Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Employee or contractor income

CE 1D: Exception: accommodation provided by Defence Force

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.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6439715.

Topics:
Money and consumer rights > Taxes
Work and jobs > Worker rights
Previous

CE 1C: Exception: overseas accommodation, or

“Tax rules for employer-provided overseas accommodation”

Next

CE 1E: Exception: accommodation provided to ministers of religion, or

“Religious leaders' housing provided by their organisation may count as taxable income”

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).