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Income Tax Act 2007

Income - Terminating provisions

CZ 29B: Accommodation expenditure: North Island flooding events

You could also call this:

“Tax-free accommodation for workers helping with North Island flood recovery”

This section talks about how your employer can help you with accommodation costs if you’re working on projects to rebuild or recover areas affected by the North Island flooding events. If your job requires you to work away from home on these projects, any money your employer spends on your accommodation is not counted as part of your income for tax purposes.

You can get this help for up to 5 years if you start working in the affected areas between 8 January 2023 and 12 February 2023. This 5-year period is longer than the usual 3-year limit for similar situations.

The government can change this time limit if they need to. They can do this by making a new rule before the current time limit ends.

When this section talks about ‘rebuilding’, it means things like fixing, improving, or changing land, buildings, or other property. It also includes helping communities recover. ‘Recovery’ means bringing things back to how they were before or making them even better.

This section has its own rules and isn’t affected by another part of the law called Section CZ 30.

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

Topics:
Money and consumer rights > Taxes
Work and jobs > Worker rights
Housing and property > Home safety and repairs
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CZ 29: Accommodation expenditure: Canterbury earthquake relief, or

“Tax-free accommodation for Christchurch earthquake recovery workers”

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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,—

          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.

                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 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).