Why closing the gender pay gap is good for business
accelerateonline • August 30, 2019
While the gender pay gap is smaller than a decade ago, a collection of top New Zealand business people are working hard to reduce it further. CEOs and Chairs from companies such as IBM, Saatchi and Saatchi, PwC and Vector have joined Champions for Change. Together, they’re advocating for greater inclusion and diversity within their own organisation, sector, and the wider public arena. Why? Because creating gender balanced workplaces is not only the right thing to do, it’s the smart thing to do.
What are the business benefits of closing the pay gap?
- Good for your bottom line. Research shows the most gender-diverse companies are 21% more likely to experience above-average profitability.
- Good for your brand. People will be attracted to buy from you and work for you, if you’re committed to equal pay and a diverse and inclusive workplace.
- Great for brain power. A gender balance ensures multiple perspectives, which sparks creativity and innovation.
- Great for sales. A diverse workforce better represents your customers, which means you’ll communicate with them more effectively.
So, does your business have a gender pay gap?
Look at your people data: how many men and women work for you? Are there more men at senior levels or in roles that lead to senior positions? What’s the difference in pay between all men and all women? Once you know where your problems lie, you can start fixing them.
Four smart ways to address the pay gap
- Lead from the top: Everything you say, do, measure, and prioritise impacts your business’s culture. Treat gender diversity as a business priority. Help build a respectful, accepting workplace where everyone feels safe and supported.
- Make a plan to make a difference: Carry out a pay equity audit, set yourself a target, then put aside money to review and address the issues. Look at all levels of your business, from the way you advertise jobs to professional development opportunities.
- Be aware of bias: Around 80% of the gender pay gap is driven by hard-to–measure factors, including bias, which often creep in when making recruitment, performance and pay decisions. Make decisions based on transparent, performance-related criteria, have group sign off, and use gender-neutral language in job descriptions.
- Get flexible: Tap into a bigger talent pool by showing you support employees on, and returning from parental leave. Consider ways people can work from home, condensed hours, flexi-time and job share.
‘For me, unconscious bias is the main challenge – addressing it starts with looking in the mirror and realising that you have it whether you are aware of it or not.’
Simon Mackenzie , CEO of Vector.
Invitation to meet the team on Wednesday 27th May 2026 from 5pm - 6.30pm.
At 21 Neville Street, Warkworth.
Beverages & Nibbles provided.
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 .
Accelerate December 2025 As 2025 draws to a close, we’d like to thank you for your continued support this year. Our team is taking a well-earned break from Friday 19th December and will return to the office on Monday 12th January 2026. But before you switch on the out-of-office, take a moment to get your business ready for the holiday season. In this issue, we’ve included tips to help you manage the summer cash flow crunch, a guide on what you can (and can’t) claim back for festive spending, advice for compliant Christmas promotions, and a timely reminder to look after your team’s mental health as the year wraps up. Wishing you a safe, sunny, and successful holiday season! How to survive the Christmas cash flow crunch While retailers race through their busiest time of year, not every business benefits from the Christmas rush. Many service-based, wholesale, or manufacturing businesses might even face a sharp decline in orders just when holiday pay, bonuses, and annual shutdowns see expenses rise. 1. Forecast to February Projecting your income and expenses well into the new year helps you spot potential shortfalls and take action before they become problems. 2. Invoice early, follow up now Send invoices before your shutdown period and chase outstanding debts while clients are still around. 3. Prioritise essential spending Identify what expenses are necessary and what can wait until revenue picks back up. 4. Prepare for January’s tax obligations The 15 January due dates for PAYE, GST, and provisional tax can feel like a Grinchy surprise. Set aside funds now to avoid starting the new year under pressure. Worried about the summer squeeze If this season feels tight, get in touch. Our financial advisors can help you plan ahead, manage your cash flow, and explore IRD instalment options to lighten the load. Tis the season for giving... but what can you claim back Gifts, bonuses, parties, and more: here’s a brief breakdown of what you can and can’t claim this festive season. Employee gifts Gifts that are not subject to the entertainment tax rules (vouchers, hampers, flowers) are fully deductible and exempt from Fringe Benefit Tax (FBT) if they cost less than $300 per employee per quarter, and the total for all staff stays below $22,500 a year. However, gifts that do fall under the entertainment tax rules, like food hampers or wine, or taking your team to a show or event, are 50% deductible, and not liable for FBT. Cash bonuses Bonuses are classed as income, so PAYE and other payroll taxes apply. These “lump sum” payments are taxed at a flat rate based on your employee’s income bracket. Client gifts Food, drink, or entertainment gifts are 50% deductible. Other gifts (flowers, movie tickets, a book) are 100% deductible Workplace events Christmas parties, client dinners, or team drinks are 50% deductible, while morning teas, office lunches, and charitable donations are fully deductible.
Accelerate - December 2023
Accelerate August 2023
Inland Revenue have recently announced this year’s livestock Herd Scheme Values and we think this is a great opportunity to update you on the latest movements. The Herd Scheme Values are the National Average Market Values, determined by a process involving a review of the livestock market as at 30 April.
The values for Dairy this year have seen a fall in values across all female classes, but increases across all male classes. The fall in R1 heifer values can be attributed to the prohibition of live export by sea commencing from 30 April 2023. For the first time the National Average Market Value for R1 Heifers is less than the National Standard Cost of breeding and rearing an R1 Heifer.
In contrast to Dairy values Beef values have increased on average 9% and are almost at record values for all classes.
Sheep values have all fallen from the high of 2022, slipping back an average of 10.2%. Whilst values have fallen, they are still either the second or third highest that they have ever been depending on which class of sheep you are looking at.
Goat values have increased on average 7.8% with almost all classes of fibre and meat producing goats at record highs. The value of milking goats continues to be well down from historic highs, except for breeding bucks which are at their highest value.
