CW 17B Relocation payments
Exempt income


An amount that an employer pays to or on behalf of an employee in connection with the expenses of the employee in a work-related relocation is exempt income of the employee.

Actual expenditure


The amount paid must be no more than the actual cost incurred by or on behalf of the employee on an expense that the Commissioner lists as an eligible relocation expense in a determination made under subsection (6).

Time limit


Subsection (1) applies only to expenditure incurred to the end of the tax year following that in which the relocation occurs. For the purposes of this subsection, a temporary move that has not been treated as a work-related relocation under this section is ignored.

Meaning of work-related relocation


Work-related relocation means a relocation of the place where an employee lives that is required—


because the employee’s workplace is not within reasonable daily travelling distance of their residence; and


as a result of the employee—


taking up new employment with a new employer; or


taking up new duties at a new location with their existing employer; or


continuing in their current position but at a new location.

Exemption from distance test


The requirement in subsection (4)(a) for a person’s workplace to be beyond reasonable travelling distance of their residence does not apply to a person whose accommodation forms an integral part of their work.



The Commissioner may issue a determination for the purposes of this section under section 91AAR of the Tax Administration Act 1994 to provide a list of eligible relocation expenses, and may extend or modify the list from time to time as required. The Commissioner must give at least 30 days’ notice of the implementation date of any alteration.

Defined in this Act: amount, Commissioner, employee, employer, exempt income, tax year, work-related relocation

Section CW 17B: inserted (with effect on 1 April 2008), on 6 October 2009, by section 45 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).