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Student allowance : Contents

Income that is personal income

Personal income for Student Allowances is personal income received or obtained by a student in New Zealand or overseas, whether it is taxable or not.

The definition of personal income is not the definition of income used by Inland Revenue for income tax purposes.

It is deliberately a wider definition of income that is closer to the definition of income for benefit purposes. This reflects the different objectives and purposes of the Student Allowances Scheme from the purposes and objectives of income tax.

Personal income generally has 3 broad characteristics:

  • it is received or obtained by a student - being either money or something that can be sold or exchanged for money and
  • it is periodic, recurring or regular and
  • it has the character or nature of money in the hands of a student

Personal income will generally be intended for general living purposes. It includes such things as:

  • money received which is not a one-off capital payment
    For example: wages, salary, commission or Parental Leave payments
  • the value of any interest (before tax) acquired which is not a one-off capital payment
  • payments, or the value of credits or services received periodically that are made and used for an income-related purpose
  • an income-related insurance payment e.g. an income protection insurance payment
  • Accident Compensation Payments to replace lost income

Personal income does not include payments excluded under the definition of 'personal income' in the Student Allowance Regulations 1998.

For more information see:

Important reminders

  • a student must advise of any income they receive that may affect their entitlement to a Student Allowance
  • the gross amount of income (before tax) is used in the personal income test
  • where the income of the student is negative, it must be treated as nil
  • financial assistance from parents or caregivers for single students without children and under the age of 24 years is not personal income
  • it is also important to look for any deprivation of income

Common types of income

Below is a list of the more common types of personal income:

Legislation

  • personal income (definition) regulation 2 Student Allowances Regulations 1998
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