Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698833383515.pdf (New Zealand)
Social Security (Fraud Measures and Debt Recovery) Amendment Bill Government Bill Explanatory note General policy statement This Bill amends the Social Security Act 1964 (the Act).

Its main aim is to strengthen further the approach to relationship fraud by making spouses and partners, as well as beneficiaries, accountable for fraud.
It will also ensure that the Ministry of Social Development (MSD) recovers debt more effectively, while also enabling it to exercise sen- sible discretion in managing recovery in individual cases.

Fraud measures Relationship fraud makes up approximately one-third of all welfare fraud prosecutions.
In most cases of relationship fraud, where only 1 person has claimed for welfare assistance, the person’s spouse or partner is not currently liable to prosecution or for any of the debt established, regardless of the spouse’s or partner’s knowledge of, or gain from, the fraud.

The Bill seeks to overcome these inequities by ensuring that spouses and partners, as well as beneficiaries, are appropriately held to ac- count.
98—1 2 Social Security (Fraud Measures and Debt Recovery) Amendment Bill Explanatory note This is to be achieved through— • enabling payments, credits, or advances to which a beneficiary was not entitled, and that were obtained by fraud by the benefi- ciary, to be recovered from the beneficiary’s spouse or partner who knowingly benefited, or ought to have known he or she was benefiting, from that fraud: widening the circumstances in which an amount of benefit in excess of the beneficiary’s entitlement can be recovered from the beneficiary’s spouse or partner if that spouse or partner makes any false statement to, or misleads, MSD: making it a criminal offence for a beneficiary’s spouse or part- ner to benefit from an excess amount that the beneficiary ob- tained by fraud if the spouse or partner knows, or is reckless as to whether, the amount is an excess amount and obtained by the beneficiary’s fraud.
• • The Bill also provides review and appeal rights to spouses and part- ners affected by the new debt recovery powers.

Debt recovery MSD is owed a significant amount of money from fraud-related debt, other overpayments, and recoverable assistance.

This money should be recovered effectively and consistently.

The public is entitled to expect that MSD will recover welfare debts effectively.

Recent High Court decisions have questioned how MSD applies discretion to re- cover welfare debts.
Those decisions have created uncertainty about MSD’s powers and duties when recovering welfare debt.
To ensure effective debt recovery, and address the effect of those High Court decisions, this Bill will amend the Act so that— • it imposes a duty on MSD to take all reasonably practicable steps to recover debt: MSD has a discretion to determine, case-by-case, the method and rate of recovery: in exceptional circumstances, MSD may defer temporarily re- covery of debt: the Minister responsible for the Act is required to issue direc- tions identifying the exceptional circumstances in which re- covery may be deferred temporarily, and identifying the con- • • • Explanatory note Social Security (Fraud Measures and Debt Recovery) Amendment Bill 3 siderations to which MSD must have regard in setting the rate and methods of recovery of the debts.
Regulatory impact statement The Ministry of Social Development produced a regulatory impact statement on 8 November 2012 to help inform the main policy deci- sions taken by the Government relating to the contents of this Bill.
A copy of this regulatory impact statement can be found at— • http://www.msd.govt.nz/about-msd-and-our-work/publica- tions-resources/regulatory-impact-statements/index.html http://www.treasury.govt.nz/publications/informationre- leases/ris • Clause by clause analysis Clause 1 is the Title clause.

Clause 2 relates to commencement.

The amendments the Bill is to make come into force on 4 November 2013.

Clause 3 identifies the principal Act amended: the Social Security Act 1964.
A reference in this analysis to a provision is, unless the context otherwise requires, a reference to a provision of that Act.

Part 1 Substantive amendments Review of decisions Clause 4 amends section 10A, on reviews by benefits review com- mittees of specified decisions of the chief executive made under dele- gations by other decision makers (and against which specified people have under section 12J rights of appeal to the Appeal Authority).
New section 10A(1) re-enacts, using a table, existing rights of review under section 10A(1), but also— • ensures that “beneficiary” and “affected” have, in row 1 of the table, the same meanings as in new section 12J(1) to (3) (inserted by clause 5): gives new rights of review of decisions under section 86(3), (4), or (5) or new section 86AA (inserted by clause 10); and • 4 • Social Security (Fraud Measures and Debt Recovery) Amendment Bill Explanatory note refers to related rights of appeal under new section 12J (in- serted by clause 5).
The heading to section 10A is amended to make it more precise, and section 10A(1C) is repealed as redundant.

Rights of appeal Clause 5 replaces section 12J, which gives rights to appeal to the Ap- peal Authority against specified decisions.

New section 12J re-enacts existing rights of appeal under section 12J, but also makes the follow- ing substantive changes.
New section 12J(3) ensures that an applicant or beneficiary is for the purposes of new section 12J(1) not affected by, and so cannot appeal under new section 12J(1) against, a decision or determin- ation that relates only to all or any of the temporary deferral, rate, or method or methods, of debt recovery from another person.

New sec- tion 12J(3) overrides case law (such as Reference No.

SSA 005/12 Decision No.


[2012] NZSSAA 118) to the effect that an applicant or beneficiary does or may have under section 12J(1) a right to ap- peal to the Appeal Authority against a decision or determination that relates only to another person’s entitlement or liability in that other person’s own right, so long as the applicant or beneficiary is affected by that decision or determination.
The effect concerned may have to be economic in nature: Wharerimu v Chief Executive of Depart- ment of Work and Income [2000] NZAR 467 (HC).

“Decision” and “determination” are both used because the principal Act apparently uses both terms interchangeably: Arbuthnot v Chief Executive of the Department of Work and Income [2008] 1 NZLR 13 (SC).

New section 12J(5) to (11) give new rights of appeal against decisions under section 86(3), (4), or (5) or new section 86AA (inserted by clause 10).
New section 12J(12) ensures a reference in new section 12J to a deci- sion to recover an amount from a person or estate includes all related decisions on all or any of the temporary deferral, rate, or method or methods, of debt recovery from the person or estate.
Explanatory note Social Security (Fraud Measures and Debt Recovery) Amendment Bill 5 New section 12J(13) re-enacts, as a general restriction, the repeated uniform restriction (in, for example, section 12J(1A)(b)) that a deci- sion is not appealable under the section unless the decision— • has been confirmed or varied by a benefits review committee under section 10A; or was made by the chief executive other than pursuant to a dele- gation.
• Debts due to the Crown Clause 6 inserts a new section 83AA, on a benefit granted at a couple rate, and apportioned under section 83 between spouses or partners so that each is paid a proportion.

