Inland Revenue have released the National standard costs for 2024.
The annually-updated national standard costs are used by taxpayers who have elected to in to this method to value their livestock on hand.
The NSC value of an animal is calculated as its cumulative costs and an adjustment for sales and purchases.
The calculation is straightforward for livestock born on the farm within the tax year, as long as you haven’t also purchased some of the same class of livestock in that year also.
Livestock over 1 year need to have accumulating their past values at those relevant class rates with this year’s value.
For example a R2 Dairy Heifer’s value would be calculated by summing the R2 Dairy Heifer value from this National standard costs 2024 chart, plus the R1 Dairy Heifer value from the National standard costs for 2023 chart (our blog post with this is linked below).
Purchases of stock need to be accounted for in a weighted average cost method across that class of livestock also. This is specialised and it’s very easy to get it very wrong.
Fortunately these complex calculations what we’re good at! So please get in Contact.
National Standard Costs 2024