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CZ 23: Employee benefits for Canterbury earthquake relief: exempt income
or “Tax-free benefits for workers affected by Canterbury earthquakes”
You could also call this:

“Tax-free employer assistance for North Island flood-affected workers”

If you’re an employee affected by a North Island flooding event, your employer might give you some help. This help is not counted as income you have to pay tax on, as long as it follows certain rules.

The help from your employer must be given to you within 8 weeks of the flooding event starting. It should be meant to help you deal with the bad effects of the flooding. This help can’t replace your normal pay, and it can’t be based on how senior you are at work.

If your employer is closely connected to you (like a family member), the same help must be available to other employees who aren’t connected to the employer. Your employer also needs to treat this help as tax-free income for you.

There are two types of help that can be tax-free:

  1. Any accommodation your employer provides to help you.
  2. Other types of help, as long as the total value is $5,000 or less.

Remember, these rules are only for help given because of North Island flooding events.

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Next up: CZ 24: Employee benefits for Canterbury earthquake relief: not fringe benefits

or “Earthquake relief benefits from employers aren't taxed as fringe benefits”
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Part C Income
Terminating provisions

CZ 23BEmployee benefits for North Island flooding events: exempt income

  1. Income derived by an employee from an employer is exempt income to the extent given by subsection (2) if the income—

  2. would be assessable income in the absence of this section; and
    1. is provided by the employer for the purpose of relief of employees from the adverse effects of a North Island flooding event; and
      1. is derived in the period of 8 weeks beginning on the first day of the relevant North Island flooding event; and
        1. does not replace a PAYE income payment; and
          1. does not depend on the seniority of the employee; and
            1. is available to another employee, who is not an associated person of the employer and is or was immediately before a North Island flooding event in full-time employment with the employer, if the employee is an associated person of the employer; and
              1. is treated by the employer as being exempt income for the employee.

                1. Income satisfying subsection (1) is exempt income to the extent to which the income is—

                2. accommodation:
                  1. less than or equal to $5,000 in total, if the income is in a form other than accommodation.

                    Notes
                    • Section CZ 23B: inserted (with effect on 8 January 2023), on , by section 32(1) (and see section 32(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).