Social Security Act 2018

Enforcement: sanctions and offences - Sanctions for breach of obligations other than young person or young parent obligations - Recompliance

261A: How person recomplies after failure that resulted in money management being imposed and taking effect

You could also call this:

"Fixing a mistake to stop money management and get back on track with your benefits"

If you fail to comply with an obligation and money management is imposed on you, you can recomply when you fix the failure and the money management stops. You fix the failure by doing what you were supposed to do. The money management stops under section 236A(6).

If the obligation you failed to comply with is a drug-testing obligation, you recomply under section 263.

But if the Ministry of Social Development has reduced your main benefit to zero under section 236A and not yet cancelled it under section 233A, you recomply if you fix your failure under section 261.

Again, if the obligation you failed to comply with is a drug-testing obligation, you recomply under section 263.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1444485.


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261: How person recomplies after failure to comply with obligation, or

"What to do if you didn't meet a requirement and want to fix it."


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261B: How person recomplies after failure that resulted in community work experience being imposed and taking effect, or

"What you must do to fix things if you didn't meet your obligations and got community work."

Part 5Enforcement: sanctions and offences
Sanctions for breach of obligations other than young person or young parent obligations: Recompliance

261AHow person recomplies after failure that resulted in money management being imposed and taking effect

  1. This section sets out how a person (P) recomplies after a failure—

  2. to comply with an obligation; and
    1. that resulted in money management being imposed on P and taking effect.
      1. P recomplies when both of the following have occurred:

      2. P remedies the failure (if a section 252 notice does not specify more than 1 failure of the same obligation, or a failure of more than 1 obligation) or P remedies all the failures (if a section 252 notice specifies more than 1 failure of the same obligation, or a failure of more than 1 obligation):
        1. money management imposed on P ceases to have effect under section 236A(6).
          1. However, if the obligation that P failed to comply with is a drug-testing obligation, subsection (2)(a) requires P to recomply under section 263 (how person recomplies after failure to comply with drug-testing obligation).

          2. However, subsection (5) applies instead of subsection (2) if MSD has—

          3. reduced the rate of P’s main benefit to zero under section 236A; but
            1. not yet cancelled P’s main benefit under section 233A.
              1. P recomplies if P remedies P’s failure under section 261.

              2. However, if the obligation that P failed to comply with is a drug-testing obligation, subsection (5) requires P to recomply under section 263 (how person recomplies after failure to comply with drug-testing obligation).

              Notes
              • Section 261A: inserted, on , by section 30 of the Social Security Amendment Act 2025 (2025 No 25).