action with reasonable reliability; and
3. MSD is satisfied that the use of the system is consistent with the approved standard for MSD’s use of automated electronic systems (see subsections (5) and (6)); and
4. 1 or more persons are always available, as an alternative, to make the decision, exercise the power, comply with the obligation, or take the related action.

MSD must ensure that there is in force at all times after the commencement of this section an approved standard for MSD’s use of automated electronic systems.

The standard, and any amendment, revocation, or replacement of the standard, must be—

1. approved by MSD, in consultation with the Privacy Commissioner appointed under the Privacy Act 2020; and
2. reviewed at least once every 3 years; and
3. published in the Gazette; and
4. published on an Internet site that—
   1. is maintained by, or on behalf of, the responsible department; and
   2. is publicly available free of charge.

A decision that is made, a power that is exercised, an obligation that is complied with, or a related action that is taken using an automated electronic system under this section must be treated for all purposes as if it were made, exercised, complied with, or taken (as the case may be) by a specified person authorised or required by the specified provision to make the decision, exercise the power, comply with the obligation, or take the related action.

MSD must ensure that details of any arrangements to use an automated electronic system, and any variation or revocation of the arrangements, are published as soon as practicable—

1. in the Gazette; and
2. on an Internet site that—
   1. is maintained by, or on behalf of, the responsible department; and
   2. is publicly available free of charge.

Those details must identify—

1. the relevant decision, power, obligation, or related action to be made, exercised, complied with, or taken under the specified provision; and
2. the automated electronic system that is to make, exercise, comply with, or take that decision, power, obligation, or related action.

The use of an automated electronic system is not made invalid by reason only of a failure to publish details of it or any variation to it as soon as practicable in accordance with subsection (1).

This section applies to a decision made by an automated electronic system (the relevant decision).

A specified person may—

1. vary, or add to, the terms or conditions of the relevant decision; or
2. substitute a decision for the relevant decision if the specified person is satisfied that the new decision—
   1. could have been made under the same specified provision as the relevant decision; and
   2. is more favourable to the affected person.

A specified person is not obliged to exercise any power in subsection (2) in respect of the relevant decision.

A person has the same rights of appeal or right to apply for administrative or judicial review (if any) in relation to a decision made, power exercised, obligation complied with, or other action taken by an automated electronic system as the person would have had if the decision, power, obligation, or other action had been made, exercised, complied with, or taken by a specified person.

However, this section is subject to sections 304(1A) and 304A (under which MSD may review under subpart 3 of Part 6 whether a person’s information share child support payment is or was all or any of their weekly income under Part 3A of Schedule 3, but only on all or any of the review grounds specified in section 304A(1)(a) to (g)).

For the purposes of subsection (2), the review grounds specified in section 304A(1)(a) to (g) include, without limitation, any 1 or more additional grounds prescribed by regulations made under section 418(1)(ja).

The ways MSD or a person can meet a requirement in this Act to give to another person a written or other notice, or any other document, are specified in regulations made under section 449.

This section is subject to section 254 (how notice of sanction may be given).

MSD may do either or both of the following things:

1. provide services to encourage and help young people to move into or remain in education, training, and employment, rather than receiving financial support under this Act:
2. enter (under section 373) into contracts with service providers to provide services of that kind on MSD’s behalf.

A young person who, on the date the young person turns 18 years old is, in MSD’s opinion, continuing in a course of education or training may continue to be provided the services of the kind referred to in subsection (1)(a) until—

1. the close of the following 31 March, if the course is one of secondary instruction or one that ends in December; or
2. the close of the day on which the course ends, if the course is one of any other kind.

The Minister may from time to time, by written direction, determine the goods or services, or classes, descriptions, or kinds of goods or services, contracts for the supply of which may be entered into under section 366.

A determination under this section must be in respect of goods or services, or classes, descriptions, or kinds of goods or services, for all or any of the following (and for no other) purposes:

1. to meet additional expenses arising from a disability by way of a disability allowance, under section 85:
2. to meet particular needs of a person via special assistance under a programme under section 100 or 101:
3. to satisfy the immediate needs of a beneficiary via an advance payment of a benefit under section 347.

