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Social Security Act 2018

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

361: Recovery from spouse or partner of unapportioned excess amount beneficiary obtained by fraud

You could also call this:

“Money taken back if your partner lied to get extra”

If you’re married or in a relationship with someone who got extra money they shouldn’t have, this law might affect you. Here’s how it works:

Your partner might have received too much money or money they weren’t supposed to get at all. If the government thinks your partner got this extra money by being dishonest, they call it fraud.

Even if you didn’t get any of this extra money directly, you could still be in trouble if:

  • You knew about the fraud and benefited from it in some way, or
  • The government thinks you should have known about the fraud, even if you didn’t.

If this happens, the government can ask you to pay back the extra money. They can make you pay it back even if your partner is also paying it back. This means both of you might have to pay.

The government can use section 362 to get the money back from you. This doesn’t stop them from also getting the money from your partner or taking other legal action against your partner for being dishonest.

Remember, it’s important to be honest about money you receive from the government and to speak up if you think something isn’t right.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6783862.

Topics:
Money and consumer rights > Banking and loans
Family and relationships > Marriage and partnerships
Crime and justice > Criminal law
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360: Obtaining amount by fraud: meaning and proof, or

“What fraud means and how it's proven when getting money wrongly”

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362: MSD’s duty to recover debts, or

“MSD must try to get back money people owe to the government, except in special cases”

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

361Recovery from spouse or partner of unapportioned excess amount beneficiary obtained by fraud

  1. This section applies to a beneficiary’s (B’s) spouse or partner (S) if—

  2. B has obtained or received an amount (payment, credit, or advance)—
    1. in excess of the amount to which B was entitled; or
      1. to which B has no entitlement; and
      2. B, in MSD’s opinion, obtained that amount (payment, credit, or advance) in excess by fraud; and
        1. none of the amount in excess has been apportioned to S; and
          1. S, in MSD’s opinion, either—
            1. knowingly benefited directly or indirectly from B’s fraud; or
              1. ought to have known (even if B did not know) that S was benefiting directly or indirectly from B’s fraud.

              2. The amount in excess that S obtained by B’s fraud is a debt due to the Crown, and subject to recovery under section 362, from S.

              3. The excess amount may be recovered under this section from S on the basis that S is jointly and severally liable.

              4. This section therefore does not limit or affect—

              5. recovery under section 362 from B of the excess amount recoverable under this section and section 362 from S:
                1. any other civil or criminal liability of B, under any other laws, in respect of that excess amount.

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