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Some community housing providers can get an income tax exemption if their clients have income and assets below certain amounts. People who donate money to them can also claim a tax credit (refund).

The 15% rule

If more than 15% of a provider’s beneficiaries or clients have income or assets above the following amounts, then the provider will not be able to get an exemption.

Income limits

These are based on a client or beneficiary’s taxable income in the 12 months before the date of the exemption application.

  • A single person’s income can be no more than $85,000.
  • A group of people’s combined income can be no more $130,000.

Asset limits

If the beneficiary or client has never owned land before, only the income limit applies. There is no limit to the total value of assets they otherwise own.

If they have previously owned land, there are asset limits depending on where they want to buy a home.

If the applicant buys a home in then the asset value is
Auckland $120,000
Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District or Queenstown Lakes District $100,000
other areas in New Zealand $80,000
Last updated: 15 Nov 2022
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