Income that must be excluded

Legislation defines some types of payments that must be excluded as income, these are:

• any benefits, pensions, grants, allowances or concessions payable under the:
  • Social Security Act 2018
  • New Zealand Superannuation and Retirement Income Act 2001 or
  • Veterans' Support Act 2014
• any amount of output tax charged in respect of a supply of goods and services made by that person

If a business is registered it must charge GST on all goods and services. This section reinforces that if a person collects GST as an agent for the Inland Revenue Department, then the amount collected is not treated as income.

• any formula-assessed Child Support for liability periods before 1 July 2023 paid in excess of a benefit rate
• any formula-assessed Child Support paid in excess of the Unsupported Child's Benefit rate (including mixed Child Support payments)
• any information share Child Support payments received between the commencement and grant dates of a benefit
• any information share Child Support payments received shortly after transferring between benefits on different pay cycles
• any amount of offset Child Support
• a debt, health, or disability related insurance payment
• any lump sum payments from life insurance or super schemes
• any money received by a caregiver, a young person (including a young adult), or other person under the Oranga Tamariki Act 1989 including:
  • board payments
  • foster care allowances
  • Transition Support Service payments
• any amount of goods and services tax payable by Inland Revenue to that person
  If the Inland Revenue makes a refund to a client because the client has paid too much GST, then the amount of the refund is not income.
• a Participation Allowance
• rent and 62% of board payments a client gets that are less than or equal to their accommodation costs (after the deduction of the cost of any part of the property not being lived in by the client)
• 38% of board payments a client gets (not received as part of a business venture)
• 62 % of additional occupant contributions a client gets that are less than or equal to their market rent
• 38% of additional occupant contributions a client gets
• funeral benefits from any friendly society
• Independence Allowance from ACC
• income included in the Residential Care Subsidy financial means assessment
• Income Related Rent, which is not a payment or a benefit but a calculated rate of subsidised rent
• Kāinga Ora energy subsidy
• money paid for any military decoration. For example, a decorations allowance
• the value of any assistance provided to a person with a sickness, injury, or disability to obtain or remain in employment. For example, an employer pays for transport to and from work due to the client's disability.
• War pensions or other war allowances paid periodically by the government of any other Commonwealth country
• Working for Families Tax Credits
• FamilyBoost Tax Credit payments for the first 12 months after payment is received