This section applies to a person if—

1. any of the following relates to the supply of any goods or services to the person or a member of the person’s family:
   1. the person’s ongoing additional expenses under section 85(2)(d); or
   2. a special assistance payment to the person under a welfare programme approved under section 100 or 101; or
   3. the person’s immediate needs under section 347; and
2. the goods or services are of a class, description, or kind supplied by a preferred supplier under a preferred supply contract; and
3. the preferred supplier is a preferred supplier to, or in respect of, the area in which the beneficiary resides.

The person must purchase the goods or services—

1. from a preferred supplier nominated by MSD; and
2. at the price determined by the preferred supply contract with that supplier.

The amount of the special assistance under section 100 or 101, or advance payment under section 347, for purchasing the goods or services is the lesser of—

1. the price determined by the preferred supply contract with that supplier; and
2. the maximum amount available under the approved welfare programme, or of advance payment of benefit, that is available to the person for that purpose.

MSD must pay to that supplier, in consideration of the supply of the goods or services to the person or the person’s family member,—

1. all, or the specified part, of the disability allowance that is granted under section 85 in respect of the supply of the goods or services; or
2. the special assistance payment under the welfare programme approved under section 100 or 101; or
3. the advance payment under section 347.

A nomination given by MSD under subsection (2) of a preferred supplier—

1. may be given by MSD orally or in writing (but, if given orally, must as soon as practicable be confirmed in writing by MSD); and
2. may from time to time be amended, revoked, or replaced, by MSD, to recognise changes in preferred suppliers or preferred supply contracts ending without also being replaced.

Preferred supply contract, in this section and section 370, means a contract MSD has entered into under section 366 (preferred suppliers: contracts) with a supplier of goods or services.

This section is subject to sections 369 and 370 (which are disability allowance exceptions).

This section applies if—

1. a preferred supplier is required under section 368(4)(a) to be paid, on a pay day, an amount that is all or the specified part of a disability allowance granted under section 85 to a person in respect of the supply of the goods or services; and
2. the person’s net total benefit payments due to be paid on that pay day (after deducting any reduction or deduction required to be made from the person’s benefit payments for another purpose (for example, under an attachment order or a deduction notice)) are less than the amount required to pay the preferred supplier on that pay day.

MSD—

1. is not required by section 368(4)(a) to pay to the preferred supplier on the pay day referred to in subsection (1) of this section all, or the specified part, of the person’s disability allowance due on that pay day; and
2. may pay the amount due to the preferred supplier on 1 or more later pay days from amounts of disability allowance or other benefit payments due to the person on those 1 or more later pay days.

Non-payment, or deferred payment, under this section does not reduce any amounts due to the preferred supplier from the person under, or make MSD or the Crown liable for breaching, the person’s contract of purchase.

This section applies if the disability allowance granted to the person to whom section 368(4)(a) applies is granted at the maximum appropriate rate specified in Part 9 of Schedule 4.

MSD may determine in writing that, despite section 368(2),—

1. all, or the specified part, of the disability allowance that is granted under section 85 in respect of the supply of the goods or services must be paid to the person for use only to purchase any 1 or more of the goods or services that the person chooses and that are goods or services in respect of the supply of which the disability allowance is granted; and
2. if the goods or services that the person chooses and purchases under paragraph (a) are goods or services supplied by the nominated preferred supplier under the preferred supply contract, the person must purchase them from that supplier at the price determined by that contract.

The Minister may from time to time give to MSD under this section written directions that set out transitional or savings provisions that apply—

1. to persons receiving assistance under this Act in respect of goods or services that would be affected by a contract with a preferred supplier in respect of those goods or services; and
2. at, or within a specified period after, the time or times when a contract under section 366 (including, without limitation, one that varies or replaces all or any of an earlier contract of that kind) takes effect.

A direction given under this section—

1. overrides sections 347, 367(2)(b), and 368 to 370; and
2. must be complied with by MSD; and
3. is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

[Repealed]

MSD may from time to time, on behalf of the Crown, enter into a contract with any person, body, or organisation (a contracted service provider) for the provision by the contracted service provider of services—

1. that, in relation to young people, are—
   1. services of either or both of the following kinds:
      1. services of the kind referred to in section 365(1)(a) (that is, services to encourage and help young people to move into or remain in education, training, and employment, rather than receiving financial support under this Act):
      2. services in relation to financial support for young people; and
   2. services of a kind or description stated for the purposes of this paragraph by regulations made under section 418(1)(m); and
2. that, in relation to people other than young people, are services in relation to all or any of Parts 1 to 6 (and that may, but need not, be services of a kind or description stated for the purposes of this paragraph by regulations made under section 418(1)(m)).

