Christchurch land damage package
Below are a few questions you might have if your home is one of those that’s being paid out by the Government.
What happens to payments I receive for residential property from the Government?
Generally the payments you receive from the Government land damage package for damage to your residential property won’t need to be included as income in your income tax returns.
If the money you receive from any of these payments is put into an interest bearing bank account, then resident withholding tax (RWT) will be deducted by the bank at the rate you’ve chosen. You’ll need to let your bank know if you want to change your RWT rate.
Will this affect my Working for Families Tax Credits?
Generally if you receive Working for Families Tax Credits any payment you receive from the land damage package doesn’t need to be included as income. Any interest you receive from putting this money in the bank or returns from investing is income and will need to be included when you’re estimating or showing your actual earnings.
Date published: 23 Jun 2011
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