New section 83AA ensures that one (whether or not the person entitled to the benefit) is liable for any proportion that the other obtained by fraud if that one knew, or ought to have known, about the other’s fraud.
New section 83AA applies to the following situation: • a benefit is apportioned under section 83(1) or (2) between spouses or partners so that— • one proportion of the benefit (proportion A) is paid to one spouse or partner (A); and the other proportion of the benefit (proportion B) is paid to the other spouse or partner (B); and the person entitled to the benefit, for the purposes of section 83(1) and (2), is either A or B; and • • some or all of proportion A is— • an amount in excess of the amount to which A is by law entitled; and an amount obtained by fraud by A (within the meaning of new section 83AA(4)); and a debt referred to in section 85A due to the Crown, and subject to recovery under new section 86(1) (inserted by clause 9(1)), from A; and some or all of proportion B either is, or is not,— • an amount in excess of the amount to which B is by law entitled; and an amount obtained by fraud by B (within the meaning of new section 83AA(4)); and • • • • • 6 • Social Security (Fraud Measures and Debt Recovery) Amendment Bill Explanatory note • a debt referred to in section 85A due to the Crown, and subject to recovery under new section 86(1) (as inserted by clause 9(1)), from B; and B either knew, or ought to have known (even if B did not know), of the fraud by A.
New section 83AA(2) ensures that, in that situation,— • B is jointly and severally liable for A’s debt referred to in new section 83AA(1)(b); and that amount is a debt referred to in section 85A due to the Crown, and subject to recovery under new section 86(1), from B.

• Clause 7 amends section 85A to make it clear that section 85A is a general provision on payments that are debts due to the Crown.

Clause 8 inserts new section 85B, which gives examples of payments that are debts due to the Crown.
Recovery of amounts in excess of entitlements and related penalties Clause 9 amends section 86, which relates to recovery of payments made in excess of authorised rates.

Clause 9(1) inserts new section 86(1) and (1A) and a related subsec- tion heading.

Duty to take all reasonably practicable steps to recover debt New section 86(1) imposes a duty on the chief executive to take all reasonably practicable steps to recover a debt referred to in sec- tion 85A.
Section 86(1) has been held to give the chief executive a discretion as to whether to recover a debt referred to in section 85A: Harlen v Ministry of Social Development [2012] NZAR 491 (HC).
A later authority suggests, however, the discretion under section 86(1) is, at least for certain overpayments, very limited: Hennessy v Chief Executive of the Ministry of Social Development [2012] NZHC 3104. that Explanatory note Social Security (Fraud Measures and Debt Recovery) Amendment Bill 7 Exceptions to duty New section 86(1A)(a), (b), (c), and (d) state 4 exceptions to the duty in new section 86(1).
Two of these 4 exceptions re-enact parts of the section 86(1A) exceptions to discretionary recovery under sec- tion 86(1).

The first exception, in new section 86(1A)(a) (which re-enacts part of section 86(1A)), is cases covered by section 86(9A) and (9B).
Sec- tion 86(9A) and (9B) prohibit recovery if the debt was caused wholly or partly by an error to which the debtor did not intentionally con- tribute, the debtor received the sum in good faith and changed his or her position, and it would be inequitable in all the circumstances, including the debtor’s financial circumstances, to permit recovery.

This exception replaces section 94B of the Judicature Act 1908 and any other rules of law relating to payment by or under mistake: sec- tion 86(1B).
The second exception, in new section 86(1A)(b) (which re-enacts part of section 86(1A)), is cases in which debt is suspended or remitted under regulations made under section 132G, namely the Social Se- curity (Debt Recovery Suspension) Regulations 2007.

The third exception, in new section 86(1A)(c), is new.

It has no equivalent in section 86(1A).


It relates to cases in which recovery of the debt concerned is not required because it falls within any 1 or more classes, descriptions, or kinds of debts that are specified in a written determination made by the chief executive for the purposes of new section 86(1A)(c) as debts that it is uneconomic to recover.

The fourth exception, in new section 86(1A)(d), is new.

It has no equivalent in section 86(1A).


It relates to cases in which recovery of the debt concerned is not required because it falls within any 1 or more classes, descriptions, or kinds of debts specified in a written authorisation given jointly by the Minister and by the Minister of Finance for public finance purposes generally as debts that are to be written off.

Temporary deferrals, and determining rates and methods, of recovery Clause 9(2) inserts new section 86(1BA) to (1BD).
8 Social Security (Fraud Measures and Debt Recovery) Amendment Bill Explanatory note New section 86(1BA) ensures that, in performing the duty imposed by new section 86(1) to take all reasonably practicable steps to recover a debt referred to in section 85A, the chief executive— • may, if satisfied of the existence in the particular case of excep- tional circumstances of a kind identified by directions under new section 86(1BC), defer temporarily recovery of the debt (new section 86(1BA)(a)); but must otherwise determine from time to time the rate of recov- ery and method or methods of recovery to be used and, in doing so, is not required to have regard to relevant considerations (for example, adequacy of living standards: Harlen v Ministry of Social Development [2012] NZAR 491 (HC)) unless they are identified in directions under new section 86(1BC) (new sec- tion 86(1BA)(b)).
• • New section 86(1BB) specifies the debt recovery method or methods that the chief executive may determine is or are to be used.

New section 86(1BC) requires the Minister to give to the chief ex- ecutive, and ensure that there are in force at all times on and after 4 November 2013, directions for new section 86(1BA)(a) and (b).
Directions of that kind may— • identify for the purposes of new section 86(1BA)(a) different kinds of exceptional circumstances for different kinds of debts referred to in section 85A: identify for the purposes of new section 86(1BA)(b) different considerations, or considerations that contemplate different rates of recovery or different methods of recovery or both, for determinations in respect of different kinds of debts referred to in section 85A.
New section 86(1BD) tion 86(1BC)— • ensures directions under new sec- must be published in the Gazette, and are not regulations for the purposes of the Acts and Regulations Publication Act 1989; but are disallowable under (Disallowance) Act 1989, and must be presented to the House of Representa- tives under section 4 of that Act.
the Regulations • Explanatory note Social Security (Fraud Measures and Debt Recovery) Amendment Bill 9 Reorganising headings and other minor drafting improvements Clause 9(3), (4), (7), (9), (11), and (12) take the opportunity to insert subsection headings in order to make clearer, without changing sub- stantively, the matters dealt with, respectively, by section 86(2), (3), (4), (5), (6) to (9), and (9A) and (9B).
Clause 9(8) and (10) amend section 86(4) and (5), respectively, to ensure, for consistency, that they refer to debts “due” (not “owing”) to the Crown.

Recovery from spouse or partner who misleads department of excess amount beneficiary obtained Clause 9(5) amends substantively section 86(3).
It applies if a benefi- ciary’s spouse or partner misleads an administering officer in relation to the spouse’s or partner’s income or other personal circumstances, as a result of which the benefit or an instalment of benefit is paid in excess of the amount to which the beneficiary is by law entitled.
It enables the chief executive to recover the excess amount from the spouse or partner, either as a debt due to the Crown at the suit of the chief executive, or by way of deduction from a benefit or student allowance payable to the spouse or partner.

