Australia–NZ Super Agreement: How Pensions Work When You've Lived in Both (NZ)

If you have lived on both sides of the Tasman, a social security agreement decides whether your Australian years count for NZ Super, which country pays, and how the Australian Age Pension interacts with the Section 70 deduction. Here is how it fits together.

Plenty of New Zealanders spend part of their working life in Australia, and plenty of Australians settle here. When it comes time to claim a pension, that trans-Tasman history can help you or trip you up, depending on how the two systems fit together.

They fit together through a formal social security agreement between New Zealand and Australia. It does two main jobs: it lets your years in one country count toward qualifying in the other, and it sorts out which government pays what. This guide explains how the agreement works, whether Australian years count toward NZ Super, who ends up paying, and how the Australian Age Pension interacts with the Section 70 deduction.

TL;DR: The NZ–Australia social security agreement lets residence in Australia count toward NZ Super's residency qualification, and vice versa ⁴. But the Australian Age Pension is a state pension, so it is deducted dollar-for-dollar from NZ Super under the direct deduction (Section 70) policy ⁵. Your Australian super savings are different and are not deducted ⁸. NZ Super for a single person living alone is $1,110.30 per fortnight after tax as at 11 April 2026 ¹.

How does the Australia–NZ social security agreement work?

New Zealand and Australia run an international social security agreement that coordinates the two countries' age pensions. The problem it solves is that each country normally requires you to have lived there for a set number of years before you can claim its pension, so someone who split their adult life across the Tasman could fail both tests on their own.

The agreement fixes that in two ways. First, it allows periods of residence in one country to count toward meeting the other country's qualifying period ⁴. Second, it sets rules for which country pays, in what proportion, so the cost is shared rather than landing on one side.

It is worth being clear about what the agreement does and does not touch. It deals with state age pensions — NZ Super on this side, the Australian Age Pension on the other. It does not change how your Australian superannuation savings (your private retirement pot) are treated, and it does not override New Zealand's own rules about deducting overseas state pensions. We come back to both points below.

Do my Australian years count toward NZ Super residency?

Yes, in most cases they can. To qualify for NZ Super you currently need to have lived in New Zealand for a set number of years since age 20, with some of those years after age 50. That residency requirement is rising from 10 years to 20 years, phased in by date of birth: someone born on or before 30 June 1959 still needs 10 years, while someone born on or after 1 July 1977 needs the full 20 years, with the phase-in reaching 20 years by July 2042 ³.

For someone who has spent time in Australia, the agreement allows periods of Australian residence to count toward that New Zealand residency requirement ⁴. So if you fall a few years short of the New Zealand-only test, your Australian years may bridge the gap.

Counting Australian years toward qualifying does not mean those years are free money. Qualifying for NZ Super and how much net pension you receive are two different questions — the deduction rules below decide the second one. The wider residency picture is in our NZ Super residency years and rules guide.

Who pays my pension if I've lived in both countries?

Under the agreement, the country where you live when you claim generally administers your pension, but the cost can be shared in proportion to your working-life residence in each country, so neither government pays for years you did not live with them. The table below is a simplified illustration, modelled on the agreement and MSD rules — it is not a calculation for any individual, since the actual outcome depends on your residence record, your age, and the deduction rules.

Figure (described): a flow diagram titled "Who pays what: NZ Super and Australian Age Pension after a trans-Tasman life." It branches by where you live at retirement and the split of years in each country, showing which country administers the payment, the rough proportion each contributes, and an arrow representing the Section 70 deduction reducing NZ Super by the gross Australian Age Pension. Source: modelled on the NZ–Australia Social Security Agreement and MSD rules ⁴⁵.

How does the Australian Age Pension interact with NZ Super?

This is where many trans-Tasman retirees get caught out. The Australian Age Pension and NZ Super are both state age pensions — Tier 1 government retirement income — and the two systems do not let you collect both in full at the same time. For reference, NZ Super pays $1,110.30 per fortnight after tax to a single person living alone, or $854.08 each per fortnight to a couple where both qualify, as at 11 April 2026 ¹².

One timing wrinkle matters a great deal. NZ Super starts at 65, but the Australian Age Pension qualifying age is 67 for those born on or after 1 January 1957 ⁷. So someone living in Australia who reaches 65 cannot immediately claim the Australian Age Pension, even though their NZ Super has come of age. That two-year gap shapes a lot of trans-Tasman retirement plans, particularly for people who move across in their early sixties. The interaction itself comes down to the deduction rule New Zealand applies to overseas state pensions, which we cover next.

Does Section 70 deduct my Australian pension from NZ Super?

Yes. The Australian Age Pension is a government-administered state pension, so it falls within New Zealand's direct deduction policy — the rule still widely known as Section 70 ⁵. Under that policy, your gross overseas state pension is deducted dollar-for-dollar from your gross NZ Super, so you do not receive two full Tier 1 age pensions for the same period ⁵.

In practice an Australian Age Pension does not stack on top of NZ Super. For every dollar of Australian Age Pension you receive, your NZ Super reduces by a dollar; if the Australian pension is large enough, your NZ Super can reduce to nil. The combined total tends to net out to roughly the higher of the two, not the sum of both. We walk through the mechanics and a worked example in our Section 70 overseas pension deduction guide.

