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New Zealand law explained for everyone

Social Security Act 2018

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

236: Sanction for first failure: reduction in main benefit

You could also call this:

“What happens if you break the rules for getting money from the government for the first time”

If you fail to follow the rules for the first time, the government will reduce your main benefit by half. This reduction will stay in place until you start following the rules again.

If you don’t start following the rules within 4 weeks after your benefit was first reduced, the government will stop your main benefit completely. Your benefit will only start again when you follow the rules.

There are some exceptions to these rules. You can find more information about these exceptions in sections 245 to 248 and 320 to 324 of the law.

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

“Explaining what happens when you don't follow the rules, and how many times you can break them”

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237: Sanction for second failure: suspension of main benefit, or

“Your main benefit payment stops if you don't follow the rules twice”

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

236Sanction for first failure: reduction in main benefit

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

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

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

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