Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Tax on accommodation allowances clarified


6 December 2012

Commissioner’s Statement clarifies tax treatment on accommodation allowances

Inland Revenue has issued a Commissioner’s Statement advising employers that they are required to account for PAYE on payments made towards staff accommodation costs.

A Commissioner’s Statement informs taxpayers of the Commissioner’s position and operational approach about a particular tax matter.

Group Tax Counsel, Graham Tubb, said that accommodation expenses may be treated as income and therefore liable for tax.

“These payments may be paid directly to a staff member or to a third party on their behalf. If the employer provides an accommodation allowance to staff on an on-going basis then this too may be deemed to be income.”

“Inland Revenue acknowledges that a number of people around the country spend time working away from their home and they continue to meet the costs of their home. However, accommodation payments by the employers in some circumstances can constitute an additional income stream that is subject to tax.

“It is important that the correct treatment is applied.”

Mr Tubb said that accommodation payments will not be taxable in regard to overnight or other short-term stays by an employee who is away from home due to work commitments.

“Taxpayers who may have adopted an incorrect tax position are encouraged to discuss the matter with their tax advisor, contact Inland Revenue, and consider making a voluntary disclosure.

“In many cases those making a voluntary disclosure will only be required to account for PAYE over the previous two years, and they will not be subject to use of money interest or shortfall penalties,” Mr Tubb said.

The Commissioner’s Statement is available on the Inland Revenue website at


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news