Skip to Content

Business income tax
Te take whiwhinga pakihi

Income equalisation scheme

The income equalisation scheme allows farmers, fishers and foresters who are eligible taxpayers to even out fluctuations in income by spreading their gross income from year to year.

Discretionary relief

For farmers whose current or future income will be significantly affected by extreme events.


Find out who is an eligible taxpayer and examples of activities that would and would not qualify.

How the scheme works

The scheme works in a similar way to a savings bank account. Eligible taxpayers establish an income equalisation account so that deposits can be made. The deposit is held for a maximum period of five years. Generally the minimum deposit period is 12 months but in certain circumstances a refund can be paid out before this.


Find out how to make a deposit, restrictions on deposits and new deposits from a refund.


Find out about requesting an income equalisation refund and refunds for adverse events or hardship.

During adverse events

The adverse event income equalisation scheme operates in conjunction with the standard income equalisation scheme. It allows the deferral of income tax on additional income which is generated by the forced sale of livestock from the year of sale to the year the livestock is replaced.

Special circumstances

There are a number of circumstances where the usual income equalisation regulations may not apply.


Terms related to income equalisation.



Date published: 17 Mar 2014

Back to top

Individuals & Families


Non-profit organisations