From Airbnb to boarders: what’s new for property owners?
accelerateonline • March 4, 2020
Renting your home or bach online?
If you rent a property for short stays (up to four weeks), you need to know your tax commitments. New rules announced last May come into force this financial year.
Here’s what you need to know:
| 2,500 | If your tax due at end of year is more than $2,500, you’ll have to pay provisional tax instalments the following year. |
| 60,000 | If you earn more than $60,000 a year from your taxable activities, you must register for GST. If you earn less than $60,000 a year, you can choose to register for GST. |
If you have the choice, think carefully about whether registering for GST is best for you. Once you’re registered, there are ongoing requirements (such as recordkeeping, invoicing and filing returns) and when you sell your property or stop providing short-stay accommodation you’ll probably have GST to pay.
Unsure if being GST registered is the right way to go? Give us a call for advice.
Hosting boarders at your place?
You need to choose between the standard-cost method and the actual-cost method to work out the income you make from boarders so you know how much tax to pay.
- The standard-cost method keeps things simple because when your income from a boarder is equal to or below standard costs, it’s tax exempt. You can also claim standard costs instead of claiming on actual expenses. The weekly standard cost per boarder has just been changed to $186/week for the 2019/20 tax year. What does it include? Food and household bills, gifts, and entertainment and activities you provide for your boarder. You’ll also need to calculate your annual hosting and transport costs.
- Five or more boarders? You have to use the actual-cost method
. Up to four boarders? You can choose to claim actual costs instead of standard costs. Under the actual cost method all your income from the rental is assessable income and must be declared. To use this method, you need to:
- Keep full records of your actual income
- Keep full records of your expenses
- Fill out an IR3 annual tax return to return income and claim actual expenditure incurred.
If you don’t complete a return of income by the due date for filing, IRD will assume you picked the standard cost method.
Either way, keep your records!
Because you may not know until the end of the tax year whether you’ll want (or be able) to use the standard-cost method, make sure you keep full records. Jot down the number of weeks you had boarders, the total income from boarders, cost of capital improvements or rent paid, kilometres you travelled transporting them, and any other related expenses.
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.
Like the rest of the world, New Zealand has reeled from the aftermath of Covid, rising inflation and interest rates, and the cost-of-living crisis. This year we also have a massive storm damage repair bill.
Any tax cuts, or changes to the tax thresholds were vetoed in Budget 2023 as this was viewed as worsening inflation.
