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AirBnB and your Property

Under the definition of residential land, an Air BnB does not qualify as a commercial property as the land used is not used predominantly as a business premises.  This is the same for all properties being used for short term rental accommodation (Air BnB, Book-a-Bach, etc).  However, if there are 4 or more units owned and they are managed, there would be an argument that this would qualify as commercial as you would be moving into a motel/hotel scenario.  Essentially what thi...

October 15, 2021

GST Payment Date extended

GST payment date for 28 October has been extended to 4 November 2021 Taxpayers will have an extra week to file and pay GST and income tax currently due on October 28 this year. This is in response to Inland Revenue's systems shutting down for their final Business Transformation release from 3pm Thursday 21 October until the start of business on Thursday 28 October.See the IRD website for details click here...

October 15, 2021

NZ Government launched cryptocurrency inquiry to understand benefits and risks

An inquiry into the nature, impact and risk of cryptocurrencies has been announced by Parliament’s Finance and Expenditure Committee. It will look into the nature and benefits of cryptocurrencies as well as the risks to both users and Aotearoa as a whole. Tim was recently interviewed by Newshub for his thoughts on the announcement of the review. While this is probably the largest media exposure of cryptocurrency tax, the content of the article does not contain much information to hodlers.At th...

August 26, 2021

Cozy Corner Building - World Famous in Cambridge

Our premises in Cambridge are located in a building called The Cozy Corner that was built in the 1920's. Jane and Tim have breathed new life with the recent renovations that were completed in 2020.  Our local newspaper, the Cambridge News featured The Cozy Corner recently. The article was written in conjunction with the Cambridge Museum as part of a regular History of Cambridge column.  Check out the story about our Cozy Corner and her illustrious and sometimes saucy past.......

August 25, 2021

Covid-19 Resurgence Support Payment

The COVID-19 Resurgence Support Payment helps to cover wages and fixed costs for businesses who have been directly affected when there is an increase to Alert Level 2 or higher for a week or more.  To be eligible, your business must have experienced at least a 30% drop in revenue or a 30% decline in capital-raising ability over a 7-day period, due to an increase in Alert Levels.You can receive $1,500 per business plus $400 per full-time employee (FTE), up to 50 FTE.The maximum pay...

August 25, 2021

COVID 19 - Short Term Absence Payment

The COVID-19 Short-Term Absence Payment helps businesses keep paying employees who cannot work from home and: need to stay at home while waiting for a COVID-19 test result.need to stay home and look after a dependent child who has been asked to get a COVID-19 testlive with someone who has been at a location of interest and need to stay home while they wait for the person in the household to get a negative test result. Employees on a casual contract are also eligible for the payment. You can get ...

August 25, 2021

COVID-19 - Leave and Self-Isolation Scheme for Business Owners

The government has announced a COVID-19 leave payment scheme to provide support. What does this mean for business owners? If your employee has been asked to self-isolate by a doctor or health official, they legally must stay home until they are told they no longer need to by public health officials.If an employee cannot work from home while self-isolating, you may be able to apply for financial support so they can continue to get paid. The purpose of the leave scheme is to provide employees...

August 25, 2021

Government Loans - Small Business Cashflow Scheme

If you employ 50 or fewer staff, you may be able to apply for the Small Business Cashflow Loan Scheme. This is a one-off 5 year loan. You can borrow a maximum of $10,000 plus $1,800 per full-time-equivalent employee within your business. When applying for the loan, you need to be able to declare that your business is viable.Your business must have experienced a minimum 30% decline in actual or predicted revenue over the period of a month, compared with the same month last year. You can use the R...

August 25, 2021

Covid-19 Wage Subsidy for Employers

The government has put together a wage subsidy package for employers that are affected. If your business cannot operate because of Alert Level 4 restrictions or you will lose revenue, you can apply for the COVID-19 Wage Subsidy scheme to help keep paying your staff and protect jobs. Businesses and self-employed people must expect a 40% drop in revenue to be eligible to receive the wage subsidy.  The wage subsidy is paid in a 2 week lump sum. You can get: $600 per week for each ful...

August 25, 2021

GST Due Dates for 2021

We have listed all GST return and payment dates below. We will be providing regular updates throughout the year, however you may wish to set calendar reminders to ensure these important dates are not missed.  28 Aug  - GST return & payment is due for period ending 31 Jul 2021 28 Aug - Provisonal tax payments are due if you have a March balance date 28 Oct - GST return & payment is due for period ending 30 Sep 2021**UPDATE: 28 October date has been ext...

August 25, 2021

Annual government Kiwisaver contribution - don't miss out!

The government will contribute $0.50 cents for every dollar contributed to KiwiSaver, up to a maximum of $521.43 each year (for those over 18 years old). This is called the annual government contribution.  Individuals must contribute at least $1,042.86 every year between 1 July and 30 June to be eligible for the full government contribution. Make sure any contributions are made prior to 30 June 2021 to take advantage of the $521.43 annual government contribution....

June 25, 2021

Wages vs Shareholder salary

We often get asked the question “what is the best way to pay myself as a business owner?”  Remuneration is usually paid in one of two ways: A PAYE wage or a shareholder salary.  There is no right or wrong way – both options suit different individuals cashflow and planning....

June 25, 2021

Employee Sick Leave is changing

The Holidays Amendment Bill that increases the amount of paid employee sick leave from 5 to 10 days per year passed its final reading on 19 May 2021. The law change was one of Labour’s 2020 election promises and was introduced the same time as the Covid-19 pandemic. It highlighted a need for people for have adequate sick leave.  It also brings New Zealand more into line with many other OECD countries which offer a higher number of sick days to employees. The new legislation comes into eff...

