Good cause decision guidelines

There are some specific situations where MSD considers there is good cause to redirect a person's benefit. In these circumstances, MSD may decide to redirect the client's benefit.

Note even when good cause exists, MSD is not always required to approve the redirection payment.

For more information see:

Some clients circumstances won't be covered by the specific situations where it has been identified there is good cause to redirect. For these clients, MSD should consider if there is good cause to redirect part or all of a client's benefit payment to another party. MSD should consider the following factors:

• the reasons for paying part or all of the benefit to the other party
• if the reasons involve a serious risk to the client's and/or their family's wellbeing
• the severity of the client's situation, and their ability to sort out and manage their own affairs
• if the redirection is in relation to an essential service, such as housing and power (a hire purchase agreement may not be considered essential, and a redirection of benefit would not normally be used for this purpose)
• if refusing the redirection of benefit places the client in a worse position, for example, refusing would result in the client being evicted from their accommodation
• the clients payment history, for example, substantial history of frequently missed payments to MSD, eviction from their accommodation, or disconnection from essential services such as power
• if there a supporting recommendation from a budget advisory service, mental health service, or other welfare or support agency
• if the client has exhausted other viable alternatives
• the client’s history of frequent requests for extra assistance from MSD for the same purpose, for example, power disconnection or rent bond

Note this is not an exhaustive list.

Good cause is not necessarily established through meeting a single factor or scenario listed above - when a client is having difficulty managing their affairs it does not automatically follow that good cause exists. MSD must weigh up all relevant circumstances before making a decision on whether good cause exists.

For example, if a client requests redirection and has a documented problem, such as gambling addiction or mental illness that is resulting in financial mismanagement, good cause may be established.

Generally social housing clients will have a redirection from their main benefit, New Zealand Superannuation or Veteran's Pension for their Income Related Rent to be paid to their social housing provider.

For more information see:

• Redirection for social housing