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What you earn from a cull may be transferred from the tax year of the cull. You can do this by spreading this income evenly over the next 6 tax years.

Eligibility for spreading income

To use this option, you'll need to meet the following requirements.

  • Biosecurity New Zealand has required a cull of stock affected by Mycoplasma bovis (Mbovis).
  • Your business is a dairy or beef-breeding operation
  • You've used the national standard cost (NSC) or self-assessed cost (SAC) scheme to value the female breeding stock that were culled.

If you're not sure about these schemes, make sure you talk to a tax agent.

Requirements for culled breeding stocks

If you culled a breeding stock because of Mbovis, it must be made up mainly of mixed-aged cows. This applies to any class, or combination of classes, of breeding stock. You must also make sure the:

  • stock is mostly replaced by purchasing equivalent breeding stock by the end of the tax year following the cull year
  • replacement stock continues to be valued using, as relevant, NSC or the SAC schemes.

You can spread income from a cull when the cull year falls between the 2017-2018 and 2027-2028 tax years.

Send a notice for spreading income from culls

To spread income from culls, you'll need to let us know. Send a notice to us if you're:

  • eligible
  • deciding to spread the income you earned from culling a herd
  • sending your notice to us before the due date.

Due date for sending the notice to us

If you decide to spread income from a cull, send us the notice for culls in the:

  • 2021 and earlier tax years by your due date for 2021 income tax returns
  • 2022 and future tax years by your due date for that year's income tax return.