Lachlan McKenzie: Revenue is not profit

The 2008/9 season was an annus horribilis for the nation's 11,618 dairy farms.  In that season, 11,618 farmers under the Commodities Levy Act paid a levy to the industry good body, DairyNZ.  It’s considerably fewer than the 17,244 quoted in the Dominion Post and was not an auspicious start to a piece that has done a great injustice to farmers and to the understanding of basic commerce and accounting.

Yes, the average dairy farm may have had $500,000 in revenue in 2008/9 but it also had $558,500 in expenses. You don't have to pay tax on red ink whether as a private citizen or as a business.