New Zealanders who are 66 and 6 months or older and live in Australia should be eligible for an Australian age pension. As long as they meet the resident, income, and asset eligibility criteria.
Under Australia’s international social security agreement with New Zealand, NZ citizens living in Australia can apply for the Australian Age Pension (if over the age of 66 and 6 months), Disability Support Pension (DSP) (if they are severely disabled), and Carer Payment (if they are caring for a partner on DSP), irrespective of whether they are protected or non-protected SCV holders.
Australian age pensions are asset and income tested, so any assets or income a New Zealander has will affect the amount payable. Read more about income and asset tests for pensions below.
To qualify for a pension, a New Zealander must have been resident in either Australia or New Zealand for at least 10 years of their working life (between the ages of 20 and 66 and 6 months).
You can continue to get your New Zealand Superannuation (NZ Super) or Veteran’s Pension payments for up to 26 weeks (inclusive) after you leave New Zealand.
There are different rates of Age Pension payments for single people and couples. Read about how your relationship status can affect your payment rate.
In this post you will find helpful information on:
On 1 July 2021, the Age Pension age increased to 66 years and 6 months for people born from 1 July 1955 to 31 December 1956, inclusive.
If your birthdate is on or after 1 January 1957, you’ll have to wait until you turn 67. This will be the Age Pension age from 1 July 2023.
If you’re legally blind and you’re not claiming Rent Assistance, you may be able to claim Age Pension without being assessed against the income and assets tests. You’ll need to provide an ophthalmologist report to support your claim.
Read more about Age Pension age requirements on the Department of Social Services website.
The Australian Government Department of Human Services uses income and assets tests to work out how much Age Pension you get.
Working out how much you can get can be confusing. You can find a link to SuperGuide’s age pension calculator below.
Per fortnight | Single | Couple each | Couple combined | Couple apart due to ill health |
Maximum basic rate | $882.20 | $665 | $1,330 | $882.20 |
Maximum Pension Supplement | $71.20 | $53.70 | $107.40 | $71.20 |
Energy Supplement | $14.10 | $10.60 | $21.20 | $14.10 |
Total | $967.50 | $729.30 | $1,458.60 | $967.50 |
* Rates as per 1 March 2022. Check here for updated rates: https://www.servicesaustralia.gov.au/how-much-age-pension-you-can-get?context=22526.
Your income can reduce how much you will get paid. The age pension income test will assess your income from all sources. If you’re over the limit, you get a lower pension. However, the Australian Government does have a Work Bonus for pensioners who do work (see below).
These are the income rules for most pensioners.
Single person
Income per fortnight | Amount your pension will reduce by |
Up to $180 | $0 |
Over $180 | 50 cents for each dollar over $180 |
Couple living together or apart due to ill health
Combined income per fortnight | Amount your combined pension will reduce by |
Up to $320 | $0 |
Over $320 | 50 cents for each dollar over $320 |
Read more here: https://www.servicesaustralia.gov.au/income-test-for-pensions?context=22526.
Income from outside Australia that may count in the income test includes money from all of the following:
Read more here:
For the maximum rate of pension to be payable, you may have assets up to the assets value limit (the asset limit before pension reduces), provided your income does not exceed the income free area (the income limit before pension reduces).
The assets value limits for service pension, age pension and veteran payment are:
Relationship and residential status | Low limit (home owners) | High limit (non-home owners) |
Singles | $270,500 | $487,000 |
Couples* – combined | $405,000 | $621,500 |
* Includes illness separated and respite care couples.
This means you can have assets up to and including these amounts and still get the maximum rate of pension, provided your income does not exceed the income free area.
When the market value of your assets exceeds the assets value limit, your pension is reduced by 75 cents per fortnight for every whole amount of $250 worth of assets above the limit. The pension continues to reduce at the rate of 75 cents for every $250 worth of assets over the limit until the value of your assets reaches or exceeds the assets cut-off limits. No pension is payable if you have assets above the cut-off limits.
For a couple the value of the assets is split between each member of the couple and the rate of reduction is the same for each member of the couple.
Your home is not counted as an asset when calculating pension or payment, but it does affect how your pension or payment is assessed under the assets test.
Examples:
For more information on how the assets test works and some good examples of calculations, refer to Assets Test: https://www.dva.gov.au/financial-support/income-support/what-changes-your-payments/your-income-and-assets/assets-test.
