If a government grant, for example, provides income support, then the assets, including the grant, will be part of the grant.
Who should collect the grant? In New Zealand, for government grants that are not used for food, health and other welfare, the Government Grants Commission (GFC) sets out the rules for collecting the grant, from the point of application until the end of payment.
Which beneficiaries are included in the grant? All beneficiaries are eligible to receive support for their households, regardless of whether they are in receipt of government grant.
What happens to grants when the Government doesn’t make money? If the Government does not make money, the recipient (usually an individual) has to pay the grant back to the GFC. If an individual in receipt of a government grant pays to cover food in the household, it is still part of the grant and therefore covered by the GFC. In cases of financial hardship, the GFC is the only option in which the recipient will have the option to pay back the grant.
What if an individual doesn’t provide the required number of months under the grant? The benefit is returned to the person for whom it was provided (in this case the individual who cannot or will not pay) and the remaining time that the recipient was unable to receive the benefit was covered by the GFC.
What if the recipient has to move or cannot continue to live in the area? In these circumstances, the recipient pays the grant back to the GFC and the Government grants back the benefits they are entitled to. If their circumstances change to such an extent that they could continue to receive the benefit, the GFC pays these benefits.
What if the recipient’s circumstances change, where should the GFC pay the benefit? In such cases, the GFC should pay the grant back to the recipient, subject to the recipient’s entitlement to pay. Under this scheme, the recipient of the benefit would then have to pay the GFC any amount that the receiver of the benefit would not have been entitled to pay if the GFC had not been notified. In practice, however, the recipient of the benefit will likely be the person who should have actually been entitled to the grant – the recipient’s spouse or civil partner.
If I receive payments through my own trust, are my entitlements affected? You are also eligible to receive payments through other trusts, particularly the Trusts Trust Fund. Find out how to obtain information about these trusts.
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