It is amended so that it applies if the spouse or partner misleads in relation to any matter (not only in relation to his or her income or other personal circumstances).
Clause 9(6) inserts new section 86(3A), which ensures that sec- tion 86(3) does not limit or affect— • recovery under section 85A(e) or (f) and new section 86(1) from the beneficiary of the excess amount recoverable under section 86(3) from the beneficiary’s spouse or partner; or any other civil or criminal liability of the beneficiary, under any other laws, in respect of that excess amount.
• Approved welfare programmes: special assistance payments Clause 9(13) inserts new section 86(9C) (and a related heading) to explain the effect of section 124(2A).
Section 124(2A) ensures that section 86 and new section 86AA (inserted by clause 10) both apply (as far as they are applicable and with any necessary modifications) 10 Social Security (Fraud Measures and Debt Recovery) Amendment Bill Explanatory note to a payment (of special assistance under an approved welfare pro- gramme) specified in section 124(2)— • • as if it were made by way of benefit under Part 1; and as if the person to whom the payment was made were a bene- ficiary entitled to a benefit of the amount determined under section 124(2A)(b).
Fraud measures: recovery of excess amount obtained by fraud Clause 10 inserts new section 86AA, which relates to recovery of an amount in excess of entitlement obtained by a person (the benefi- ciary) by fraud.

Section 86(2) applies to the beneficiary, and enables the chief executive in his or her discretion to recover from the benefi- ciary, by way of penalty, an amount not exceeding 3 times the amount in excess.
New section 86AA(3) does not apply to, and allow the chief executive to recover the excess amount from, the beneficiary’s spouse or partner, unless (new section 86AA(2)) the spouse or partner— • knowingly benefited directly or indirectly from the benefi- ciary’s fraud referred to in section 86(2); or ought to have known (even if the spouse or partner did not know) that the spouse or partner was benefiting directly or indirectly from the beneficiary’s fraud referred to in sec- tion 86(2).
• New section 86AA(4) ensures that new section 86AA(3) does not limit or affect— • recovery under section 85A(e) or (f) and new section 86(1) from the beneficiary of the excess amount recoverable under new section 86AA(3) from the beneficiary’s spouse or partner; or any other civil or criminal liability of the beneficiary, under any other laws, in respect of that excess amount.

• New section 86AA(5) explains the effect of section 124(2A).
Sec- tion 124(2A) ensures that section 86 and new section 86AA both apply (as far as they are applicable and with any necessary modifica- tions) to a payment (of special assistance under an approved welfare programme) specified in section 124(2)— • as if it were made by way of benefit under Part 1; and Explanatory note Social Security (Fraud Measures and Debt Recovery) Amendment Bill 11 • as if the person to whom the payment was made were a bene- ficiary entitled to a benefit of the amount determined under section 124(2A)(b).
Recovery of amounts in excess of entitlements and related penalties Clause 11 amends section 124(2A).

Section 124(2A) ensures that, and specifies how, sections 81 (review of benefits) and 86 (recov- ery of payments made in excess of authorised rates) apply (as far as they are applicable and with any necessary modifications) to speci- fied payments of special assistance under an approved welfare pro- gramme.
The amendment ensures that new section 86AA (recovery from spouse or partner of excess amount beneficiary obtained by fraud) inserted by clause 10 applies in the same way to those spe- cified payments.

Fraud measures: offences Clause 12 inserts new section 127A, which makes it an offence for a spouse or partner to knowingly or recklessly benefit from a bene- ficiary’s fraud.
A person (the spouse or partner) who is the spouse or partner of another person (the beneficiary) commits an offence under new section 127A(1) if— • the beneficiary obtains any payment, or receives any credit or advance, referred to in section 85A in excess of the amount to which the beneficiary is by law entitled; and that payment or credit or advance in excess (the excess amount) is obtained by fraud; and the spouse or partner benefits directly or indirectly from the excess amount the beneficiary obtained by fraud; and in benefiting in that way, the spouse or partner knows that, or is reckless as to whether, the excess amount is an amount— to which the beneficiary is by law entitled; and • that the beneficiary obtained by fraud.
• • • • The excess amount is obtained by the beneficiary by fraud for the purposes of new section 127A(1) if— • the beneficiary obtained that amount by fraud (within the meaning of section 86(2) and (2C)); or 12 • Social Security (Fraud Measures and Debt Recovery) Amendment Bill Explanatory note the beneficiary is convicted of a specified offence in respect of obtaining that amount.
But new section 127A(2) and (3) do not limit the generality of new section 127A(1), or the operation of section 49 (conviction as evi- dence in criminal proceedings) of the Evidence Act 2006: new sec- tion 127A(4).

