Revenue Minister Judith Collins today welcomed tax measures announced by Inland Revenue to help farmers affected by the Northland drought.
Inland Revenue will allow farmers to make late income equalisation deposits from the 2016 income tax year and to apply for early refunds. This allows farmers to average their taxable income over several years more easily.
Ms Collins says that this would mean that farmers will be able to better plan their financial response to the drought conditions.
“This is a difficult time for many in the Northland region and those affected by the dry weather will have more urgent issues on their minds right now than tax.”
“Normal tax rules do not take into consideration extraordinary events like this drought so it’s important we provide some more flexibility to reflect the reality of the situation Northland farmers face,” Ms Collins says.