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Social Security Act 2018

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

341: Required manner of payment: money management for certain payments to young people

You could also call this:

“Special rules for paying money to help young people manage their finances”

You need to know about a special way of paying money to some young people. This is called a money management manner of payment. It’s designed to help young people manage their money better.

This special payment method might use a payment card, voucher, or device. With these, you can buy things from certain shops, and the government will pay the shop for what you bought.

Some payments must be made using this money management method. These include:

  • Youth support payments (including a small amount of pocket money)
  • Working for Families tax credits that the government pays to young people
  • Child disability allowance or disability allowance for young people
  • Other benefits or payments for young people that the government decides should be paid this way

There are some exceptions to these rules. Also, these rules are more important than some other rules about tax credits.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6783826.

Topics:
Money and consumer rights > Banking and loans
Family and relationships > Children and parenting
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340: Required manner of payment: general, or

"How MSD decides to pay your benefit money"

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342: Money management for certain payments to young people: exception if young person meets prescribed criteria for managing own payments, or

"Young people can manage their own payments if they follow special rules"

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

341Required manner of payment: money management for certain payments to young people

  1. 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).

  2. 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.

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

  4. 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):
    1. any WFF tax credit payable to a young person by MSD:
      1. the amount of any child disability allowance or disability allowance to which a young person is entitled:
        1. 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).

          1. Subsection (3)—

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

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