Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


New livestock tax rules in Budget 2012

24 May 2012

New livestock tax rules in Budget 2012

Federated Farmers believes tighter tax rules around livestock valuations have been well-signalled.

“Most farmers are reliant on accountants for their business tax needs and I’m no exception,” says Bruce Wills, Federated Farmers President and its economics and commerce spokesperson.

“This is no different to a range of professions, such as freelance journalists or even actors. We all recognise the need to meet our tax obligations without overpaying. I don’t think there‘d be too many wage and salary earners who’d disagree.

“Back in March, the Government announced the herd scheme election would be irrevocable from August 2011. 2011 is not a misprint as it is being applied retrospectively.

“This is unusual but we were also aware a spike in livestock values had encouraged some farmers, on advice from their accountants, to elect out of the herd scheme. Arguably this may have come as a result of impending legislative changes clearly signalled last August.

“The Government made it clear it wasn’t prepared to wear on-going fiscal risk and we understand why. These changes will protect $184 million over four years.

“We need to reassure farmers it won’t impact either past tax paid or tax to be paid in the 2011-12 financial year. On that basis we accept this change.

“More generally however, we continue to prefer for a 24-month notice period instead of making the election irrevocable.

“We do appreciate Government listening to Federated Farmers when people change their farming operation to a fattening regime. Elections here will continue to have a cost-based scheme option.

“We are still trying to convince Inland Revenue to allow elections when sharemilkers move into farm ownership.

“We want sharemilkers to have the option of electing out of the herd scheme when they down-size herds ahead of buying their first farm. Given debate about the problems young farmers have getting onto the farm ownership ladder, this seems counter productive.

“Purchasers in ‘associated party transactions’ will be required to adopt the vendor’s herd scheme election and base herd numbers. This exception was requested by Federated Farmers submission when there is a complete inter-generational change of ownership

“Unlike herd elections, associated party transactions took effect from 28 March 2012.

“While the Government has announced these changes as ‘made’, they in fact require amendments to the Income Tax Act. Federated Farmers will be engaging in this process,” Mr Wills concluded.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade & Retail: Chinese Disaster Spells Quiet Season For NZ Fireworks Sales

In August, two massive explosions at a warehouse at the port in the port of Tianjin, Northern China, killing more than a hundred people and devastating large areas of the city. In the wake of the disaster, Chinese authorities rushed to regulate the distribution of all dangerous goods... More>>



Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news