Media statement of 18 April 2001
Hon Annette King
Minister of Racing
Hon Michael Cullen
Minister of Revenue
MEDIA STATEMENT
Taxation rates to change for broodmares
Racing Minister Annette King and Finance Minister Michael Cullen say broodmares will be depreciated at a faster rate with changes to bloodstock taxation rates announced today.
From 1 April this year the depreciation rate applying to broodmares will be increased so that they are depreciated by the age of eleven. The previous rate saw them depreciated at fifteen years of age.
Dr Cullen said representatives from the bloodstock industry had been working with Inland Revenue officials for the past 18 months. "The professional attitude of the breeders associations has been most commendable. They developed a good working relationship with officials and ensured a thorough investigation of industry data was undertaken."
Mrs King said: "The breeders successfully argued on strong evidence that the broodmare depreciation rate was unfair. The changes should improve viability and will, I hope, help reverse the recent trend of declining numbers of New Zealand-bred horses.
"Increasing broodmare numbers is vital for racing's wellbeing. If horses are not being bred we can't go to the races to see them, bet on them, sell them or send them off to thrill us at Dubai. This is an important change and recognises that the bloodstock industry is a serious business. I am confident that the industry will make full use of this opportunity."
For more information, contact John Harvey (04) 471 9305.