Latest news with #RichardMcIntyre
RNZ News
24-06-2025
- Business
- RNZ News
Opposition mounts to new tax for organisations
Federated Farmers says the tax change is sector-wide and creating "huge concern". File photo. Photo: RNZ / Richard Tindiller Federated Farmers and an organisation representing the country's chartered accountants have added their voices to concerns about a proposal to apply more tax to the not-for-profit sector. Inland Revenue (IR) plans to make some societies and associations' membership fees subject to tax . Under current practice, not-for-profits structured as mutual associations do not pay tax on income such as that from members' fees. This principle, known as mutuality, is based on the idea that a group of people cannot make profit from dealing with themselves. The update to IR's interpretation of how tax should be applied seemed to be based primarily on an Australian case from 2004, after which the Australian Government enacted legislative change to avoid the sort of changes IR is suggesting. Federated Farmers said Revenue Minister Simon Watts should rule out the change. It would mean Federated Farmers was charged tax on its membership for the first time. "This is not a routine tax consultation - this is a significant new interpretation that overturns 20 years of settled practice," Federated Farmers board member Richard McIntyre said. "This isn't a minor tweak - it's a fundamental shift in how the Inland Revenue Department interprets the law. "It would have serious consequences for New Zealand's not-for-profit sector. This would pull the rug out from under about 9000 not-for profits, advocacy groups, professional associations, unions, community organisations, and political parties who rely on membership fees to fund their operations," McIntyre said. "This is not just about Federated Farmers - it's sector-wide and is creating huge concern." Chartered Accountants Australia and New Zealand (CA ANZ) tax leader John Cuthbertson said the change would "undermine New Zealand's volunteer spirit". "New Zealand has a strong culture of people banding together to deliver not-for-profit community services and companionship. Mutual organisations are amazingly diverse - think your local sports club, community group, professional bodies and social or hobby clubs. "They have created huge public value along the way, and we do not believe their work should be undermined through additional taxation." He said most were operating on very small budgets and aiming to break even each year. "As it stands, there is inconsistency of tax treatment of not-for-profits. As a result, some organisations are treating member subscriptions and levies as tax exempt, while others are not. Ultimately, tax compliance should not overburden small clubs and societies who rely on volunteers. "Chartered Accountants ANZ believes that, because of the unique nature of the not-for-profit sector, any financial transactions made by not-for-profit organisations should not be subject to taxation. "If there are concerns that some people or organisations might be misusing the tax-free status, for example, by disguising taxable activities as not-for-profit ones, then authorities should respond by conducting focused investigations and enforcing the rules where necessary." He said the law should be changed to confirm the tax exempt treatment of member subscriptions and levies received. "Thousands of chartered accountants give their time to not-for-profits for free, to enable their public good, and they are telling us they are concerned about their future viability if additional tax must be paid," he said. Both organisations said they had made submissions outlining their concerns. Inland Revenue has been approached for comment. It earlier said there would be no implications for income that is subject to specific exemptions from tax such as the charitable exemption. "The draft statement is being consulted following changes or perceived changes to the Commissioner's interpretation of the law as it relates to associations whose income is not tax exempt, the object being to test whether the legal reasoning for the interpretation is sound." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
09-06-2025
- Business
- RNZ News
Calls for government to unlock KiwiSaver to buy farms
money farming 29 minutes ago There have been calls for the government to unlock KiwiSaver so the funds can be used to buy a first farm, not just a house. At the moment if you have been contributing to KiwiSaver for three years you can withdraw almost all the money to buy a first home to live in. Now, Federated Farmers has launched a petition urging the government to losen the rules for accessing the retirement scheme and have said it will turbo charge the next generation of famers. Federated Farmers Dairy chair, Richard McIntyre spoke to Lisa Owen.
