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New Zealand law explained for everyone

Income Tax Act 2007

Income - Employee or contractor income - Definitions

CE 11: Proceeds from claims under policies of income protection insurance

You could also call this:

“Payments from employer-provided income protection insurance are taxable income”

If you work for someone, they might pay for income protection insurance for you. This insurance is meant to help you if you can’t work for some reason.

When your employer pays for this insurance, or even if they just help pay for it, it’s important to know something. Any money you get from this insurance policy is counted as part of your income.

This means that if you ever need to use the insurance and get money from it, you’ll need to think of that money as income. It’s just like the money you earn from your job.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512812.

Topics:
Money and consumer rights > Taxes
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Part C Income
Employee or contractor income: Definitions

CE 11Proceeds from claims under policies of income protection insurance

  1. This section applies when an employer is liable to pay, or contribute to the payment of, a premium under a policy of income protection insurance for the benefit of a person who is their employee.

  2. An amount that is or would be derived under the policy is income of the person.

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