June 25, 2021

No Interest Deductions on Residential Properties

For residential rental properties purchased after 27 March 2021 that are not new builds, you will not be able to claim any interest deductions. Interest incurred on a new build that is bought for investment purposes is still able to be claimed as an interest deduction. There is limited detail on what qualifies for a new build, although it appears to include properties that are acquired within a year of the Code Compliance Certificate being issued. From 1 October 2021, residential property invest...

March 30, 2021

Bright Line Extension

After 27 March 2021, if you sell a residential property within 10 years of purchasing it, any increase in value will be taxable income. There are some exemptions such as the main home, if the property is transferred to you under a relationship property agreement, or if the property was acquired through an inheritance. These exemptions will depend on the specific facts of your situation. There is also an exception to the 10-year extension for new builds which will continue to be subject to the 5-...

March 30, 2021

Minimum Wage Increase

From 1 April 2021, the adult minimum wage will increase from the current rate of $18.90 per hour to $20.00 per hour.The starting-out and training minimum wage rates will also increase on 1 April 2021, from $15.12 to $16.00 per hour remaining at 80% of the adult minimum wage. There are 3 types of minimum wageThe adult minimum wage – applies to employees aged 16 years or older who are not starting outworkers or trainees.The starting out minimum wage – applies to workers who are:16 and 17 ...

March 12, 2021

Common Expenses for Contractors

We are often asked “what expenses can be claimed as a deduction against contracting income?” To claim a deduction, there must be a nexus between the expense incurred and the income being earned.  If there is no nexus, the expense is unlikely to be deductible (and would be considered private expenditure).Common expenses incurred by contractors include the following. Vehicle/Fuel CostsWith vehicle/fuel costs, there are two options available:Actual costsKeeping a logbookKeep track of the a...

March 4, 2021

Low Value Asset Threshold

Prior to 17 March 2020, if an asset was purchased that cost more than $500, the asset was capitalized, and no immediate tax deduction was available. Depreciation (the write down of the asset over the assets life, calculated at a specific rate set by the IRD) was allowed as a tax-deduction each year. Any asset below the $500 threshold was able to be claimed as a deduction in full.When the Covid-19 pandemic arrived, the government responded by temporarily increasing the low value asset threshold f...

March 4, 2021

Depreciation on Commercial Buildings

In 2011, the government changed legislation to remove depreciation being claimed on all buildings. Due to Covid-19, the government have done a U-turn on this decision and from 1 April 2020, have reintroduced depreciation on commercial and industrial buildings. The applicable depreciation rates are 2% diminishing value and 1.5% straight line. Depreciation is being reintroduced to encourage investment into buildings, support short term cash flow and promote long-term economic recovery.Re...

March 3, 2021

New Trust Act 2019 - Part 2 - Prepare Now

Welcome to part 2 of our Trust Act updates – what you need to do now to prepare for the new Act. Part 1 of our series of articles, covered an overview of the new Act and can be read here.The new Act commences from 31 January 2021 and its application will be different for each trust depending on the nature, assets, and purpose for the trust.Please contact us now if you would like to discuss the purpose of your Trust with us, ensure it meets your needs moving forward (in conjunction with th...

November 17, 2020

New Trust Acts 2019 - Part 1 - An Overview

Accountants have received guidance about the new Trust Act 2019. This new law (the first in more than 60 years) will affect everyone who is involved with a Trust. The new trust law will be effective from 31 January 2021 and includes clarification of the existing trust laws and some significant changes.Many clients have trusts and are also trustees of trusts. However, some trustees may not be aware of their role and duties as a trustee, recording keeping and disclosure requirements. If you have a...

October 16, 2020

Companies 28% Tax Rates

A company has a tax rate of 28%. This is a flat tax rate and applies to all company profits.So, why not structure your business, investments, or contracting in a company and only pay tax at 28%? Individuals marginal tax rate is 33%, so would you not be 5% better off and pay less tax (only 28% compared to 33%)?For individuals earning more than $70k pa and paying the highest marginal tax rate (33%), companies may not provide tax savings. They may however, delay paying a further 5% tax. This m...

October 16, 2020

39% Top Marginal Tax Rate

The Labour Party has announced that if re-elected, they would introduce a new marginal tax rate of 39% for an individual’s income over $180,000. The 39% tax rate would only apply to income over $180,000 and the remainder of an individual’s income will be taxed at current marginal tax rates. Labour believes this change will only affect 2% of the population (who earn more than $180,000) and explain that it will help maintain balance as they continue to manage the impact of Covid-19. How will ...

October 9, 2020

Business Continuity Planning

This service may be fully funded by the regional business partners network. If your business qualifies, you can get our COVID-19 specific business support services (up to $2500 per service). The funding will not last forever, so let us know that you are interested, and we will connect you with our Growth Advisor so that it is fast-tracked.To help speed up the process make sure you register with the Regional Business Partners Network – this only takes 5 minutes: Register your bus...

September 7, 2020

Cashflow Forecasting

This service may be fully funded by the regional business partners network. If your business qualifies, you can get our COVID-19 specific business support services (up to $2500 per service). The funding will not last forever, so let us know that you are interested, and we will connect you with our Growth Advisor so that it is fast-tracked.To help speed up the process make sure you register with the Regional Business Partners Network – this only takes 5 minutes: Register your bus...

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