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CW 52: Community trusts
or “Community trusts don't have to pay income tax on their earnings”
You could also call this:

“Money for disability support services isn't taxed as income”

You or your carer can receive money for disability support services without it being counted as income for tax purposes. This applies when the money comes from Health New Zealand, the Ministry for Disabled People, or the Ministry of Health. The money must be used to buy disability support services for you.

Disability support services are defined in section 4 of the Pae Ora (Healthy Futures) Act 2022. This section explains what counts as disability support services under the law.

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Next up: CW 53: Distributions from complying trusts

or “Money or property you get from a complying trust is tax-free”
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Part C Income
Exempt income

CW 52BDisability support services

  1. An amount of income derived by or on behalf of a person or their carer is exempt income of the relevant person if the amount is paid by Health New Zealand, the Ministry for Disabled People, or the Ministry of Health for the purpose of the purchase of disability support services in relation to the person.

  2. In this section, disability support services has the meaning given in section 4 of the Pae Ora (Healthy Futures) Act 2022.

Notes
  • Section CW 52B: inserted (with effect on 1 April 2015), on , by section 142(1) (and see section 142(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
  • Section CW 52B(1): amended, on , by section 43 of the Pae Ora (Disestablishment of Māori Health Authority) Amendment Act 2024 (2024 No 5).
  • Section CW 52B(1): amended (with effect on 1 July 2022), on , by section 23 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
  • Section CW 52B(1): amended, on , by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).
  • Section CW 52B(2) disability support services: amended, on , by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).