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


Farmers to engage positively on Livestock Tax review

18 August 2011

Farmers to engage positively on Livestock Tax review

Federated Farmers will engage openly with Inland Revenue on new rules for the tax treatment of livestock.

“Last October, the Minister of Revenue announced that the tax treatment of livestock will be reviewed and Federated Farmers has discussed this in detail with Inland Revenue,” says Bruce Wills, Federated Farmers President and its economics and commerce spokesperson.

“This review was confirmed in May’s Budget and forms part of a wider ranging review into how high-value assets are treated for tax purposes.

“Federated Farmers will now examine Inland Revenue’s proposals for reasonableness and real-world workability. Let me also stress that farmers do understand the importance of paying their fair share of tax.

“With livestock, there’s been some concern at the ease farmers have switched between the Herd Scheme and the National Standard Cost scheme. This is especially the case when livestock values are extremely volatile.

“Broadly speaking, the Herd Scheme treats livestock as a capital asset using Inland Revenue’s national average market values. The National Standard Cost scheme values purchased livestock at cost plus associated costs of husbandry.

“Farmers, as small and medium sized businesspeople, are heavily reliant on their accountant for tax advice. It’s a complicated area and you do rely on your advisors to interpret it for you.

“Federated Farmers will now start consultation with our membership to develop a position to take back to Inland Revenue,” Mr Wills concluded.


© Scoop Media

Business Headlines | Sci-Tech Headlines


SEA: Another First For Solar Energy In New Zealand

The Sustainable Energy Association NZ (SEANZ) congratulates Sunergise on the commissioning of the Sunergise Kapuni Solar Power Plant, the largest in the country... More>>

Accenture: More Boomers Than Zoomers Want To Work From Home

While often associated with tech savvy Gen Z or Zoomers, new global research from Accenture shows that the push for more flexible working environments is being led by Gen Xers and Baby Boomers... More>>

Maritime Union: Deepening Supply Chain Crisis Requires Action

Maritime Union of New Zealand National Secretary Craig Harrison says the global COVID-19 pandemic exposed pre-existing weaknesses in our logistics sector, and created enormous problems... More>>

Banking: Westpac New Zealand To Remain Part Of Westpac Group

Westpac New Zealand Limited (WNZL) remains part of Westpac Group following a decision for the two businesses not to demerge. Westpac Group Chief Executive Officer, Peter King, said: “After a detailed review, we believe a demerger of the WNZL business would not be in the best interests of shareholders... More>>

Mercury: Enters Into Binding Agreements To Acquire Trustpower’s Retail Business

Mercury NZ Limited (Mercury) has announced that it has entered into binding agreements with Trustpower Limited (Trustpower, NZX:TPW) to acquire Trustpower’s retail business for NZ$441 million... More>>


ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>