ACCELERATE

Accelerate April 2026

Mon, 20 Apr 2026 04:37:40 GMT

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

Sun, 07 Dec 2025 20:54:18 GMT

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.

The do’s and don’ts of holiday sale specials

When run right, Christmas promotions don’t just boost sales, they build trust that lasts well beyond the festive season. Follow these five simple rules to spread holiday cheer without a compliance headache.

Do: offer genuine holiday discounts and Christmas bundle deals.

Don’t: hike your prices beforehand to make your discounts look better than they are.

Do: Be transparent about available stock and time limits.

Don’t: Use countdown timers or “only 2 left!” gimmicks to create a false sense of urgency.

Do: Showcase real, recent customer reviews.

Don’t: Cherry-pick, recycle, or fabricate testimonials.

Do: Keep a close eye on your stock levels.

Don’t: Promote items that are already sold out.

Do: Offer gift cards or vouchers for easy last-minute gifts.

Don’t: Set expiry dates shorter than three years: it’s against New Zealand law from March 2026.New Paragraph

Want to end on a high note? Support your team’s mental health ahead of the holidays

The final stretch of the year can be hectic: deadlines loom, inboxes overflow, and everyone’s racing to wrap things up before the holidays. Add in a packed social calendar, and it’s no surprise stress levels start to soar.

It’s tempting to just push through the silly season, but looking after your people now helps them finish strong and return in January with the energy your business needs to thrive.

Help manage workloads

Overloading December only leads to exhaustion and mistakes. Before setting and enforcing end-of-year deadlines, ask yourself this question: does it really need to be done this year?

Prioritise what’s essential and postpone non-urgent projects until January. Build breathing space into your calendar by leaving realistic gaps between deadlines. And avoid last-minute scrambles by clearly communicating cut-off dates for new work.

Acknowledge your team’s hard work

Recognition boosts morale, but it doesn’t have to be costly. A simple “thank you” goes a long way, whether it’s in a team meeting, a handwritten note, or a thoughtful gesture like finishing early on a Friday. The goal is to make people feel seen and appreciated before the break.

Normalise asking for help

Create a culture where it’s okay to admit when things feel overwhelming. You can do this by…

•Checking in regularly, both formally and casually.

•Leading by example. If you’re telling your team to take a break, make sure you do the same.

•Promote available support. A poster in the kitchen or a company-wide email about wellbeing services can make a big difference.

And if you can see that someone is struggling, point them toward your Employee Assistance Programme or other support option.

Accelerate December 2023

Mon, 04 Dec 2023 20:14:40 GMT

Accelerate - December 2023

It’s that time again as we edge closer to Christmas and the New Year.

Thank you for all of your support in 2023. We hope you have a great summer break and enjoy some sunshine this time around.

Before you finish up for the year, we thought we’d share some useful tips about managing your business over summer, important tax information, and what new migrant worker legislation means for your business:

Accelerate August 2023

Mon, 04 Dec 2023 20:04:05 GMT

Accelerate August 2023

In this issue, we focus on the most important aspect of your business — your people.

Get the lowdown on some major employment changes in New Zealand, including fair pay agreements , and find out if your industry will be affected first.

Learn about the crucial and often-overlooked distinction between contractors and employees , and what employers must get right.

Find out about the landmark court ruling involving Uber that could change New Zealand employment law forever.

Not forgetting your customers, we’ve got the inside track on how to boost your sales with email marketing .

Livestock Special Alert 2023

Mon, 12 Jun 2023 21:59:00 GMT

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.

Consider your livestock election choices carefully. Even though changes were made to the Herd scheme in recent years, there is still flexibility around how to value increases in numbers – if you increase your numbers during the year, you can choose an alternative valuation option to value that increase. Whether you take that option or elect to value the increase using herd values will depend on several factors, such as:

As the decision is clearly one that should be made on a case-by-case basis, we will naturally discuss your valuation options with you on review of your 2023 Financial Statements and Taxation Returns.

If you would like a detailed report explaining the main features of the Herd and NSC Livestock Valuation methods, as well as a summary and graphic illustration of the Herd Scheme Values from 1987 through to 2023, please contact us.

Livestock Special Alert 2023: Dairy Cattle

Mon, 12 Jun 2023 21:53:00 GMT

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.

A Mixed Age Dairy cow now has a National Average Market Value of $1,628 compared to $1,697 last year – a fall of 4.1%. Rising one and two-year heifers have decreased in value by 14.3% and 2.4%, to $693 and $1,436 respectively.

Whilst demand for dairy products remains relatively strong worldwide, it is expected that the farm gate milk price for the 2023-24 season will be well down from the highs of 2022-23, which will have a consequential impact on dairy cow values. The forecast reduction in the farm gate milk price together with continued inflationary pressures for all farm input costs will see dairy farmers’ profit margins diminish significantly for the 2024 season. This is likely to see demand for dairy cattle fall.

There continues to be little progress in relation to on-farm emissions reporting which leaves a dark cloud over the prospects of New Zealand’s largest export earner.

Availability of labour remains a significant issue for the 2024 season even though most immigration settings have been relaxed. Total cow numbers have continued to fall, as did per cow production mainly due to climatic reasons and are back to 2019-20 levels.

