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Income Tax Act 2007

Income - Excluded income - Exclusions and limitations

CX 20: Benefits to enable performance of duties

You could also call this:

“Tax-free benefits from employers to help you do your job”

When your employer gives you a benefit to help you do your job, it might not count as taxable income. This applies to subsidised transport or when your employer pays for your accommodation or transport. For this benefit to be tax-free, it needs to meet three conditions:

  1. The travel must be for you to do your job duties.
  2. It can’t be for holidays or leave.
  3. The benefit doesn’t increase because of this arrangement.

If all these conditions are met, the taxable value of the benefit is zero. This means you don’t have to pay tax on it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513374.

Topics:
Money and consumer rights > Taxes
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CX 19D: Certain self-powered and low-powered vehicles and vehicle-share services, or

“Tax rules for employer-provided bikes, scooters, and vehicle-share services for commuting”

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CX 21: Business tools, or

“Work tools under $5,000 can be used personally without being a taxable benefit”

Part C Income
Excluded income: Exclusions and limitations

CX 20Benefits to enable performance of duties

  1. The taxable value of a benefit that an employer provides to an employee by way of subsidised transport, or in the form of expenditure that an employer incurs on accommodation or transport provided to an employee, is zero if the expenditure—

  2. relates to travel by the employee in order for them to perform their employment duties; and
    1. does not relate to the providing or taking of leave or a vacation; and
      1. is not increased as a result of the benefit.

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