The maximum available penalty for an offence against new sec- tion 127A(1) is imprisonment for a term not exceeding 12 months, a fine not exceeding $5000, or both: new section 127A(5).
Part 2 Consequential amendments, and application, savings, and transitional provisions Consequential amendments Clauses 13 to 31 make to enactments in, or made under, the principal Act, and to the Social Welfare (Transitional Provisions) Act 1990, amendments consequential on the amendments in Part 1.
Application of amendments Clause 32 ensures that specified new review and appeal amendments (because they re-enact existing provisions) apply not only to deci- sions or determinations made on and after, but also to decisions or determinations made before, 4 November 2013.
Clause 33 ensures that the amendments made by the Bill generally apply to, or in respect of, excess amounts obtained or received before, on, or after 4 November 2013, but also that new, or substantively amended, debt recovery or offence provisions apply only in respect of excess amounts obtained or received on or after 4 November 2013.
Transitional provisions Clause 34 ensures that debt recovery decisions or determinations in force at the close of 3 November 2013 are not required by new sec- tion 86(1BA) (as inserted by clause 9(2)) to be amended, reviewed, or replaced until the chief executive determines as soon as is reason- Explanatory note Social Security (Fraud Measures and Debt Recovery) Amendment Bill 13 ably practicable after 3 November 2013 to amend, review, or replace them under that section (as so inserted).
Hon Chester Borrows Social Security (Fraud Measures and Debt Recovery) Amendment Bill Government Bill Contents Title Commencement Principal Act Part 1 Substantive amendments Review of decisions Section 10A amended (Review of decisions) Rights of appeal Section 12J replaced (Rights of appeal) 12J Rights of appeal Debts due to the Crown New section 83AA inserted (Apportionment of benefit between spouses or partners: one is liable for proportion other obtained by fraud if that one knew, or ought to have known, about other’s fraud) 83AA Apportionment of benefit between spouses or partners: one is liable for proportion other obtained by fraud if that one knew, or ought to have known, about other’s fraud Section 85A amended (Payments that are debts due to the Crown) 98—1 Page 3 3 4 4 5 6 9 9 10 1 Social Security (Fraud Measures and Debt Recovery) Amendment Bill New section 85B inserted (Payments that are debts due to the Crown: examples) 85B Payments that are debts due to the Crown: examples Recovery of amounts in excess of entitlements and related penalties Section 86 amended (Recovery of payments made in excess of authorised rates) Fraud measures: recovery of excess amount obtained by fraud New section 86AA inserted (Recovery from spouse or partner of excess amount beneficiary obtained by fraud) 86AA Recovery from spouse or partner of excess amount beneficiary obtained by fraud Recovery of amounts in excess of entitlements and related penalties Section 124 amended (Money payable out of Crown Bank
 Account) Fraud measures: offences New section 127A inserted (Offences: spouse or partner knowingly or recklessly benefiting from beneficiary’s fraud) 127A Offences: spouse or partner knowingly or recklessly benefiting from beneficiary’s fraud Part 2 Consequential amendments, and application, savings, and transitional provisions Consequential amendments Section 12K amended (Procedure on appeal) Section 60H amended (Voluntary unemployment or loss of employment through misconduct, etc) Section 68A amended (Special
 provisions applying to insurance payments) Section 71 amended (Special provisions where compensation or damages recoverable by applicant) Section 80BB amended (Delayed redundancy and retirement payments) Section 80BC amended (Seasonal workers made redundant after benefit commences) 10 10 12 15 15 16 16 16 17 18 18 18 18 19 Social Security (Fraud Measures and Debt Recovery) Amendment Bill cl 2 Section 82 amended (Payment of benefits) Section 83A amended (Tax on benefits) Section 86A amended (Deduction notices for debt) Section 86C amended (Discharge of debt) Section 86E amended (Deductions held in trust) Section 86I amended (Penalty for late deductions) Section 123B amended (Effect of participation in certain activities on non-entitlement period) Section 124 amended (Money payable out of Crown Bank Account) Section 127 amended (Offences) Section 132G amended (Regulations providing for remittance or suspension of debt) Social Security (Childcare Assistance) Regulations 2004 amended Social Security (Debt Recovery Suspension) Regulations 2007 amended Social Welfare (Transitional Provisions) Act 1990 amended Application of amendments Certain review and appeal amendments apply to decisions made before 4 November 2013 Amendments generally apply in respect of excess amounts obtained or received before, on, or after 4 November 2013 Transitional provisions Amendment, review, or replacement of existing debt-recovery decisions or determinations
 The Parliament of New Zealand enacts as follows: 1 2 Title This Act is the Social Security (Fraud Measures and Debt Re- covery) Amendment Act 2012.
Commencement This Act comes into force on 4 November 2013.

5 3 cl 3 3 4 (1) Social Security (Fraud Measures and Debt Recovery) Amendment Bill Principal Act This Act amends the Social Security Act 1964 (the principal Act).

Part 1 Substantive amendments Review of decisions Section 10A amended (Review of decisions) In the heading to section 10A, after “decisions”, insert “of chief executive made under delegation by other deci- sion makers”.
Replace section 10A(1) with: (2) “(1) This section applies to a person and a decision both of which are specified in any 1 of the rows of the following table, but only if the decision is made by a decision maker in the exercise of any power, function, or discretion conferred on the decision 15 maker by delegation: Row Person Decision 5 10 A decision of the chief executive made under any enactment referred to in any of the paragraphs of sec- tion 12J(1) A decision of the chief executive made— (a) in relation to the applicant or beneficiary or other person; and using a power under sec- tion 19D(1)(a) of the Social Welfare (Transitional Provi- sions) Act 1990 (referred to in section 12J(4)) 1 2 An applicant or benefi- ciary affected by the de- cision (with ‘beneficiary’ and ‘affected’ having, in this row, the same mean- ings as in section 12J(1) read in the light of sec- tion 12J(2) and (3)) An applicant or benefi- ciary or other person (b) 4 Social Security (Fraud Measures and Debt Recovery) Amendment Bill Part 1 cl 5 Row Person Decision 3 4 5 6 A beneficiary’s spouse or partner The personal representa- tive of a deceased benefi- ciary The personal representa- tive of a beneficiary’s de- ceased spouse or partner A beneficiary’s spouse or partner A decision of the chief executive made— (a) in relation to the benefi- ciary’s spouse or partner; and under (re- section 86(3) ferred to in section 12J(5), and including the compo- nent decisions specified in section 12J(6)) (b) A decision of the chief executive made— (a)
 in relation to the estate of the deceased beneficiary; and under (re- section 86(4) ferred to in section 12J(7)) (b) A decision of the chief executive made— (a) in relation to the estate of the beneficiary’s deceased spouse or partner; and under (re- section 86(5) ferred to in section 12J(8), and including the decision specified in section 12J(9)) (b) A decision of the chief executive made— (a) in relation to the benefi- ciary’s spouse or partner; and under 86AA section to (referred sec- tion 12J(10), and includ- ing the decision specified in section 12J(11)) in (b) (3) Repeal section 10A(1C).
Rights of appeal 5 Section 12J replaced (Rights of appeal) Replace section 12J with: 5 Part 1 cl 5 Social Security (Fraud Measures and Debt Recovery) Amendment Bill “12J Rights of appeal “Decisions or determinations under specified social assistance enactments “(1) Any applicant or beneficiary affected may appeal to the Appeal Authority against any decision or determination of the chief 5 executive under— “(a) any of the provisions of Part 1, Part 2, Part 4, or Part 5; or a welfare programme approved by the Minister under section 124(1)(d); or “(b) 10 “(c) Part 6 of the War Pensions Act 1954; or “(d) Part 1 of the New Zealand Superannuation and Retire- “(e) “(f) ment Income Act 2001; or the Family Benefits (Home Ownership) Act 1964; or any regulations in force under section 132A or 155 of 15 this Act.
“(2) Subsection (1) applies to a person in respect of whom a deci- sion or determination is made under Part 4 or under regulations made under section 155 as if the person were a beneficiary.

