Assistance to kiwifruit growers affected by the PSA virus

We are aware of the PSA virus causing financial issues for many kiwifruit growers, and understand it is likely to affect income for both 2011 and later years.

Income equalisation scheme - deposits

We have the ability under legislation to accept later deposits to the income equalisation scheme than usual.

For the kiwifruit growers affected by the PSA virus the Commissioner has decided to relax the rules by allowing late deposits for the 2011 income year up to 30 April 2012, regardless of when the return is filed or what the due date is for filing the tax return.

An affected grower will need to:

• provide evidence of how they have been significantly affected by the kiwifruit PSA virus - a statement to the effect that they have been significantly affected with the growers or the growers tax agent’s signature is the minimum criteria for this
• make sure we receive the deposit by 30 April 2012
• provide a notice with the deposit stating:
  • the deposit is for the main income equalisation deposit scheme
  • that it is to apply for the 2011 tax year, and
  • that the late deposit criteria in this notice apply.

Income equalisation scheme - withdrawals

Normally income equalisation deposits are not available for refund until 12 months after the deposit is made. However we do have discretion to allow early refunds, particularly in the case of "adverse events" or when the person is suffering serious hardship.

We also have the ability to determine a "class of case" that qualify for an early refund.

We will allow those kiwifruit growers who qualify as above to make early withdrawals. This will also apply to amounts that have been deposited previously but that have been in the scheme for less than a year.

All applications for an early refund must be in writing and will take approximately 20 days to be processed. It should be remembered that the refund will be income in the year that the application is made unless it is elected to treat the refund as income in the prior income year (where the application for refund is made in the specified period).

For more information on income equalisation and deposits please refer to our  Standard Practice Statement 05/09 Income equalisation deposits and refunds.

For more information please contact us on our emergency helpline 0800 473 566.

 

Date published: 29 Feb 2012

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