Declaration of January flood events, beginning 26 January 2023 and Cyclone Gabrielle, which crossed the North Island of New Zealand during the period of 12 February 2023 to 16 February 2023, as emergency events for the purposes of family scheme income.

Determination DET EE 23/01 declares the January flood events, beginning 26 January 2023 and Cyclone Gabrielle, which crossed the North Island of New Zealand during the period of 12 February 2023 to 16 February 2023, emergency events for the purposes of family scheme income.

This determination may be cited as Determination DET EE 23/01: Declaration of January flood events, beginning 26 January 2023 and Cyclone Gabrielle, which crossed the North Island of New Zealand during the period of 12 February 2023 to 16 February 2023, as emergency events for the purposes of family scheme income.

Application

This Determination applies to the January flood events and Cyclone Gabrielle.

The January flood events (January flood) were a series of fronts which crossed the upper North Island between 26 January 2023 to 3 February 2023, delivering extremely heavy rain, high winds, and widespread flooding in the following regions:

• Auckland
• Bay of Plenty
• Northland
• Waikato Region

Cyclone Gabrielle crossed the North Island of New Zealand during the period of 12 February 2023 to 16 February 2023 in the following regions or districts:

• Auckland
• Bay of Plenty
• Gisborne
• Hawke’s Bay
• Northland
• Tararua
• Waikato Region

Determination

This determination is made under section 91AAS of the Tax Administration Act 1994.

Emergency events

The January flood and Cyclone Gabrielle are declared to be emergency events for the purposes of section MB 13(2)(r)(i) of the Income Tax Act 2007.

Time period

For the purposes of section MB 13(2)(r)(ii) of the Income Tax Act 2007, the period relating to the events is set from 26 January 2023 to 31 August 2023.

Interpretation

In this determination, unless the context otherwise requires, words and terms have the same meaning as in the Income Tax Act 2007 and the Tax Administration Act 1994.

This determination was signed by me on 27 February 2023.   

Rob Falk

Technical Lead, Technical Standards, Legal Services

Inland Revenue

Commentary on determination

This commentary does not form part of the Determination. It is intended to provide assistance in the understanding and application of the Determination.

Section 91AAS of the Tax Administration Act 1994 provides the Commissioner the power to issue a determination declaring an event as an emergency event for the purposes of section MB 13(2)(r)(i) of the Income Tax Act 2007.

In setting this determination, the Commissioner must set a period relating to the event for the purposes of section MB 13(2)(r)(ii) of the Income Tax Act 2007 up to a maximum period of 12 months from the date of the event.

Section MB 13(1) of the Income Tax Act 2007 includes in the family scheme income (which is used in the calculation of a person's Working for Families Tax Credit entitlement) of a person the value of payments paid to the person used to replace lost or diminished income or used to meet usual living expenses.

Section MB 13(2) of the Income Tax Act 2007 excludes certain payments from being included in family scheme income under section MB 13(1). Section MB 13(2)(r)(i) excludes from family scheme income a payment made to relieve the adverse effects of an event declared an emergency event by the Commissioner by way of determination under section 91AAS of the Tax Administration Act 1994 where the payment is made in the time period set by the Commissioner in the determination.

This determination declares the January flood and Cyclone Gabrielle as emergency events and sets a time period for the purposes of section MB 13(2)(r)(ii) from 26 January 2023 to 31 August 2023.

The January flood delivered extremely heavy rain, high winds, and widespread flooding during the period of 26 January 2023 to 3 February 2023 in the following regions:

• Auckland
• Bay of Plenty
• Northland
• Waikato Region

Cyclone Gabrielle crossed the North Island of New Zealand during the period of 12 February 2023 to 16 February 2023 in the following regions or districts:

• Auckland
• Bay of Plenty
• Gisborne
• Hawke’s Bay
• Northland
• Tararua
• Waikato Region.

A payment made between 26 January 2023 to 31 August 2023 (inclusive of both dates) to relieve the adverse effects of the January flood and Cyclone Gabrielle will not be included in a person's family scheme income under section MB 13(1).