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Accelerate April 2026
Withers Admin • 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.
Is it time to look at your business with fresh eyes?
Tax returns and year-end accounts are essential, but the real value lies in treating your accountant as an advisor: someone who helps shape where your business is heading, not just where it’s been.
A proactive conversation early in the year can help you:
• Plan for tax rather than react to it
Provisional tax shouldn’t come as a surprise. We can model expected profit, test different scenarios, and give you a clear estimate of what you’re likely to owe well before payment dates hit.
• Understand your break-even point and profit margins
Do you know exactly how much revenue you need each month to cover fixed costs? We can calculate your break-even point and identify which products or services are truly driving profit (and which may be quietly eroding it).
• Forecast cashflow and stress-test growth plans
Mapping your cash inflows and outflows each month gives you clarity when you ask questions like: What happens if sales slow for a quarter? If a key client pays late? If costs creep up again? It’s far easier to make small course corrections early than face a cash squeeze later.
• Check whether pricing still reflects your cost base
Between minimum wage increases and supplier cost rises, margins can tighten without you noticing. A quick pricing review can protect profitability before pressure builds.
• Think about how you pay yourself
Your business income and personal finances are closely connected. Being deliberate about how you take money out of the business can help prevent tax surprises and keep cashflow steady throughout the year.
• Strengthen conversations with your bank or lenders
Clear forecasts and well-prepared financial summaries from your accountant demonstrate viability and repayment capacity. That preparation often changes the tone of lending conversations entirely.
If you’d like 2026 to feel more strategic than stressful, now is a good time to schedule a conversation.
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.
