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Income Tax Act 2007

Schedule 34: Community housing trusts and companies: income and assets of beneficiaries and clients

You could also call this:

“Income and property limits for community housing assistance”

This schedule explains the income and asset limits for people who want help from community housing trusts or companies. If you’re applying on your own, you can earn up to $85,000 a year. If you’re applying as a group, your total income can be up to $130,000 a year.

The rules about how much you can own are different depending on where you want to buy a house. If you’ve never owned land before, there’s no limit on what you can own. But if you have owned land before, the limits are $120,000 for Auckland, $100,000 for some other big cities and towns, and $80,000 for everywhere else in New Zealand.

The schedule also explains what counts as income and assets. Income is money you earn in a year. Assets include things like money in the bank, shares, investments, deposits on a house, and expensive things you own like boats or cars that aren’t your main transport.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6765534.

Topics:
Money and consumer rights > Taxes
Housing and property > Buying and selling homes
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34Community housing trusts and companies: income and assets of beneficiaries and clients

1Income threshold

  1. The threshold income for an applicant who is not a member of a group of applicants is $85,000.

  2. The threshold income for the members of a group of applicants is $130,000 in total for the group.

Notes
  • Schedule 34 clause 1(1): amended (with effect on 1 August 2016), on , by regulation 3(2) of the Taxation (Thresholds for Community Housing Entities) Regulations 2016 (LI 2016/220).
  • Schedule 34 clause 1(2): amended (with effect on 1 August 2016), on , by regulation 3(3) of the Taxation (Thresholds for Community Housing Entities) Regulations 2016 (LI 2016/220).

2Threshold asset value

  1. There is no threshold asset value for an applicant who has not been a land owner before applying for assistance from the entity in a proposed purchase.

  2. The threshold asset value for an applicant who has been a land owner before applying for assistance from the entity in a proposed purchase is—

  3. $120,000, if the proposed purchase is of an estate in land in Auckland:
    1. $100,000, if the proposed purchase is of an estate in land in Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District, or Queenstown Lakes District:
      1. $80,000, if the proposed purchase is of an estate in land in a geographical area of New Zealand not listed in paragraphs (a) and (b).

        Notes
        • Schedule 34 clause 2(2)(a): amended (with effect on 1 August 2016), on , by regulation 3(4) of the Taxation (Thresholds for Community Housing Entities) Regulations 2016 (LI 2016/220).
        • Schedule 34 clause 2(2)(b): amended (with effect on 1 August 2016), on , by regulation 3(5) of the Taxation (Thresholds for Community Housing Entities) Regulations 2016 (LI 2016/220).
        • Schedule 34 clause 2(2)(c): amended (with effect on 1 August 2016), on , by regulation 3(6) of the Taxation (Thresholds for Community Housing Entities) Regulations 2016 (LI 2016/220).

        3Meaning of terms

        1. In this schedule,—

          applicant means a person who—

          1. successfully applies for housing or housing assistance from an entity that is a community housing trust or company; or
            1. is 1 of a group of persons that successfully applies for housing or housing assistance from an entity that is a community housing trust or company

              application date, for an applicant, means the date on which the person makes an application for housing or housing assistance from an entity that is a community housing trust or company

                asset value means the total value of property owned by the applicant, at the application date, that is available to the applicant for the purchase of an estate in land and is—

                1. money in a bank account, including a fixed or term deposit:
                  1. a share, stock, or bond:
                    1. an investment in a bank or financial institution:
                      1. money paid to, or held by, a real estate agent or solicitor as a deposit in the purchase of a home:
                        1. a boat or caravan with a value of more than $5,000:
                          1. a vehicle not being used as a usual method of transport:
                            1. an asset of another type, with a value of more than $5,000

                              income means an amount, for an applicant and the 12-month period ending with the application date (the application year), that is—

                              1. if the applicant carries on a business at any time in the application year, the amount that would be the applicant’s net income for the application year if the application year were an income year; or
                                1. if the applicant does not meet the requirements of paragraph (a), the amount of assessable income derived by the applicant in the application year

                                  land owner means a person who holds an estate in land, whether alone or as a joint tenant or tenant in common, as determined under schedule 1 of the KiwiSaver Act 2006, clause 8(5) and (6).