Social Security Act 2018

Enforcement: sanctions and offences - Sanctions for breach of obligations other than young person or young parent obligations - Hierarchy of sanctions

235: Failure, and first, second, and third failure, defined for obligations other than young person or young parent obligations

You could also call this:

"What happens when you don't meet your responsibilities, and how failures are counted"

When you do not meet your obligations, it is called a failure. A failure is when you, your dependent children, or your spouse or partner's dependent children do not comply with an obligation listed in section 233. This failure can happen at any time.

If you have a failure, it is counted as a first failure if it is the first time you have not met your obligations. You have a second failure if you have another failure after you have met your obligations again. You have a third failure if you have another failure after you have met your obligations again for the second time.

The date of your failure is when the Ministry of Social Development decides you have not met your obligations without a good reason, as stated in section 242(1). There are rules about how failures are counted, and you can find more information in section 242(1) and (3) and sections 287 and 287A.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6783621.


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Part 5Enforcement: sanctions and offences
Sanctions for breach of obligations other than young person or young parent obligations: Hierarchy of sanctions

235Failure, and first, second, and third failure, defined for obligations other than young person or young parent obligations

  1. In this subpart,—

    failure, in relation to a person, means a failure—

    1. by the person, or in relation to the person’s dependent children or the person’s spouse or partner’s dependent children, to comply with an obligation that is specified in section 233; and
      1. that occurred at any time (however, if it occurred more than 24 months or, if applicable, 12 months, before the failure for which the calculation is made, then see also section 242(1) and (3) and, if applicable, the express modifications made to section 242(1) and (3) by sections 287 and 287A); and
        1. that, for the purposes of section 242(1), is taken to have occurred on the date MSD decides that the person has, as a beneficiary, failed, without a good and sufficient reason, to comply with the appropriate obligation (see section 242(2))

          first failure, in relation to a person, means a failure (as defined in this section)—

          1. by the person, or in relation to the person’s dependent children or the person’s spouse or partner’s dependent children; and
            1. that is the first one by the person, or in relation to the person’s dependent children or the person’s spouse or partner’s dependent children

              second failure, in relation to a person, means a failure (as defined in this section)—

              1. by the person, or in relation to the person’s dependent children or the person’s spouse or partner’s dependent children; and
                1. that occurs after the person has recomplied with the obligation to which a first failure related

                  third failure, in relation to a person, means a failure (as defined in this section)—

                  1. by the person, or in relation to the person’s dependent children or the person’s spouse or partner’s dependent children; and
                    1. that occurs after the person has recomplied with the obligation to which a second failure related.

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                    Notes
                    • Section 235 failure: replaced, on , by section 16 of the Social Security Amendment Act 2025 (2025 No 25).
                    • Section 235 first failure: replaced, on , by section 16 of the Social Security Amendment Act 2025 (2025 No 25).
                    • Section 235 second failure: replaced, on , by section 16 of the Social Security Amendment Act 2025 (2025 No 25).
                    • Section 235 third failure: replaced, on , by section 16 of the Social Security Amendment Act 2025 (2025 No 25).