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Social Security Act 2018

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

236I: Sanction for first failure: upskilling: failure without good and sufficient reason to meet requirements

You could also call this:

"Your benefit may be reduced if you don't meet upskilling requirements without a good reason"

Illustration for Social Security Act 2018

If you do not meet the requirements after upskilling, and you do not have a good reason, your main benefit rate will be reduced. You must provide evidence to show you have met the requirements within a certain time. If you do not provide this evidence, your benefit rate will be reduced to zero. If your benefit rate is reduced to zero, you will not have to meet the requirements anymore. You will be considered to have complied with the requirements again. A new 13-week period will start when your upskilling begins. Your benefit rate will be reduced to zero from the first day of the week you did not comply. This reduction will end when you comply again or when your benefit is cancelled. You can find more information about complying again in section 261D(3) and (4). The reduction of your benefit rate to zero is subject to other parts of the law, including sections 243AAA, 243, 245 to 248, and 320 to 322.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1551800.

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236H: Sanction for first failure: upskilling: general, or

"What happens if you don't meet requirements and need to upskill to keep your main benefit"

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236J: Sanction for first failure: upskilling: replacement sanction if good and sufficient reason why cannot meet requirements, or

"What happens if you can't meet benefit requirements and have a good reason"

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

236ISanction for first failure: upskilling: failure without good and sufficient reason to meet requirements

  1. This section applies if, after upskilling that is imposed on P has effect,—

  2. P has not met the requirements that apply to P under section 236H(4) (see subsections (2) and (3)); and
    1. P has not satisfied MSD in the reasonable period specified in subsection (4) that a good and sufficient reason existed as to why P failed to meet those requirements.

      1. For the purposes of subsection (1)(a) and of section 236J(1)(a), P has not met the requirements that apply to P under section 236H(4) if MSD has not been provided with supporting evidence that has satisfied MSD of P’s compliance by the end of 5 days after the prescribed period for the purposes of section 236H(4) (see regulations made under section 418(1)(if)).

      2. Subsection (2) does not limit the generality of subsection (1)(a) or of section 236J(1)(a).

      3. The reasonable period mentioned in subsection (1)(b) and in section 236J(1)(b) must be one that—

      4. MSD considers reasonable in the circumstances of P; and
        1. ends no later than the end of the prescribed period for the purposes of section 236H(4) (see regulations made under section 418(1)(if)).

          1. MSD must reduce the rate of P’s main benefit to zero with effect—

          2. starting on the first day of the week of P’s non-compliance or, if MSD is unable to determine the date of P’s non-compliance,—
            1. starting on the first day after the prescribed period for the purposes of section 236H(4) (see regulations made under section 418(1)(if)), if P has not in that period contacted MSD about P’s non-compliance; or
              1. starting on the first day of the prescribed period for the purposes of section 236H(4) (see regulations made under section 418(1)(if)), if—
                1. P has in or after that period contacted MSD about P’s non-compliance; and
                  1. MSD has not been provided with supporting evidence that satisfies MSD of the date of P’s non-compliance; and
                2. ending on whichever occurs first of the following events:
                  1. P recomplies (see section 261D(3) and (4)):
                    1. MSD cancels P’s main benefit under section 233A.

                    2. However, if P satisfies MSD within a period that complies with subsection (4)(a), but that does not also comply with subsection (4)(b), that a good and sufficient reason existed as to why P failed to meet the requirements that apply to P under section 236H(4), then MSD must reduce the rate of P’s main benefit to zero under subsection (5) with effect on and after the first day after the prescribed period for the purposes of section 236H(4) (see regulations made under section 418(1)(if)).

                    3. If the rate of P’s main benefit is reduced to zero under subsection (5),—

                    4. P is no longer required to meet the requirements that apply to P under section 236H(4); and
                      1. P recomplies under section 261D(3) and (4); and
                        1. the 13-week period in section 233A(1)(b) starts when upskilling imposed on P takes effect.

                          1. This section is subject to sections 243AAA, 243, 245 to 248, and 320 to 322.

                          Notes
                          • Section 236I: inserted, on , by section 19 of the Social Security Amendment Act 2025 (2025 No 25).