Smart farm­ing ben­e­fits ev­ery­one

Take the time to claim a re­fund of the ex­cise duty

Matamata Chronicle - - Rural Delivery - By STEW WADEY,

May 31 sees the end of a live­stock pas­toral farm­ing sea­son which pre­sented a few chal­lenges to say the least.

Three drought years out of the last five sea­sons does have an ef­fect on our ur­ban and ru­ral com­mu­nity, but the law of av­er­ages in­di­cates we are due for a good one soon.

I re­it­er­ate, one dol­lar spent in town by ru­ral folk goes round five times.

Sheep and beef farm­ers tend to have their fi­nan­cial years April 1 to March 31 while for most dairy farms’ it’s June 1 to May 31. To­wards the end of each fi­nan­cial year their re­spec­tive ac­coun­tants send out end of year rec­on­cil­i­a­tion re­minders of what in­for­ma­tion is re­quired.

I would like to re­mind farm­ers who do not le­git­i­mately claim a re­fund of the ex­cise duty and ACC levy on their farm-use petrol to con­sider do­ing so.

MR70 forms are read­ily avail­able to down­load from

Be­fore send­ing off fi­nan­cial year-end doc­u­ments to your ac­coun­tant, make a copy of the on-farm fuel de­liv­ery in­voices.

It is quite easy to file one an­nual re­turn that re­quires four claims over a 12 month year as they are bro­ken up into quar­ter pe­ri­ods, end­ing March, June, Septem­ber and De­cem­ber.

It ap­pears many farm­ers do not claim but it is well worth the lit­tle ef­fort to do so.

Em­ploy­ers of PAYE farm em­ploy­ees would have now pre­sented wage and tax de­duc­tion and other per­ti­nent in­for­ma­tion doc­u­ment for the fis­cal tax year ended March 31, 2013, to their em­ploy­ees or should have done so by now.

I strongly sug­gest that all PAYE farm em­ploy­ees get some­one they trust to ac­cess In­land Rev­enue Depart­ment cal­cu­la­tors to see where they are at with the IETC (In­de­pen­dent Earner Tax Credit).

If the tax cal­cu­la­tion shows a re­fund, then con­sider fil­ing a tax re­turn.

The National Agri­cul­tural Fiel­d­ays is yet again fully sub­scribed by ex­hibitors.

Fiel­d­ays at­tracts many ru­ral folk to that iconic event but I pass on a con­cern about the elec­tronic chip no pin type of eft­pos cards.

I am told that they are ap­par­ently easy to a scam, even though they are in your wallet in a crowd.

A tele­vi­sion com­mer­cial in­di­cated to me there is an $80 per trans­ac­tion limit with this kind of card.

My rec­om­men­da­tion would be to ac­cept a few more sec­onds of time with a swipe card and pin eft­pos.

Re­cent news re­ports have high­lighted for­eign na­tion­als’ suc­cess­ful credit/ debit card scams on au­to­matic teller ma­chines in New Zealand, to which banks have urged peo­ple to ob­serve and re­port any dif­fer­ence with a ATM, es­pe­cially where you in­sert your card.

Read your trans­ac­tion state­ments reg­u­larly. Banks are try­ing to be as ef­fi­cient as they can, to make it eas­ier and eas­ier for you to make elec­tronic cash trans­ac­tions.

It is your re­spon­si­bil­ity for the se­cu­rity as­so­ci­ated with elec­tronic card money man­age­ment.

My col­league, chair­man of Te Aroha Dis­trict Fed­er­ated Farm­ers An­drew McGiven, has th­ese views on ed­u­ca­tion and farm­ing:

As an in­dus­try we are only as strong as our weak­est link, so this is where I be­lieve that ed­u­ca­tion plays its part in as­sist­ing all of us in mak­ing bet­ter de­ci­sions both as in­di­vid­u­als and as an in­dus­try.

Pri­ma­ry­ITO (for­mally AgITO) in con­junc­tion with Dairy NZ and Win­tec have just launched a National Diploma Ad­vo­cacy Net­work, de­signed to en­cour­age farm­ers to im­prove their knowl­edge of fi­nance, re­source and staff man­age­ment, bud­get­ing and all the other stuff that most of us do when run­ning a busi­ness.

It is par­tic­u­larly de­signed for those who are just step­ping out in self em­ploy­ment, such as con­tract milk­ing or lower or­der sharemilk­ers, but is also ap­pli­ca­ble for the older farmer who would like to im­prove and en­hance their knowl­edge.

Pri­ma­ry­ITO wants 1000 trainees a year to grad­u­ate from the diploma pro­gramme by 2020, at present they only get about 80.

Just think about the im­pact 1000 fi­nan­ciallyas­tute farm man­agers and sharemilk­ers will have on our in­dus­try. Think of some of the stress they could avoid if they go into ne­go­ti­a­tions with their eyes wide open with re­gards to ob­tain­ing fi­nance, tax­a­tion re­quire­ments and the like.

Life would cer­tainly be a lot eas­ier for both th­ese (some­times) new en­trants to the farm­ing sec­tor and their em­ploy­ers/land own­ers. If we can re­duce the num­ber of busi­ness fail­ures and peo­ple leav­ing the in­dus­try due to fi­nan­cial con­straints/ hard­ship then surely we would have an in­dus­try that is truly re­silient.

So if you get the op­por­tu­nity to hear one of th­ese ad­vo­cates talk about how the diploma worked for them and/or changed their ap­proach to busi­ness and farm­ing, please have a lis­ten and see if it can do the same for you. As an in­dus­try we need smarter and more busi­ness savvy peo­ple out there to make us stronger as a whole.


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