All-Access. All in one subscription.
Subscribe now

All-Access + BusinessDesk Weekly

Pay just
$10
$2
per week
Subscribe now
BEST VALUE

All-Access + BusinessDesk Annual

Pay just
$349
$49
per year
Subscribe now
Learn more
30
Hawkes Bay Today
  • Hawke's Bay Today home
  • Latest news
  • Sport
  • Business
  • Opinion
  • Lifestyle
  • Property
  • Video
  • Death notices
  • Classifieds

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Sport
  • Business
  • Opinion
  • Lifestyle
  • Property
    • All Property
    • Residential property listings
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology

Locations

  • Napier
  • Hastings
  • Havelock North
  • Central Hawke's Bay
  • Tararua

Media

  • Video
  • Photo galleries
  • Today's Paper - E-Editions
  • Photo sales
  • Classifieds

Weather

  • Napier
  • Hastings
  • Dannevirke
  • Gisborne

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In

Advertisement
Advertise with NZME.
Home / Hawkes Bay Today / Business

Changes hit owners

By Jeremy Tauri
NZME. regionals·
21 Oct, 2016 02:29 AM2 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save
    Share this article
Jeremy Tauri.
Jeremy Tauri.

Jeremy Tauri.

We recently moved closer to the city, from a lifestyle block about 25 minutes south of Whangarei.

My wife and I - and more recently our son - had lived there for about five years and we enjoyed the tranquillity. But it takes a lot of work, money and time to maintain this type of property. So I was pleased to make the shift into town.

We never worked our lifestyle block as a business but I could see the costs mounting and the amount of money spent on the gear required just to keep on top of the basics was substantial.

I can understand, then, why some people want to formally set up their blocks as a business so that they can try to claim some of these expenses.

Over the years, I've seen a drop in the number of lifestyle blocks operating as farm businesses.

All-Access. All in one subscription.
Subscribe now

All-Access + BusinessDesk Weekly

Pay just
$10
$2
per week
Subscribe now
BEST VALUE

All-Access + BusinessDesk Annual

Pay just
$349
$49
per year
Subscribe now
Learn more
30
Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Depreciation on garages and sheds formed a large part of the loss creation in these businesses, which people would offset against incomes.

But now more changes are coming, thanks to Inland Revenue proposals.

Historically, fulltime farmers have commonly deducted 25 per cent of their farmhouse expenses from their incomes without needing to provide evidence that they were incurred in the course of business.

Advertisement
Advertise with NZME.

They have also been able to deduct 100 per cent of rates bills and interest costs on loans. But IRD is worried that this is giving farmers the chance to claim tax deductions for what is really just private spending.

It is suggesting that farms, where the cost of the farmhouse is less than 20 per cent of the total value of the farm, will still be able to claim a 100 per cent deduction on interest costs.

However, deductions on rates related to the house and general farmhouse expenses would be at a new flat rate of 15 per cent.

The IRD says that's most likely to affect smaller operations and lifestyle blocks.
IRD is consulting on these proposals until late December.

- Jeremy Tauri is an associate at Plus Chartered Accountants

Save
    Share this article

Latest from Business

Premium
Hawkes Bay Today

Hawke’s Bay wool queen sells business to retire after almost 50 years

Hawkes Bay Today

'Meaningful difference in the world': Two Central Hawke's Bay export businesses on the rise

Premium
Hawkes Bay Today

After 61 years of cutting hair, veteran barber Mike Bird is not done yet


Sponsored

Farm plastic recycling: Getting it right saves cows, cash, and the planet

Advertisement
Advertise with NZME.

Recommended for you

Seymour ran UN letter past Goldsmith before sending, documents reveal
New Zealand

Seymour ran UN letter past Goldsmith before sending, documents reveal

'Developing incident': Inmates set fire to Spring Hill Prison, emergency services scrambling to facility
New Zealand

'Developing incident': Inmates set fire to Spring Hill Prison, emergency services scrambling to facility

Erratic and speeding driver's car spiked by police in West Auckland, dogs help with arrest
Auckland

Erratic and speeding driver's car spiked by police in West Auckland, dogs help with arrest

Warriors forward facing lengthy ban after Dragons win
Warriors

Warriors forward facing lengthy ban after Dragons win

Neil Finn sings for crowds at pro-Palestine march
Wellington

Neil Finn sings for crowds at pro-Palestine march

Police hailed for bravery in 'nightmarish' Tenterfield crossbow attack
World

Police hailed for bravery in 'nightmarish' Tenterfield crossbow attack



Latest from Business

Premium
Premium
Hawke’s Bay wool queen sells business to retire after almost 50 years
Hawkes Bay Today

Hawke’s Bay wool queen sells business to retire after almost 50 years

'I really believe that the young ones are going to come in and just be more innovative.'

13 Aug 06:11 PM
'Meaningful difference in the world': Two Central Hawke's Bay export businesses on the rise
Hawkes Bay Today

'Meaningful difference in the world': Two Central Hawke's Bay export businesses on the rise

13 Aug 12:35 AM
Premium
Premium
After 61 years of cutting hair, veteran barber Mike Bird is not done yet
Hawkes Bay Today

After 61 years of cutting hair, veteran barber Mike Bird is not done yet

10 Aug 12:31 AM


Farm plastic recycling: Getting it right saves cows, cash, and the planet
Sponsored

Farm plastic recycling: Getting it right saves cows, cash, and the planet

10 Aug 09:12 PM

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • Hawke's Bay Today e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the Hawke's Bay Today
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • Hawke's Bay Today
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • NZME Events
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • © Copyright 2025 NZME Publishing Limited
All-Access. All in one subscription.
Subscribe now

All-Access + BusinessDesk Weekly

Pay just
$10
$2
per week
Subscribe now
BEST VALUE

All-Access + BusinessDesk Annual

Pay just
$349
$49
per year
Subscribe now
Learn more
30
TOP
search by queryly Advanced Search