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CZ 28: Transitional provision for mineral mining: previously appropriated mining expenditure
or “Rules for miners on tax from pre-2014 mining expenses”
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“Tax-free accommodation for Christchurch earthquake recovery workers”

This section applies when you work on a project to rebuild or recover greater Christchurch after the Canterbury earthquakes. If your employer provides you with accommodation or pays for your accommodation while you’re working there, that benefit is not taxed as part of your income.

The usual time limit for this kind of accommodation benefit is 3 years. However, for the Christchurch rebuild, the time limit is different depending on when you started work:

  • If you started between 4 September 2010 and 31 March 2015, the limit is 5 years.
  • If you started between 1 April 2015 and 31 March 2016, the limit is 4 years.
  • If you started between 1 April 2016 and 31 March 2019, the limit is 3 years.

For the 5-year limit, what matters is how long you actually work there. For the other time limits, what matters is how long your employer expects you to work on the project.

The meanings of ‘Canterbury earthquakes’, ‘greater Christchurch’, ‘rebuilding’, and ‘recovery’ are the same as in section 4 of the Canterbury Earthquake Recovery Act 2011.

Section CZ 30 doesn’t change how this section works.

This section applies from 4 September 2010 and affects your tax from the income year that includes that date and all later income years.

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Next up: CZ 29B: Accommodation expenditure: North Island flooding events

or “Tax-free accommodation for workers helping with North Island flood recovery”
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Part C Income
Terminating provisions

CZ 29Accommodation expenditure: Canterbury earthquake relief

  1. This section applies for the purposes of section CW 16B (Accommodation expenditure: out-of-town secondments and projects) when—

  2. the employment duties of an employee require them to work on a project of limited duration for rebuilding or recovery, including the repair and reconstruction of land, infrastructure, and other property in greater Christchurch as a result of the Canterbury earthquakes; and
    1. the distant workplace is a workplace in greater Christchurch.

      1. The value provided or expenditure incurred by the employer of the employee for or in relation to the accommodation is exempt income of the employee.

      2. Despite paragraph (c)(iii) of the definition of project of limited duration and section CW 16C(2)(d) (Time periods for certain accommodation expenditure), for the purposes of this section, the 3-year limit is ignored and is replaced by the following:

      3. 5 years, if the employee starts work at the distant workplace in the period commencing on 4 September 2010 and ending on 31 March 2015:
        1. 4 years, if the employee starts work at the distant workplace in the period commencing on 1 April 2015 and ending on 31 March 2016:
          1. 3 years, if the employee starts work at the distant workplace in the period commencing on 1 April 2016 and ending on 31 March 2017:
            1. 3 years, if the employee starts work at the distant workplace in the period commencing on 1 April 2017 and ending on 31 March 2018:
              1. 3 years, if the employee starts work at the distant workplace in the period commencing on 1 April 2018 and ending on 31 March 2019.

                1. For the purposes of this section and section CW 16C,—

                2. in subsection (3)(a), the time limit is determined by whether the actual period of continuous work of the employee at the distant workplace is for a period of no more than 5 years:
                  1. in subsection (3)(b) to (e), the time limits apply based on the employer's expectation of the employee's involvement in the project.

                    1. In this section, Canterbury earthquakes, greater Christchurch, rebuilding, and recovery have the meanings given in section 4 of the Canterbury Earthquake Recovery Act 2011.

                    2. Section CZ 30 does not apply to modify the application of this section.

                    3. For the purposes of this section, the commencement and application provisions in sections 2 and 24 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 are treated as—

                    4. commencing on 4 September 2010:
                      1. applying for the person's income year that includes 4 September 2010 and for all later income years.

                        Notes
                        • Section CZ 29: inserted (with effect on 4 September 2010 and applying for a person's income year that includes that date and for all later income years), on , by section 37(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                        • Section CZ 29(3) heading: inserted (with effect on 4 September 2010), on , by section 91 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).