GrownUps New Zealand

Working While Receiving NZ Super? You still might be eligible for Tax Refunds

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While New Zealand doesn’t actually have an official retirement age, for many people 65 years old is the target.

It’s the age when most superannuation plans begin to pay out your savings, including Government funded NZ Superannuation (Super).

New Zealand Superannuation is a fortnightly payment for people aged 65 and over. To qualify, you must have lived in New Zealand for at least 10 years since you turned 20. Five of those years must be since you turned 50. Time spent overseas in certain countries, including Australia and for certain reasons may be counted.

Details about who can get superannuation are on the Government’s Work and Income website.

If you’re working while receiving NZ Superannuation, you may be entitled to  a tax refund.

You can still get your New Zealand Superannuation while you’re working or getting other income. This may affect the amount of income tax you have to pay on your combined income and can sometimes entitle you to a tax refund.

Here are some real life cases where retirees in NZ have been entitled to a Tax Refund in this situation (names have been changed):

There are many other cases where earning Superannuation and working in the same financial year can mean you’re entitled to a refund. We suggest getting in touch with IRD  or your tax agent for more information.

Using the right tax code while on NZ Superannuation

Your main source of income

If you receive NZ Super and income from another source (excluding interest or investment income), you need to ensure that you are using the right tax code.

Using the right tax code while on NZ Superannuation

If your NZ Super is not your main source of income or you have a secondary source of income, you need to use a secondary tax code.

As a general guideline for tax codes:

Note clients need to apply to Inland Revenue for a special tax code. The client will need to provide proof of their special tax code for example, a letter from Inland Revenue, in order for this to be added to their New Zealand Superannuation record.

Tax and Tax Refunds can get a bit tricky sometimes – chatting to your tax agent or IRD directly can help clear up what you’re paying and what you’re entitled to as a refund.