I know many younger people who frequently on-sell tickets to others when they no longer need the flight and have no issues. A lot of workplaces give flights to other employees when one person cannot go on a business trip. It is technically against AIRNZ policy but I don't see much a of a problem if the ticket has been paid for.

Fair enough. I understand you like to stick to the rules. But, I am not looking to 'game' the system. I just don't need this flight and my family member does. I am happy to just let them take the flight and not encourage them to use lounge access.

I highly doubt there would be 'severe' punishment for me. The worst they could do is deny the person the right to board. Thanks anyway.