Declaration of the Canterbury earthquake of 4 September 2010 as an emergency event for the purposes of family scheme income

This determination may be cited as "Determination DET EE-11/01: Declaration of the Canterbury Earthquake of 4 September 2010 as an emergency event for the purposes of family scheme income".

1. Application
   This determination applies to the Canterbury earthquake of 4 September 2010.

2. Determination
   This determination is made under section 91AAS of the Tax Administration Act 1994.
   
   Emergency Event
   The Canterbury earthquake of 4 September 2010 is declared to be an emergency event for the purposes of section MB 13(2)(r)(i) of the Income Tax Act 2007.
   
   Time Period
   For the purposes of section MB 13(2)(r)(ii) of the Income Tax Act 2007, the period relating to the event is set at 12 months from 4 September 2010 to 3 September 2011.

3. Interpretation
   In this determination, unless the context otherwise requires, words and terms have the same meaning as in the Income Tax Act 2007 and the Tax Administration Act 1994.

This determination is signed on the 26th day of May 2011.

Rob Wells
LTS Manager, Technical Standards

Commentary on determination

This commentary does not form part of the determination. It is intended to provide assistance in the understanding and application of the determination.

Section 91AAS of the Tax Administration Act 1994 provides the Commissioner the power to issue a determination declaring an event as an emergency event for the purposes of section MB 13(2)(r)(i) of the Income Tax Act 2007.

In setting this determination, the Commissioner must set a period relating to the event for the purposes of section MB 13(2)(r)(ii) of the Income Tax Act 2007 up to a maximum period of 12 months from the date of the event.

Section MB 13(1) of the Income Tax Act 2007 took effect from 1 April 2011 and includes in the family scheme income (which is used in the calculation of a person's Working for Families Tax Credit entitlement) of a person the value of payments paid to the person used to replace lost or diminished income or used to meet usual living expenses.

Section MB 13(2) of the Income Tax Act 2007 excludes certain payments from being included in family scheme income under section MB 13(1). Section MB 13(2)(r) excludes from family scheme income a payment made to relieve the adverse effects of an event declared an emergency event by the Commissioner by way of determination under section 91AAS of the Tax Administration Act 1994 where the payment is made in the time period set by the Commissioner in the determination.

This determination declares the earthquake that occurred in Canterbury on 4 September 2010 as an emergency event and sets a 12 month time period for the purposes of section MB 13(2)(r) from 4 September 2010 to 3 September 2011.

Section MB 13(2)(r) came into force 1 April 2011 which is the day section MB 13(1) came into force. Therefore a payment made between 1 April 2011 and 3 September 2011 (inclusive of both dates) to relieve the adverse effects of the Canterbury earthquake of 4 September 2010 will not be included in a person's family scheme income under section MB 13(1).