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Income Tax Act 2007

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

MB 13: Family scheme income from other payments

You could also call this:

“Income from other sources used for living expenses”

Your family scheme income includes payments you receive from any source that you use to replace lost income or meet usual living expenses for you or your family. However, there are many types of payments that are not included in your family scheme income. These include:

  • Loans under normal commercial terms
  • Money from selling property that isn’t taxable income
  • Repayments of loans or mistaken payments
  • Refunds, including tax refunds
  • Some payments from investments or businesses you own
  • Money from a deceased person’s estate
  • Gambling or lottery winnings
  • Payments from local or public authorities
  • Debt forgiveness by public authorities
  • Charitable distributions
  • Educational scholarships or bursaries
  • Student loans
  • Grants for medical treatment or funerals
  • Most insurance payouts
  • Compensation for losses other than income loss
  • Small business cashflow scheme loans
  • COVID-19 support payments
  • Accident compensation lump sums
  • Foster care allowances
  • Some social security benefits and veterans’ pensions
  • Payments declared not to be income for social security purposes

If the total value of payments that would be included in your family scheme income (and your partner’s, if you have one) is $5,000 or less for the year, then these payments are not included in your family scheme income.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3661999.

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

MB 13Family scheme income from other payments

  1. The family scheme income of a person for an income year includes the value of payments—

  2. paid or provided to the person from any source; and
    1. used by the person to—
      1. replace lost or diminished income of the person or the person's family:
        1. meet usual living expenses of the person or the person's family; and
        2. not excluded from family scheme income under subsection (2).

          1. A payment to a person is not included under subsection (1) in the family scheme income of the person if it is—

          2. a loan under ordinary commercial terms and conditions:
            1. from an amount that is—
              1. proceeds of the disposal of property; and
                1. not assessable income of the person disposing of the property:
                2. a repayment of a loan or of a mistaken or misdirected payment:
                  1. a refund of a payment, including a refund of overpaid tax, student loan payments, or child support payments:
                    1. a payment, other than a payment by a trustee, from the person's ownership of an investment activity or business, and the payment—
                      1. is received on capital account; and
                        1. is not a loan:
                        2. a payment from a deceased's estate:
                          1. money won from gambling or from a New Zealand lottery, as those terms are used in the Gambling Act 2003:
                            1. a payment on behalf of the person by a local authority or public authority:
                              1. a forgiveness of debt by a public authority:
                                1. a charitable distribution from a charitable entity registered under the Charities Act 2005:
                                  1. an educational scholarship or educational bursary:
                                    1. a student loan under the Student Loan Scheme Act 2011:
                                      1. a grant for the payment of expenses relating to medical treatment or a funeral:
                                        1. a payment under an insurance contract, other than a payment for a loss of income:
                                          1. compensation for a loss other than a loss of income:
                                            1. a loan made under the small business cashflow scheme:
                                              1. a payment made under the COVID-19 resurgence support payments scheme, or another COVID-19 support payments scheme, as defined in section 3(1) of the Tax Administration Act 1994:
                                                1. lump sum compensation under the Accident Compensation Act 2001:
                                                  1. a payment of a foster care allowance under section 363 of the Oranga Tamariki Act 1989:
                                                    1. a payment under section 386AAG or 386B of the Oranga Tamariki Act 1989:
                                                      1. a monetary benefit under the Social Security Act 2018 that is exempt income:
                                                        1. a pension or allowance under the Veterans’ Support Act 2014 that is exempt income:
                                                          1. a payment that is exempt income under section CW 33(1)(c), (cb), (e), or (f) (Allowances and benefits):
                                                            1. an amount that is declared not to be income for the purposes of the Social Security Act 2018 by regulations made under section 422 of that Act:
                                                              1. included in the family scheme income of the person under another section:
                                                                1. expressly excluded from the family scheme income of the person under another section:
                                                                  1. a payment—
                                                                    1. to relieve the adverse effects of an event declared to be an emergency event by the Commissioner in a determination under section 91AAS of the Tax Administration Act 1994; and
                                                                      1. in the period set by the Commissioner in the determination as relating to the event.

                                                                      2. If, in the absence of this subsection, the total value of payments that would be included under subsection (1) in the family scheme income for the year of the person and the person's spouse, civil union partner, or de facto partner is less than or equal to $5,000, then the payments paid or provided to the person are not included in the person's family scheme income for the income year.

                                                                      Notes
                                                                      • Section MB 13: added, on , by section 112 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
                                                                      • Section MB 13(2)(bb): inserted, on (applying for the 2015–16 and later income years), by section 137(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                                                                      • Section MB 13(2)(bc): inserted, on (applying for the 2015–16 and later income years), by section 137(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                                                                      • Section MB 13(2)(bd): inserted, on (applying for the 2015–16 and later income years), by section 137(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                                                                      • Section MB 13(2)(be): inserted, on (applying for the 2015–16 and later income years), by section 137(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                                                                      • Section MB 13(2)(bf): inserted, on (applying for the 2015–16 and later income years), by section 137(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                                                                      • Section MB 13(2)(f): replaced (with effect on 1 April 2011 and applying for the 2011–12 and later income years), on , by section 210(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                                                                      • Section MB 13(2)(g): amended, on , by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
                                                                      • Section MB 13(2)(jb): inserted (with effect on 30 April 2020), on , by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act 2020 (2020 No 13).
                                                                      • Section MB 13(2)(jc): inserted, on , by section 9 of the Taxation (COVID-19 Resurgence Support Payments and Other Matters) Act 2021 (2021 No 1).
                                                                      • Section MB 13(2)(jc): amended, on , by section 9 of the Taxation (COVID-19 Support Payments and Working for Families Tax Credits) Act 2021 (2021 No 52).
                                                                      • Section MB 13(2)(kb): inserted (with effect on 1 April 2011), on , by section 123 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
                                                                      • Section MB 13(2)(kb): amended, on , by section 149 of the Children, Young Persons, and Their Families (Oranga Tamariki) Legislation Act 2017 (2017 No 31).
                                                                      • Section MB 13(2)(kc): inserted, on , by section 70 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                                                                      • Section MB 13(2)(l): amended, on , by section 459 of the Social Security Act 2018 (2018 No 32).
                                                                      • Section MB 13(2)(m): amended, on , by section 278 of the Veterans' Support Act 2014 (2014 No 56).
                                                                      • Section MB 13(2)(n): amended, on , by section 9 of the Taxation (Cost of Living Payments) Act 2022 (2022 No 25).
                                                                      • Section MB 13(2)(o): replaced, on , by section 459 of the Social Security Act 2018 (2018 No 32).
                                                                      • Section MB 13(2)(q): amended (with effect on 1 April 2011), on , by section 7 of the Taxation (Canterbury Earthquake Measures) Act 2011 (2011 No 24).
                                                                      • Section MB 13(2)(r): added (with effect on 1 April 2011), on , by section 7 of the Taxation (Canterbury Earthquake Measures) Act 2011 (2011 No 24).
                                                                      • Section MB 13 list of defined terms small business cashflow scheme: inserted (with effect on 30 April 2020), on , by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act 2020 (2020 No 13).
                                                                      • Section MB 13 list of defined terms trustee: inserted, on , by section 137(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).