Direct deductions

When a client is receiving an Australian pension paid by the Australian Government, the gross amount is directly deducted from their New Zealand benefit if they are paid by the Direct Payment Option.

The Australian pension is deducted from:

• the gross rate of New Zealand Superannuation or Veterans Pension and
• the net rate of any other benefit, including Accommodation Supplement

When a client is already receiving a New Zealand benefit or pension at the time the Australian pension is granted the deduction will be processed by International Services

If you receive information from a client about an Australian pension contact International Services with verification of the rate, type of Australian pension or benefit, the grant date and the name of the organisation making the payment.

If the client is already receiving an Australian pension at the time a New Zealand benefit or pension is being granted the direct deduction can be added using the SWIFTT process.

Under the agreement with Australia a client can elect to:

• have their Australian pension paid to their own bank account and receive a reduced rate of New Zealand benefit or pension through the direct payment option or
• have the Australian pension paid through the Special Banking Option and receive the full rate of New Zealand benefit or pension

International Services must be advised of all clients who are receiving an Australian pension. It is International Services responsibility to carry out New Zealand benefit or pension reviews required when the Australian pension deduction is being up-dated or reviewed.

When MSD matches a client's information with information from Australia, MSD must send a written notice of adverse action to the client.

A notice of adverse action is only required upon receipt of the first information match.

Any other reviews of the client's New Zealand benefit, such as a change of relationship status or a change of chargeable income, should be completed by the case manager.

War pensions cannot be paid via the Special Banking Option.

For more information contact International Services or see:

• Payments from overseas Couples getting overseas pensions

Also see:

• Clients receiving Australian pensions
• Extra Help
• Payment options
• Review date
• Exchange of Information