increase font size
Federated Farmers president Bruce Wills is urging all farmers in areas declared official drought zones to talk to their accountants following today's announcement that Inland Revenue will exercise its income equalisation discretions to help affected famers meet their tax obligations.
Drought was declared in Northland on Wednesday and is likely to be declared in much of the upper North Island over the next few days.
"This measure has been announced by Inland Revenue for Northland farmers, but I urge all farmers in official drought areas to talk to their accountants about this," Wills says.
"Just because we are having a hard time does not mean we can avoid tax, but if we address this now, farmers in a tight spot now may be able to defer deposits for a couple of months when they will hopefully be in a better cash-flow situation.
"Having this scheme available can be a good tool for farmers, particularly at this time of volatile market prices for primary produce.
"My advice is to go to ird.govt.nz and have a look, then talk it over with your accountant," Wills says.
The Farmers' Income Equalisation scheme provides a mechanism by which farmers can smooth the level of their taxable income. The smoothing is achieved by the fact that deposits into the scheme are tax deductible while refunds from the scheme are taxable.
Eligible taxpayers can deposit money into the schemes in years in which their taxable incomes and marginal tax rates are high and withdraw it in years in which their incomes and marginal tax rates are lower.
A survey of contract milkers in the dairy sector has revealed some shocking statistics - 43% of respondents reported abusive behaviour from a farm owner and a whopping 72% suffered a mental and/or financial setback in the role.
OPINION: The Government's latest move to make freshwater farm plans more practical and affordable is welcome, and long overdue.
There's been a positive response to the Government's latest move to make freshwater farm plans more practical and affordable.
Many contract milkers in badly drought affected regions around the country are coming under severe financial stress and farm owners are being urged to help them through a bad patch until the start of the new season.
With much of the North Island experiencing drought this summer and climate change projected to bring drier and hotter conditions, securing New Zealand’s freshwater resilience is vital, according to state-owned GNS Science.
Only this season’s $10/kgMS bumper payout has saved some dairy farms along the Taranaki coast from absolute disaster due to the present drought – dubbed as one of the worst ever for some.
A survey of contract milkers in the dairy sector has revealed some shocking statistics - 43% of respondents reported abusive behaviour from a farm owner and a whopping 72% suffered a mental and/or financial setback in the role.
The 2025 game bird season is underway with Hawke’s Bay and Southland reporting the ideal weather conditions for hunters – rain and wind.
A group of meat processing companies, directors and managers have been fined a total of $1.6 million for deliberately and illegally altering exported tallow for profit.
New Zealand’s top cheeses for 2025 have been announced and family-owned, Oamaru-based Whitestone Cheese is the big winner.
Waikato farmer, and Owl Farm demonstration manager, Jo Sheridan is the 2025 Fonterra Dairy Woman of the Year.