“(3) For the purposes of subsection (1), an applicant or benefi- 20 ciary is not affected by a decision or determination that relates only to all or any of the temporary deferral, rate, or method or methods, of debt recovery from another person.
“Decisions under mutual assistance provisions in reciprocity agreements 25 “(4) An applicant or beneficiary or other person may appeal to the Appeal Authority against a decision that was made in relation to that person by the chief executive under the power conferred by section 19D(1)(a) of the Social Welfare (Transitional Pro- visions) Act 1990.
30 “Decisions under section 86(3) to recover excess amount from spouse or partner “(5) A beneficiary’s spouse or partner may appeal to the Appeal Authority against a decision that was made by the chief execu- tive under section 86(3) to recover from that spouse or partner 35 (under sections 85A and 86(1)) an amount in excess of the amount to which the beneficiary was by law entitled.
6 Social Security (Fraud Measures and Debt Recovery) Amendment Bill Part 1 cl 5 “(6) A decision referred to in subsection (5), and made by the chief executive under section 86(3), includes, without limita- tion, the following component decisions: “(a) “(b) the decision that, in the chief executive’s opinion, the beneficiary’s spouse or partner has made a false state- 5 ment to or otherwise misled any officer engaged in the administration of this Act, in relation to any matter: the decision that, as a result of the beneficiary’s spouse or partner making a false statement to or otherwise mis- leading any officer engaged in the administration of this 10 Act, the benefit or an instalment of benefit was paid in excess of the amount to which the beneficiary was by law entitled.
“Decisions under section 86(4) to recover excess amount from deceased beneficiary’s estate 15 “(7) The personal representative of a deceased beneficiary may ap- peal to the Appeal Authority against a decision that was made by the chief executive under section 86(4) to recover from the beneficiary’s estate (under sections 85A and 86(1)) an amount in excess of the amount to which the beneficiary was by law 20 entitled.
“Decisions under section 86(5) to recover excess amount from deceased spouse’s or partner’s estate “(8) The personal representative of a beneficiary’s deceased spouse or partner may appeal to the Appeal Authority against a deci- 25 sion that was made by the chief executive under section 86(5) to recover from that spouse’s or partner’s estate (under sec- tions 85A and 86(1)) an amount in excess of the amount to which the beneficiary was by law entitled.
“(9) Subsection (8) gives the personal representative of a benefi- 30 ciary’s deceased spouse or partner, without limitation, a right to appeal against the decision that the beneficiary was paid an amount in excess of the amount to which he or she was by law entitled.
“Decisions under section 86AA to recover excess amount from spouse or partner 35 “(10) A beneficiary’s spouse or partner may appeal to the Appeal Authority against a decision that was made by the chief ex- 7 Part 1 cl 5 Social Security (Fraud Measures and Debt Recovery) Amendment Bill ecutive under section 86AA to recover from that spouse or partner (under sections 85A and 86(1)) an amount in excess of the amount to which the beneficiary was by law entitled.
“(11) Subsection (10) gives the beneficiary’s spouse or partner, without limitation, a right to appeal against the decision that 5 the beneficiary obtained by fraud an amount in excess of the amount to which the beneficiary was by law entitled.
“Debt recovery decisions include related decisions on deferral, rate, and methods “(12) A reference in this section to a decision to recover an amount 10 from a person or estate includes, without limitation, all re- lated decisions on all or any of the temporary deferral, rate, or method or methods, of debt recovery from the person or es- tate.
“General restriction on appeals under this section 15 “(13) A decision cannot be appealed against under any other provi- sion of this section unless the decision— “(a) has been confirmed or varied by a benefits review com- mittee under section 10A; or “(b) was made by the chief executive other than pursuant to 20 a delegation.
“Authority is not authorised to hear and determine certain appeals on medical or capacity grounds “(14) The Appeal Authority does not have the authority to hear and determine any appeal on medical grounds, grounds relating to 25 incapacity, or grounds relating to capacity for work, against any decision or determination of the chief executive in respect of— “(a) “(b) “(c) an invalid’s benefit; or a child disability allowance under section 39A; or a veteran’s pension under section 70 of the War Pen- sions Act 1954; or a sickness benefit.” 30 “(d) 8 Social Security (Fraud Measures and Debt Recovery) Amendment Bill Part 1 cl 6 Debts due to the Crown 6 New section 83AA inserted (Apportionment of benefit between spouses or partners: one is liable for proportion other obtained by fraud if that one knew, or ought to have known, about other’s fraud) After section 83, insert: “83AA Apportionment of benefit between spouses or partners: one is liable for proportion other obtained by fraud if that one knew, or ought to have known, about other’s fraud “(1) This section applies to the following situation: 5 10 “(a) “(b) “(c) a benefit is apportioned under section 83(1) or (2) be- tween spouses or partners so that— “(i) one proportion of the benefit (proportion A) is paid to one spouse or partner (A); and another proportion of the benefit (proportion B) 15 is paid to the other spouse or partner (B); and “(ii) “(iii) the person entitled to the benefit, for the purposes of section 83(1) and (2), is either A or B; and some or all
 of proportion A is— “(i) an amount in excess of the amount to which A is 20 by law entitled; and an amount obtained by fraud by A; and “(ii) “(iii) a debt referred to in section 85A due to the Crown, and subject to recovery under section 86(1), from A; and 25 some or all of proportion B either is, or is not,— “(i) an amount in excess of the amount to which B is by law entitled; and an amount obtained by fraud by B; and “(ii) “(iii) a debt referred to in section 85A due to the 30 Crown, and subject tion
 86(1), from B; and to recovery under sec- “(d) B either knew, or ought to have known (even if B did not know), of the fraud by A.
“(2) In the situation to which this section applies, B is jointly and 35 severally liable for A’s debt referred to in subsection (1)(b), and that amount is a debt referred to in section 85A due to the Crown, and subject to recovery under section 86(1), from B.
9 Part 1 cl 7 Social Security (Fraud Measures and Debt Recovery) Amendment Bill “(3) This section does not limit or affect any civil or criminal li- ability under any other law— “(a) of A for, or in respect of, the debt referred to in sub- section (1)(b); or “(b) of B for, or in respect of, the debt referred to in subsec- 5 tion (1)(c).
