Federated Farmers president Bruce Wills is urging all farmers in areas declared official drought zones to talk to their accountants following today's announcement that Inland Revenue will exercise its income equalisation discretions to help affected famers meet their tax obligations.

New Zealand trucking operators are paying more than double the amount in road taxes for some heavy vehicles compared to their Australian counterparts and that has a direct impact on freight costs for farmers, says Road Transport Forum chief executive officer Ken Shirley.

Inland Revenue has warned people operating illegal tax schemes in the agricultural and horticulture industry that they will face serious consequences.

Tax law changes around livestock valuation will no longer disadvantage new generation farmers following a successful submission process by accounting firm BDO.

Federated Farmers believes tighter tax rules around livestock valuations have been well-signalled.