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Income Tax Act 2007

Tax credits paid in cash - Adjustment of net income for family scheme

MB 10: Family scheme income from certain pensions and annuities

You could also call this:

“How to count half of certain tax-free pensions in your family income calculation”

This section explains how to calculate your family scheme income when you receive certain types of pensions or annuities. If you get a pension or annuity that is exempt from tax under section CW 4, or if you receive a pension from a superannuation fund, this rule applies to you.

When figuring out your family scheme income for the year, you need to include half of the money you got from these pensions or annuities. The other half of the money you received from these sources doesn’t count as part of your family scheme income.

For example, if you received $1000 from one of these pensions or annuities during the year, you would add $500 to your family scheme income calculation. The remaining $500 wouldn’t be included.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3661993.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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Part M Tax credits paid in cash
Adjustment of net income for family scheme

MB 10Family scheme income from certain pensions and annuities

  1. This section applies for the purpose of determining the amount that represents the family scheme income of a person for an income year when the person derives in the income year a pension or annuity that is exempt income of the person under section CW 4 (Annuities under life insurance policies) or is a pension from a superannuation fund.

  2. The family scheme income of the person for the income year—

  3. includes half of the amount of pension or annuity derived in the income year; and
    1. does not include the other half of the amount of pension or annuity derived in the income year.

      Notes
      • Section MB 10: added, on , by section 112 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).