Scoop
09-06-2025
- Business
- Scoop
Federated Farmers Launches KiwiSaver Petition
Press Release – Federated Farmers Federated Farmers has launched this petition: to hold the Government accountable and send a clear message that its time to follow through on their promise. Federated Farmers has launched a nationwide petition calling on the Government to urgently change the KiwiSaver rules to help young farmers get their foot on the ladder. 'Accessing your KiwiSaver to buy your first farm, flock, herd or home has been an incredibly hot topic for farmers,' Federated Farmers dairy chair Richard McIntyre says. 'On the campaign trail of the 2023 election, Todd McClay stood up in front of young farmers in Morrinsville and made a promise that he would make it happen. 'I'm sure he had the best of intentions, but unfortunately farmers have been bitterly disappointed by the lack of action from the Government on the issue to date. 'That's why Federated Farmers has launched this petition: to hold the Government accountable and send a clear message that it's time to follow through on their promise.' The petition's launch has been timed to coincide with the National Fieldays, where thousands of farmers, industry leaders and politicians will gather at Mystery Creek. 'Politicians are always out in force at Fieldays, rubbing shoulders with farmers, and we really wanted to make sure KiwiSaver issues were a topic of conversation,' McIntyre says. 'Allowing young farmers to access their KiwiSaver to buy their first herd, home, farm or flock is the number one thing the Government could do to help our next generation of farmers. 'It would shave years of hard work and saving off their progression through the industry, and really turbocharge their farming careers. 'Why is the Government okay with that money being managed by stockbrokers and invested in Fortune 500 companies, but not by a farmer buying a herd to go sharemilking?' McIntyre says he can't see any reason the Government wouldn't throw their full support behind making this policy change happen. 'A lot of young urban people enter KiwiSaver because it's a good way to build a deposit for their first house. They're saving for a home early on – not for their retirement. 'We're asking for young farmers to have the same opportunity – a one-off withdrawal early in their careers to help them get ahead by purchasing their first home, farm, herd, or flock.' New Zealanders are encouraged to sign the petition online at or at Federated Farmers' Fieldays site D70.
Scoop
08-06-2025
- Business
- Scoop
Federated Farmers Launches KiwiSaver Petition
Federated Farmers has launched a nationwide petition calling on the Government to urgently change the KiwiSaver rules to help young farmers get their foot on the ladder. "Accessing your KiwiSaver to buy your first farm, flock, herd or home has been an incredibly hot topic for farmers," Federated Farmers dairy chair Richard McIntyre says. "On the campaign trail of the 2023 election, Todd McClay stood up in front of young farmers in Morrinsville and made a promise that he would make it happen. "I'm sure he had the best of intentions, but unfortunately farmers have been bitterly disappointed by the lack of action from the Government on the issue to date. "That's why Federated Farmers has launched this petition: to hold the Government accountable and send a clear message that it's time to follow through on their promise." The petition's launch has been timed to coincide with the National Fieldays, where thousands of farmers, industry leaders and politicians will gather at Mystery Creek. "Politicians are always out in force at Fieldays, rubbing shoulders with farmers, and we really wanted to make sure KiwiSaver issues were a topic of conversation," McIntyre says. "Allowing young farmers to access their KiwiSaver to buy their first herd, home, farm or flock is the number one thing the Government could do to help our next generation of farmers. "It would shave years of hard work and saving off their progression through the industry, and really turbocharge their farming careers. "Why is the Government okay with that money being managed by stockbrokers and invested in Fortune 500 companies, but not by a farmer buying a herd to go sharemilking?" McIntyre says he can't see any reason the Government wouldn't throw their full support behind making this policy change happen. "A lot of young urban people enter KiwiSaver because it's a good way to build a deposit for their first house. They're saving for a home early on - not for their retirement. "We're asking for young farmers to have the same opportunity - a one-off withdrawal early in their careers to help them get ahead by purchasing their first home, farm, herd, or flock." New Zealanders are encouraged to sign the petition online at or at Federated Farmers' Fieldays site D70.
