Funding
Funding the NAIT scheme
Government and industry will share the costs of operating the NAIT scheme.
Government has agreed to meet the upfront capital expenditure of building the NAIT system and 35 percent of the annual running costs.
The remaining 65 percent of NAIT's operational expenditure will be met by the industry. NAIT's shareholders (DairyNZ, Beef + Lamb NZ, Deer industry NZ) have agreed to cover its costs for the period covering the development of the scheme. Shareholders have decided once the scheme is mandatory, NAIT scheme costs will be recovered from cattle farmers via tag and slaughter levies, and through DINZ for deer farmers.
Consultation
In late 2011 NAIT Limited consulted on the proposed levy system to fund the NAIT scheme. The cattle tag and slaughter levies are set to come into effect on 1 July 2012.
Click here for a copy of the cost recovery consultation document (pdf).
Consultation closed on Friday 23 December 2011.
Royalty on tags
Because the original NAIT scheme start date was deferred to 1 July 2012, an interim royalty fee on white NAIT-approved radio frequency identification device (RFID) ear tag purchases will apply from 1 January to 30 June 2012 to cover the costs for the additional development period.
