increase font size
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.
The Government has announced it will pause key parts of Waikato Plan Change 1 (PC1) in a decision that is set to give Waikato farmers a reprieve from new consenting and farm-planning requirements while the wider resource management system is overhauled.
OPINION: As the general election approaches, political parties are churning out policies in the hope of attracting more votes.
Federated Farmers president Colin Hurst and his family raised a glass of milk last week to toast the start of a new addition to their farming operation at Makihihi, south of Timaru.
OPINION: The same mainstream media muppets that brought you Jacindamania in 2017 have been flat out pimping for the Opportunities Party, labelled by some as the 'LinkedIn Greens' for their corporate spin on Green-esque 'tax the rich' policies.
OPINION: Mike Chapman, former chief executive of levy-funded HortNZ, has thrown out a challenge to farmers and growers to put their levy-funded industry organisations under the same scrutiny as fertiliser, electricity, labour and freight.
State farmer Pamu has delivered its strongest operating result on record.
Four years since it was first detected in New Zealand, researchers and growers now know much more about management of maize pest fall armyworm (FAW).
The Government has announced it will pause key parts of Waikato Plan Change 1 (PC1) in a decision that is set to give Waikato farmers a reprieve from new consenting and farm-planning requirements while the wider resource management system is overhauled.
OPINION: The time has come for the Government to back the organic sector.
Plan ahead and be patient. That’s the message to farmers and horticulturalists from the chairman of the NZ Agricultural Aviation Association, Kent Weir.
The industry is crying out for graduates with agricultural related degrees.
OPINION: After hogging the media limelight for telling a NZ Chinese MP to "go back home", Winston Peters has decided…
OPINION: With fuel prices soaring, one would have expected most farmers to be reclaiming excise duty on petrol.
