Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Terminating provisions

CZ 29B: Accommodation expenditure: North Island flooding events

You could also call this:

“No tax on accommodation for workers rebuilding after North Island floods”

If you work on a project to rebuild or recover from the North Island flooding events, you might need to stay away from home. Your employer might pay for your accommodation, and you won’t have to pay tax on this money. This rule applies if you are working on a project to repair or rebuild land, infrastructure, or other property in the areas affected by the flooding.

If you start work on one of these projects between 8 January 2023 and 5 years after that date, you can stay at the distant workplace for up to 5 years without paying tax on your accommodation. You can find more information about this in section CW 16B and section CW 16C.

Rebuilding includes fixing, improving, or changing land, infrastructure, or other property, and helping communities recover. Recovery includes making things better than they were before. You can learn more about the rules for accommodation expenditure in section FP 22 and section CZ 30 does not apply to this situation.

An Order in Council can change the time limits for these rules, and you can find more information about this in the Legislation Act 2019.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS834193.

Previous

CZ 29: Accommodation expenditure: Canterbury earthquake relief, or

"Tax-free accommodation for Christchurch earthquake recovery workers"

Next

CZ 30: Transitional provision: application of certain accommodation provisions, or

"Explaining how to apply new rules for work-related accommodation and meal expenses from 2011 to 2015"

Part C Income
Terminating provisions

CZ 29BAccommodation expenditure: North Island flooding events

  1. This section applies for the purposes of section CW 16B (Accommodation expenditure: out-of-town secondments and projects) when—

  2. the employment duties of an employee require them to work on a project of limited duration for rebuilding or recovery, including the repair and reconstruction of land, infrastructure, and other property in the areas affected by the North Island flooding events; and
    1. the distant workplace is a workplace in the areas affected by the North Island flooding events.

      1. The value provided or expenditure incurred by the employer of the employee for or in relation to the accommodation is exempt income of the employee.

      2. Despite paragraph (c)(iii) of the definition of project of limited duration and section CW 16C(2)(d) (Time periods for certain accommodation expenditure), for the purposes of this section, the 3-year limit is ignored and is replaced by 5 years, if the employee starts work at the distant workplace in the period commencing on the date of the first relevant North Island flooding event, being 8 January 2023, 26 January 2023, or 12 February 2023, as the case may be, and ending 5 years after that date.

      3. For the purposes of this section and section CW 16C, the time limit is determined by whether the actual period of continuous work of the employee at the distant workplace is for a period of no more than 5 years.

      4. Any time limit imposed by subsection (3) may be extended or modified by Order in Council made—

      5. on the recommendation of the Minister of Revenue; and
        1. before the expiry of the relevant time limit in subsection (3) that applies immediately before the Order in Council comes into force.

          1. In this section and section FP 22 (Accommodation expenditure incurred during emergency events),—

          2. rebuilding includes—
            1. extending, repairing, improving, subdividing, or converting any land, infrastructure, or other property; and
              1. rebuilding communities:
              2. recovery includes restoration and enhancement.

                1. Section CZ 30 does not apply to modify the application of this section.

                2. An Order in Council under subsection (4) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                  Notes

                  Notes
                  • Section CZ 29B: inserted (with effect on 8 January 2023), on , by section 34 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
                  • Section CZ 29B(3): amended (with effect on 8 January 2023), on , by section 31(1) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                  • Section CZ 29B(3B) heading: inserted (with effect on 8 January 2023), on , by section 31(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                  • Section CZ 29B(3B): inserted (with effect on 8 January 2023), on , by section 31(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                  • Section CZ 29B(4): amended (with effect on 8 January 2023), on , by section 31(3) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                  • Section CZ 29B(4)(b): amended (with effect on 8 January 2023), on , by section 31(4) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                  • Section CZ 29B(5): amended, on , by section 36(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                  • Section CZ 29B(7) heading: inserted (with effect on 8 January 2023), on , by section 36(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                  • Section CZ 29B(7): inserted (with effect on 8 January 2023), on , by section 36(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                  • Section CZ 29B list of defined terms North Island flooding event: repealed (with effect on 8 January 2023), on , by section 31(6) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                  • Section CZ 29B list of defined terms North Island flooding events: inserted (with effect on 8 January 2023), on , by section 31(6) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                  • Section CZ 29B list of defined terms period of continuous work: inserted (with effect on 8 January 2023), on , by section 31(5) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                  • Section CZ 29B list of defined terms project of limited duration: inserted (with effect on 8 January 2023), on , by section 31(5) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).