Source: Inland Revenue Department –
The Government intends to introduce legislation to ensure that farmers whose herds were culled in response to the Mycoplasma eradication programme will not face an undue tax burden.
The proposed changes will be included in a future tax bill and would apply from the 2018 income year, as culls began in late 2017. As the proposals have not yet been through the Parliamentary process, they are subject to change.
For more information see the Minister of Revenue’s media statement and fact sheet.
Hon Stuart Nash
Minister of Revenue
27 March 2020
Tax relief for Mycoplasma Bovis farmers
Farmers whose herds were culled in response to the outbreak of Mycoplasma bovis will be able to 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 may 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 COVID19 outbreak around the world,” said Mr Nash.
“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 th