The Australian Government is assisting older Australians to work, if they are able and wish to do so, by offering the Work Bonus.
Seniors may have substantial income from work and still receive an Australian Age Pension. Age Pension rules provide incentives for work, including part-time or casual work through the combined application of the pension income test (above) and the Work Bonus (below).
The Work Bonus provides an incentive for pensioners over Age Pension age to work, should they choose to do so, by allowing them to keep more of their pension when they have income from working. Under the Work Bonus, the first $300 of fortnightly income from work is not assessed as income under the pension income test. Any unused amount of the fortnightly $300 Work Bonus will accumulate in a Work Bonus income bank, up to a maximum amount of $7,800.
The amount accumulated in the income bank can be used to offset future income from work that would otherwise be assessable under the pension income test. The income bank amount is not time limited; if unused it carries forward, even across years.
For more information visit Work Bonus on the Australia Government Department of Social Services website.
The Age Pension calculator on the SuperGuide website is straightforward and easy to use.
Simply enter your details in the calculator (in the yellow blocks) and you will be given an estimate of the amount of Age Pension you may be eligible for. Reminder: do not include the value of your home in your assets.
Under Australia’s international social security agreement with New Zealand, New Zealand citizens living in Australia can apply for the Australian Age Pension (if over the age of 65), Disability Support Pension (DSP) (if they are severely disabled) and Carer Payment (if they are caring for a partner on DSP), irrespective of whether they are protected or non-protected SCV holders.
The residency requirements for the Age Pension require a total period of time lived in Australia and/or periods of Working Age Residence (Working Age Residency refers to residency between the ages of 20 and 65) in New Zealand of more than ten years. For DSP, the person must have had at least ten years of residence in Australia or New Zealand, become severely disabled while living in Australia or New Zealand and resided in Australia for at least one year. For Carer Payment, an individual must have lived in Australia and/or New Zealand for more than two years.
Reciprocal arrangements apply in relation to certain New Zealand payments (discussed below).
Source of the above is from the New Zealanders in Australia: a quick guide on the Parliament of Australia website: https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1617/Quick_Guides/NZAust.
New Zealand and Australia have a social security agreement. The Agreement covers the following benefits and pensions:
The agreement means that New Zealand residents who have lived, live or are going to live in Australia may qualify for a benefit or pension from both Australia and New Zealand.
If you are paid or apply for a benefit or pension in NZ then you must apply for the equivalent in Australia.
New Zealand Supported Living Payment (health condition, injury, disability or totally blind) and Australian Disability Support Pension (for the severely disabled)
In order to qualify for the Australian Disability Support Pension under the Agreement, you must meet the below criteria for either the New Zealand Supported Living Payment (health condition, injury, disability or totally blind) or Australian Disability Support Pension and you must also be assessed as “severely disabled”.
“Severely disabled” means:
If you intent to or do live in Australia you may qualify for a benefit or pension from both Australia and New Zealand.
As stated above, you must apply for a benefit or pension in both countries.
Once your applications are processed you may be paid payments from both New Zealand and Australia, e.g. your payment is made up of a NZ Superannuation payment and an Australian Age Pension payment. When this happens the total amount you will receive will be similar to the amount you would have received if you spent all your life in Australia.
Senior Services International uses certain criteria to decide who can receive an NZ pension or benefit in Australia and how much you will be paid.
You can read more about this here: https://www.workandincome.govt.nz/pensions/travelling-or-moving/social-security-agreements/australia.html#null.
If you already receive either the NZ superannuation or Veteran’s pension, are over 65 before you leave NZ and meet the age criteria for the Australian Age Pension, you can continue to receive your NZ payments for up to 26 weeks after leaving NZ. If you don’t meet the Australian Age Pension criteria your payments will stop the day after you leave NZ.
You should check what you will be paid in Australia before you leave NZ as it may be less than what you are currently been paid especially if:
Whether you are paid in Australia will depend on the outcome of your application for the Australian Age Pension, which includes an income and asset test.
To see if your NZ payments will continue for more than 26 weeks after leaving NZ you must apply for the NZ Superannuation or Veteran’s Pension to be paid to you in Australia.
