Gift horse for new in­vestors

The Southland Times - - National News / Budget 2018 - Tom Pullar-Strecker

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.

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