Farmers Face Tax Difficulties from Rising Dollar

Wednesday 5 Jun 2002 Owen Jennings Press Releases -- Rural

The combination of a rapidly rising dollar and falling commodity prices has the potential to put farmers in a difficult position meeting their tax obligations later this year and early next year, ACT Rural Affairs Spokesman MP Owen Jennings said today.

"Farmers who have enjoyed good incomes in the last two years but who face a cut in income in excess of $100,000 next season need to obtain top-quality tax advice urgently to avoid a cash flow problem. The sudden change in fortunes can create difficulties in meeting tax obligations, but the problem can be ameliorated by good tax planning. Until we change the Government and reduce compliance costs, red tape and the tax burden, farmers have to rely on good advice.

"Farmers are used to coping with the vagaries in international prices but find the additional problem of the rising dollar - largely the result of poor quality financial planning by the Lab/All govt - an unnecessary and irritating burden.

I hope farmers along with other exporters are able to adjust their financial circumstances early enough to avoid a cash crisis on March 7^th next year.

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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