By Withers Admin
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April 20, 2026
As we step into a new financial year, we’re mindful that not everyone has had a smooth start to 2026. Extreme weather has created uncertainty for parts of the country and reminded many businesses just how quickly conditions can change. The global situation has intensified that. While we can’t control everything that happens around us, we can make sure we’re prepared for shifts when they come. That starts with a clear understanding of your finances, staying on top of compliance, and planning ahead rather than reacting under pressure. In this issue, we cover three key employment and tax changes you need to know (and two to keep an eye on), how to get more value from your accountant, and the signs that business confidence in New Zealand is steadily improving. Three key changes for employers in 2026 A few recent and upcoming changes may impact your payroll, pricing, and employer obligations.
A quick check now sets you up for a smoother year ahead. 1. Minimum wage is increasing From 1 April 2026, the adult minimum wage rises to $23.95/hr (from $23.50). Starting-out and training wages increase to $19.16/hr (from $18.80). Make sure your payroll and employment agreements reflect the new rates. Higher wages can affect your margins, so now’s a good time to reassess your pricing structure. Speak to your accountant if you need help understanding what these changes mean for your bottom line. 2. KiwiSaver contribution rates go up Also starting 1 April 2026 , the default KiwiSaver contribution rate increases from 3% to 3.5% for both employees and employers. Note employees are able to apply for temporary rate reductions to continue contributing at the 3% rate, in which case employers may also opt to match this employer contribution rate. Employer contributions will also now apply to KiwiSaver members aged 16 and 17. This is part of a phased retirement-savings policy change, with a further rise to 4% planned for 2028. Review your payroll processes to make sure your contributions are applied correctly. 3. Fringe Benefit Tax updates continue Updated FBT thresholds and rate structures came into effect on 1 April 2025, with further refinements expected to be rolled out in 2026. Concessions such as equalisation of FBT and PAYE on unclassified benefits give you more flexibility in how FBT is calculated and means the tax rate applied better reflects what your employees earn. Inland Revenue has also clarified how certain employee gift cards are taxed. Open-loop cards (such as prepaid cards that can be used almost anywhere) are generally treated like cash and taxed under PAYE, while retailer-specific cards usually still fall under FBT. If you provide vouchers or gift cards as staff rewards, it’s worth checking they’re being taxed under the right rules. Things to watch Keep an eye out for these two changes on the horizon. Shareholder loans If you regularly draw funds from your company through a shareholder loan, this is one to watch. While not yet law, Inland Revenue has recently consulted on proposals to treat new shareholder loans as taxable dividends if they are not repaid within a set timeframe. Surcharge ban The Retail Payment System Amendment Bill has passed its first reading and is expected to take effect by May 2026. If enacted, it will ban most in-store surcharges on EFTPOS, Visa, and Mastercard transactions. We’ll keep you updated as details are finalised .
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