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.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news