The Government's decision to minimise the tax implications for farmers impacted by M bovis is great news at an uncertain and worrying time, says Federated Farmers.
Under the current legislation, farmers whose breeding stock have been culled as part of the eradication effort were looking at a hefty tax bill.
The Minister for Revenue asked his officials to look into the issue in January after concerns were raised and a proposed change has been formulated.
"Ministers have now agreed to advance the required change," said Federated Farmers vice-president Andrew Hoggard.
"Revenue Minister Stuart Nash and Agriculture Minister Damien O'Connor and their officials deserve a great deal of credit for getting onto this in such a timely manner.
"We thank them sincerely on behalf of some very worried farmers."
He said while it affects a relatively small number of farmers, the impact was looking to be immense: "six-figure tax bills at a time of little or no actual income."
What's being proposed?
The additional income could be evenly spread over the six income years after the year of the cull:
- if the culled livestock were substantially replaced within twelve months; and
- to the extent the income was derived from the culling of breeding stock (including their growing replacements) that have been valued under either the national standard cost scheme or the self-assessed cost scheme.
