On 31 March 2022, Minister for Rural Communities, Damien O’Connor, declared a medium-scale adverse event for the Southland and Otago regions.
At this time, the income equalisation scheme may help with cashflows.
The drought will affect farmers and growers income for the 2022 year. Late deposits for the 2021 year can be made until 31 May 2022.
Early refunds of deposits will be allowed. 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 a medium or large-scale adverse event 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.
All applications for an early refund must be in writing and will take approximately 20 days to process. 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, please contact us on our emergency helpline 0800 473 566.
New Zealand legislation
Income Tax Act 2007:
- Section EH 4(4)
- Section EH 15(3)