Gift horse for new investors

Low-income families are not the only winners from the Government’s first Budget, with racehorse investors set to get a multimillion-dollar leg up.

Racing Minister Winston Peters has secured a tax change that means new investors in racehorses will be almost $5 million better off over the next four years.

A rule change will mean new investors will be able to claim tax deductions for the cost of horses, even if they don’t own a horse breeding business.

Deductions would only be allowed for investors in a horse if it was a ‘‘standout yearling’’, and acquired for the purpose of breeding for a profit.

Each yearling would need to be assessed based on the ‘‘virtue of its bloodlines, looks and racing potential’’.

‘‘Further consultation with the industry will be undertaken to finalise policy settings, draft legislation and set up administrative processes,’’ Peters said.

NZ First aimed to re-establish New Zealand as a ‘‘first-tier country in racing’’, he said.

‘‘The previous rules around tax write-downs did not serve their original purpose of promoting new investment, as they favoured established breeding businesses.

‘‘Quality breeding is the life blood of the thoroughbred racing code. It also helps sustain an iconic New Zealand industry and ensures New Zealand horses can compete with the best,’’ he said.