Non-financial sanctions

Non-financial sanctions are an alternative to a financial sanction that can be imposed on eligible clients in some cases.

Non-financial sanctions should only be imposed when it would be more appropriate based on a client's circumstances than a financial sanction.

A client can only get a non-financial sanction if:

• they have no other current obligation failures (i.e. this is their first obligation failure), and
• they meet with MSD within the 5 working day notice period, and
• the obligation failure decision is not disputed and overturned, and
• a non-financial sanction would be appropriate for them based on their circumstances, and
• they are in active case management or they have dependent children

MSD must assess a client's circumstances and determine which non-financial sanction, if any, is most appropriate for them. Each non-financial sanction has different factors to consider.

Note Primary Emergency Benefit clients do not have work or work preparation obligations.

This means it is unlikely they will have an obligation failure, so they would generally not have a sanction imposed.

Partners of an Emergency Benefit client who have work or work preparation obligations are able to have a non-financial sanction imposed if they meet the criteria.

A non-financial sanction can only be imposed if a client or their partner contacts MSD within the 5 working day notice period. This is because a financial sanction will be automatically applied after 5 working days unless MSD has decided to impose a non-financial sanction instead.

If a client or partner contacts MSD after 5 working days, they are not eligible for a non-financial sanction. MSD cannot change a financial sanction to a non-financial sanction after it has been applied.

A client may have a change in circumstances that means they are no longer required to comply with an obligation they have failed.

The non-financial sanction no longer applies from the day that their circumstances change.

For more information see:

Clients who have a non-financial sanction imposed cannot get an Emergency Housing Grant or a Special Needs Grant. MSD should take this into consideration before choosing to impose a non-financial sanction.

For more information see: