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Inland Revenue’s proposal was to make major changes to the way FBT applies to utes.
OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.
Inland Revenue’s proposal was to make major changes to the way FBT applies to utes, which are common and essential work tools for most farmers across New Zealand.
As Federated Farmers rightly points out this could very quickly become a ‘Ute Tax 2.0’ and it seems to be being pushed through by stealth.
Farmers made it clear that they were in no mood to pay thousands of dollars of additional tax payments each year. This would have come as a huge cost for farmers, tradies and other productive New Zealanders and unfairly punish the legitimate use of these work vehicles.
The Coalition Government heard the message, confirming the proposal to amend FBT charged against farm utes has been canned.
While the previous Government’s so called “ute tax” was a one-off cost, the latest proposal could have seen utes costing more than $80,000 purchased by a farm business for farmers or shareholders taxed at 100% of their value (capped at $80,000) even if they were used almost exclusively for farm use.
The result would potentially result in an estimated tax burden of between $5,500 and $8,200 per annum. Meanwhile, employees and sharemilkers supplied vehicles, under the proposals, would be liable for a tax liability of $1,800 to $2,700 annually on a $50,000 value vehicle.
Common sense has prevailed and the Government deciding that it would not be hitting any Kiwis with new tax burdens on utes-full stop-and that included changes to FBT changes.
The Government must be commended for listening to the rural sector. Farmers, already facing an avalanche of regulations and taxes, can breathe a sigh of relief.
OPINION: Recent media commentary from Southland Federated Farmers has raised concerns among our rural communities, particularly around Environment Southland’s approach to winter grazing inspections and nitrogen reporting. But let’s be clear, much of what’s been said simply doesn’t reflect reality.
OPINION: Environment Canterbury's (ECan) decision recently to declare a so-called “nitrate emergency” is laughable.
A shameless political stunt is how Federated Farmers is describing the Canterbury Regional Council decision to declare “a nitrate emergency” on the back of its latest annual groundwater quality survey.
Federated Farmers say Environment Canterbury's decision to declare a 'nitrate emergency' is a shameless political stunt that won't help anyone.
Farmers want the Government to scrap controversial freshwater rules that "put river spirits and ideology ahead of practical water use", says Federated Farmers board member Mark Hooper.
Independent Waikato milk processor Tatua has set another new record for conventional farmgate milk price paid to New Zealand farmers.
OPINION: Environment Canterbury's (ECan) decision recently to declare a so-called “nitrate emergency” is laughable.
An early adopter of a 10-in-7 variable milking regime, the Lincoln University Demonstration Dairy Farm (LUDF) is tweaking the system this season in search of further boosting farm performance and profitability.
The dairy sector is in a relatively stable position, with strong milk price payout forecasts continuing to offset ongoing high farm costs, according to DairyNZ.
A shameless political stunt is how Federated Farmers is describing the Canterbury Regional Council decision to declare “a nitrate emergency” on the back of its latest annual groundwater quality survey.
Fonterra has delivered a fifth straight year of record organic milk price for farmer suppliers.
OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.
OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…
