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Income Tax Act 2007

Income - Employee or contractor income - Definitions

CE 5: Meaning of expenditure on account of an employee

You could also call this:

"What your employer pays for to help you do your job is called expenditure on account of an employee."

When you are an employee, your employer might pay for things on your behalf. This is called expenditure on account of an employee. It means your employer pays for something that you need to do your job.

Expenditure on account of an employee does not include things like payments made under section CW 17. It also does not include payments for accommodation, relocation, or overtime meals, which are covered under sections like sections CW 16B to CW 16F, section CW 17B, and section CW 17C. Other things that are not included are payments for certain work-related meals, distinctive work clothing, health or safety, and additional transport costs, which are covered under sections like section CW 17CB, section CW 17CC, section CW 17D, and section CW 18.

Your employer's superannuation contribution is also not included. Neither is a premium for income protection insurance that your employer pays for you.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512790.

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Part CIncome
Employee or contractor income: Definitions

CE 5Meaning of expenditure on account of an employee

  1. Expenditure on account of an employee means a payment made by an employer relating to expenditure incurred by an employee or to be incurred by an employee.

  2. Repealed

  3. Expenditure on account of an employee does not include—

  4. expenditure for the benefit of an employee, or a payment made to reimburse an employee, under section CW 17 (Expenditure on account, and reimbursement, of employees):
    1. an amount paid under—
      1. sections CW 16B to CW 16F (which relate to accommodation expenditure):
        1. section CW 17B (Relocation payments):
          1. section CW 17C (Payments for overtime meals and certain other allowances):
            1. section CW 17CB (Payments for certain work-related meals):
              1. section CW 17CC (Payments for distinctive work clothing):
                1. section CW 17D (Payments related to health or safety):
                  1. section CW 18 (Allowance for additional transport costs):
                    1. expenditure, other than an amount to which paragraph (a) applies, that an employee pays in connection with their employment or service to the extent to which—
                      1. the amount of the expenditure is incurred by or on behalf of their employer; and
                        1. the employee pays the amount on their employer's behalf:
                        2. expenditure on an employment-related loan to which the fringe benefit tax (FBT) rules apply:
                          1. an employer’s superannuation contribution:
                                    1. a premium for income protection insurance that an employer is liable to pay or make a contribution towards for the benefit of an employee.

                                      Compare
                                      Notes
                                      • Section CE 5(1): replaced (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 11(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
                                      • Section CE 5(2) heading: repealed, on , pursuant to section 25(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                                      • Section CE 5(2): repealed, on , by section 25(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                                      • Section CE 5(3)(b): replaced, on , by section 16(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                                      • Section CE 5(3)(b)(vb): inserted, on , by section 14 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                                      • Section CE 5(3)(bb): repealed, on , by section 16(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                                      • Section CE 5(3)(c): replaced, on , by section 16(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                                      • Section CE 5(3)(f): repealed, on , by section 25(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                                      • Section CE 5(3)(g): repealed, on , by section 25(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                                      • Section CE 5(3)(h): repealed, on , by section 25(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                                      • Section CE 5(3)(i): repealed, on , by section 25(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                                      • Section CE 5 list of defined terms amount: inserted, on , by section 16(3) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                                      • Section CE 5 list of defined terms associated person: repealed, on , by section 21 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                                      • Section CE 5 list of defined terms close company: repealed, on , by section 21 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                                      • Section CE 5 list of defined terms dividend: repealed, on , by section 21 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                                      • Section CE 5 list of defined terms employment: inserted, on , by section 16(3) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                                      • Section CE 5 list of defined terms life insurance policy: repealed, on , by section 21 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                                      • Section CE 5 list of defined terms superannuation category 1 scheme: repealed, on , by section 21 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                                      • Section CE 5 list of defined terms superannuation category 2 scheme: repealed, on , by section 21 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                                      • Section CE 5 list of defined terms superannuation category 3 scheme: repealed, on , by section 21 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                                      • Section CE 5 list of defined terms trustee: repealed, on , by section 21 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).