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Social Security Act 2018

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

340A: Required manner of payment: money management for certain payments to people subject to sanction for first failure

You could also call this:

"How the government manages your benefit money if you break a rule for the first time"

If you get a benefit and you are subject to a sanction for a first failure, the government can manage your money. This means they can decide how your benefit is paid to you. The government can make rules about how your money is managed. They can say that some of your benefit must be paid to a payment card, so you can buy essential things like food. The government can also decide how any debt you owe them is paid back, and how any money they owe you is paid to you. If you die, the government will follow special rules to pay any money they owe you to the right person. These rules are made under laws like section 418(1)(jb) and section 236A.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1444966.

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340: Required manner of payment: general, or

"How your benefit money is paid to you"

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340B: Credit on payment card at end of money management, or

"Getting leftover money from your payment card when money management ends"

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

340ARequired manner of payment: money management for certain payments to people subject to sanction for first failure

  1. Regulations made under section 418(1)(jb) for the purposes of this section may prescribe the required manner of payment for money management for certain payments to a person (P)—

  2. who is subject to a sanction for a first failure; and
    1. to whom section 236A applies; and
      1. while money management imposed on P has effect.

        1. Those regulations may, without limitation,—

        2. require, while money management imposed on P has effect, that the prescribed proportion of an instalment of P’s main benefit that is an instalment payable to P (see regulations made under section 418(1)(ia)) must be paid to P by crediting an amount to a payment card for a prescribed period to enable P to obtain goods or services—
          1. that MSD considers are essential; and
            1. from participating suppliers:
            2. define participating suppliers:
              1. provide for how specified arrears that MSD must pay, and that are arrears that relate to a period while money management imposed on P has effect, are credited or paid (for example, by providing that—
                1. the prescribed proportion of the specified arrears is credited to P’s payment card; and
                  1. the rest of the specified arrears is paid to P personally under section 339(1)):
                  2. provide for how specified debt that MSD must recover, and that is debt that relates to a period while money management imposed on P has effect, is recovered (for example, by providing that the specified debt is recovered—
                    1. from P personally; and
                      1. not from, or from amounts to be credited to, P’s payment card):
                      2. require, if P dies while money management imposed on P has effect, that the prescribed proportion of an instalment of P’s main benefit that is an instalment payable to P, or specified arrears that MSD must pay, and that are arrears that relate to a period while money management imposed on P has effect, and that are arrears that relate to a suspension unrelated to a sanction for failure to comply with P’s obligations under section 233, must be paid under—
                        1. section 346 (required manner of payment: payment on death of beneficiary); or
                          1. any applicable regulations made under section 442 for the purposes of section 337 (how benefits are paid).

                          Notes
                          • Section 340A: inserted, on , by section 54 of the Social Security Amendment Act 2025 (2025 No 25).