“(4) An amount is obtained by fraud by a person (whether A or B) for the purposes of this section if the person— “(a) obtained that amount by fraud (within the meaning of section 86(2) and (2C)); or is convicted of a specified offence (as defined in sec- tion 127A(3)) in respect of obtaining that amount.” “(b) 10 7 8 Section 85A amended (Payments that are debts due to the Crown) In the heading to section 85A, after “Crown”, insert “: gen- 15 eral”.
New section 85B inserted (Payments that are debts due to the Crown: examples) After section 85A, insert: “85B Payments that are debts due to the Crown: examples “(1) Debts referred to in section 85A(a) (penalty) and (e) (debt due to the Crown) include a penalty under section 86(2) (recovery of penalty from beneficiary who obtains by fraud amount in excess of entitlement).
20 “(2) Debts referred to in section 85A(b) (conditional or provisional 25 benefit that person is liable to repay) include the following: “(a) an amount directed to be repayable under sec- tion 60H(6)(b) (voluntary unemployment or loss of employment through misconduct, etc): an amount the person granted a benefit is liable to 30 repay under section 61CC(2)(a) (granting of emer- gency benefits during epidemic in New Zealand), and to which section 85A(b) applies in accordance with section 61CC(2)(b): an amount recoverable under section 80BB(5) (de- 35 layed redundancy and retirement payments): “(b) “(c) 10 Social Security (Fraud Measures and Debt Recovery) Amendment Bill Part 1 cl 8 “(d) “(e) recoverable under section 80BC(3) an amount (seasonal workers made redundant after benefit com- mences): an amount the person participating in approved activ- ities is liable to repay under section 123B (effect of 5 participation in certain activities on non-entitlement period).
“(3) Debts referred to in section 85A(b) (conditional or provisional benefit that person is liable to repay) and (e) (debt due to the Crown) include the following: “(a) an amount recoverable under section 68A(5) (special provisions applying to insurance payments): an amount recoverable under section 71(1)(b) (special provisions where compensation or damages recover- able by applicant).
“(b) “(4) Debts referred to in section 85A(e) (debt due to the Crown) 10 15 include the following: “(a) 20 an excess amount recoverable under section 86(3) (re- covery from spouse or partner who misleads department of excess amount beneficiary obtained): an excess amount recoverable under section 86(4) (re- covery from estate of deceased beneficiary of excess amount beneficiary obtained): an excess amount recoverable under section 86(5) (re- covery from estate of beneficiary’s deceased spouse or 25 partner of excess amount beneficiary obtained): an excess amount recoverable under section 86AA(3) (recovery from spouse or partner of excess amount beneficiary obtained by fraud).
“(5) Debts referred to in section 85A(f) (overpayments under this 30 Act) include the following: “(a) an amount recoverable under section 86 or 86AA read (in the case of either section) together with section 124(2) and (2A): amounts recoverable under section 86E(2) (deduc- 35 tions held in trust): an amount recoverable under section 86I(3) (penalty for late deductions): “(b) “(c) “(d) “(b) “(c) 11 Part 1 cl 9 Social Security (Fraud Measures and Debt Recovery) Amendment Bill “(d) that amount sec- an tion 132AC(1)(i) provide is a debt due to the Crown under section 85A(f).
regulations made under “(6) This section does not limit the generality of section 85A.” Recovery of amounts in excess of entitlements and related penalties 9 (1) Section 86 amended (Recovery of payments made in excess of authorised rates) Replace section 86(1) and (1A) with: “Chief executive’s duty to recover debt in section 85A “(1) The chief executive is under a duty imposed by this subsec- tion to take all reasonably practicable steps to recover a debt referred to in section 85A.
5 10 “(1A) Subsection (1) is subject to the following: “(a) “(b) “(c) “(d) subsections (9A) and (9B) (debts caused wholly or 15 partly by errors to which debtors did not intentionally contribute): any regulations (providing for remittance or suspension of debt) made under section 132G: the debt falling within any 1 or more classes, descrip- 20 tions, or kinds of debts specified in a written determin- ation made by the chief executive for the purposes of this paragraph as debts that it is uneconomic to recover: the debt falling within any 1 or more classes, descrip- tions, or kinds of debts specified in a written authorisa- 25 tion given jointly by the Minister and by the Minister of Finance for public finance purposes generally as debts that are to be written off.” (2) After section 86(1B), insert: “(1BA) In performing the duty imposed by subsection (1), the 30 chief executive— “(a) may, if satisfied of the existence in the particular case of exceptional circumstances of a kind identified by direc- tions under subsection (1BC), defer temporarily re- covery of the debt; but “(b) must otherwise determine from time to time the rate of recovery and method or methods of recovery to be 35 12 Social Security (Fraud Measures and Debt Recovery) Amendment Bill Part 1 cl 9 used and, in doing so, is not required to have regard to relevant considerations unless they are identified in directions under subsection (1BC).
“(1BB) The method or methods of recovery that the chief executive 5 “(c) bring proceedings in the name of the chief executive: may determine is or are to be used are as follows: “(a) “(b) deduct all or part of that debt from any amount payable to that person by the department as a benefit or a student allowance: for a debt referred to in section 85A(d) (recoverable spe- 10 cial assistance money under an approved welfare pro- gramme), deduct all or part of that debt from any pay- ment of a grant of special assistance under a welfare programme approved under section 124(1)(d).
“(1BC) The Minister must give to the chief executive, and ensure 15 that there are in force (as from time to time amended or re- placed) at all times on and after 4 November 2013, directions for the purposes of subsection (1BA)(a) and (b), which, without limitation, may— “(a) identify for subsection (1BA)(a) different kinds of ex- 20 ceptional circumstances for different kinds of debts re- ferred to in section 85A: identify for subsection (1BA)(b) considerations that differ, or that contemplate different rates of recovery, or methods of recovery, or both, for determinations in 25 respect of different kinds of debts referred to in section 85A.
“(b) “(1BD) Directions under subsection (1BC)— “(a) must as soon as practicable after they are given be pub- lished by the Minister in the Gazette, and are not regula- 30 tions for the purposes of the Acts and Regulations Pub- lication Act 1989; but are regulations for the purposes of the Regulations (Dis- allowance) Act 1989, and must be laid before the House of Representatives under section 4 of that Act.” 35 “(b) (3) Before section 86(2), insert: 13 Part 1 cl 9 Social Security (Fraud Measures and Debt Recovery) Amendment Bill (4) (5) “Recovery of penalty from beneficiary who obtains by fraud amount in excess of entitlement”.
Before section 86(3), insert: “Recovery from spouse or partner who misleads department of excess amount beneficiary obtained”.

