Payments from the Canterbury Earthquake Commission (Red Cross)

The Canterbury Earthquake Commission was established in September 2010 to provide assistance to people affected by the Canterbury earthquake on 4 September 2010 and all its aftershocks (including the 22 February 2011 aftershock). This is a body set-up by the Mayors of affected areas to administer the fund created by donations made to the Red Cross Canterbury Earthquake appeal.

Note the Canterbury Earthquake Commission should not be confused with the Earthquake Commission (EQC) which is a different organisation.

Payments made by the Canterbury Earthquake Commission are not treated as chargeable income or as a cash asset for any financial assistance provided by Work and Income. This includes any income earned from any investment of the payment.

In cases where the client intends to use the payment to repair or rebuild the home or purchase a further home the exemption period is 48 months from the day after payment. In all other cases the exemption period is 12 months from the date of payment.

When a client receives a payment you need to create a 'must view' note in CMS.

The note should state:

• the client has received a payment made by the Canterbury Earthquake Commission that must not be considered as income (including interest earned from the payment) and as a cash asset for 12 months
• the date the client received the payment
• the amount of the payment
• whether the client intends to use the payment to repair or rebuild the home or to purchase a new home and
• the expiry date of the 12 month exemption

A bring-up needs to be added via BRUPI in SWIFTT to reassess entitlement.

For more information see:

• Payments from Earthquake Commission and insurance companies (Canterbury Earthquake 2010 and 2011 aftershock)
• Payments from the Crown for the purchase of property in the Canterbury red zone