To do this you need to apply for an Australian Age Pension through your local Centrelink office within 26 weeks of leaving NZ.
If Centrelink grants you an Australian Age Pension, they will send you an NZ application form to complete so Senior Services International can work out whether you will continue to be paid and how much you will receive.
If Centrelink can’t grant you an Australian Age Pension because you don’t meet the residency requirements, please contact Work and Income in NZ.
You need to apply for a benefit or pension within four weeks of leaving NZ. You need to get application forms from your local Centerlink office or call Centerlink International Services. If you are already in Australia, here is the ‘how to claim’ information on the Australia Services website.
If you move permanently to Australia, you can transfer your KiwiSaver funds to an Australian superannuation scheme. You do not have to transfer your KiwiSaver account to Australia though.
Contact your KiwiSaver provider if you decide to transfer your KiwiSaver funds to an Australia super.
To transfer your KiwiSaver you will need to:
How to compare and choose super funds. When you’re comparing super funds, weigh up fund performance and the fees you’ll pay against other factors such as risk, investment returns, services and insurance, e.g. performance, low fees, insurance, investment options and services.
You can find out about and compare super funds by using the ATO’s YourSuper comparison tool, an online list comparing MySuper products.
Here is a good post on choosing a super fund, which goes into the above in more detail.
I’ve recently found this Australian government website My Aged Care. If you need some help around the house or think it’s time to look into aged care homes, My Aged Care is here to help.
The website has a lot of helpful information:
I found this website when I was looking for advice for the below comment:
My parents are kiwis and have a house in NZ and Australia but they want to live in Australia full time now they are 80 years old!
They need advice on how to organise their finances in NZ to make sensible choices re private and government pensions, investments, house sale etc.
Is their a person or a company you can suggest that they can use yo give them this advice please?
My Aged Care has great online help for financial support and advice, including:
Organisations that can help
There are a number of organisations that offer free services that can inform you about things like how to build savings, how to prepare for retirement, and what options you have with your pension.
Professional services that can help
The MoneySmart website has some valuable resources to help you manage your money, and it can also direct you to professional services like financial advisers, counsellors, and legal advice.
Tools and information
There are many tools available to help you with different aspects of your finances, such as:
So if you need financial advice firstly check out their website and then get in contact with them. They will definitely be able to point you in the right direction.
Here is a video which explains simply about their service.
Read the below page in full if any of the below apply to you:
Work and Income page Social security agreement with Australia:
https://www.workandincome.govt.nz/pensions/travelling-or-moving/social-security-agreements/australia.html#null.
The below posts might interest you:
If you’ve read the above content and the answer to your question isn’t there, please write a comment below and I’ll research the answer for you. Please note, if the answer to your question is in the content above, I will not reply. Sorry, I just get too many questions these days and I can’t keep up.
If you need advice on moving to Australia from New Zealand, I’ve created a helpful little questionnaire to point you in the right direction. It takes less than 30 seconds, so give it a go!
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Keith Prokop
August 21, 2023 at 8:29 pmThe calculator doesn’t seem to calculate for couples in my situation where I have reached retirement age but my wife hasn’t. I’m sure that income for a non-retiree is calculated differently even though they are still a “couple”. Can you confirm that this observation is correct. TIA.
JJ Smith
August 22, 2023 at 4:06 pmHi Keith,
Thank you for your comment.
On the right side of the calculator, Super Guide has included a help section. Here is what it says under notes for couples:
What if only one member of a couple is eligible?
Where only one member of a couple has reached Age Pension age, Centrelink will treat the application based on the assets and income of the couple combined, and pay the eligible Age Pensioner half of the couple’s rate. If only one partner is eligible to apply for the Age Pension, all jointly owned assets, financial investments and income and assets should be included, although special rules apply to superannuation.
If a member of a couple has not yet reached Age Pension age, then his or her superannuation benefits are not counted for Age Pension eligibility UNLESS he or she has started receiving superannuation pension payments. Learn more about how your super affects the Age Pension (https://www.superguide.com.au/in-retirement/superannuation-affect-age-pension).
Reminder: If only one partner has reached Age Pension age, and the couple satisfy the Age Pension assets test and income test, the eligible partner will be paid half of the Couple rate, rather than the Single rate.
What if a couple is separated due to illness?
