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CZ 24: Employee benefits for Canterbury earthquake relief: not fringe benefits
or “Earthquake relief benefits from employers aren't taxed as fringe benefits”
You could also call this:

“Tax-free employer benefits for North Island flood victims”

This law is about special benefits your employer might give you if you’re affected by flooding in the North Island. These benefits won’t be treated as fringe benefits, which means they won’t be taxed like normal work perks.

For a benefit to qualify, it needs to meet several conditions. It must be given to help you deal with the effects of a North Island flood. You need to receive it within 8 weeks of the flood starting. It can’t be a replacement for your regular pay, and it shouldn’t depend on how senior you are at work.

If your employer is closely connected to you (like a family member), the same benefit must be available to other full-time workers who aren’t related to the employer.

There are two types of benefits covered by this law. The first type is when your employer can figure out how much the benefit is worth. These benefits won’t be taxed as long as their total value, plus any flood-related pay you got that’s already tax-free (as mentioned in section CZ 23B(2)(b)), doesn’t go over $5,000.

The second type is when your employer can’t work out the exact value of the benefit. In this case, the benefit won’t be taxed at all.

Remember, for any of these benefits to be tax-free, your employer must treat them as not being fringe benefits.

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Next up: CZ 25: Land and buildings as revenue account property affected by Canterbury earthquakes and replaced—insurance or compensation, Government purchase

or “Tax rules for replacing earthquake-damaged business property in Canterbury”
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Part C Income
Terminating provisions

CZ 24BEmployee benefits for North Island flooding events relief: not fringe benefits

  1. This section applies when an employee receives from an employer a benefit that—

  2. would be a fringe benefit in the absence of this section; and
    1. is for the purpose of the relief of employees from the adverse effects of a North Island flooding event; and
      1. is received 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 the relevant 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 not being a fringe benefit.

                1. Benefits satisfying subsection (1) that would, in the absence of this section, be fringe benefits having a value for the employee that the employer could estimate, are not fringe benefits to the extent to which their total value as fringe benefits for the period would be less than or equal to the amount by which $5,000 exceeds the income that is—

                2. exempt under section CZ 23B(2)(b); and
                  1. derived by the employee from the employer in the same period.

                    1. Benefits satisfying subsection (1) that would, in the absence of this section, be fringe benefits having a value for the employee that the employer could not estimate, are not fringe benefits.

                    Notes
                    • Section CZ 24B: inserted (with effect on 8 January 2023), on , by section 33(1) (and see section 33(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).