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Income Tax Act 2007

Income - Excluded income - Fringe benefits

CX 16: Contributions to life or health insurance

You could also call this:

“Employer-paid life and health insurance is a job benefit”

When your employer pays for certain types of insurance for you, it’s considered a fringe benefit. This means it’s an extra benefit you get from your job, on top of your regular pay.

Your employer might pay for insurance that covers your life, or insurance that helps if you have an accident or get sick. They can also pay for this kind of insurance for your husband, wife, or partner, or for your child.

The insurance your employer pays for can be:

Life insurance that pays out if you, your partner, or your child dies.

Insurance that helps pay for medical care or accidents for you, your partner, or your child.

Insurance that pays out if you, your partner, or your child get sick or have an accident, even if it’s not fatal.

This rule doesn’t apply to some old accident insurance contracts from before 1 July 2000. You can find more information about those in section CZ 15.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513364.

Topics:
Money and consumer rights > Taxes
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“Rules for taxing non-cash benefits given to employee shareholders or investors”

Part C Income
Excluded income: Fringe benefits

CX 16Contributions to life or health insurance

  1. A fringe benefit arises when an employer pays a specified insurance premium or makes a contribution to the insurance fund of a friendly society for the benefit of an employee.

  2. This section does not apply to a premium or contribution described in section CZ 15 (Accident insurance contracts before 1 July 2000).

  3. In this section, specified insurance premium means a premium paid for the benefit of an employee on an insurance policy to the extent to which the insurance policy is for—

  4. life insurance under section EY 8 (Meaning of life insurance) on the life of the employee or their spouse, civil union partner, or de facto partner, or on their joint lives, or on the life of their child:
    1. accident or medical insurance referred to in section EY 8(3) on the life of the employee or their spouse, civil union partner, or de facto partner, or on their joint lives, or on the life of their child:
      1. insurance against accident, disease, or sickness, whether fatal or not, suffered by the employee, their spouse, civil union partner, or de facto partner, or their child.

        1. Repealed

        2. Repealed

        3. Repealed
        Compare
        Notes
        • Section CX 16(3) heading: replaced, on , by section 37(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
        • Section CX 16(3): replaced, on , by section 37(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
        • Section CX 16(4) heading: repealed, on , pursuant to section 37(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
        • Section CX 16(4): repealed, on , by section 37(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
        • Section CX 16(5) heading: repealed, on , pursuant to section 37(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
        • Section CX 16(5): repealed, on , by section 37(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
        • Section CX 16(6) heading: repealed, on , pursuant to section 37(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
        • Section CX 16(6): repealed, on , by section 37(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
        • Section CX 16 list of defined terms de facto partner: inserted, on , by section 37(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
        • Section CX 16 list of defined terms premium: inserted, on , by section 37(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).