Scoop
02-06-2025
- Business
- Scoop
Farmer Satisfaction With Banks Better
Farmers are feeling more satisfied with their banks, pointing to improved communication and less 'undue pressure', Federated Farmers' latest Banking Survey shows. "It's good to see things are improving but farmers' trust in their banks is still fragile," Federated Farmers banking spokesperson Richard McIntyre says. "Where farmers have given positive feedback in the survey, it's usually about their individual managers, not bank policy. "When those individual staff leave, that trust can erode quickly." Nearly 700 farmers responded to the May survey, with 60% of them 'satisfied' or 'very satisfied' with their bank. That's up from 53% in Federated Farmers' November 2024 survey but well shy of the 80% peak rating recorded in 2017. "It's helped that over the last year banks have been grilled by the select committee inquiry on banking competition that Federated Farmers pushed for," McIntyre says. "There has been a lot of scrutiny and banks have definitely been feeling the pressure, so it's good to see them start to lift their game as a result." In the survey, 61% of farmers rated their bank's communication as good or very good - the best result since 2020. Just on 18% of farmers said they were feeling undue bank pressure, down from 24% six months earlier and the lowest rating recorded since 2018. "Many farmers said bank pressure has eased over the past six to 12 months, with some noting their bank had become more understanding or backed off earlier demands," McIntyre says. "However, for those still under pressure, the situation remains serious. "A few farmers shared difficult stories with us, including being forced out of farming altogether." One farmer said: "We've sold the farm. If the bank had been more understanding, things might have been different." The survey shows interest rates on farm mortgages have also eased by about 1% since late 2024 to an average of 6.52%. "Even so, we're still very concerned that, compared with average residential mortgage interest rates, farm mortgage interest rates are around 0.92% higher - and were about 1.12% higher late last year," McIntyre says. From 2016 until 2021, the margin of difference hovered between about 0.6% and 0.35%. "These don't seem like big differences, but when total agricultural lending is around $61 billion, a 1% margin difference puts $600 million of extra interest costs on the sector each year. "It's crazy how much more money farmers are having to shell out to the banks in interest payments. "Part of the problem is the unnecessarily conservative Reserve Bank capital requirements, and the recent decision to review those settings is very welcome," McIntyre says. "What we desperately need as well is stronger competition among banks in the rural sector. That would really help lower costs for farmers and drive better bank performance." In the open comment section of the May survey, many farmers said they were still paying far too much in interest. Several expressed frustration that banks were quick to hike rates, but slow to pass on savings when the OCR falls. "OCR drops come through like a feather. Increases hit like a brick," one said. The May survey also found that just under 20% of farmers said their bank has inquired about their farm's emissions profile or environmental footprint as part of loan requirements. Westpac and ASB were much more likely to ask such questions, at 32% and 40% respectively. "Federated Farmers' view is that our democratically elected Government is the correct body to be setting emissions and environmental policy, not banks," McIntyre says. "Farmers are closely watching what's happening with Bills passing through Parliament, promoted by MPs Andy Foster and Mark Cameron, that would rein in banks' ability to make lending decisions on non-commercial grounds." Foster's proposed law would prohibit banks from refusing loans or services purely for environmental or emissions reasons. May survey responses show 70% of farmers support such a law (18% oppose, 12% unsure). Other key findings from the survey: Farm Debt Levels: 84% of farmers surveyed have a mortgage. The average mortgage in the survey was $4.7 million, compared to $4.4 million six months ago. Overdraft Use Declining: Only 76% of farms now have an overdraft facility, down from 88% a decade ago. Overdraft Limits: Average overdraft limits have risen to $349,000. Arable farms saw the largest increase (from $500k to $718k). Overdraft Interest Rates: Rates have dropped. The average is now 9.0%, down from 10.0%. Rabobank offers the lowest (7.3%), while BNZ remains highest (9.7%). Efficiency Concerns: 19% of farmers feel their bank isn't allowing them to structure debt as efficiently as possible - down slightly from 23% in November. Rabobank and ANZ performed best; Westpac performed worst.
