Calculation for NZ Superannuation or Veterans Pension

When New Zealand Superannuation or Veterans Pension is paid to a client in Australia the rate payable will be the lesser of:

• the Proportional Rate or
• the Notional Rate

New Zealand will pay the lesser of the Proportional Rate or Notional Rate.

A grandparented non-qualified partner will not be paid New Zealand Superannuation or Veterans Pension in Australia.

Clients in a relationship can be paid the married, civil union or de facto rate in Australia regardless of the sex or gender of either partner.

The Proportional Rate of payment is calculated using the following formula:

• count the number of whole months of New Zealand residence from age 20 to age 65 (include time spent in third countries if the client is not a permanent resident of Australia) and divide by
• 540 and multiply by
• the maximum rate of New Zealand Superannuation

If the client is not a permanent resident of Australia, the Notional Rate is the amount of Australian Age Pension that would be payable if the client was not entitled to a New Zealand benefit or pension and/or a pension from a third country.

If the client is a permanent resident of Australia, the Notional Rate is the amount of Australian Age Pension that would be payable if the client was not entitled to a New Zealand benefit or pension.

If the client is not a citizen or permanent resident of Australia, and they have working age residence in a third country, that residence is counted as residence in New Zealand when calculating the client's proportional rate.

If the client going to/living in Australia is not a permanent resident of Australia, and is in receipt of a third country pension that is deductible, the third country pension is directly deducted from the New Zealand rate payable.

If the person going to or living in Australia, is a citizen or permanent resident of Australia and they are receiving a third country pension that is deductible, the third country pension is not deducted from the New Zealand rate payable and Services Australia - International Services treats it as income when assessing the Australian pension rate.

Any Services Australia - International Services pension is not directly deducted from the rate of New Zealand Superannuation or Veterans Pension payable in Australia.