NZX has developed milk price futures and options contracts in response to the need for risk management tools for New Zealand’s dairy industry.  To help you get your head around the tax treatment of these contracts, Inland Revenue has released a determination – G31 NZX Milk Price Futures Contracts: an expected value approach.  It’s clear and simple and applies to all transactions entered into on or after 1 April 2020.

If you’re considering using these contracts, make sure you understand how they work and seek advice from a broker.  Call us if you’d like to talk through the tax implications.