This calculator does not currently cater for couples separated due to illness. Please note though that there are higher asset and income thresholds for couples separated by illness. For more information see the following SuperGuide articles:
– Age Pension: Asset test thresholds (https://www.superguide.com.au/in-retirement/age-pension-asset-test-thresholds)
– Age Pension: Income test thresholds (https://www.superguide.com.au/in-retirement/age-pension-income-test-thresholds)
Please feel free to email me back any further questions you have.
R N
August 15, 2023 at 6:41 pmhi JJ,
Thanks for a very informative website. Could we please get your thoughts on our situation. My mum lives in NZ in her own house worth about $1.8m and has savings of about 100K, currently gets aged pension in NZ (is 69). She is thinking of moving to Melbourne to be closer to our family. Currently we are looking at building or buying a house for her close to us. Houses here are worth around $800k.
Option 1: We build/buy and she lives rent free. Reading various posts it looks like she can’t stay here and just own the house in NZ if she wants to get pension. Potential capital gains issue if she wants to sell in due course. Not sure about stamp duty consideration if transfer happens due to her passing in due course.
Option 2: She sells in NZ and buys close to us but that might mean her surplus funds will make her not qualify for a pension anyway.
Option 3: She sells in NZ and buys in a more expensive suburb so more of her funds are used up but then she is up for a bigger stamp duty. Might be about 5 years worth of pension at current rate. With less savings on hand she qualifies for pension.
We would very much appreciate an opinion on the pros and cons on our options or if we are missing any other factors.
JJ Smith
August 24, 2023 at 1:27 pmHi R N,
This is a position a lot of my visitors are in.
Unfortunately, I am not a financial adviser and can not give you any further advice apart from the information I have put in my post, which from your comment it looks like you have read and understood.
I’ve put the figures into the Age Pension calculator and you are right that if she keeps her NZ home as an investment property then she will not receive the Australia age pension, because she does not pass the asset test. If she buys a home in your area, she will still not qualify for the Australian age pension.
If she manages to buy a home for $1.3, her assets will then be down to $600,000 and she will receive $169.25 per fortnight, $4,401 per year.
At your Mum’s stage in life, I’d imagine quality of life and family are more important than money. I recommend you look at other ways she can use her investments to get an income and forget about the pension.
Here is the link to a post on Moneysmart, an Australian Government organization supporting older Australians, they may be able to help: https://moneysmart.gov.au/living-in-retirement/supporting-older-australians.
Please feel free to email me back any further questions you have.
Sorry, I could not be of more help.
Louise
February 9, 2023 at 12:34 pmHi
I have a son in Sydney. I would love to be closer to.
I am 60y.o. working and contemplating move to Oz and continue to work there.
In NZ I would qualify for pension at 65, but would still need to keep working.
I have read all I can about pension entitlement in Oz and would I qualify later in life, via arrangement between NZ & Oz.
What I have learnt so far, is I would apply when I get to that age, not eligible until I was 67, its asset tested… my question is, because it a bit unclear,
Do you have to have lived in Oz for 10 years? If not no pension??
info seems to suggest this but at same time says there is an agreement of sort with NZ.
I don’t own home, so limited assets, just don’t want to make the move and find out later in life I not eligible for old aged pension.
Hope you may have had similar queries or you know of similar situation.
I have read as much as I can on Govt. websites.
I understand decisions are based on individuals, if you could shed any light on this, I would be extremely grateful.
Kind regards
Louise
JJ Smith
February 9, 2023 at 4:03 pmHi Louise,
Thank you for your email.
I understand the position you are in. I have read all I can on the internet and getting a pension in Australia for a New Zealander has been one of my harder subjects to get my head around.
The good news is, yes you will be eligible for the Australian pension when you come of age, as your time living and working in New Zealand do count in Australia.
If you haven’t already, have a read of my Australian Age Pension post – https://www.movingtoaustralia.co.nz/australian-age-pension/.
At the bottom, you can ask me any further questions you have.
Please feel free to email me back any further questions you have.
Good luck with your move.
Marilyn
October 12, 2022 at 6:23 pmHi
I am a NZ Passport Holder.
I have been a resident of Australia since the late 70’s.
When I came to Australia way back then no passports or visa’s were required.
I will be 66 in a couple of weeks.
Can you advise on whether I am able to receive a NZ pension.
