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EZ 84: Insurance for damage of property caused by North Island flooding events: limit on depreciation recovery income
or “Limits on taxable income from insurance for flood-damaged depreciable property”
You could also call this:

“Assets unavailable due to North Island floods still count as usable for tax purposes”

If you own something that can lose value over time, like a machine or a building, you might not be able to use it because of flooding in the North Island. Even if you can’t use it right now, the law says you can still count it as being available to use. This applies if you could use it before the flooding, you would use it if there wasn’t any flooding, and it’s before or during the tax year that ends in 2028. This rule helps you when you’re working out your taxes.

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Next up: EZ 86: Insurance for North Island flooding event damage causing disposal: optional timing rule for income, deductions

or “Choose when to report insurance payouts and costs for North Island flood-damaged property in your taxes”
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Part E Timing and quantifying rules
Terminating provisions: Entry to new life insurance regime: transitional and miscellaneous provisions

EZ 85Item treated as available for use if access restricted due to North Island flooding events

  1. An item of depreciable property is treated for an income year as being available for use while access to the item is affected by a restriction imposed due to the effects of a North Island flooding event if—

  2. the item was used or available for use immediately before the restriction was imposed; and
    1. the item would be used or available for use in the absence of the restriction; and
      1. the income year is the 2027–28 or an earlier income year.

        Notes
        • Section EZ 85: inserted (with effect on 1 April 2022), on , by section 73(1) (and see section 73(2) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).