A woman asked to repay $120,000 because she took out loans while on the benefit may be just the tip of an iceberg of concerns with the way the Ministry of Social Development categorises income.
In the High Court, the ministry argued that the woman, whose identity is suppressed, should repay money she was paid in benefits because she had taken out the loans to pay for home repairs, and expenses for her children.
The outcome of the case has not yet been decided. But financial adviser Liz Koh said there were many other people being caught in similar situations.
The Social Security Act defines income for benefit purposes as being "whether capital or not". That means, even in situations where people are drawing down their own money, or taking gifts of money from family, they can be affected.
from
http://www.stuff.co.nz/business/99219409/Loans-and-gifts-come-back-to-bite-beneficiaries
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