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On 18 July 2021, the Minister for Agriculture and Rural Communities, Damien O’Connor, declared the flooding in the West Coast, Tasman, and Marlborough regions to be a medium-scale adverse event. This is affecting taxpayers’ ability to comply with their tax obligations, including filing and paying on time.

At this time, the income equalisation scheme may help with cashflows.

Income equalisation scheme – deposits

 

The floods will affect farmers and growers' income for the 2022 income year.  The returns for 2022 are not due until 31 March 2023 and therefore customers have ample time in which to make a deposit to the income equalisation scheme.

Income equalisation scheme - refunds

 

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 on income equalisation and deposits please refer to our standard practice statement:

Standard Practice Statement 19/03 Income equalisation deposits and refunds

 

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

New Zealand legislation

Income Tax Act 2007:

  • Section EH 15(3)
Last updated: 20 Jul 2021
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