Social Security Act 2018

Other provisions - Regulations

444: Regulations: debts and deductions

You could also call this:

“Rules for managing money owed to the government and how it's collected”

The Governor-General can make rules about debts and deductions. These rules can do several things:

They can say what counts as money owed to the government. They can also say when the Ministry of Social Development (MSD) doesn’t have to collect a debt. For example, if the debt was caused by a mistake that wasn’t the person’s fault, or if it’s not worth the cost to collect it.

The rules can tell MSD how to decide how much money to take back and how to do it. They can also say how to get money back from someone’s estate after they die, or from their partner’s estate.

If MSD decides someone owes money, the person’s lawyer can ask a court to look at this decision. The court can change or cancel MSD’s decision if they think it’s fair.

The rules can also let MSD tell a person’s employer to take money from their pay to repay a debt.

These rules are called secondary legislation, which means they have to be published in a certain way. If the rules let the Minister give directions about collecting debts, those directions are also secondary legislation and must be published.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6784017.

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“Rules for taking money from people who owe money to the government”

Part 8 Other provisions
Regulations

444Regulations: debts and deductions

  1. The Governor-General may, by Order in Council, make regulations for the purposes of section 353.

  2. Regulations made under subsection (1) may (without limitation) do all or any of the following:

  3. specify sums that are debts due to the Crown (which may, but need not, be amounts this Act states are debts due to the Crown, and subject to recovery, under regulations made under this section):
    1. prescribe exceptions to the debt-recovery duty imposed on MSD by section 362 (for example, because—
      1. a debt was caused wholly or partly by an error to which the debtor did not intentionally contribute:
        1. debt recovery is remitted or suspended under regulations made under section 448:
          1. MSD determines a debt is uneconomic to recover:
            1. the Minister and the Minister of Finance have given jointly for public finance purposes generally an authorisation about debts that are to be written off):
            2. require MSD to determine, having regard to Ministerial debt recovery directions given in writing under the regulations, rates and methods of debt recovery:
              1. provide for recovery from the estate of a deceased beneficiary, from the estate of a beneficiary’s deceased spouse or partner, or from both estates, an excess amount a beneficiary obtained:
                1. provide for the District Court, on application by an executor or administrator of an estate on whom a notice of assessment is served by MSD, to have jurisdiction to review, confirm or cancel, or make any other order it considers just and equitable in respect of, any MSD determination under the regulations of an excess amount (irrespective of that amount) paid to a person, assessed by MSD under the regulations, and to be recovered under regulations made under paragraph (d) or (g):
                  1. authorise the District Court to receive as evidence any statement, document, information, or matter that may in its opinion assist the court to deal effectively with the application, whether or not it would be otherwise admissible in a court of law:
                    1. provide for MSD to issue a deduction notice requiring a debtor’s payer to deduct, and pay MSD, an amount due.
                      1. Regulations made under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                      2. If the regulations authorise the Minister to give debt recovery directions referred to in subsection (2)(c),—

                      3. a debt recovery direction made under those regulations is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements); and
                        1. the regulations must contain a statement to that effect.
                          1. Repealed
                          Compare
                          Notes
                          • Section 444(3): replaced, on , by regulation 87 of the Legislation Act (Amendments to Legislation) Regulations 2021 (LI 2021/247).
                          • Section 444(4): inserted, on , by regulation 87 of the Legislation Act (Amendments to Legislation) Regulations 2021 (LI 2021/247).
                          • Section 444(4): repealed, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).