Farming update: Tax, Improving Farm Value, Dairy Women’s Network Awards

by | Jun 7, 2022 | Advice, Farming

As we head into winter, we tip our hats to the Kiwis working the land. The 83,000+ workers who face a unique set of unpredictable and uncontrollable challenges.

Let’s talk tax for Farmers: Changes to GST and KiwiSaver

GST

Goods that are exported from New Zealand can be zero-rated, with GST being able to be claimed on purchases or expenses incurred in providing those exports. Recent changes to the GST rules which impact the export of goods include:

  • where goods are imported or exported, the domestic (New Zealand) transport portion of the goods can also be zero-rated
  • goods provided ‘free on board’ to both resident and non-resident can be zero-rated, provided the goods are entered for export by the supplier and the recipient physically exports the goods from New Zealand (previously this only applied to supplies of such goods to non-residents)
  • While not affecting New Zealand farmers directly, non-residents can now claim import GST (NZ GST levied at the border) provided the imported goods are sold to GST registered persons in New Zealand. This will allow for more efficient processing of GST costs on imports where this applies.

KiwiSaver

If you have employees signed up to KiwiSaver, let them know they can now request changes to their rate through their myIR account or by contacting their KiwiSaver scheme provider.

Raise your farm’s value by reducing its environmental impact

The Ministry for Primary Industries is funnelling money into technology research with a focus on fast-tracking the delivery of a digital solution for Farm Environment Plans (FEPs).

FEPs help to identify and act on environmental risks on-farm and show progress on environmental objectives. It’s hoped that by monitoring our standards with high-tech solutions, farmers can build export value by satisfying global consumer expectations.

Agricultural products make up around 80% of the country’s total exported goods, so ‘smart farming’ to lead the world in environmentally-friendly practices is a logical move.

Dairy Women’s Network Awards – calling for nominations

The Dairy Women’s Network (DWN) is calling for nominations for its Regional Leader of the Year award. The award celebrates its volunteers who host gatherings, organise workshops, offer support and keep rural women connected. Head to the DWN website for details.