Skip to main content

Delays to response times: It's taking longer than usual to answer calls and myIR messages, including for unclaimed money. You may be able to use self-service options in myIR. You can also find information on our website by typing in what you want to do in the search bar. Thank you for your understanding. Log in to myIR

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.
Last updated: 19 Apr 2021
Jump back to the top of the page