The New Zealand harness racing sector is set to benefit from a tax policy proposal that will likely save industry stakeholders thousands of dollars.

In a press release dated 31st of January, RT Hon Winston Peters, announced the following and although failing to mention the harness racing code by name, participants can be sure this proposal is set to benefit investors in both racing codes;

31 January 2025

Tax policy proposal would boost NZ racing

Racing Minister, Winston Peters has announced the Government is preparing public consultation on GST policy proposals which would make the New Zealand racing industry more competitive.

“The racing industry makes an important economic contribution. New Zealand thoroughbreds are in demand overseas as racehorses and for breeding. The domestic thoroughbred industry put nearly a billion dollars into the economy in 2022/23,” Mr Peters says.

Bloodstock breeders often join together in a joint venture when investing in a thoroughbred, helping with the initial purchase price and ongoing costs.

Mr Peters says common practice amongst joint ventures including bloodstock breeders is to individually claim GST deductions in their own GST returns. Inland Revenue has however recently concluded that the current rules do not allow this.

“To comply with this, breeders would incur the compliance cost of registering and filing GST returns for each horse separately every month or every two months. The Government is proposing to take a pragmatic approach and avoid imposing compliance costs by allowing current practice. 

“If this proposal proceeds, it will place the New Zealand industry on a more equal footing with the Australian industry,” Mr Peters said.

The consultation document is expected to be published in the coming months on taxpolicy.ird.govt.nz.

To read the full statement click here 

by Harnesslink Media