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Change Of Government Will Be Disastrous For Rural Sector Says Hamilton Farm Consultant

Tuesday 19 September 2017, 10:31AM

By Media PA

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Change Of Government Will Be Disastrous For Rural Sector Says Hamilton Farm Consultant
Change Of Government Will Be Disastrous For Rural Sector Says Hamilton Farm Consultant Credit: Media PA

A prominent Hamilton farm consultant believes the ramifications of a Labour win in this week’s general elections will be disastrous for the rural sector and will also be equally devastating for everyone else.

A flurry of taxes proposed by the Labour Party is of grave concern to farm consultant Jim Findlay.

Land Tax has been mooted at 1% of the land value which would be approximately $300/hectare or $30,000 on a typical dairy farm.

The Greens Nitrogen Tax is calculated, by the Greens, as being $11,000 for an average dairy farm.

The Water Tax is said to be 1 cent to 2 cents per 1,000 litres, the amount will depend on irrigation and other uses, but there is no suggestion of a credit to the industry for the water returned as the milk is dried for sale.

The Capital Gains Tax has no details, but is essence a tax on the inflationary growth of the assets being taxed.  We have no idea how far they will go in chasing capital gain, or is it capital growth they are wanting to tax?  Capital growth can be manipulated by a government’s interference in the inflation rates.

“We can safely assume that the Labour’s tax policy will take around $75,000 per annum off each dairy farmer for no additional return.  And don’t forget that on top of the taxes there will be more costs on riparian management and changes required in the on-farm management systems,” Findlay says.

“All commercial land owners (includes residential landlords) will pay Land Tax and it is only the tenants that will end up paying.  The inflationary effect of Land Tax will be widespread as the vets, rural supply companies & the professional support businesses will all have to increase their cost to cover the Land Tax,” says Findlay of AgSafe NZ.

“And don’t forget that the trade arrangements will have to be renegotiated and cow numbers reduced. We don’t need any more taxes!! We need an economy that is growing.”

 

Jim Findlay

AgSafe NZ

027-2872886