In section 86(3), replace “, in relation to his or her income or other personal circumstances,” with “, in relation to any matter,”.
(6) After section 86(3), insert: “(3A) Subsection (3) does not limit or affect— 5 10 “(a) “(b) recovery under section 85A(e) or (f) and subsection (1) of this section from the beneficiary of the excess amount recoverable under subsection (3) from the bene- ficiary’s spouse or partner; or any other civil or criminal liability of the beneficiary, 15 under any other laws, in respect of that excess amount.” (7) (8) (9) Before section 86(4), insert: “Recovery from estate of deceased beneficiary of excess amount beneficiary obtained”.
In section 86(4), replace “owing” with “due”.

Before section 86(5), insert: “Recovery from estate of beneficiary’s deceased spouse or partner of excess amount beneficiary obtained”.

In section 86(5), replace “owing” with “due”.

(10) (11) Before section 86(6), insert: “Making, notice, and review of assessment of amount under subsection (4) or (5)”.

(12) Before section 86(9A), insert: “Debts caused wholly or partly by errors to which debtors did not intentionally contribute”.
(13) After section 86(9B), insert: “Approved welfare programmes: special assistance payments “(9C) This section and section 86AA apply, in accordance with sec- tion 124(2A), to a payment to which section 124(2) applies— “(a) as if it were made by way of benefit under Part 1; and 14 20 25 30 35 Social Security (Fraud Measures and Debt Recovery) Amendment Bill Part 1 cl 10 “(b) as if the person to whom the payment was made were a beneficiary entitled to a benefit of the amount deter- mined under section 124(2A)(b).” Fraud measures: recovery of excess amount obtained by fraud 10 New section 86AA inserted (Recovery from spouse or partner of excess amount beneficiary obtained by fraud) After section 86, insert: “86AA Recovery from spouse or partner of excess amount beneficiary obtained by fraud 5 10 “(1) Beneficiary, in this section, means a person from whom the chief executive may, in his or her discretion, recover a penalty under section 86(2) because— “(a) the person has obtained any payment, or received any credit or advance, referred to in section 85A in excess 15 of the amount to which he or she was entitled; and in the chief executive’s opinion, that payment or credit or advance in excess was obtained by fraud (within the meaning of section 86(2) and (2C)).
“(b) “(2) Subsection (3) does not apply to the beneficiary’s spouse or 20 partner unless, in the chief executive’s opinion, the spouse or partner— “(a) knowingly benefited directly or indirectly from the beneficiary’s fraud referred to in section 86(2); or “(b) ought to have known (even if the spouse or partner did 25 not know) that the spouse or partner was benefiting di- rectly or indirectly from the beneficiary’s fraud referred to in section 86(2).
“(3) The amount in excess that the beneficiary obtained by the beneficiary’s fraud referred to in section 86(2) is a debt due 30 to the Crown under section 85A(e) or (f), and subject to re- covery under section 86(1), from the spouse or partner.
“(4) Subsection (3) does not limit or affect— “(a) recovery under sections 85A(e) or (f) and 86(1) from the beneficiary of the excess amount recoverable under 35 subsection (3) from the beneficiary’s spouse or part- ner; or 15 Part 1 cl 11 Social Security (Fraud Measures and Debt Recovery) Amendment Bill “(b) any other civil or criminal liability of the beneficiary, under any other laws, in respect of that excess amount.
“(5) Section 86(2) and this section apply, in accordance with sec- tion 124(2A), to a payment to which section 124(2) applies— “(a) “(b) as if it were made by way of benefit under Part 1; and as if the person to whom the payment was made were a beneficiary entitled to a benefit of the amount deter- mined under section 124(2A)(b).” 11 12 Recovery of amounts in excess of entitlements and related penalties Section 124 amended (Money payable out of Crown Bank Account) In section 124(2A), replace “and 86,” with “, 86, and 86AA”.
Fraud measures: offences New section 127A inserted (Offences: spouse or partner knowingly or recklessly benefiting from beneficiary’s fraud) After section 127, insert: “127A Offences: spouse or partner knowingly or recklessly benefiting from beneficiary’s fraud “(1) A person (the spouse or partner) who is the spouse or partner 5 10 15 20 of another person (the beneficiary) commits an offence if— “(a) the beneficiary obtains any payment, or receives any credit or advance, referred to in section 85A in excess of the amount to which the beneficiary is by law entitled; 25 and that payment or credit or advance in excess (the excess amount) is obtained by fraud; and the spouse or partner benefits directly or indirectly from the excess amount the beneficiary obtained by fraud; 30 and in benefiting in that way, the spouse or partner knows that, or is reckless as to whether, the excess amount is an amount— “(i) in excess of the amount to which the beneficiary 35 is by law entitled; and “(b) “(c) “(d) 16 Social Security (Fraud Measures and Debt Recovery) Amendment Bill Part 2 cl 13 “(ii) that the beneficiary obtained by fraud.
“(2) The excess amount is obtained by the beneficiary by fraud for the purposes of subsection (1) if— “(a) the beneficiary obtained that amount by fraud (within the meaning of section 86(2) and (2C)); or the beneficiary is convicted of a specified offence in respect of obtaining that amount.
“(b) 5 “(3) Specified offence, in subsection (2)(b), means an offence against section 127 (offences: false statements, misleading, or attempting to mislead, to receive or continue to receive bene- 10 fits) of this Act, or an offence against all or any of the following provisions of the Crimes Act 1961: “(a) “(b) section 228 (dishonestly taking or using document): sections 240 and 241 (obtaining by deception or causing loss by deception): section 256(1) and (2) (forgery): section 257 (using forged documents): section 258 (altering, concealing, destroying, or repro- ducing documents with intent to deceive): section 259 (using altered or reproduced document with 20 intent to deceive).
“(c) “(d) “(e) “(f) 15 “(4) Subsections (2) and (3) do not limit— “(a) “(b) the generality of subsection (1); or the operation of section 49 (conviction as evidence in criminal proceedings) of the Evidence Act 2006.
25 “(5) A person who commits an offence under subsection (1) is liable on conviction to a penalty that is either or both: “(a) “(b) imprisonment for a term not exceeding 12 months: a fine not exceeding $5,000.” Part 2 Consequential amendments, and application, savings, and transitional provisions Consequential amendments 13 Section 12K amended (Procedure on appeal) Replace section 12K(1C)(a) with: 30 35 17 Part 2 cl 14 Social Security (Fraud Measures and Debt Recovery) Amendment Bill “(a) the person to whom section 12J gives the right to appeal against the decision or determination; and”.
Section 60H amended (Voluntary unemployment or loss of employment through misconduct, etc) In section 60H(7), replace “may be recovered from the person 5 under section 86(1)” with “is a debt due to the Crown under section 85A(b), and subject to recovery under section 86(1) (chief executive’s duty to recover debt referred to in sec- tion 85A), from the person”.
10 Section 68A amended (Special provisions applying to insurance payments) In section 68A(5), replace “may be recovered as a debt due to the Crown from the applicant or person or the person liable to make the payment” with “is a debt due to the Crown under section 85A(b) and (e), and subject to recovery under sec- 15 tion 86(1) (chief executive’s duty to recover debt referred to in section 85A), from the applicant or person or the person li- able to make the payment”.
Section 71 amended (Special provisions where compensation or damages recoverable by applicant) In section 71(1)(b), replace “may be recovered as a debt due to the Crown” with “is a debt due to the Crown under section 85A(b) and (e), and subject to recovery under section 86(1) (chief executive’s duty to recover debt referred to in sec- tion 85A),”.
Section 80BB amended (Delayed redundancy and retirement payments) In section 80BB(4), replace “The chief executive may recover from the person, under section 86(1),” with “This subsection applies to”.
20 25 30 14 15 16 17 (1) (2) After section 80BB(4), insert: “(5) A payment to which subsection (4) applies is a debt due to the Crown under section 85A(b), and subject to recovery under 18 Social Security (Fraud Measures and Debt Recovery) Amendment Bill Part 2 cl 22 section 86(1) (chief executive’s duty to recover debt referred to in section 85A), from the person.” 18 (1) Section 80BC amended (Seasonal workers made redundant after benefit commences) In section 80BC(2), replace “The chief executive may, under 5 section 86(1), recover from a person referred to in subsection (1)” with “This subsection applies to”.
(2) After section 80BC(2), insert: “(3) A payment to which subsection (2) applies is a debt due to the Crown under section 85A(b), and subject to recovery under 10 section 86(1) (chief executive’s duty to recover debt referred to in section 85A), from the person.” 19 20 21 (1) (2) 22 Section 82 amended (Payment of benefits) In section 82(6), replace “may be recovered under section 86(1)” with “is a debt due to the Crown under section 85A(c), 15 and subject to recovery under section 86(1) (chief execu- tive’s duty to recover debt referred to in section 85A), from the beneficiary”.
Section 83A amended (Tax on benefits) In section 83A(5), replace “as a debt due to the Crown within 20 the meaning of section 85A” with “under sections 85A and 86”.
Section 86A amended (Deduction notices for debt) In section 86A(1), replace “Where any amount of money may be recovered from any person as a debt due to the Crown under 25 this Act” with “If an amount of money that is a debt due to the Crown referred to in section 85A and that is subject to recovery under section 86(1) (chief executive’s duty to recover debt referred to in section 85A)”.

