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Social Security Act 2018

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

356: Restriction on imposing penalty under section 354: notice and period to respond

You could also call this:

“MSD must tell you about a penalty and give you time to respond before making you pay”

MSD (which stands for Ministry of Social Development) can’t make you pay a penalty under section 354 without telling you first. They need to send you a letter that explains:

  1. They want to give you a penalty
  2. How much the penalty will be
  3. Why they think you should get a penalty

The letter must also tell you that you have 5 working days after you get the letter to explain why you shouldn’t get the penalty.

MSD has to wait until those 5 working days are over before they can give you the penalty. This gives you time to respond and explain your side of the story.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6783850.

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355: Restriction on imposing penalty under section 354: prosecution for offence, or

“MSD can't make you pay extra if you've already been in trouble with the law for the same thing”

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357: Restriction on recovering penalty under section 354: decision to be final, or

“Once a penalty decision is final, you can't challenge it anymore”

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

356Restriction on imposing penalty under section 354: notice and period to respond

  1. MSD cannot impose a penalty on a person under section 354 unless MSD has given to the person a written notice advising—

  2. of MSD’s intention to impose a penalty under section 354; and
    1. of the amount proposed to be imposed by way of penalty; and
      1. of the particulars of fact on which MSD’s intention is based; and
        1. that the person has 5 working days after the date of receipt of the notice to show cause why the action should not be taken.

          1. MSD cannot impose a penalty on a person under section 354 until after the expiration of those 5 working days.

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