The NZ Institute of Chartered Accountants (NZICA) has recently reviewed the methodology for calculating the national standard cost for dairy cattle. It has been decided that in future, grazing expenditure will be identified separately as a specific cost for rising one year (R1) and rising two year (R2) dairy cattle. This is in order to recognise the increased use of off-farm grazing by dairy farmers, and will provide a more accurate national standard cost for R1 and R2 dairy cattle. The national standard cost calculated for R2 dairy cattle will be significantly different and affect the value of mature animals. Given the scale of this change, Inland Revenue has decided it will be phased in over 3 years, commencing with the 2014 national standard cost determination.
For more information please go to http://www.nzica.com/News/Archive/2013/August/Cattle-catches.aspx, or contact Mark Foster at firstname.lastname@example.org