What is Income Equalisation Scheme?
The Income Equalisation Scheme (IES) aims to allow flexibility to income earners from primary industries such as farmers, fishers or foresters who may experience significant fluctuations in their income year to year.
The minimum deposit for IES is $200, and $1000 for environmental restoration. The deposit cannot exceed your net income from the qualifying activity for the financial year.
The deposits will be held for up to 5 years, and you can earn 3% on deposits lasting more than 12 months.
The scheme cannot be availed by certain classes of business such as livestock dealers, hobby farmers, service providers of a farming business etc.
For more on Income Equalisation deposits, visit Income Equalisation Deposits and Refunds.
Who is eligible?
Regarding the Income Equalisation Scheme, eligible taxpayers include:
- Persons carrying on a farming or agricultural business on land in NZ
- Persons who carry on a fishing business
- Persons who derive Income from forestry, but are not a company, public authority, Māori authority or unincorporated body
For more information regarding the Income equalisation Scheme, get in contact with us below!
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