Business income tax: Information about relief in the event of extreme weather
Tax relief and income assistance is available to people affected by extreme weather, eg storms, floods and droughts. We have a range of measures to help depending on your personal circumstances and the particular event.
We understand that tax isn't the first thing on your mind. But please contact us with any concerns or questions about tax or income levels, so we can make arrangements to help.
Income equalisation scheme
Farmers who have money deposited in this scheme may be able to make an early withdrawal, or deposit funds from forced sale of livestock.
Note: The term "farmer" includes anybody carrying on an agricultural business on land in New Zealand.
Provisional tax estimates
You may be able to make an estimate or re-estimate of provisional tax, if your circumstances have changed due to extreme weather. We can arrange early refunds if provisional tax has been overpaid.
We'll consider instalments for outstanding tax in some circumstances.
You can apply for a write-off due to serious hardship when you know you won't be able to pay the full amount.
|If we grant relief from payment due to hardship and you have losses to carry forward, these losses will be reduced in proportion to the amount written off.|
Late filing and late payment
Extensions for some income tax returns may be available. Extensions can't be granted for GST and PAYE returns, but any penalties for late filing may be waived. Under limited circumstances penalties for late payments caused by effects of the weather may also be waived.
Certificate of exemption
If you're currently involved in contract work where schedular payments are to be deducted (eg, shearing or other agricultural contract work), you may be entitled to a certificate of exemption.
Find out more about certificates of exemption.
Special tax codes
You may be entitled to a special tax code if you're receiving a salary or wage and have a loss to carry forward. A certificate will be issued to you with a reduced tax rate.
Find out more about special tax codes.
Working for families tax credits
Working for families tax credits entitlements are based on your yearly family income. If your family income changes, your entitlement will change. If your yearly family income decreases you may be entitled to increased payments. You may be able to change the frequency or date of your payments.
Find out more about Working for Families Tax Credits.
Paid parental leave
Eligibility: You'll need to have worked an average of 10 hours per week over six or 12 months before the birth of the child.
Entitlement: Find out more about the current entitlement rates.
If you have trouble making child support payments by due dates you should call us on 0800 221 221. It may be appropriate to re-estimate your income and reduce the assessment.
Find out more about child support.
Other tax measures that could help
These include the following:
- Deductions can be made for farm losses when certain improvements are destroyed or irreparably damaged.
- Livestock or materials donated because of an adverse event may be treated as zero-value rated.
- Payments or donations from charities aren't taxable or liable for GST.
- Tax treatment of insurance payments depends on what the payment is compensating, eg insurance for loss of capital assets is non-taxable, but income-replacement insurance may be taxed.
- Interest on money borrowed to keep the farm going may be deductible.
- Eligibility for independent earner tax credit.
Find out more
To find out more about how we can help you phone us on 0800 473 566 Monday to Friday 8am to 8pm and Saturday 9am to 1pm.
Date published: 02 Jul 2015