From 1 April 2016, a differential tuberculosis (TB) slaughter levy for cattle was introduced which imposes different rates for beef and dairy animals, replacing the former cattle levy.

The new slaughter levy rates are $13 per head for dairy animals and $6.30 per head for beef animals. There is also a $11.50 per head for live cattle and deer that are exported. The maximum rate for the cattle slaughter levy remains at $15 per head for adult dairy cattle but changes to $8.50 per head for adult beef cattle. All rates are exclusive of GST.

The National Animal Identification and Tracing (NAIT) slaughter levy remains at $0.50 per animal. The NAIT ‘impractical to tag’ levy will remain at $13 per untagged animal.

The new slaughter levies have not been well published within the farming community. The animal is registered under dairy or beef when that animal is first NAIT tagged and that status will stay with them until it is changed within the NAIT system. This is important to know when you are trading beef cattle, as you need to be aware what they were originally registered as and adjust the status accordingly.

What farmers need to do:

1. Check the production type of your registered animals in NAIT, as this is used at slaughter to charge the correct rate.

2. Check your farm production type in NAIT.

3. Specify if the tags you are buying are for dairy or beef animals.

For dairy animals, whose production type changed 62 days before the slaughter, or that moved to a beef farm 62 days before the slaughter, you will be charged in accordance with the beef levy. Otherwise, for those animals you will be charged the dairy levy.

Farmers should check the kill sheets and under deductions it will show whether they were killed as beef or dairy. If you check back and find any incorrectly charged, OSPRI (a partnership between primary industries and the government, who manage the NAIT scheme) should be contacted to refund the extra charges. Do not contact the slaughter companies, as they are required to charge according to the NAIT tag status.

As accountants, we are seeing quite a few incorrect classifications on kill sheets. On one farm, we found 141 animals incorrectly classed as dairy, so they received a refund of $944.70 and another 79 recorded in the NAIT system classed as dairy instead of beef (which were adjusted before slaughter). It is worth checking. Call OSPRI (0800 482 463) and they can talk you through the process. They will need a copy of your invoices and bank account number when making a claim.

Speak to your Findex adviser for further information.