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Budget 2024: The Government has announced FamilyBoost, a proposed new childcare payment to help eligible families with the rising costs of Early Childhood Education (ECE). Find out more: Beehive.govt.nz

If you receive a pension from overseas that is exempt from New Zealand income tax, you need to include it as income for Working for Families and student loans if both of the following apply:

  • you're entitled to receive NZ Superannuation
  • your payments are reduced by the amount of overseas pension you receive.  

When you do not need to include your overseas pension

If you pay your entire overseas pension to Work and Income and receive the full NZ Superannuation entitlement, you do not need to tell us the amount of your overseas pension.

Example 1

Cory receives a $10,000 UK pension that is similar to NZ Super. He does not pay his UK pension to Work and Income.

The full entitlement to NZ Super is $14,000 (example only). He receives $4,000 NZ Super less tax and keeps his $10,000 UK pension.

To make sure Cory receives the same net amount as a person on full NZ Super, Cory's UK pension is tax exempt.

Cory needs to include the $10,000 overseas pension as part of his income for Working for Families and student loans. The $4,000 he receives in NZ Super will be automatically included.

Example 2

Eva receives a Netherlands pension of $6,000 and pays it to Work and Income to offset her NZ Super entitlement.

She receives the full entitlement to NZ Super of $14,000 (example only).

Eva does not need to tell us about her Netherlands pension for Working for Families or student loans. Her NZ Super is automatically included.

Last updated: 14 Dec 2023
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