Following retirement or redundancy
If you retire or are made redundant you can be affected by a number of tax issues; your working for families tax credits entitlement and child support assessment may be affected and you may wish to nominate someone to act on your behalf.
Redundancy tax credit
The government has passed legislation to make taxing redundancy payments fairer to people who are pushed into a higher tax bracket when they receive the lump sum payment. A redundancy tax credit has been introduced that will apply to redundancy payments paid on or after 1 December 2006.
Tax information for retired people
There are some tax matters that may affect you as a retiree: tax on investment or other income, in addition to New Zealand Superannuation, tax on overseas pensions, gift duty, and the process of setting up a trust. Also your retirement payment could affect the amount of working for families tax credits you receive or the amount of child support you are assessed to pay.
Redundancy and working for families tax credits and child support
A redundancy payment could affect the amount of working for families tax credits you receive, or the amount of child support you are assessed to pay.
Nominate someone to act on your behalf
You can nominate someone to act on your behalf to look after your tax affairs. This could be if you're going overseas for an extended period, if you can't contact us during work hours for any reason, or if you would just like someone other than a tax agent to look after your tax affairs.
Date published: 31 Jan 2005
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