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Social Security Act 2018

Administration - Notices and communications, services, and preferred suppliers - Goods or services, for beneficiaries or others, supplied by preferred suppliers

368: Preferred suppliers: paying them disability allowance, special assistance, or advance payment

You could also call this:

“Rules for buying special items from chosen shops using government money”

When you need to buy certain things, like special items or services, you might have to use a specific shop or company. This is called a ‘preferred supplier’. Here’s how it works:

If you get extra money for disability costs, special help, or an advance payment, and you need to buy something that a preferred supplier sells, you have to buy it from them. The government will tell you which supplier to use and how much it will cost.

You can only spend the amount the government gives you or the price the supplier charges, whichever is less. The government will pay the supplier directly for what you buy.

The government can change which suppliers you can use. They might tell you about these changes by talking to you or writing to you.

There are some exceptions to these rules for disability allowances. The government has special agreements with these suppliers to make sure you get what you need at a fair price.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6783876.

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367: Preferred suppliers: determinations, or

“Minister can choose specific suppliers for certain disability and urgent needs support”

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369: Preferred suppliers: paying them disability allowance: exception if total benefit payments less than amount required, or

“Paying suppliers when there's not enough money in your disability allowance”

Part 6 Administration
Notices and communications, services, and preferred suppliers: Goods or services, for beneficiaries or others, supplied by preferred suppliers

368Preferred suppliers: paying them disability allowance, special assistance, or advance payment

  1. This section applies to a person if—

  2. any of the following relates to the supply of any goods or services to the person or a member of the person’s family:
    1. the person’s ongoing additional expenses under section 85(2)(d); or
      1. a special assistance payment to the person under a welfare programme approved under section 100 or 101; or
        1. the person’s immediate needs under section 347; and
        2. the goods or services are of a class, description, or kind supplied by a preferred supplier under a preferred supply contract; and
          1. the preferred supplier is a preferred supplier to, or in respect of, the area in which the beneficiary resides.

            1. The person must purchase the goods or services—

            2. from a preferred supplier nominated by MSD; and
              1. at the price determined by the preferred supply contract with that supplier.

                1. The amount of the special assistance under section 100 or 101, or advance payment under section 347, for purchasing the goods or services is the lesser of—

                2. the price determined by the preferred supply contract with that supplier; and
                  1. the maximum amount available under the approved welfare programme, or of advance payment of benefit, that is available to the person for that purpose.

                    1. MSD must pay to that supplier, in consideration of the supply of the goods or services to the person or the person’s family member,—

                    2. all, or the specified part, of the disability allowance that is granted under section 85 in respect of the supply of the goods or services; or
                      1. the special assistance payment under the welfare programme approved under section 100 or 101; or
                        1. the advance payment under section 347.

                          1. A nomination given by MSD under subsection (2) of a preferred supplier—

                          2. may be given by MSD orally or in writing (but, if given orally, must as soon as practicable be confirmed in writing by MSD); and
                            1. may from time to time be amended, revoked, or replaced, by MSD, to recognise changes in preferred suppliers or preferred supply contracts ending without also being replaced.

                              1. Preferred supply contract, in this section and section 370, means a contract MSD has entered into under section 366 (preferred suppliers: contracts) with a supplier of goods or services.

                              2. This section is subject to sections 369 and 370 (which are disability allowance exceptions).

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