31 March 2023

It is going to take some time for the emotional impact and the scars to heal from the Cyclone in February. Steps are being made to ease the financial burden on those impacted – at the time of writing this many organisations and the government are offering assistance and support, no doubt this will only be the beginning.

Many of those impacted have not been able to fully assess the damage their properties and businesses may have incurred yet, and the full impact won’t be felt for some time to come.

It is important to systematically assess the damage and the associated cost of the clean up or repair work that needs to be done so you have an idea of the likely costs and cashflow implications, this will then enable you to prioritise the most important work that needs to be carried out and will also enable you to make decisions around funding.

Your advisors will be able to assist with preparing budgets and forecasts of proposed work and impacts on business trading, looking at debt repayment options and cashflow impacts so you are fully informed and able to have conversations with lenders around what support you require from them.

It is also important to look after your mental health during this time and keep in contact with neighbours and your support networks whether professional or personal, Rural Support Trusts and Sector Groups can provide support outside of your normal networks.

There is also funding and support available from other channels, and it is likely that some of these will continue or at least may be repeated once the true costs and impacts are understood which will take time. Regularly check the MPI and Sector group websites and read any correspondence you receive to ensure you are not missing any opportunity that comes through.

MPI funding is available of up to $10,000 for pastoral and arable farmers to assist with initial recovery on-farm, and up to $2,000 per hectare (up to a maximum of $40,000) for growers to assist with preserving trees and future production.

As for insurance, it is important to review and check your insurance policies or contact your insurance company or broker to see if you have any potential claim for fences, culverts, or any other infrastructure damage you may have incurred and get your claim submitted.

IRD are offering support in the following forms –

The declaration of Cyclone Gabrielle as an emergency event allows affected customers remission of use of money interest (UOMI) on late payments of tax until 30 June 2023. Remission applies to taxpayers who have been adversely affected by the event.

IRD are allowing late deposits into the income equalisation scheme for the 2022 year and early withdrawals from the income equalisation scheme for the affected regions that qualify for an early refund.

Talk to your advisors around specific options that you may be able to take advantage of. It is important to keep in contact with your team so they are fully aware of your personal situation and are therefore able to offer tailored assistance. For more information or advice, contact the Accounting and Business Advisory team at Findex.