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Individual income tax
Tāke moni whiwhi mō te takitahi

Veterans and income

This information will help you understand your obligations and entitlements if you're receiving:

For more information about the Schemes go to the New Zealand Veterans' Affairs website.

Veteran's Pension (under 65)

Income tax and student loans

Your Veteran's Pension is taxable income. If you have not done it already, complete a Tax code declaration (IR330) form and give it to the Ministry of Social Development (MSD).

It's important you use the right tax code. The code you use depends on:

  • how many sources of income you have, and
  • whether you have a student loan.

If you have a student loan use the "SL" repayment code. If your pension payments go over the pay period repayment threshold (eg, $748 fortnightly) MSD will deduct student loan repayments.

Work out your tax code

Note

If you receive the Veteran's Pension you aren't entitled to the independent earner tax credit.

Find out more about who can get the independent earner tax credit

Working for Families Tax Credits

Working for Families Tax Credits are payments for families with children 18 or under. There are different payment types. Depending on your situation, you may qualify for one or more.

If you're receiving Veteran's Pension (under 65), you may be entitled to Best Start tax credit and family tax credit.

You aren't entitled to:

  • In-work tax credit
  • Minimum family tax credit
  • Parental tax credit

Find out more about Working for Families Tax Credits

Child support

If you have a child support entitlement or liability, we'll include your Veteran's Pension when we do the calculation.

Find out more about child support

Living overseas

If you're living overseas and receive portable superannuation or a portable Veteran's Pension, we don't deduct tax from the payments.

If you're a non-resident and receive portable New Zealand Superannuation or a portable Veteran's Pension, get in touch with the tax authorities where you live. They'll help you work out if you should declare the payments to them.

Note

If you get NZ Super or a Veteran's Pension that is not deemed as portable (with no tax deducted) and travel overseas, you'll need to pay New Zealand tax on the payments you get.

Find out more about people leaving New Zealand who receive NZ Super or Veteran's Pension

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Weekly Income Compensation and Weekly Compensations (Schemes One and Two)

Eligible veterans can transfer from the Veteran's Pension (under 65) to one of two schemes:

  • Weekly Income Compensation (WIC), or 
  • Weekly Compensation.

Both schemes are treated the same for tax purposes.

Income tax and student loans

Your payment is taxable income. As they are treated as salary or wages, you'll need to complete a Tax code declaration (IR330) form and give it to Veterans' Affairs New Zealand (VANZ).

It's important you use the right tax code. The code you use depends on:

  • how many sources of income you have, and
  • whether you have a student loan.

If you have a student loan use the "SL" repayment code. If your payments go over the pay period repayment threshold (eg, $748 fortnightly) the New Zealand Defence Force (NZDF) will deduct student loan repayments.

You may be eligible for the independent earner tax credit depending on your income and circumstances.

Work out your tax code

Working for Families Tax Credits

Working for Families Tax Credits are payments for families with children 18 or under. There are different payment types and, depending on your situation, you may qualify for one or more.

Depending on your situation you may be entitled to:

  • Family tax credit
  • In-work tax credit
  • Best Start tax credit or parental tax credit
  • Minimum family tax credit.

Find out more about Working for Families Tax Credits

Child support

If you have a child support entitlement or liability, we will include your payment when we do the calculation.

Find out more about child support

Living overseas

Payments you get while you're overseas for any number of weeks are taxable in New Zealand. This includes situations where you are not a New Zealand tax resident.

VANZ will deduct PAYE from the payments and you'll get the net entitlement.

If you aren't a New Zealand resident for tax purposes you must file a Non-resident tax return (IR3NR).

If you are, or were, a New Zealand tax resident and NZDF deducted PAYE at the right rate, you don’t need to file an income tax return unless there are other reasons.

Find out what to do at the end of the tax year