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New Zealand law explained for everyone

Social Security Act 2018

Administration - Payment of benefits, tax on benefits, debts and deductions - Payment of benefits

339: Payment generally to, or on account of, beneficiary personally

You could also call this:

“How you usually get your benefit money and when it might be paid differently”

You can usually get your benefit paid directly to you. However, sometimes the Ministry of Social Development (MSD) might decide to pay your benefit differently. They might pay it to someone else you choose, or to someone they choose if you can’t manage your own money.

MSD can also pay your benefit to someone else without asking you first. This could be to pay your debts, or to help your partner or children.

There are some exceptions to these rules. For example, if you’re a young person, some of your payments might be managed differently. Also, if MSD pays tax for you, that’s counted as if you received the money yourself.

Sometimes, MSD has to pay some of your benefit directly to people who provide you with goods or services. This includes things like disability allowances or special assistance.

Remember, these are just general rules. There might be other rules that change how your benefit is paid in specific situations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6783824.

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“How often you get your benefit money”

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340: Required manner of payment: general, or

“How MSD decides to pay your benefit money”

Part 6 Administration
Payment of benefits, tax on benefits, debts and deductions: Payment of benefits

339Payment generally to, or on account of, beneficiary personally

  1. 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,—

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

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

          3. exceptions provided for in regulations made under section 442; and
            1. sections 341 and 344, on when certain payments to a young person are or may be subject to money management; and
              1. 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
                1. 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).

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