Eligibility for income spreading following a cull

These are the eligibility requirements for spreading income over tax years, if compensation for culling a herd has given you a high taxable income.

• Biosecurity New Zealand has required a cull of stock affected by 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 breeding stock because of Mbovis, 75% of the culled stock must be mixed-aged cows. This applies to any class, or combination of classes, of breeding stock. You must also make sure the:

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

If you meet these requirements, you can spread income from a cull when the cull year falls on or before the 2027-2028 tax year.

Send a notice for spreading income from culls