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
This section sets out how a person (P) recomplies after a failure—
- to comply with an obligation; and
- that resulted in money management being imposed on P and taking effect.
P recomplies when both of the following have occurred:
- 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):
- money management imposed on P ceases to have effect under section 236A(6).
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).
However, subsection (5) applies instead of subsection (2) if MSD has—
- reduced the rate of P’s main benefit to zero under section 236A; but
- not yet cancelled P’s main benefit under section 233A.
P recomplies if P remedies P’s failure under section 261.
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).