Benefit Obligations, Sanctions, and Fraud
Updated 2026 MSD rates. When you receive a benefit or payment from Work and Income, you have certain obligations you must meet. Failing to meet these can lead to sanctions (penalties), overpayments, or in serious cases, prosecution for benefit fraud.
Your Obligations
As a beneficiary, you must:
- Report changes in your circumstances — Tell Work and Income within 7 days if you change address, start or stop work, your income changes, your relationship status changes, or you leave New Zealand.
- Meet work or activity obligations — Attend appointments, job interviews, and training as agreed in your benefit plan.
- Be honest in your applications — Provide correct and complete information when you apply or declare earnings.
- Accept suitable job offers — If on Jobseeker Support, you must accept reasonable offers of employment.
- Notify if you leave New Zealand — Most benefits are not payable while you are overseas for more than 4 weeks (shorter for some benefits).
Reporting Changes
You can report changes through:
- MyMSD online portal (recommended).
- Phone: 0800 559 009.
- In person at a Work and Income service centre.
Always keep records of your reports. If you are unsure whether a change matters, report it anyway — it is better to report something that does not affect your benefit than to miss a report that does.
Sanctions
If you fail to meet your obligations without a good reason, Work and Income may impose a sanction (a reduction or suspension of your benefit):
| Reason | Sanction | Duration |
|---|---|---|
| Failure to attend appointment | 50% reduction in benefit | 1 week (or until compliance) |
| Failure to accept suitable job offer | 100% suspension | 13 weeks (first instance) |
| Failure to take part in activities (work plan) | 50% reduction | 4 weeks (or until compliance) |
| Voluntary unemployment (without good reason) | Stand-down or 100% reduction | Up to 13 weeks |
Overpayments
If Work and Income pays you more than you are entitled to, you have an overpayment. This can happen if:
- You did not report a change in your income or circumstances.
- There was an administrative error by Work and Income.
- You provided incorrect information on your application.
Overpayments must be repaid. Work and Income will usually set up a repayment plan based on your ability to pay. Interest is generally not charged on overpayment debt, but the amount can be recovered from future benefit payments or through IRD tax refund offsets.
Benefit Fraud
Benefit fraud occurs when someone deliberately provides false information or fails to report changes in order to receive payments they are not entitled to. Examples include:
- Not declaring income from work.
- Not declaring that you live with a partner (when claiming as a single person).
- Using a false identity or IRD number.
- Claiming a benefit while overseas for extended periods without telling Work and Income.
Consequences of Fraud
- Repayment — All overpaid amounts must be repaid in full.
- Prosecution — MSD may prosecute for benefit fraud, which can result in fines, community service, or imprisonment.
- Benefit suspension — Your current benefit may be stopped or reduced.
- Debt recovery — MSD uses debt collection agencies and court orders to recover unpaid debts.
- Name suppression — Benefit fraud convictions are often published to deter others.
How to Avoid Problems
- Report changes promptly — within 7 days.
- Keep a diary of your earnings and report them accurately.
- If you are unsure about an obligation, ask your case manager.
- If you suspect you have been overpaid, tell Work and Income immediately. Voluntary disclosure is treated more leniently than being caught.