Overpayments

An overpayment should be established for any period where a higher rate of New Zealand Superannuation was paid but not due to the client.

If a client has been overpaid New Zealand Superannuation or Veteran's Pension at the domestic rate, the overpayment is always established for the net amount. Inland Revenue will return the tax portion of the overpayment directly to Work and Income.

Overpayments for clients being paid overseas are established for the gross amount as these payments do not have tax deducted by Work and Income.

Do not establish an overpayment for the first 26 weeks of absence, to a client who has applied from overseas if the client can show that the reason for their non-return was due to circumstances beyond their control that could not reasonably have been foreseen at the time of their departure from New Zealand.

For clients who left New Zealand with a grandparented non-qualified partner included in their New Zealand Superannuation or Veterans Pension, this means that the debt should not be established for the primary client, or for their partner.

If portable New Zealand Superannuation or Veteran's Pension is granted and domestic payment at the full rate continued after 26 weeks, then establish an overpayment from that date and recover the debt from ongoing payments.