Tax relief for Mycoplasma bovis farmers
Farmers whose herds were culled in response to the outbreak of Mycoplasma bovis can minimise the tax treatment of their income in some circumstances.
Revenue Minister Stuart Nash says Cabinet has agreed to change the law. It means farmers might be eligible to spread their income over several years to avoid an undue tax burden.
“Farmers, like the rest of the primary sector, are facing much uncertainty from the impact of the covid-19 outbreak,” Nash said.
“On top of this many have already had to deal with the hardship of the M bovis outbreak. The decision to offer tax relief for payments related to M bovis losses will help alleviate some of those concerns.
“As part of our plan to try to eradicate M bovis stock had to be culled on farms where the organism was found.
“Farmers received compensation for the difference between the normal market value of the stock and the amount received when the stock was culled. They could then restock their farms to replace the culled animals.
“A number of affected farmers are using certain cost schemes to value their breeding stock, which means a significant tax bill can arise in the year they receive a compensation payment.
“Following discussions with Federated Farmers and Chartered Accountants of Australia and New Zealand we’ve agreed the best immediate solution. We will change the law to allow the additional income to be evenly spread over the following six years, subject to some conditions.
“It will require legislation which is yet to go through Parliament. However, it will apply retrospectively, from the 2017-18 income year. This should help farmers to deal with their tax obligation in what is an already stressful time,” Nash said.
Affected farmers or their tax agents can find technical information on Inland Revenue’s website at taxpolicy.ird.govt.nz/bovis
Primary Industries Summit and Awards put off
The Primary Industries Summit and Awards has been postponed from June 24 and 25 to November.
The nomination deadline for the awards has also been pushed back to give everyone enough time to take part in the process. The new deadline is November 1.
Angus national sale cancelled
The Angus NZ board has cancelled the PGG Wrightson Livestock Angus National Sale for 2020.
The sale, which was to be held on Wednesday May 13 in Palmerston North, cannot proceed amid the covid-19 pandemic.
The Allflex NZ Angus Bull Unit open day scheduled for April 6, the annual meeting on March 29 have been cancelled and the gala dinner celebrations on May 13 has been postponed.
Forest exports on hold
The Forest Owners Association is backing the Government’s strategy to combat covid-19 as just about all parts of the forest industry are in shut-down.
President Phil Taylor said the association appreciates the Government’s difficulties in working in great haste to protect people against the virus and deciding which activities are essential.
“Right from the outset of this crisis we indicated we wanted to work with the Government officials and ministers to be part of NZ’s response to the economic and public health threat.
“We are working closely with the Forest Ministry on how we support the Government’s strategy by rapidly transitioning out of our exporting, for the time being, and minimising the work we do in our forests for as long as is necessary. We expect all of our members will be doing everything they can to keep themselves safe and so keep others safe.”
Drought assistance extended
Government support for farmers and growers affected by drought has been expanded with access to Rural Assistance Payments (RAPS) available throughout the North Island, parts of the South Island and the Chatham Islands.
RAPs are payments equal to Jobseeker Support. Tax relief measures are also available and people are encouraged to apply for other kinds of assistance, for example hardship grants to refill water tanks or cover other unexpected costs.
People affected by drought in Northland and parts of Auckland were given access to RAPs on March 2.
That has been extended to include the rest of the North Island and the South Island from and including the Christchurch City Council area, north, excluding the West Coast.
Agriculture Minister Damien O’Connor says the extreme and prolonged nature of the dry spell is taking its toll on farmers and growers and more support is needed.
“The pressure on our rural communities right now is extreme and this Government is committed to helping them get through.
“We’re continuing to keep a close eye on conditions around the country in case more help is required. The Government is committed to doing all we can to support farmers and growers at what is a very challenging time.”
Contact the Rural Support Trust for details.
