Priority for deductions

Certain forms of deductions take priority over others; the following list gives the order of priority, from highest to lowest:

Highest priority

• Child Support deductions made under the Child Support Act 1991
• Inland Revenue tax deductions
• Ministry of Social Development debt repayments including Liable Parent Contributions (LPC), child maintenance debts and Major Repairs Advances (MRA), Student Allowance debt, Student Loan debt converted to Ministry of Social Development debt, Income Related Rent historical Kāinga Ora (previously Housing NZ) debt, Income Related Rent Ministry of Social Development debt
• attachment orders made under the Family Proceedings Act 1980
• court attachment orders issued under the Summary Proceedings Act 1957
• court attachment orders issued under the District Court Act 2016
• Student Loan repayments

Lowest priority

Determining the priority of deductions is necessary when a client has more than one order issued in respect of their benefit. Also each order and deduction notice is subject to its own protected earnings rule.

When deductions need to be reduced adjust from the lowest priority up to those with a higher priority taking into account the protected earnings rules for each.

A client has both Child Support and Ministry of Social Development debt deductions to be made from their benefit. When the level of Ministry of Social Development debt would reduce the client's benefit payments below the Child Support protected earnings rate, the Ministry of Social Development debt deduction must be reduced not any Child Support payments.

This is because Child Support deductions take priority over Ministry of Social Development debt repayments.