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Income Tax Act 2007

Income - Income from living allowances, foreign superannuation, compensation, and government grants

CF 1: Benefits, pensions, compensation, and government grants

You could also call this:

“Payments from the government that count as income”

You need to know about certain types of payments that count as income. These include:

  • Accident compensation payments
  • Education grants
  • Main benefit payments
  • New Zealand superannuation payments
  • Parental leave or preterm baby payments
  • Earnings compensation for organ donors
  • Pensions
  • Veteran’s pensions
  • Retirement lump sums for veterans
  • Weekly income compensation for veterans
  • Weekly compensation for veterans

The law defines what each of these payments means in detail. For example, an accident compensation payment can be different types of payments from various accident compensation laws. An education grant means a basic grant or an independent circumstances grant under education laws. A pension includes payments made to you for services that you or your family provided, but doesn’t include payments made within a year after someone’s death.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512819.

Topics:
Money and consumer rights > Taxes
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Part C Income
Income from living allowances, foreign superannuation, compensation, and government grants

CF 1Benefits, pensions, compensation, and government grants

  1. The following amounts are income:

  2. an accident compensation payment:
    1. an education grant:
      1. a payment of a main benefit:
          1. a New Zealand superannuation payment:
            1. a parental leave payment or preterm baby payment paid under Part 7A of the Parental Leave and Employment Protection Act 1987:
              1. a payment of earnings compensation under the Compensation for Live Organ Donors Act 2016:
                1. a pension:
                  1. a veteran’s pension:
                    1. a retirement lump sum paid under Part 5, subpart 7 of the Veterans’ Support Act 2014:
                      1. weekly income compensation paid under Part 3, subpart 4 of that Act:
                        1. weekly compensation paid under Part 4, subpart 5 of that Act:
                          1. weekly compensation or aggregated payments, as applicable, paid under schedule 2, part 4, clause 54, 55, 58, or 59 of that Act.

                            1. In this section,—

                              accident compensation payment means—

                              1. a payment under the Accident Compensation Act 1982 of earnings-related compensation that is not recovered or recoverable by, or refunded to, the chief executive of the administering department:
                                1. a payment under section 80(4) of the Accident Compensation Act 1982 that is not recovered or recoverable by, or refunded to, the chief executive of the administering department:
                                  1. a payment of any of the following kinds under the Accident Rehabilitation and Compensation Insurance Act 1992, none of which is recovered or recoverable:
                                    1. a vocational rehabilitation allowance under section 25; or
                                      1. compensation for loss of earnings under any of sections 38, 39, and 43; or
                                        1. compensation for loss of potential earning capacity under section 45 or 46; or
                                          1. weekly compensation under any of sections 58, 59, and 60; or
                                            1. continued compensation under section 138:
                                            2. a payment under the Accident Insurance Act 1998 of weekly compensation that is not recovered or recoverable:
                                              1. a payment under a policy of personal accident or sickness insurance under section 188(1)(a) of the Accident Insurance Act 1998, as it was immediately before its repeal by section 7 of the Accident Insurance Amendment Act 2000, of compensation for loss of earnings or loss of potential earning capacity as it relates to work-related personal injury:
                                                1. a payment under the Accident Compensation Act 2001 paid by the Corporation as defined in that Act, of weekly compensation that is not recovered or recoverable under section 248 of that Act:
                                                  1. a payment under section 81(1)(b) of the Accident Compensation Act 2001 paid by the Corporation as defined in that Act, for attendant care as defined in schedule 1, clause 12 of that Act:
                                                    1. a personal service rehabilitation payment for a person under the Accident Compensation Act 2001

                                                        education grant means a basic grant or an independent circumstances grant under regulations made under section 645 of the Education and Training Act 2020

                                                          pension—

                                                          1. includes a gratuitous payment made to a person in return for services that the person, or their parent, child, spouse, civil union partner or de facto partner, former spouse, civil union partner or de facto partner, or dependant, provided to the payer when the payment would not have been made if the services had not been provided; and
                                                            1. does not include a payment made to the person because of, and within 1 year after, the death of that parent, child, spouse, civil union partner or de facto partner, former spouse, civil union partner or de facto partner, or dependant.

                                                            Compare
                                                            Notes
                                                            • Section CF 1(1)(c): replaced, on , by section 141 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                                                            • Section CF 1(1)(d): repealed, on (applying for the 2011–12 tax year and later tax years), by section 16(1) of the Social Assistance (Living Alone Payments) Amendment Act 2013 (2013 No 11).
                                                            • Section CF 1(1)(f): amended, on , by section 83 of the Parental Leave and Employment Protection Amendment Act 2016 (2016 No 8).
                                                            • Section CF 1(1)(fb): inserted, on , by section 30 of the Compensation for Live Organ Donors Act 2016 (2016 No 96).
                                                            • Section CF 1(1)(h): replaced (with effect on 7 December 2014), on , by section 11(1) of the Taxation (KiwiSaver HomeStart and Remedial Matters) Act 2015 (2015 No 40).
                                                            • Section CF 1(1)(i): replaced, on , by section 11(2) of the Taxation (KiwiSaver HomeStart and Remedial Matters) Act 2015 (2015 No 40).
                                                            • Section CF 1(1)(j): inserted, on , by section 11(2) of the Taxation (KiwiSaver HomeStart and Remedial Matters) Act 2015 (2015 No 40).
                                                            • Section CF 1(1)(k): inserted, on , by section 11(2) of the Taxation (KiwiSaver HomeStart and Remedial Matters) Act 2015 (2015 No 40).
                                                            • Section CF 1(1)(l): inserted, on , by section 11(2) of the Taxation (KiwiSaver HomeStart and Remedial Matters) Act 2015 (2015 No 40).
                                                            • Section CF 1(2) accident compensation payment paragraph (a): amended (with effect on 1 April 2008), on , by section 7 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                                                            • Section CF 1(2) accident compensation payment paragraph (b): amended (with effect on 1 April 2008), on , by section 7 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                                                            • Section CF 1(2) accident compensation payment paragraph (f): substituted (with effect on 1 April 2008), on , by section 26 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                                                            • Section CF 1(2) accident compensation payment paragraph (f): amended, on , by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
                                                            • Section CF 1(2) accident compensation payment paragraph (g): substituted (with effect on 1 April 2008), on , by section 26 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                                                            • Section CF 1(2) accident compensation payment paragraph (g): amended, on , by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
                                                            • Section CF 1(2) accident compensation payment paragraph (h): added (with effect on 1 April 2008), on , by section 26 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                                                            • Section CF 1(2) accident compensation payment paragraph (h): amended, on , by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
                                                            • Section CF 1(2) accident compensation payment paragraph (i): repealed, on , by section 11(3) of the Taxation (KiwiSaver HomeStart and Remedial Matters) Act 2015 (2015 No 40).
                                                            • Section CF 1(2) education grant: amended, on , by section 668 of the Education and Training Act 2020 (2020 No 38).
                                                            • Section CF 1 list of defined terms income-tested benefit: repealed, on , by section 141 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                                                            • Section CF 1 list of defined terms living alone payment: repealed, on (applying for the 2011–12 tax year and later tax years), by section 16(1) of the Social Assistance (Living Alone Payments) Amendment Act 2013 (2013 No 11).
                                                            • Section CF 1 list of defined terms main benefit: inserted, on , by section 141 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                                                            • Section CF 1 list of defined terms personal service rehabilitation payment: inserted, on , by section 320(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).