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Income Tax Act 2007

Income - Exempt income

CW 33: Allowances and benefits

You could also call this:

“Tax-free payments and benefits”

You don’t have to pay tax on certain types of money or benefits you might receive. These include:

Money you get from the Social Security Act 2018, except for main benefits, New Zealand superannuation equivalent assistance, and veteran’s pension equivalent assistance.

Some payments from the Accident Insurance Act 1998 or the Accident Compensation Act 2001. These can be for things like treatment, rehabilitation, independence allowances, funeral grants, survivor’s grants, and childcare payments.

Payments from sections 363, 386AAG, or 386B of the Oranga Tamariki Act 1989.

Participation allowances under section 429 of the Social Security Act 2018.

Payments from the cost of living payments scheme, as defined in the Tax Administration Act 1994.

Disabled workshop payments, which are payments to disabled people for doing therapeutic activities in special workshops. These payments are tax-free if the average amount paid in a tax year is $50 or less per week.

Money from a trust created to help people harmed by thalidomide, or money given out by this trust.

Money from the New Zealand Agent Orange Trust, including the settlement fund and any income from it, or money given out by this trust.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513240.

Topics:
Money and consumer rights > Taxes
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Part C Income
Exempt income

CW 33Allowances and benefits

  1. The following are exempt income:

  2. a monetary benefit under the Social Security Act 2018, except any of the following kinds:
    1. a payment of a main benefit:
      1. a payment of New Zealand superannuation equivalent assistance:
        1. a payment of veteran’s pension equivalent assistance:
        2. a payment under Part 5 or 13 of the Accident Insurance Act 1998, or under Part 11 of the Accident Compensation Act 2001, of any of the following kinds:
          1. a payment to an insured person for treatment or rehabilitation:
            1. an independence allowance:
              1. a funeral grant:
                1. a survivor’s grant:
                  1. a childcare payment:
                  2. a payment under section 363, 386AAG, or 386B of the Oranga Tamariki Act 1989:
                    1. a participation allowance under regulations made under section 429 of the Social Security Act 2018:
                      1. a payment under the cost of living payments scheme, as defined in section 3(1) of the Tax Administration Act 1994:
                        1. a disabled workshop payment:
                          1. an amount derived by a trustee of a trust created for the benefit of persons harmed by thalidomide, or a distribution to a beneficiary from the trust:
                            1. an amount derived by a trustee of the New Zealand Agent Orange Trust that represents the settlement fund and income attributable to the fund, or a distribution to a beneficiary from the trust.

                              1. In this section, disabled workshop payment means a payment to a disabled person for undertaking therapeutic activities in a sheltered workshop, as defined in the Disabled Persons Employment Promotion Act 1960, or in a similar workshop, if the average amount paid in a tax year is $50 or less per week.

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                              Notes
                              • Section CW 33(1)(a): replaced (with effect on 20 April 2020), on , by section 4(1) of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).
                              • Section CW 33(1)(a)(i): replaced, on , by section 141 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                              • Section CW 33(1)(b): amended, on , by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
                              • Section CW 33(1)(ba): replaced, on , by section 47 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                              • Section CW 33(1)(c): replaced, on , by section 459 of the Social Security Act 2018 (2018 No 32).
                              • Section CW 33(1)(cb): inserted, on , by section 8 of the Taxation (Cost of Living Payments) Act 2022 (2022 No 25).
                              • Section CW 33 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 CW 33 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 CW 33 list of defined terms New Zealand superannuation equivalent assistance: inserted (with effect on 20 April 2020), on , by section 4(2) of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).
                              • Section CW 33 list of defined terms veteran’s pension equivalent assistance: inserted (with effect on 20 April 2020), on , by section 4(2) of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).