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Update on bloodstock taxation amendments

It is the NZTBA's understanding that the amendments to the bloodstock taxation regime announced recently by the Rt. Hon Winston Peters, Minister for Racing, will have the following outcomes for owners and breeders.

The changes are:

1 Stallion write-downs, as a percentage of cost - 50%

2 Stallion write-downs, where not previously used for breeding in New Zealand, when taken as a percentage of the diminishing value of the stallion -75%

3 Broodmares - decrease in the write-down period so that they are completely written down by age 9 (previously age 12).

4 Broodmares - mares that are retired to stud at age 8 and over may be written-down in full in that income year (previously a minimum period of three years).

5 Commencement date for the new provisions is 1 August 2006.

The 25% loading on write-down rates for mares (that have not previously been used for breeding in New Zealand) first introduced in 1991 as a "temporary" measure remains in place. This means that the broodmare write-downs as amended will increase by this 25%, exactly as previously, with the effect of reducing the write-down period slightly.

Work is progressing on extending the "12-month rule" for horse exports overseas to 24 months. (This does present GST problems in respect of horses raced by the purchaser before export.)

The amendments also include the formal reduction of totalisator duty to 4% of betting profits. This has been estimated to be worth approximately $32 million annually to the three codes.


- NZTBA