Tax changes to help post-quake rebuild

2:55 pm on 13 April 2011

Tax rules are to be changed to help Canterbury businesses rebuild after the earthquakes.

The biggest change affects the tax liability for depreciation of business premises and plant which have been destroyed.

At present, if an insurance payout is more than the depreciated value of the building, the premises are considered sold and the owner has to repay the depreciation amount.

Revenue Minister Peter Dunne says under the changes depreciation will not have to be repaid until the building is actually sold, providing the owners have rebuilt.

Mr Dunne says this will mean businesses are able to use their full insurance payouts to rebuild.

The amendments are backdated to 4 September 2010, when the first major earthquake struck Canterbury.