A family show (June 2017)

The early hints of tax relief for families have been fleshed out in the Family Incomes Package which will take effect from 1 April 2018. The legislation giving the changes effect was passed by Parliament the Friday after the Budget was read and at time of writing awaits Royal assent. Tax brackets There’s a broad recognition that while the average wage has risen, the tax rates haven’t flexed to accommodate…  Read more

Public services and social investment (June 2017)

A large slice of the budget is allocated to support our growing economy and population. $4b in new capital funding is committed across the Education, Health, Defence, Justice, Housing, Primary Sector and Transport portfolios. This includes $2.39b for Crown Health facilities and district health boards. The investment translates to new schools, additional hospital facilities, housing and water storage as well as greater prison capacity, more police officers, court and corrections…  Read more

Business time (June 2017)

The Government’s Business Growth Agenda invests $1b over the next four years. Our economy and population have already been growing strongly. Over the next four years, this growth might be slowed down by the inflation that tends to follow economic growth as well as factors beyond our shores if growth rates slow in the trade regions that are so important to us. The Agenda supports continued growth by investing in…  Read more

Quake recovery (June 2017)

The theme of resilience was strong throughout the budget but came into sharp focus when considering our ability to cope with natural disasters. Funding for the Christchurch rebuild continues, as does rebuilding and repairing infrastructure in the wake of the Kaikoura quake. Shoring up the National Disaster Fund is a priority so from 1 November this year the Earthquake Commission (EQC) premium rate will increase from 15 cents per $100…  Read more

Scam-proof your business

Scams and scammers become more sophisticated every day. No surprises there. They rely on keeping a jump ahead of people. As businesses step up their investment in new technology and media platforms, scammers find new ways to worm their way in. FYI… Social engineering Many scams fall under the umbrella term ‘social engineering’. These techniques aim to gain people’s trust and con them into letting their guard down to leave…  Read more

GST: In The Crystal Ball (Autumn 2017)

You’ll remember that from October last year, we now have to pay GST on ‘remote services’ supplies from overseas vendors that were previously not subject to New Zealand GST – the so-called Netflix tax. Businesses in the 28 member states of the European Union already have to charge VAT at the rate applying in the customer’s country. The latest move in Australia to collect GST on low value goods bought…  Read more

A way to solve Christmas cashflow issues

The period after Christmas can be tough for many small and medium sized businesses. According to more than half the respondents to a poll conducted by the Employers and Manufacturers Association, January to March is when they tend to experience cashflow constraints. It’s hardly surprising, really. The period after Christmas is traditionally slow business-wise. Consumers are either enjoying their holidays or getting their finances in order following their festive season…  Read more

Don’t forget

IRD have changed their policy on when payments will be considered to have been received on time. Payments made by post are now treated as made on the day Inland Revenue receives them; the date of posting is irrelevant. It’s therefore up to you to make sure you post your cheques in good time to reach IRD on time. There’s no guarantee that a payment posted on the 18th will…  Read more

Health and Safety heads up

It’s expected that the Health and Safety Reform Bill will be passed before the end of the year and that the resulting Health and Safety at Work Act will be implemented in stages, the first stage taking effect from 1 April 2015. The legislation itself is part of a major reform of health and safety practice in New Zealand. The new Act imposes a primary duty on employers, with a…  Read more

Just Breathe – how to cope when the heat’s on

We’ve all heard the saying, ‘the customer is always right.’ Behind closed doors, this may not always be the case but as a business owner, manager or customer services representative, it’s the number one rule you need to follow. By doing so, you can try to defuse a potentially tricky situation and, if you don’t succeed, you can at least walk away with your head held high and your dignity…  Read more

How do you know what to insure?

It’s a bit of a Murphy’s Law principle that businesses often don’t really come to grips with their risk management plan (or the lack of one) till some random accident takes out a key manager or lead hand and it hits everyone what it will mean for the business. No one can plan for everything but every business should have a sound grasp of the kinds of risks that might…  Read more

Miles To Go – Changes Proposed For Motor Vehicles (Autumn 2017)

Currently close companies (such as LTCs and QCs) providing a motor vehicle for the private use of shareholder-employees must pay FBT on the value of the benefit provided. This value is based on the availability of the vehicle rather than its actual private use and this means higher FBT compliance costs for close companies. New option for close companies The recently introduced legislation changes this for the 2018 tax year…  Read more

Upcoming Changes – Provisional Tax and UOM Interest (Autumn 2017)

There has been a raft of legislative change recently introduced which will affect businesses when it becomes effective. At present we are just flagging the changes to you without going too deeply into detail. That said, let’s sketch in how it’s looking. Provisional Tax The provisional tax changes mentioned last year will apply from 1 April 2018. These include the proposed accounting income method (AIM) of paying provisional tax. While…  Read more

Human capital risk – what is it and what do we do about it?

When you are in the process of assessing your business risk and putting together your risk management plan, make human capital risk one of your focus areas. Human capital risk is a term which covers whatever arises out of not managing an organisation’s human capital well. This includes: catastrophic workplace events such as disabling illness, injury or death losing staff to rapid turnover a team member committing fraud or misappropriating…  Read more

Transforming GST (Autumn 2017)

Inland Revenue are rolling out other changes to how New Zealanders file and manage their GST as part of ongoing business transformation. More than half New Zealand’s businesses now file their GST through Inland Revenue’s secure online service myIR, or direct from their accounting software. If this includes your business, you may have noticed there’s a new myGST tab on your myIR account. This will provide access to all your…  Read more

Dialling for a dollar – perfecting your cold call

Most of us loathe the sound of those two words, ‘cold calling’. It can be labour intensive and takes a fair amount of courage. We worry that it can often be seen as annoying to the receiver, putting us at a disadvantage from the beginning. However, if you’re willing to put in some effort, there are some top tips to help you to make cold calls effectively. Result What’s the…  Read more

Selling Across The Ditch – GST On Low Value Goods (Autumn 2017)

Do you sell goods to Australia? If so, you may be affected by new Australian tax rules. At present, goods valued under AUD$1,000 do not generally have Australian GST applied to them where they are sold into Australia directly to the end customer. However new rules will now apply from 1 July 2017 to impose Australian GST on goods valued at $1,000 or less (‘low value goods’), where the supplier’s…  Read more

Call before you click

If you have a company, we’ll let you into a secret. We know, each year when we speak with you about what you want to do about dividends, that the minute we start to talk about imputation credits and the imputation credit account, we watch your eyes glaze over and we know the ‘la la la la la la’ soundtrack is playing in your head. It’s okay. Almost everyone finds…  Read more

Ho, Ho, Ho! Knowing What’s Deductible – Entertainment (Summer 2016)

Do your plans for the festive season include functions to celebrate with clients and the team? If they do, here are some tips on the tax implications When you’re entertaining clients or colleagues, some entertainment expenses are tax deductible while others aren’t. It can be tricky working out what’s deductible as a business expense and what isn’t. The basic idea is that an expense is business-related if you spend the…  Read more

Ho, Ho, Ho! Knowing What’s Deductible – Gifts (Summer 2016)

The rule of thumb with gifts is that if they consist of food or drink, you can only claim 50% of the expense as a tax deduction. If you are giving out gift baskets or hampers and some of the contents are food or drink, but not all, the food or drink items are 50% deductible but the other gift items are 100% deductible. When you come to claim the…  Read more

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