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Government Listens To Federated Farmers

Government Listens To Federated Farmers

Federated Farmers is pleased that its suggestion to index personal tax thresholds to inflation has been included in the government's budget, said Tom Lambie, President of Federated Farmers of New Zealand (Inc).

The federation made the suggestion in its submission on the Budget Policy Statement in February this year.

"However, we are disappointed that the government has decided to wait three years before introducing higher thresholds," he said.

“While leaving money in the hands of the earner is very welcome, let’s be realistic here, it is too little and too long to wait.

“Instead of churning money through inefficient means such as the carbon tax, profits and earnings should be left in the hands of the people who earn the revenue to allow them to make better financial decisions for themselves. A way to do this is move to a flatter tax rate.

"Farmers wish to invest their profits back into their businesses and thus grow the economic pie. They know the farming business best and therefore will make the wisest spending decisions.

"Farmers want less taxation, less government spending and when it does spend, better quality spending."

Mr Lambie said that missing from today’s Budget was a commitment to spend all fuel excise taxes on roads, rather than using the money to top up the consolidated fund.

"The government must also be congratulated for its efforts to further boost biosecurity. The recent foot and mouth scare has highlighted the need to be vigilant in these matters.

"The previously-announced decision to allow GST payers to elect to base their provisional tax on their GST is a benefit to farmers, because it is very difficult to accurately estimate next season's income.

"This change will also mean provisional tax payments will coincide with GST payments, meaning the timing of cash flows will be aligned with tax payments," Mr Lambie said.


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