One point for couples: since 1 July 2020, your NZ Super or Veteran's Pension is no longer reduced by your partner's overseas pension ⁹. The old spousal deduction has been repealed, so an Australian Age Pension in your partner's name no longer affects your own NZ Super.

What happens to my Australian super (savings) versus the Age Pension?

This distinction is the one most worth getting right, because the two are treated very differently.

• Australian Age Pension is a state-administered Tier 1 pension. It is deducted from NZ Super under the direct deduction (Section 70) policy ⁵.
• Australian superannuation is your own private retirement savings, built up under the Superannuation Guarantee — the Australian equivalent of KiwiSaver employer contributions. Because it is private savings rather than a state pension, it is not deducted from NZ Super under the direct deduction policy ⁸.

Australian super and KiwiSaver are linked through a separate channel — the trans-Tasman retirement savings portability scheme, administered by Inland Revenue, which can let you move savings between a KiwiSaver scheme and an Australian super fund when you change country ⁸. That is a different process from the pension rules above, and moving savings across the Tasman has its own tax and access implications. Our KiwiSaver moving to Australia guide covers that transfer in detail.

What do I need to do when I reach 65 in either country?

The steps depend on where you are living. If you are in New Zealand, you apply for NZ Super through Work and Income from age 65, declaring any overseas pension you receive or may be entitled to. If you have an Australian Age Pension entitlement, expect it to be deducted from your NZ Super.

If you get NZ Super or Veteran's Pension and move to Australia, your payments can continue for up to 26 weeks ⁶. To keep them beyond that, you generally need to apply for the Australian Age Pension within 26 weeks of leaving, then apply to continue your NZ payment, with the NZ rate change backdated to your Australian application date ⁶. The catch is the age gap: you cannot claim the Australian Age Pension until you reach 67 ⁷, so someone moving in their early-to-mid sixties needs to plan around that window carefully.

A short checklist for trans-Tasman retirees:

• Confirm your residence record in both countries, since it drives qualifying and the proportion each country pays.
• Note the two qualifying ages — 65 for NZ Super, 67 for the Australian Age Pension ⁷.
• If moving to Australia on NZ Super, mark the 26-week window to apply for the Australian Age Pension ⁶.
• Keep your Australian super (savings) paperwork separate from any Age Pension paperwork, since they are treated differently ⁸.

Our guide on keeping NZ Super while living overseas covers the portability side in more depth.

When should a trans-Tasman retiree get advice?

Many people can manage a clean case with Work and Income and Services Australia directly — for example, a long New Zealand life with a short Australian stint, where the agreement simply tops up your qualifying years. Advice tends to earn its keep when the picture is more layered: roughly even years on each side, an Australian super balance you are deciding whether to move, a couple coordinating two pensions and two qualifying ages, or a move that lands you in the gap between 65 and 67. The value is in seeing the whole picture at once — NZ Super after any deduction, the Australian Age Pension, your super savings, KiwiSaver, and the timing — rather than each piece in isolation. We do not make the deduction or eligibility decisions (the two governments do), but we can help you understand the likely effect and plan around it.

Frequently asked questions

Do my years in Australia count toward NZ Super? Generally yes. Under the NZ–Australia social security agreement, periods of residence in Australia can count toward meeting NZ Super's residency qualification — the requirement that is phasing up from 10 to 20 years by date of birth ³⁴. This can help you qualify if your New Zealand-only years fall short.

Is the Australian Age Pension deducted from my NZ Super? Yes. The Australian Age Pension is a government state pension, so it is deducted dollar-for-dollar from NZ Super under the direct deduction (Section 70) policy, so you do not receive two full state pensions ⁵.

Is my Australian super deducted from NZ Super too? No. Australian superannuation is your private retirement savings under the Superannuation Guarantee, not a state pension, so it is not deducted under the direct deduction policy ⁸. It can instead be linked to KiwiSaver through the trans-Tasman portability scheme.

Why is there a gap between 65 and 67? NZ Super starts at 65, but the Australian Age Pension qualifying age is 67 for those born on or after 1 January 1957 ⁷. If you move to Australia on NZ Super, you must claim the Australian Age Pension to keep your payments, but you cannot claim it until you reach 67, which can leave a planning gap ⁶⁷.

If I move to Australia, how long do my NZ Super payments continue? Up to 26 weeks. To keep them beyond that, you generally need to apply for the Australian Age Pension within 26 weeks of leaving and then apply to continue your NZ payment, with the rate change backdated to your Australian application date ⁶. Note that since 1 July 2020, your partner's overseas pension is no longer deducted from your NZ Super ⁹.

This article is general information only and is not personalised financial advice. It does not take into account your particular financial situation, goals or needs. Before acting, consider whether it's right for you and seek advice tailored to your circumstances. NZ Super rates, the residency rules, the direct-deduction policy and the trans-Tasman agreement are set by the Government and can change; figures are correct as at 11 April 2026. Check current rules at workandincome.govt.nz, msd.govt.nz, ird.govt.nz and servicesaustralia.gov.au. Craig Smith Business Services Ltd (FSP712931), trading as Smiths Financial, holds a Class 2 licence issued by the Financial Markets Authority and is a member of the Financial Dispute Resolution Service (FDRS). Written by Henry Smith, Financial Adviser; reviewed by Craig Smith, Principal Adviser. Last reviewed 11 April 2026.