Tax working group recommends support for covenantors
QEII National Trust is pleased to see the Tax Working Group’s recommendations acknowledged the scope for the tax system to support, sustain and enhance land protected by QEII covenants.
Mike Jebson says “our covenantors know the value of investing in protected private land and we are pleased to see the Tax Working Group include suggestions that costs incurred in looking after land protected by QEII covenant should be treated as deductible expenses for tax purposes in their interim conclusions.”
Our members will also appreciate seeing the call for greater assistance for conservation efforts like weed, and pest control. Our members are doing great work within and around their protected land and anything to encourage that work will be appreciated. Research by the University of Waikato Institute for Business research found that on average the owners of our almost 4,500 QEII covenants around the country spent approx. $64,000 to establish their covenant and are spending on average around $6,000 annually on covenant maintenance and enhance to protect these special places.
QEII CEO, Mike Jebson says “we are pleased to see support from organisations like Federated Farmers and ECO NZ on both issues. This support for the value of privately protected land is especially welcome at a time when our Auckland members are losing their rebate on rates for protected land.”
We are hopeful that any changes in the New Zealand taxation system reflect the fact that private land conservation is a financial commitment from landowners who choose to covenant, and requires ongoing costs, thus tax deductions should be necessary.
The ‘Future of Tax: Final Report’ can be viewed on the Tax Working Group website here.