increase font size
Stuart Nash.
Farmers whose herds were culled in response to the outbreak of Mycoplasma bovis will be able to minimise the tax treatment of their income in some circumstances.
Revenue Minister Stuart Nash says Cabinet has agreed to change the law. It means farmers may be eligible to spread their income over several years to avoid an undue tax burden.
“Farmers, like the rest of the primary sector, are facing much uncertainty from the impact of the COVID19 outbreak around the world,” said Nash.
“On top of this, many have already had to deal with the hardship of the M. Bovis outbreak. The decision to offer tax relief for payments related to M.Bovis losses will help alleviate some of those concerns.
As part of our plan to try to eradicate M. Bovis, stock had to be culled on farms where the organism was found. Farmers received compensation for the difference between the normal market value of the stock and the amount received when the stock was culled. They could then restock their farms to replace the culled animals.
A number of affected farmers are using certain cost schemes to value their breeding stock, which means a significant tax bill can arise in the year they receive a compensation payment.
“Following discussions with Federated Farmers and Chartered Accountants of Australia and New Zealand we’ve agreed the best immediate solution. We will change the law to allow the additional income to be evenly spread over the following six years, subject to some conditions,” says Nash.
“It will require legislation which is yet to go through Parliament. However it will apply retrospectively, from the 2017/18 income year. This should help farmers to deal with their tax obligation in what is an already stressful time,” says Nash.
Affected farmers, or their tax agents, can find technical information on Inland Revenue’s website, at https://taxpolicy.ird.govt.nz/bovis
OPINION: Welcome to the second annual NZ Dairy Expo at Matamata – an event created to bring together the best of the New Zealand dairy industry in a focused, grassroots environment where dairy farmers and rural professionals can meet, talk, compare products, and make smart decisions for their farms.
New Zealand's world-first Mycoplasma bovis eradication programme is making great strides but this isn't the time for complacency, says Ospri.
It's a bloody tough year for sheep farmers, but the worst may be over, and the future looks optimistic.
One of the country’s two largest supermarket chains is reporting that for the first time since the disruption of Covid, they have largely full supply on almost all fruit and vegetables grown locally.
Covid-19 took global shipping rates to mind boggling highs, but over the subsequent 12-15 months they returned to more sustainable levels. Fast forward to July 2024 and rates have nearly doubled over three months.
Commodity prices and interest rates play a huge role in shaping farmer confidence, but these factors are beyond their control, says Federated Farmers dairy chair Richard McIntyre.
DairyNZ is supporting a proposed new learning model for apprenticeships and traineeships that would see training, education, and pastoral care delivered together to provide the best chance of success.
Two agritech companies have joined forces to help eliminate manual entry and save farmer time.
The recent squabble between the Cook Islands and NZ over their deal with China has added a new element of tension in the relationship between China and NZ.
The world is now amid potentially one of the most disruptive periods in world trade for a very long time.
Former Westland Milk boss Richard Wyeth is taking over as chief executive of Canterbury milk processor Synlait from May 19.
OPINION: Nearly four years after buying a 75% stake in Southland processor Mataura Valley Milk (MVM), A2 Milk is still…
OPINION: Fonterra isn't backing down in its fight with Greenpeace over the labelling of its iconic Anchor Butter.
