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CW 16B: Accommodation expenditure: out-of-town secondments and projects
or “Tax-free accommodation for temporary out-of-town work assignments”
You could also call this:

“ Rules for tax-free accommodation during temporary work assignments ”

Section CW 16B applies to you if you’re an employee on an out-of-town secondment. It covers the value or expenses provided for a period starting when you begin work at a distant workplace. This period ends at the earliest of these dates: two years from when you started at the distant workplace, when your secondment ends, when you get a relocation payment for buying a new home, or when your employer expects the total period to be more than two years.

If you’re working on a project with a limited duration, Section CW 16B applies for up to three years from when you start work at the distant workplace. It ends earlier if your part in the project finishes, you get a relocation payment for a new home, or your employer expects your involvement to last more than three years.

Sometimes, your employer might think your secondment or project will last longer than the time limits, but later change their mind. If this happens and your placement then fits the rules for an out-of-town secondment or limited duration project, Section CW 16B applies from when your employer changes their expectation.

If something unexpected happens that you and your employer can’t control, like a natural disaster or medical emergency, the time limits don’t apply. But this only lasts as long as you can’t leave the distant workplace because of the emergency.

When figuring out if these time limits apply to you, any breaks in your work at the distant workplace don’t count if the main reason for stopping was to let you use Section CW 16B, CZ 29, or CZ 29B again.

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Next up: CW 16D: Accommodation expenditure: conferences and overnight stays

or “Tax rules for work-related overnight accommodation”
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Part C Income
Exempt income

CW 16CTime periods for certain accommodation expenditure

  1. Section CW 16B applies for an employee on an out-of-town secondment to the value provided or expenditure incurred for a period that starts on the date on which the employee begins to work at a distant workplace, and ends at the earliest of the following dates:

  2. the date that is 2 years from the date on which they began work at the distant workplace:
    1. the date on which the out-of-town secondment ends:
      1. the date on which the employee receives a relocation payment under section CW 17B in relation to the costs associated with settling the purchase of a new home:
        1. the date on which the employer's expectation regarding the length of the period changes, and the total period is expected to be more than 2 years.

          1. Section CW 16B applies for an employee on a project of limited duration to the value provided or expenditure incurred for a period that starts on the date on which the employee starts work at a distant workplace, and ends at the earliest of the following dates:

          2. the date that is 3 years from the date on which the employee began work on the project at the distant workplace:
            1. the date on which the employee's participation in the project at the distant workplace ends:
              1. the date on which the employee receives a relocation payment under section CW 17B in relation to the costs associated with settling the purchase of a new home:
                1. the date on which the employer's expectation regarding the employee's involvement in the project changes, and the total period of their involvement in the project is expected to be more than 3 years.

                  1. Subsection (4) applies for a placement of an employee at a distant workplace when—

                  2. the employment duties of the employee require them to work for a period of time at the distant workplace for the performance of those duties; and
                    1. the terms of the placement of the employee meet the requirements of an out-of-town secondment or project of limited duration, as applicable, other than the requirement related to the limitation on the length of the period for which the employee is to remain at the distant workplace; and
                      1. the expectation of their employer at the start of the period is that the duration of the secondment or project will exceed the applicable time limit; and
                        1. during the period, the employer revises their expectation of the period for the secondment or project, reducing its expected duration, and as a consequence, the requirements of an out-of-town secondment or project of limited duration, as applicable, are fully met.

                          1. Section CW 16B applies to the amount that is the value provided or expenditure incurred by the employer for the remainder of the period for which the employee is required to remain at the distant workplace under the out-of-town secondment or project of limited duration. For these purposes, the period starts on the date on which the employer revises their expectation, and ends at the earliest of the dates referred to in subsection (1)(a) to (d) or (2)(a) to (d), as applicable.

                          2. A time limit does not apply if exceptional circumstances arise beyond the control of the employer and employee that require the employee to remain at the distant workplace after the period expires. Examples are a natural disaster or medical emergency. However, an extension of time must be limited to the period for which the employee is unable, because of the exceptional circumstances, to leave the distant workplace.

                          3. For the purposes of determining whether a time limit under this section applies, a break in a period of continuous work at a distant workplace is ignored if a reason, that is more than incidental, for the cessation of the employment or service is to allow a further period of exemption under section CW 16B, CZ 29 (Accommodation expenditure: Canterbury earthquake relief), or CZ 29B (Accommodation expenditure: North Island flooding events).

                          Notes
                          • Section CW 16C: inserted, on (applying for the 2015–16 and later income years), by section 24(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                          • Section CW 16C(6): amended (with effect on 8 January 2023), on , by section 21 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).