Farming lobby welcomes ideas from tax working group

  • 20/09/2018

Recommendations on possible changes to the tax system are being welcomed by farming group Federated Farmers.

The Government's Tax Working Group (TWG) released its initial report on Thursday.

Key recommendations include changes to how capital income is taxed and heftier environmental taxes.

"The report provides a useful resource for how the tax system could be improved," says Federated Farmers vice president Andrew Hoggard.

"It clearly articulates and explores the issues we raised in our submission."

A big issue explored in the report is whether to extend New Zealand's taxation of capital income. 

"Federated Farmers remains opposed to a significant broadening of the capital gains tax - particularly if it taxes unrealised capital gains," Mr Hoggard says.

"The report outlines the value of providing 'roll-over relief' for farms sold to the next generation and for farmers wanting to 'trade up' to a bigger more expensive farm. 

These were two critical issues that were raised in the groups submission to the TWG in April, and Mr Hoggard is pleased they have been noted.

The other issue of concern for farmers was the possibility of new taxes around the environment in the immediate future.

"While the TWG suggest that the potential benefits and problems with environment taxes should be further explored, it is pleasing that the TWG recognises that, 'taxes are not well suited to all environmental problems'," says Mr Hoggard.

Federated Farmers says it wants to engage further with the TWG as it continues its work, to ensure the New Zealand tax system remain simple, fair and equitable to all.