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Employer responsibilities Ngā kaiwhakawhiwhi mahi takohanga

Reimbursing relocation expenses

Any work-related relocation payments you make to your employees are tax free to them if:

  • they are relocating to:
    • take up employment with a new employer, or
    • take up new duties at a new location with you, or
    • continuing in their current position, but at a new location, and
  • their existing home is not within reasonable daily travelling distance of the new workplace (unless accommodation is provided as an integral part of the job), and
  • the expense is on the list of eligible relocation expenses, and
  • the payment reflects the actual expenditure incurred, and
  • the expenditure is incurred before the end of the tax year following the year they relocate.

Read our Determination DET 09/04 for more information about eligible relocation expenses.