An outlandish fake news story claiming New Zealand has introduced a universal basic income funded through casinos is targeting Facebook users.

The story uses an image of Prime Minister Jacinda Ardern, featuring an unusual editorial choice - a sickly-looking hand photoshopped in.

"UniversaI Basic lncome Has Arrived... They've found an innovative way of making it possible for New Zealand", the post on Facebook claims.

It's followed with comments and shares from people saying, "Socialism begins" and "Is it a tax? It's a tax isn't it?"

The posts link to two different stories. One of them is much more obviously a scam, claiming a journalist "tested" the online casinos that would fund the universal basic income and won $4000.