In section 86A(2), replace “all reasonable steps” with “some 30 other reasonably practicable steps”.
Section 86C amended (Discharge of debt) In section 86C, replace “section 86” with “section 86(1)”.
19 Part 2 cl 23 Social Security (Fraud Measures and Debt Recovery) Amendment Bill 23 (1) Section 86E amended (Deductions held in trust) In section 86E(b), delete “; and, without prejudice to any other remedies against the debtor or any other person, any amounts deducted shall be held in trust for the Crown and shall be re- coverable under section 86 as if it were money payable under 5 a benefit to which the person who made the deduction was not entitled”.
(2) After section 86E(b), insert as subsections (2) and (3): “(2) Any amounts deducted must be held in trust for the Crown, and are debts due to the Crown under section 85A(f), and subject 10 to recovery under section 86(1) (chief executive’s duty to recover debt referred to in section 85A), from the person who makes the deductions, as if the amounts were money payable under a benefit to which the person who made the deduction was not entitled.
15 “(3) Any holding and recovery in accordance with subsection (2) is without prejudice to any other remedies against the debtor or any other person.” Section 86I amended (Penalty for late deductions) In section 86I(3), replace “may be recovered under section 86” 20 with “is a debt due to the Crown under section 85A(f), and sub- ject to recovery under section 86(1) (chief executive’s duty to recover debt referred to in section 85A), from the person”.
Section 123B amended (Effect of participation in certain activities on non-entitlement period) In section 123B(7), replace “may be recovered by the chief executive under section 86(1)” with “is a debt due to the Crown under section 85A(b), and subject to recovery under section 86(1) (chief executive’s duty to recover debt referred to in section 85A), from the person”.

25 30 Section 124 amended (Money payable out of Crown Bank Account) In section 124(2A), replace “and 86” with “, 86, and 86AA”.
24 25 26 20 27 28 29 (1) Social Security (Fraud Measures and Debt Recovery) Amendment Bill Part 2 cl 31 Section 127 amended (Offences) In the heading to section 127, after “Offences”, insert “: false statements, misleading, or attempting to mislead, to re- ceive or continue to receive benefits”.

Section 132G amended (Regulations providing for remittance or suspension of debt) In section 132G(1)(a), replace “section 86(1) to (1B) and (3) to (5)” with “sections 86(1) to (1B) and (3) to (5) and 86AA”.
5 Social Security (Childcare Assistance) Regulations 2004 amended This section amends the Social Security (Childcare Assist- ance) Regulations 2004.
Replace regulation 28(1) with: (2) “(1) A payment of childcare assistance that is an overpayment 10 (within the meaning of section 85A(f) of the principal Act) 15 is— “(a) a debt due to the Crown under section 85A(f) of the principal Act from the applicant; and subject to recovery under section 86(1) (chief execu- tive’s duty to recover debt referred to in section 85A) of 20 the principal Act from the applicant.” “(b) 30 (1) (2) 31 (1) Social Security (Debt Recovery Suspension) Regulations 2007 amended This section amends the Social Security (Debt Recovery Sus- pension) Regulations 2007.
In regulation 3, replace the definition of benefit debt with: “benefit debt means is a debt due to the Crown under sec- tion 85A, and subject to recovery under section 86(1) (chief executive’s duty to recover debt referred to in section 85A), of the Act”.

25 30 Social Welfare (Transitional Provisions) Act 1990 amended This section amends the Social Welfare (Transitional Provi- sions) Act 1990.
21 Part 2 cl 32 Social Security (Fraud Measures and Debt Recovery) Amendment Bill In section 2(1), definition of social security debt, paragraph (a), replace “may be recovered from any person under sec- tion 86 of the Social Security Act 1964” with “is subject to recovery from any person under section 86(1) (chief execu- tive’s duty to recover debt referred to in section 85A) of the 5 Social Security Act 1964”.
Application of amendments Certain review and appeal amendments apply to decisions made before 4 November 2013 The following provisions of the principal Act apply to deci- 10 sions made before 4 November 2013: (a) rows 1 and 2 of the table in section 10A(1) (as in- serted by section 4(2) of this Act): section 12J(1) to (4) and (12) to (14) (as inserted by section 5 of this Act).
(b) 15 Subsection (1) does not limit or affect the application of sec- tions 10A(1) and 12J of the principal Act (as so inserted) to decisions made on or after 4 November 2013.
Amendments generally apply in respect of excess amounts obtained or received before, on, or after 4 November 2013 20 Every enactment that is amended or inserted by this Act, and that is not specified in subsection (3), applies to, or in respect of, an amount that a person has obtained or received— (a) in excess of the amount to which the person is by law en- titled; and before, on, or after 4 November 2013.
(b) Every enactment specified in subsection (3) applies only to, or in respect of, an amount that a person has obtained or re- ceived— (a) in excess of the amount to which the person is by law en- 30 titled; and on or after 4 November 2013.
(b) The following enactments apply only to, or in respect of, an amount of the kind specified in subsection (2): (a) section 83AA as inserted by section 6 of this Act: 35 25 (2) 32 (1) (2) 33 (1) (2) (3) 22 Social Security (Fraud Measures and Debt Recovery) Amendment Bill Part 2 cl 34 (b) (c) (d) section 86(3) and (3A) as amended or inserted by sec- tion 9(5) and (6) of this Act: section 86AA as inserted by section 10 of this Act: section 127A as inserted by section 12 of this Act.
Transitional provisions 5 Amendment, review, or replacement of existing debt-recovery decisions or determinations This section applies to a decision or determination that is in force at the close of 3 November 2012 and that relates to either or both of the rate and method of recovery of an amount 10 that a person has obtained or received— (a) in excess of the amount to which the person is by law en- titled; and before 4 November 2013.
(b) The decision or determination is not required by sec- 15 tion 86(1BA) (as inserted by section 9(2) of this Act) to be amended, reviewed, or replaced until the chief execu- tive determines as soon as is reasonably practicable after 3 November 2013 to amend, review, or replace it under that section (as so inserted).

20 34 (1) (2) 12 Wellington, New Zealand: Published under the authority of the New Zealand Government—2013 23