Ex gratia payments from Veterans' Affairs New Zealand
Some clients or their families may receive an ex gratia payment from Veterans' Affairs New Zealand (VANZ) on behalf of the Crown.
Veterans' Affairs New Zealand determines eligibility and provides letters to all clients receiving this payment explaining the reasons for the payment and the income and asset test exemptions that apply.
Cash assets and income exemption
These ex gratia payments are not treated as income or a cash asset for any financial assistance provided by Work and Income.
Where the ex gratia payments are earning income, the additional income must be exempt permanently from the date of payment.
Process
When a client receives a payment you need to create a 'must view' note in CMS. The note should state:
- the client has received an ex gratia payment from Veterans' Affairs New Zealand
- the date the client received the payment
- the amount of the ex gratia payment
- that the payment is permanently exempt from the cash asset test and
- any income derived from the ex gratia payment will be not be treated as chargeable income for benefit purposes
A letter should be sent to the client to advise them that their payment is exempt (a letter template is available in CMS).
For more information see:
Also see:
Legislation
- Cash assets and income exemptions schedule 8 Social Security Regulations 2018
