Social Security Act 2018

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

352: Recovery amount paid in excess of amount properly payable

You could also call this:

"Getting back extra tax the government took by mistake"

If you get a main benefit and the government reviews it, they might find out they took too much tax. This happens when the Ministry of Social Development (MSD) works out that they paid too much tax to the Commissioner under section 350(2). You can't get this extra money back through the normal rules.

MSD can get this extra money back in two ways. They can adjust the tax they take from your next benefit payment under section 350(2). They can also make a deal with the Commissioner to refund the money.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on 19 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6783845.

Topics:

Money and consumer rights > TaxesGovernment and voting > Government departments

351: Status of amount for income tax paid by MSD, or

"Money MSD pays for your tax counts as part of your benefit and income"

353: Debts and deductions, or

"How the government can get back money you shouldn't have received or need to pay"

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

352Recovery amount paid in excess of amount properly payable

This section applies if, as a result of the review, suspension, or cancellation of a main benefit, MSD determines that an amount for tax on the benefit has been paid under section 350(2) to the Commissioner in excess of the amount that is properly payable under section 350(2).
MSD cannot recover the excess amount under regulations made under section 444, but may recover that amount by—
making an adjustment to an amount later payable to the Commissioner under section 350(2) in respect of the source deduction payments for that or any other benefit payable to that beneficiary; or
making other arrangements for its refund that are agreed with the Commissioner.

Compare

1964 No 136 s 83A(5)

Notes

Section 352(1): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).