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CE 1C: Exception: overseas accommodation
or “Tax rules for employer-provided overseas accommodation”
You could also call this:

“Defence Force accommodation value rules for members”

When you are a member of the Defence Force and the Navy, Army, or Air Force provides you with a place to stay, there are special rules about how much that accommodation is worth. These rules are part of section CE 1B(1).

The value of your accommodation is the lower of two amounts. The first amount is what you would normally pay to rent that place. The second amount is what you would pay for a similar type of place that the New Zealand Defence Force has chosen as a standard, minus a discount.

The Commissioner and the Chief of the Defence Force work together with a property expert to decide on some important things. They choose some standard properties in different places to compare with. They also decide what types of accommodation there are, how much each type should cost to rent, and how much of a discount each type should get.

Every three years, they check these decisions about the rental costs and discounts to make sure they’re still fair. Either the Commissioner or the Chief of the Defence Force can ask for this check to happen.

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Next up: CE 1E: Exception: accommodation provided to ministers of religion

or “Religious leaders' housing provided by their organisation may count as taxable income”
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Part C Income
Employee or contractor income

CE 1DException: accommodation provided by Defence Force

  1. This section applies for the purposes of section CE 1B(1) when accommodation is provided to a person who is a member of the Defence Force by the Navy, Army, or Air Force, as those terms are defined in the Defence Act 1990.

  2. The market rental value of the accommodation is an amount equal to the lesser of—

  3. the market rental value for the accommodation; and
    1. the market rent payable for the national New Zealand Defence Force benchmark property for the type of accommodation provided to the person, less the discount applying to the type of accommodation.

      1. For the purposes of this section, the Commissioner and the Chief of the Defence Force, in consultation with a registered valuer, must determine—

      2. the number and location of national benchmark properties:
        1. the types of accommodation represented by the benchmark properties:
          1. a market rental value for each type of accommodation in the benchmark properties:
            1. a discount applying to each type of accommodation in the benchmark properties.

              1. A determination under subsection (3)(c) and (d) must be reviewed every 3 years. Either the Commissioner or the Chief of the Defence Force may instigate the review.

              Notes
              • Section CE 1D: inserted, on , by section 15 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).