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Social Security Act 2018

Enforcement: sanctions and offences - Sanctions for breach of obligations other than young person or young parent obligations - Special cases: variations on ordinary sanctions rules

246: Variation for breach of work-test obligation by both partners or spouses

You could also call this:

“What happens if you and your partner both don't follow work rules while on a benefit”

If you and your partner receive a main benefit at a work-test couple rate, and you both fail to meet your work-test obligations, this is what happens:

The benefit you receive might be reduced, suspended, or cancelled. This applies when you and your partner don’t have any dependent children.

If this happens, the reduction, suspension, or cancellation will only affect half of the benefit rate that each of you would normally get. This half-rate is calculated before any reductions due to income are made.

After the reduction, suspension, or cancellation is applied, any benefit you still receive will be tested against your income. However, the rate at which your benefit decreases due to your income (called the abatement rate) will be half of what it usually is.

This rule ensures that even if both you and your partner fail to meet your work-test obligations, you’re not left without any support. It applies the penalty to each of you separately, rather than to your entire benefit as a couple.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6783646.

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245: Variation for breach of work-test obligation by 1 spouse or partner, or

“Changes to couple's benefit when one person doesn't follow work rules”

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247: Variation for suspension or cancellation of benefit or non-entitlement period affecting couple with 1 or more dependent children, or

“Rules for couples with children when their benefit is suspended or cancelled”

Part 5 Enforcement: sanctions and offences
Sanctions for breach of obligations other than young person or young parent obligations: Special cases: variations on ordinary sanctions rules

246Variation for breach of work-test obligation by both partners or spouses

  1. This section applies when—

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

          1. 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.

          2. 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.

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