increase font size
Andrew Hoggard.
Federated Farmers says a capital gains tax will add unacceptably high costs and complexity.
"There is nothing in the Tax Working Group’s final report, released today, that persuades us otherwise," Feds vice-president and commerce spokesperson Andrew Hoggard says.
"A CGT would make our well-regarded tax system more complex, it will impose hefty costs, both in compliance for taxpayers and in administration for Inland Revenue, and it will do little or nothing to ease the housing crisis."
Federated Farmers says it is notable that the members of the working group could not agree on the best way forward, with three deciding a tax on capital gains should only apply to the sale of residential rental properties and the other eight recommending it should be broadened to also include land and buildings, assets, intangible property and shares.
"Federated Farmers believes that the majority on the tax working group have badly under-estimated the complexity and compliance costs of what they’re proposing, and over-estimated the returns."
The recommended ‘valuation day’ approach to establishing the value of assets, even with a five-year window, will be a feeding frenzy for valuers and tax advisors, "and just the start of the compliance headaches for farmers and other operators of small businesses that are the driving force of the New Zealand society and economy.
Lifestyle block owners whose properties are bigger than 4,500m2 will not be fully exempt.
"Trying to look for positives, at least if farmers and small business operators have to swallow the CGT rat, it is made slightly more palatable by the TWG’s recommendation that roll-over relief applies."
It would mean that if a farm is ‘sold’ to family successors, or there is a transfer on death or matrimonial separation to a family member, or a business restructuring where there is no change of ownership, there would be no capital gains tax to pay at that time. However, the potential tax liability would accumulate and kick if the farm property was ever sold out of that family’s ownership.
"We’re also glad that the Tax Working Group has confirmed that money that farmers and other land owners spend on QEII and Nga Whenua covenants, locking up and protecting land for biodiversity and environmental enhancement, should be tax deductible.
"There are many other aspects of the TWG’s report that Federated Farmers would wish to examine and debate further."
Academic Dr Mike Joy and his employer, Victoria University of Wellington have apologised for his comments suggesting that dairy industry CEOs should be hanged for contributing towards nitrate poisoning of waterways.
A comment by outspoken academic Dr Mike Joy suggesting that dairy industry leaders should be hanged for nitrate contamination of drinking/groundwater has enraged farmers.
Federated Farmers says the final report into banking competition is a significant step forward for rural New Zealand - and a vindication of the farming sector's concern.
Farmer lobby group Federated Farmers has announced it is supporting a new Member’s Bill which it says could bring clarity to New Zealand farmers and save millions in legal costs.
Federated Farmers says climate protest group Greenpeace is manufacturing outrage and attempting to scare New Zealanders with headlines that have no basis in science.
According to the most recent Rabobank Rural Confidence Survey, farmer confidence has inched higher, reaching its second highest reading in the last decade.
From 1 October, new livestock movement restrictions will be introduced in parts of Central Otago dealing with infected possums spreading bovine TB to livestock.
Phoebe Scherer, a technical manager from the Bay of Plenty, has won the 2025 Young Grower of the Year national title.
The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards, providing the opportunity to honour both rising talent and industry stalwarts.
Award-winning boutique cheese company, Cranky Goat Ltd has gone into voluntary liquidation.
As an independent review of the National Pest Management Plan for TB finds the goal of complete eradication by 2055 is still valide, feedback is being sought on how to finish the job.
