Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Excluded income - Exclusions and limitations

CX 19: Benefits provided instead of allowances

You could also call this:

"Getting benefits from your job instead of extra money for things like travel or meals"

If your employer gives you a benefit because of your job, it might not be a fringe benefit. This is if the benefit replaces an allowance you would have got for things like travel to work. You can read more about what allowances are exempt from tax under section CW 17 and section CW 18(3).

If your employer gives you a benefit instead of an allowance for things like accommodation or meals, it might not be a fringe benefit. You can read more about what allowances are exempt from tax under sections CW 16B to CW 16F, CW 17B, CW 17CB, CW 17CC, and CW 17D.

If you get a benefit because you have to work somewhere else for a while, it might not be a fringe benefit. This is if the benefit is to help with travel costs for you or your family to visit you at the new work place. The benefit must not be worth more than the allowance you would have got for travel costs.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513372.

Previous

CX 18: Benefits provided to associates of both employees and shareholders, or

"Tax rules for benefits given to people connected to both employees and company owners"

Next

CX 19B: Transport in vehicle other than motor vehicle, or

"Transport in non-passenger vehicles without motors isn't a fringe benefit"

Part CIncome
Excluded income: Exclusions and limitations

CX 19Benefits provided instead of allowances

  1. A benefit that an employer provides to an employee in connection with their employment is not a fringe benefit to the extent to which it removes the need that would otherwise exist for the employer to pay the employee an allowance of 1 of the following kinds:

  2. an allowance that, if it had been paid,—
    1. would have been exempt income under section CW 17 (Expenditure on account, and reimbursement, of employees); and
      1. would have been paid for reasons other than to enable the employee to provide a benefit to another person; or
      2. an allowance that reimburses the employee for transport costs that—
        1. would have been incurred both in connection with their employment and for the benefit of the employer in travelling between home and work; and
          1. would have been attributable to any 1 or more of the factors set out in section CW 18(3) (Allowance for additional transport costs); or
          2. an amount that, if it had been paid, would have been exempt income under sections CW 16B to CW 16F, CW 17B, CW 17CB, CW 17CC, and CW 17D (which relate to certain expenditure of an employer on an employee’s accommodation, work-related meals, relocation, clothing, and health and safety).

            1. A benefit that an employer provides to an employee is not a fringe benefit if it—

            2. is in substitution for an allowance described in subsection (1)(b); and
              1. is brought about because the employee has a temporary change in their place of work while in the same employment; and
                1. reimburses the employee for transport costs that would have been incurred relating to travel by 1 or more of the employee’s spouse, civil union partner, or de facto partner, and relatives for the purpose of visiting the employee in the temporary place of work; and
                  1. has a value that is no more than the amount that would be provided under the allowance described in subsection (1)(b).

                    Compare
                    Notes
                    • Section CX 19(1)(b)(ii): amended (with effect on 1 April 2008), on , by section 53 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                    • Section CX 19(1)(c): added (with effect on 1 April 2008), on , by section 53 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                    • Section CX 19(1)(c): amended, on , by section 32 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                    • Section CX 19(1)(c): amended, on , by section 35 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).