Canterbury earthquake relief measures

As part of the measures introduced following the Canterbury earthquakes in 2010 and 2011 relief was provided including:

• an optional timing rule for insurance or compensation in relation to damage of depreciable property that is repairable
• optional timing rules for income and deductions in relation to damage causing a disposal of depreciable property
• the ability to elect to suspend depreciation recovery income of affected depreciable property in certain circumstances
• a limit on depreciation recovery income where insurance is received for repairable property
• the treatment of certain depreciable property as available for use.

2024 is the final income year the relevant provisions apply. This means that some customers may have to account for any deferred amounts they did not include in past years in their 2024 income tax return. This may include insurance or compensation payments held to be attributed to a disposal or to repair costs, or suspended depreciation recovery income.

Background to the Canterbury earthquake relief measures can be found in the Tax Information Bulletin.

Tax Information Bulletin Vol 23, No 8 (October 2011)

Further information on the related provisions and history of amendments can be found on our other sites by using the search term 'Canterbury earthquake'.

Tax Policy website

Tax Technical website