This instrument is made under section 5 of the Social Security Act 1964 by the Minister for Social Development.

Instrument

1. Title—This instrument is the Ministerial Direction on Debt Recovery Amendment 2016.

2. Commencement—This instrument comes into force on the 28th day after its notification in the New Zealand Gazette.

3. Principal direction—This instrument amends the Ministerial Direction on Debt Recovery given on 30 June 2014¹.

4. Clause 6 amended (Deduction notices)—(1) In clause 6(6), replace

“the balance in the various bank accounts that the debtor has”

with

“the debtor’s financial circumstances”.

(2) After clause 6(6), insert:

“(6A) Before a deduction notice may be issued to a bank, the chief executive must check the balances in the debtor’s various bank accounts.”

(3) In clause 6(9), replace

“(6)”

with

“(6A)”.

Dated at Wellington this 12th day of December 2016.

Hon ANNE TOLLEY, Minister for Social Development.

Explanatory note

This note is not part of the instrument, but is intended to indicate its general effect.

This instrument amends the Ministerial Direction on Debt Recovery under the Social Security Act 1964 to generally require consideration of the debtor’s financial circumstances in determining the amount to be deducted using a deduction notice. An amendment is also made to only require the amount in the debtor’s banks accounts to be checked before issuing a deduction notice if the deduction notice is to be issued to a bank.

1. New Zealand Gazette, 10 July 2014, No. 73, page 2061.