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Accident Compensation Act 2001

Preliminary provisions

11: Earnings as an employee: what it does not include

You could also call this:

"Things not counted as your earnings when you're an employee"

When you're working as an employee, there are certain types of payments that aren't counted as part of your earnings. These include:

  • Main benefits, veteran's pensions, New Zealand superannuation, or scheduled payments
  • Parental leave payments
  • Payments for live organ donors
  • Student allowances
  • Some types of dividends or money allocated to other people
  • Benefits from employee share schemes
  • Redundancy payments
  • Retiring allowances
  • Most pensions from superannuation schemes or pension funds
  • Some other specific types of pensions

The law defines what these terms mean, like 'main benefit' and 'scheduled payment', based on the Income Tax Act 2007.

This information helps you understand what counts as your earnings when you're employed, which can be important for things like taxes or other benefits.

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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=DLM100620.

Topics:
Work and jobs > Worker rightsMoney and consumer rights > TaxesMoney and consumer rights > Savings and retirement
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"Money your spouse pays you for work: when it counts as earnings"

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12: Earnings as an employee: Work Account levy payable under section 168, or

"Work payments not counted for Work Account levy"

Part 1Preliminary provisions

11Earnings as an employee: what it does not include

  1. Earnings as an employee, in relation to any person and any tax year, does not include—

  2. any main benefit, veteran's pension, New Zealand superannuation, or schedular payment; or
    1. any parental leave payments paid under Part 7A of the Parental Leave and Employment Protection Act 1987; or
      1. any payment paid under the Compensation for Live Organ Donors Act 2016; or
        1. any student allowance established in accordance with regulations made under section 645 of the Education and Training Act 2020; or
          1. any amount allocated to a person or persons, other than the person who is the employee in question, under sections CD 11, CW 63, DB 58, GB 23, and GB 24 of the Income Tax Act 2007; or
            1. any benefit arising from a employee share scheme under section CE 2 of the Income Tax Act 2007; or
              1. any amount deemed to be a dividend paid by any person, to the person who is the employee in question, under section GB 25 of the Income Tax Act 2007; or
                1. any redundancy payment; or
                  1. any retiring allowance; or
                    1. any pension from a superannuation scheme, or pension fund, that is not a retirement scheme (within the meaning of section 6(1) of the Financial Markets Conduct Act 2013) nor a superannuation scheme registered under the Superannuation Schemes Act 1989; or
                      1. any pension that is paid in the circumstances set out in any of the following provisions:
                        1. section DF 4 of the Income Tax Act 1994 or section DC 2 of the Income Tax Act 2004 or section DC 2 of the Income Tax Act 2007:
                          1. section DF 8A or section DF 8B of the Income Tax Act 1994 or section DC 3 of the Income Tax Act 2004 or section DC 3 of the Income Tax Act 2007:
                            1. sections FB 11 and FB 12 of the Income Tax Act 2007.

                            2. In this section, main benefit, veteran's pension, New Zealand superannuation, and schedular payment have the same meanings as in section YA 1 of the Income Tax Act 2007.

                            Notes
                            • Section 11(1): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                            • Section 11(1)(a): amended, on , by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                            • Section 11(1)(a): amended, on , by section 16(1) of the Social Assistance (Living Alone Payments) Amendment Act 2013 (2013 No 11).
                            • Section 11(1)(a): amended, on (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
                            • Section 11(1)(aa): inserted, on , by section 6 of the Parental Leave and Employment Protection (Paid Parental Leave) Amendment Act 2002 (2002 No 7).
                            • Section 11(1)(ab): inserted, on , by section 30 of the Compensation for Live Organ Donors Act 2016 (2016 No 96).
                            • Section 11(1)(b): amended, on , by section 668 of the Education and Training Act 2020 (2020 No 38).
                            • Section 11(1)(c): amended, on (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
                            • Section 11(1)(cb): inserted, on (applying for the 2017–18 and later income years, or as described in s 228(2)(b) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016), by section 228 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                            • Section 11(1)(cb): amended (with effect on 1 April 2024), on , by section 266(1) (and see section 266(2) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                            • Section 11(1)(cb): amended (with effect on 29 September 2018), on , by section 275 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                            • Section 11(1)(d): amended, on (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
                            • Section 11(1)(g): replaced, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                            • Section 11(1)(h): added, on , by section 4 of the Injury Prevention, Rehabilitation, and Compensation Amendment Act (No 2) 2005 (2005 No 45).
                            • Section 11(1)(h)(i): amended, on (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
                            • Section 11(1)(h)(ii): amended, on (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
                            • Section 11(1)(h)(iii): substituted, on (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
                            • Section 11(2): amended, on , by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                            • Section 11(2): amended, on , by section 16(1) of the Social Assistance (Living Alone Payments) Amendment Act 2013 (2013 No 11).
                            • Section 11(2): amended, on (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).