Watch out for new trust rules that have the potential to put your assets at risk
There have been a lot of rule changes for trusts over the past few years – and now Inland Revenue has introduced another tweak, one you need to know about if you use trusts to protect your assets. Who’s who when it comes to trusts To understand the new rule, you need...
Keeping tabs on stressed staff – why you need to check in
A Southland counsellor researching mental health issues facing young men in the rural sector has confirmed what she suspected: there’s a perception of shame in speaking up. “Young rural men don’t seek help,” says Kathryn Wright. “They suffer in silence.” As the wife...
Managing farm debt
If you’re feeling uncertain about your next year of farming, you’re not alone. Farmer confidence is low, with more than 11% of respondents to a Federated Farmers survey expecting profit to drop over the next year. Whatever your position, it’s always beneficial to talk...
How will it impact you if house prices drop by 15%?
New Zealand’s housing market decline has started to show in the numbers, with average values down across most of the country for three months in a row. Westpac economists have predicted house prices will fall 10% in 2022, and another 5% in 2023, for a 15% drop in...
Wellbeing Budget 2022 – overview
The 2022 Budget responds to concerns around inflation, the housing and cost-of-living crises, climate change, and business sectors signalling they’re still trying to recover from blows dealt by the pandemic. Not surprisingly, a huge slice is allocated to health, $13b...
Farming update: Tax, Improving Farm Value, Dairy Women’s Network Awards
As we head into winter, we tip our hats to the Kiwis working the land. The 83,000+ workers who face a unique set of unpredictable and uncontrollable challenges. Let’s talk tax for Farmers: Changes to GST and KiwiSaver GST Goods that are exported from New Zealand can...
What does Budget 2022 mean for you?
With the cost of living soaring, interest rates rising and house prices falling, Budget 2022 aimed to deliver a little something to help the average household. So what’s in it for you? Support for rising household prices You get to enjoy at least some of the benefits...
Budget 2022 – What’s in it for business?
While certain cost of living and climate initiatives outlined in Budget 2022 may assist businesses, some industry priorities are targeted specifically. Financial support for employers to retain and take on new apprentices is extended until end December 2023. Funding...
Overseas income and tax – don’t get caught out!
If you have income from overseas sources, it can be tricky to work out your tax position. #1 Declare rental income from overseas properties. You can claim deductions for rental-related expenses, and you may also be able to claim a credit for tax paid in the other...
Business tips: Making it easier to get paid
Making sure you get paid on time is crucial to your success. The process of making sales and generating revenue lies at the heart of any business model. But you can't manage your cashflow effectively or raise any profits if customers don't actually pay their invoices....
Minimum wage – issues for farming businesses
From 1 April 2022 the minimum wage rates increase. The rates for adult workers are: Hourly: $21.20 ($16.96 for Starting-out workers/Trainees) Daily (based on an 8-hour day): $169.60 ($135.68 for Starting-out workers/Trainees) Weekly (based on a 40-hour week): $848...
Does New Zealand really have no capital gains tax?
Some people say that New Zealand should have a capital gains tax. Other people say that we already tax capital gains, so it wouldn’t make any difference. So do we have a CGT or not? No, but… We don’t have a single, comprehensive capital gains tax, and although the Tax...
Interest limitation on residential investment property
The Government has introduced legislation to limit interest deductibility for residential property investments. From 1 October 2021: for properties acquired before 27 March 2021, interest deductions on loans will be phased out at 25% per year over 4 years, until 31...
How to get employee remuneration right
For most people, earning money is a principal reason to go to work. It’s also one of the easiest ways for them to measure themselves and their achievements. Remuneration (how you pay and reward your people) can get left on the shelf, due to financial reasons or...
Get up to speed with employment law changes
From 1 April, the minimum wage rate increases from $20 per hour to $21.20. Communicate the change with your employees in writing and if you have staff on salary, make sure their total remuneration meets the requirements. The Holidays Act is getting revamped bringing...
Depreciation – what do I need to know?
Most assets lose value over time as they get older. This is known as depreciation. Businesses can claim depreciation loss as a deductible expense each tax year. You can claim a deduction for depreciation loss on capital assets. You can do this for those you own, lease...
CCCFA: 3 tips for getting your home loan approved
In 2021, new lending restrictions came into effect under the CCCFA - and immediately there were stories of people being declined loans for what seemed like trivial reasons. In March, the Commerce Minister announced changes designed to free up the process of loan...
Business tips: Getting your operations up and running
If you are ‘pressing go’ on your new business, what are the key elements to have in place before you begin trading? The complexity of your operational model will vary greatly, depending on the kind of business you’re setting up. A small two-person design agency will...
Building resilience in your people
Having a healthy workplace is a win-win situation for employers and employees, but it can be a challenge to create an environment that truly supports mental health and builds resilience. Research proves that investing in your people’s wellbeing is beneficial to both...
Farm accounting – 10 tips
Farming businesses have unique accounting needs. The specific challenges you face in running a successful and thriving farm, require tailored business advice that goes beyond simply tax and accounting needs. Not many other businesses rely on living produce and have so...
Inland Revenue to clamp down on top tax rate avoidance
In 2021, Inland Revenue increased the top tax rate to 39%. That rate is higher than both the 28% tax rate for companies and the 33% tax rate for trusts. The new tax rate concerns Inland Revenue, because it doesn’t want people to use companies and trusts to avoid...