Section RD 5 — Income Tax Act 2007: Salary or wages

RD 5 Salary or wages Meaning (1) Salary or wages — (a) means a payment of salary, wages, or allowances made to a person in connection with their employment; and (b) includes— (i) a bonus, commission, gratuity, overtime pay, or other pay of any kind; and (ii) a payment described in subsections (2) to (8); and (iii) an accident compensation earnings-related payment; and (c) does not include— (i) an amount of exempt income: (ii) an extra pay: (iii) a schedular payment: (iv) an amount of income described in section RD 3(3) and (4) : (v) an employer's superannuation contribution other than a contribution referred to in subsection (9): (vi) a payment excluded by regulations made under this Act. (d) [Repealed] Employees’ expenditure on account (2) A payment of expenditure on account of an employee is included in their salary or wages. Payments to working partners (3) A payment to a working partner under section DC 4 (Payments to working partners) is included in their salary or wages. Payments to working owners (3B) A payment to a working owner under section DC 3B (Payments to working owners) is included in their salary or wages. Payments to past employees (4) A periodic payment of a pension, allowance, or annuity made to a person or their spouse, civil union partner, de facto partner, child, or dependant in connection with the past employment of the person is included in their salary or wages. Payments to Governor-General, members of Parliament, and judicial officers (5) The following payments made under a determination of the Remuneration Authority are included in salary or wages (aa) salary made to the Governor-General: (a) salary or allowances made to a member of Parliament: (b) salary and principal allowances made to a judicial officer. (5B) A payment to a person made under section 7 of the Governor-General Act 2010 is included in the salary and wages of that person. Certain benefits and grants (6) A payment of the following benefits or grants is included in salary or wages (a) a gratuitous payment as described in paragraph (a) of the definition of pension in section CF 1(2) (Benefits, pensions, compensation, and government grants): (b) an income-tested benefit: (bb) a veteran's pension, other than a veteran's pension paid under section 74J(2)(b) of the War Pensions Act 1954: (bc) New Zealand superannuation, other than New Zealand superannuation paid under section 26(2)(b) of the New Zealand Superannuation and Retirement Income Act 2001: (bd) a living alone payment: (c) a basic grant and independent circumstances grant made under regulations made under section 193 of the Education Act 1964, section 303 of the Education Act 1989, or an enactment substituted for those sections. Parental leave payments (7) A parental leave payment made under Part 7A of the Parental Leave and Employment Protection Act 1987 is included in salary or wages. Accommodation benefits (8) A benefit treated as income under section CE 1(1B) (Amounts derived in connection with employment) is included in salary or wages. Cash contributions (9) An amount of an employer's superannuation cash contribution that an employee chooses to have treated as salary or wages under section RD 68 is included in salary or wages. Defined in this Act: accident compensation earnings-related payment , accommodation , amount , de facto partner , employer's superannuation cash contribution , employer’s superannuation contribution , employment , exempt income , expenditure on account of an employee , extra pay , income , income-tested benefit , living alone payment , New Zealand superannuation , pay , salary or wages , schedular payment , veteran’s pension Compare: 2004 No 35 s OB 1 “ salary or wages ” Section RD 5(1)(b)(ii): amended (with effect on 1 April 2008), on 6 October 2009, by section 504(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RD 5(1)(c)(v): amended (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 126(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section RD 5(1)(c)(v): substituted (with effect on 1 April 2008), on 6 October 2009, by section 504(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RD 5(1)(c)(vi): amended, on 1 April 2012, by section 8(1) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23). Section RD 5(1)(c)(vi): amended, on 1 April 2008, by section 133 of the Taxation (KiwiSaver) Act 2007 (2007 No 110). Section RD 5(1)(d): repealed, on 1 April 2012, by section 8(2) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23). Section RD 5(3B) heading: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 126(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section RD 5(3B): inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 126(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section RD 5(5) heading: amended, on 23 November 2010, by section 24(1) of the Governor-General Act 2010 (2010 No 122). Section RD 5(5)(aa): inserted, on 23 November 2010, by section 24(2) of the Governor-General Act 2010 (2010 No 122). Section RD 5(5B): inserted, on 23 November 2010, by section 24(3) of the Governor-General Act 2010 (2010 No 122). Section RD 5(6)(a): substituted (with effect on 1 April 2008), on 6 October 2009, by section 504(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RD 5(6)(b): substituted, on 5 January 2010, by section 102 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section RD 5(6)(bb): inserted, on 5 January 2010, by section 102 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section RD 5(6)(bc): inserted, on 5 January 2010, by section 102 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section RD 5(6)(bd): inserted, on 5 January 2010, by section 102 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section RD 5(6)(c): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 122(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section RD 5(8) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 504(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RD 5(8): added (with effect on 1 April 2008), on 6 October 2009, by section 504(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RD 5(8): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section RD 5(9) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 504(6) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RD 5(9): added (with effect on 1 April 2008), on 6 October 2009, by section 504(6) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RD 5 list of defined terms accommodation : inserted (with effect on 1 April 2008), on 6 October 2009, by section 504(7) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RD 5 list of defined terms employer's superannuation cash contribution : inserted (with effect on 1 April 2008), on 6 October 2009, by section 504(8) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).