On 14 March 2024, Minister for Agriculture, Todd McClay, declared a medium-scale adverse event for drought in the Marlborough, Tasman and Nelson districts.

On Monday 18 March 2024, he fronted a hastily arranged meeting of affected farmers and growers along with Stuart Smith (Kaikoura MP) and staff from MPI and representatives from Federated Farmers, Wine Growers, and Forestry. Greg Newman, Senior Adviser, was also there from WK.

The type of support on offer is by-in-large provided by the Inland Revenue, who have posted the statement below on their website.

The drought will affect farmers and growers income for the 2024 income year. At this time, the income equalisation scheme may help with cashflows.

For the Income Equalisation Scheme, Inland Revenue have the ability to determine a ‘class of case’ that qualify for a late deposit or early refund; for affected customers in the above regions, the Inland Revenue have made a class of case decision.

Income Equalisation Scheme – Deposits

Late deposits for the 2023 year can be made by affected taxpayers until 30 June 2024.

Income Equalisation Scheme – Refunds

Where a farmer or grower has made a deposit prior to the Minister’s declaration early refunds of those deposits will be allowed.

Normally income equalisation deposits are not available for refund until 12 months after the deposit is made.

All applications for an early refund must be in writing and will take approximately 5 days to process. It should be remembered that the refund will be income in the year that the application is made unless the customer elects to treat the refund as income in the prior income year where the application for refund is made in the specified period.

Unable to pay on time – Outstanding tax

Again, from the Inland Revenue website.

If an adverse event (such as this) affects your ability to make your tax payments, Penalties and interest may be remitted. Learn more here.

Does this affect you? If so please contact your point of contact at WK to discuss your personal circumstances.

Since writing this blog the drought relief has now been extended to Canterbury and Otago. Learn more here.

Share this