Is it supplemented with an Australian Pension.
Or would I just be better applying for an Australian Pension.
Regards
Marilyn
JJ Smith
October 13, 2022 at 3:14 pmHi Marilyn,
Thank you for your comment.
You need to contact CenterLink about getting the Australian pension. Here is the ‘how to claim’ information on the Australia Services website: https://www.servicesaustralia.gov.au/how-to-claim-age-pension?context=22526.
Senior Services International uses certain criteria to decide who can receive an NZ pension or benefit in Australia and how much you will be paid. You can read more about this here: https://www.workandincome.govt.nz/pensions/travelling-or-moving/social-security-agreements/australia.html#null.
Please note, the age for the Australia Age Pension is 66 and 6 months. I don’t know if you can receive the NZ Pension until then.
Unfortunately, this has been a really hard topic for me to get information on. If you aren’t sure you should contact both CenterLink and Work and Income and ask them.
Sorry I couldn’t be of more help.
Warwick Parker
September 1, 2022 at 12:14 pmThankyou for your very informative website.
I know you are not a financial adviser, but are you able to confirm that as a general rule, all my share investments and my NZ house should be sold before moving to Aust, to avoid the possibility of being caught for Aust capital gains tax, if these assets are sold later on.
Maybe different perhaps is some of the share holdings are currently valued below cost.
Thanks
Warwick
JJ Smith
October 13, 2022 at 3:23 pmHi Warwick,
Sorry for the delay in replying.
All I can recommend is that you complete the Age Pension calculator and see how much your Australia Age Pension would be reduced if you didn’t sell your assets: https://www.superguide.com.au/in-retirement/age-pension-calculator.
The above will help you make an informed decision.
As a general rule, it is best to sell your assets before moving, especially your NZ home, so you do not have to pay CGT when you sell it.
However, have a read of this post ‘Managing capital gains to reduce tax and boost your super’, as it might help you make the right decision for you: https://www.superguide.com.au/how-super-works/capital-gains-cgt-super.
Sorry I couldn’t be of more help.
Stuart
August 16, 2022 at 9:11 pmHi. I know that I should be able to work this out for myself but each time I think I have it sorted there appears to be another twist. I believe that I would be entitled to have NZ super/Aus age pension paid if I was to move permanently to Australia.
My situation
Single 68yrs. Home owner value $300K to be sold prior to move. $60K in savings.
Already on NZ super
Your opinion/calculation greatly appreciated
Thanks
Stuart
JJ Smith
August 18, 2022 at 1:34 pmHi Stuart,
Thank you for your comment.
I know, it hasn’t been the easiest subject for me to get my head around either.
I’ve put the information you gave me into the Age Pension calculator (https://www.superguide.com.au/in-retirement/age-pension-calculator) and these are your results:
– Single
– No home
Asset test:
– Financial investments $360,000
Income test:
– Deemed income $6,965
Pension estimate:
Per fortnight $948.66
Per year $24,665
So not much of a haircut on the full rate of $967.50.
Please feel free to email me back any further questions you have.
Good luck with your move.
Mellorie Hinton
August 12, 2022 at 9:19 pmThank you for this excellent website. My situation is a little unusual in that my husband and I are Australian citizens who have lived and worked in New Zealand for over 20 years (we moved her for his academic post). We have not become NZ citizens or permanent residents. We both worked in Australia for a few years before leaving and I also worked in the UK for a few years. I have a small amount of super in Australia I plan to move across to NZ so it is all in one place.
We will retire in about 10 years and would like to move back to Australia to be closer to family (and better public health care). Are we effectively treated the same as Kiwi’s moving to Australia in terms of access to the NZ pension being asset tested? Or as Australians leaving NZ can we take our pension anywhere regardless of assets, given that it was earned in NZ?
JJ Smith
August 18, 2022 at 1:42 pmHi Mellorie,
Thank you for your comment.
Unfortunately, I am not a financial advisor and can only share what information I can find online.
However, it sounds like when you move back to Australia, as an Australian citizen living in Australia, you will receive the Australia age pension: https://www.servicesaustralia.gov.au/who-can-get-age-pension?context=22526.
Your NZ pension would stop after 26 weeks, whether you are an NZ or Australian citizen who has moved to Australia.
I hope that answers your question.