increase font size
Landcare figures show a methane charge on sheep and beef farmers could cost as much as $120,000 per farm.
Federated Farmers is calling on the Government to reject most of the raft of new taxes proposed by the Tax Working Group (TWG).
Small business would pay the costs, large business would spend thousands avoiding the costs and tax advisors and valuers would have a field day.
There is possibly an argument for a capital gains tax (CGT) aimed at rental properties if there was sound evidence it would dampen investor speculation and reduce price pressure and first home buyers being out-bid. But even with that, we haven’t given the tougher ‘bright line’ test rules a chance to really kick in.
Labour and their coalition partners must be aghast at the chorus of anger from so many sections of New Zealand society about the TWG’s proposals.
Feds believes they should heed the comments of the group’s chairman, Sir Michael Cullen, who publicly reminded people that he had not promoted a comprehensive capital gains tax during his nine years as Minister of Finance for the Helen Clark-led Labour coalition government.
Sir Michael also said that NZ was so clever we knew a comprehensive capital gains tax was a bad idea or not clever enough to put one in place.
I go for the former conclusion – that on balance a CGT is a bad idea. It’s clear that such a tax would do little extra, above what the Government is already doing, for housing affordability. But it would just add an additional layer of costs for businesses and, given it won’t even apply to the vast bulk of houses, how will it solve housing affordability?
Fairness has been mentioned a lot in this discussion: why should the capital gain on a $2 million small farm in Eketahuna be taxed, but a similar valued house in Ponsonby not. Either everyone is in or no-one is.
The National Party has been quick out of the blocks to start putting numbers on the financial implications of the TWG’s proposal.
If anything, its estimates on the fallout may be a bit light. For instance, it took a mid-point view on a number of figures.
For example, a 2018 Landcare report calculated that a charge on methane for a sheep and beef farm could be as high as 123% of their net profits – a nationwide cost in the order of $2 billion and a cost per sheep and beef farm of about $120,000.
In our view, the environmental taxes that have been mooted will be even worse than a CGT.
A tax on nitrogen loses will require the use of the Overseer modelling programme, but it has a 20% margin of error. How many people would like IRD to apply a 20% margin of error to their taxes? Overseer is a fantastic tool for what it was developed for, but it wasn’t designed as a tax calculator.
Also, nitrogen is not the issue in every catchment. Taxing every farmer and grower on nitrogen losses or imposing a tax on nitrogen fertiliser just takes away from primary producers the money they could spend on the mitigations needed for their specific catchment.
• Andrew Hoggard is vice-president of Federated Farmers of New Zealand
Central Otago District Council (CODC) has voted against a plan to spread treated sewage sludge from Cromwell and Alexandra on farmland near Lauder, a decision Federated Farmers says reflects strong opposition from rural residents.
Federated Farmers has called on Central Otago District Council (CODC) to drop or vote down a plan to truck sludge from Alexandra and Cromwell to farmland near Lauder, warning it would compound an "outrageous" situation created by a separate council's decision weeks earlier.
Federated Farmers says new legislation replacing the Resource Management Act will cut red tape, unlock investment and help grow New Zealand's export-led economy, after the Planning Bill and Natural Environment Bill passed their third reading in Parliament yesterday.
Leading figures from the major political parties will be questioned on their primary sector policies at the Rural Issues Debate at Mystery Creek Events Centre, Hamilton, on 30 September.
OPINION: Well, the silly season is upon us and all us politicians are running around shaking babies and kissing hands, or maybe the other way around.
OPINION: There could hardly be a more appropriate theme for a conference than the one chosen by the red meat sector - Navigating Volatility.
When Northland leather worker Vernon Suckling started making horse saddles 50 years ago, quad bikes and side-by-side vehicles were unheard of.
Alliance Group has confirmed that eligible farmer-shareholders who supply and continue to back the business will receive up to $20 million later this year, following the strategic investment partnership with Dawn Meats.
With a general election under five weeks away, Rural News is asking major political parties about their policies and positions on key issues facing the primary sector. We will run their responses to each question over the next four weeks. The ACT Party and the Greens didn't respond in time.
The red meat sector is in great heart.
Entries opened on Monday, 5 October 2026 for the 2027 New Zealand Dairy Industry Awards (NZDIA), which organisers describe as the nation's biggest celebration of excellence in the dairy sector.
OPINION: The same mainstream media muppets that brought you Jacindamania in 2017 have been flat out pimping for the Opportunities…
OPINION: Your old mate reckons the atrocious way farmers in the UK are treated by their lords and masters in…