MSD must not enter into a contract with a person, body, or organisation for the provision of services of a kind stated in subsection (1) unless MSD is satisfied that the person, body, or organisation—

1. is suitable to provide the services specified in the contract; and
2. is suitable to work with people to whom the services relate in providing those services; and
3. has the powers and capacity to enter into and perform a contract for those services.

A contract under section 373—

1. must set out the responsibilities of the contracted service provider and MSD in respect of each of the services the provider is to provide under the contract; and
2. must require the provider to co-operate with MSD; and
3. must contain all terms and conditions (if any) stated for the purposes of that section by regulations made under section 418(1)(n).

The contract must be in writing.

Subsection (1) is subject to section 373.

This section applies to a contract that MSD entered into with another party before 27 July 2012 (which is the date on which section 21 of the Social Security (Youth Support and Work Focus) Amendment Act 2012 came into force).

MSD may agree in writing with the other party to the contract that this Act applies to the contract (to the extent that it was capable of being entered into under section 373) as if it had been entered into under section 373.

After an agreement under this section takes effect, this Act applies to the contract (to the extent that it was capable of being entered into under section 373) as if it had been entered into under section 373.

The purpose of this section is to enable effect to be given in New Zealand law to an agreement (for example, a Convention), or an alteration to an agreement, with the Government of another country providing for reciprocity in respect of matters relating to social security monetary benefits (a reciprocity agreement).

The Governor-General may, by Order in Council, do all or any of the following:

1. declare all or any provisions of, or of an alteration to, a reciprocity agreement (being provisions set out in a schedule of the order) have force and effect so far as they relate to New Zealand:
2. declare that the following enactments (and any regulations or orders made, and in force, under the following Acts) have effect subject to any modifications required for the purpose of giving effect to the agreement or alteration:
   1. this Act:
   2. Part 6 of the Veterans’ Support Act 2014:
   3. Part 1 of the New Zealand Superannuation and Retirement Income Act 2001:
3. revoke a previous order that applied in respect of, or in respect of an alteration to, a reciprocity agreement if the agreement or alteration is no longer in force or if, on the commencement of the order, the previous order is intended to be no longer in force.

The Governor-General may, by the same or a later Order in Council, specify the date on which an order made under subsection (2) is to come into force (which may be a date before, on, or after the date on which the order is made under subsection (2)).

This section is subject to section 381.

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

This section applies to a reciprocity agreement, or an alteration to a reciprocity agreement, that contains a mutual assistance provision—

1. for the Governments of New Zealand and the other country to—
   1. provide each other with assistance in the recovery of social security debts; or
   2. supply each other with information for social security purposes; and
2. that does not relate solely to the recovery of moneys paid under the agreement in excess of that to which the recipient was entitled under that agreement.

No order may be made under section 380 in respect of the agreement or alteration unless the Privacy Commissioner has first presented to the Minister and to the Minister of Justice a report on the following matters:

1. whether the mutual assistance provision complies with the information privacy principles set out in section 22 of the Privacy Act 2020, having regard to—
   1. whether the objective of the provision relates to a matter of significant public importance:
   2. whether the use of the provision to achieve that objective will result in significant and quantifiable monetary savings, or in other comparable benefits to society:
   3. whether the use of an alternative means of achieving that objective would give either of the results referred to in paragraph (ii):
   4. whether the public interest in allowing the provision to proceed outweighs the public interest in adhering to the information privacy principles that the provision would otherwise contravene:
   5. whether the provision involves information matching on a scale that is excessive, having regard to—
      1. the number of agencies that will be involved; and
      2. the amount of detail about an individual that will be matched under the provision:
   6. whether the provision will comply with the information matching rules in Schedule 6 of the Privacy Act 2020:
2. if the mutual assistance provision is one for the Governments of New Zealand and the other country to supply each other with information for social security purposes, the adequacy of the privacy protection given in the other country to information about any individual that may be supplied by New Zealand under the provision.

This section applies if an order is made under section 380 in respect of a reciprocity agreement that contains a provision for the Governments of New Zealand and the other country to provide each other with assistance in the recovery of social security debts.

A social security debt of the other country may, under and subject to the provision and to the extent that the debt has not been recovered in the other country, be recovered by MSD under regulations made under section 444 as if it were a debt due to the Crown.