Livestock Special Alert 2023: Beef

Mon, 12 Jun 2023 21:50:00 GMT

In contrast to Dairy values Beef values have increased on average 9% and are almost at record values for all classes.

This is very much a tale of two halves of the 2022-23 season as exports and prices were weak in the first half of the season but have improved substantially as the season has progressed mainly due to the global supply of beef being very tight.

As with 2022, meat works continue to struggle to keep up with processing demand as employee absence due to Covid-19 continues. This has put pressure on farmers who have suffered from unfavourable climatic conditions being unable to realise the best price for their cattle.

Uncertainty continues to play a part in the domestic market as the regulatory requirements around water quality, fencing and carbon continue to come into force in the coming years and alternative proteins continue to increase in popularity and use.

Livestock Special Alert 2023: Sheep

Mon, 12 Jun 2023 21:48:00 GMT

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.

The price of sheep meat weakened from the record highs of 2021-22 season and optimism from industry leaders for the 2023 season was largely unfounded in the first half of the year, although prices have seen a recovery and global supply remains limited which are keeping prices above historical averages.

Wool markets remain uncertain with forecast prices closely matching this season. Increased shearing costs continue to make wool uneconomic except at the fine end of the market.

Livestock Special Alert 2023: Goats

Mon, 12 Jun 2023 21:46:00 GMT

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.

Female milking goats have continued their decline, down a further 3.7% this year for a 28.3% drop since 2021. 2023 values are less than half the highest value for female milking goats. The value of female breeding goats continues to be impacted by the collapse in milk solid returns in 2022 and associated reductions in quote entitlement, penalties for exceeding quota, and supply changes.

Livestock Special Alert 2023: Deer

Mon, 12 Jun 2023 21:42:00 GMT

Deer values saw further recovery from the low values of 2021 with an average 16% increase in values for Red Deer, Wapiti, and related breeds. The market for velvet has also contributed to an increase in values and there is optimism that the lows of Covid-19 have passed and the export demand for venison continues to strengthen.

Other deer breeds have, on average, fallen back from the gains made in 2022. The market information for other breeds is limited with the value being influenced by the hunting and trophy trade which was significantly impacted by Covid-19. Values will likely recover further as trophy tourism returns to pre-Covid levels.

Accelerate Budget Special Alert 2023

Sun, 21 May 2023 22:03:00 GMT

‘Support for today building for tomorrow’

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.

The 2023 Wellbeing Budget was distinctly lacking in lolly scramble. Treasury believes we have headed off recession for this year. Inflation is predicted to fall to 4.5% by late 2023. The budget forecasts a $7.6b deficit for this year, rowing back to a $0.6b surplus next year. Growth of 3.2% is predicted to June 2023, slowing to 1.0% by June 2024.

In this special budget alert:

Tax

Sun, 21 May 2023 21:53:00 GMT

Any tax cuts, or changes to the tax thresholds were vetoed in Budget 2023 as this was viewed as worsening inflation.

The big news was an increase to the trustee tax rate: In 2021, with a new 39% top tax rate for those earning over $180k a year, experts predicted some taxpayers would use trust entities (with a 33% tax rate) to minimise tax. The release of Inland Revenue’s recent High Wealth Individuals research was referred to where it stated income subject to the trustee rate spiked from $11.4b in the 2020 tax year to $17.1b in the 2021 year.

This budget raises the 33% trustee tax rate to 39% from 1 April 2024. Beneficiary income derived by certain private companies will also be taxed as trustee income, to ensure the new rate for trustee income cannot be sidestepped by distributing trust income to companies taxed at 28%.

Deceased estates and trusts for disabled persons will not be subject to the 39% rate.

Rollover relief: Tax relief is available in the form of rollover relief on depreciation recovery income or income on revenue account assets arising from insurance proceeds or compensation on business assets destroyed by North Island flooding events, from 2022-23 till the 2027-28 income year. Taxpayers need to elect to apply the rollover relief provisions, notifying the Commissioner of the election.

Rebate for gaming sector: There’s a new 20% tax rebate for video game development, for eligible game development studios with a minimum annual $250k expenditure. Studios can receive up to $3m per year, backdated to 1 April 2023.

Taxing multinationals: Following the OECD’s direction on international taxation , multinationals operating in New Zealand may be subject to additional New Zealand tax where the enterprise’s worldwide income bears an effective tax rate of less than 15%. In addition, the Government look to be following the OECD’s lead on an internationally coordinated approach to addressing taxes on digital services but if such a solution is not worked through by December 2023 the Government may introduce its own digital services tax. We’ll see.

Infrastructure

Sun, 21 May 2023 21:38:00 GMT

Budget 2023 builds on the $889m already provided in response to this year’s storms. A further $6b is allocated for a National Resilience Plan , for rebuilding after weather events. $71b is committed to new and existing infrastructure projects: not only storm damaged communications, power and roading, but schools, hospitals, public housing, rail and road.

$120m is delivered over 4 years to expand the nationwide EV charging infrastructure network and build thousands of new EV chargers across the country.

Three new science hubs will be created, covering climate change and disaster resilience, health and pandemic readiness, and technology and innovation. The latter emphasises sharing expert research in advanced manufacturing and materials, energy futures and biotechnology which may support business investment in research and development.

Households

Sun, 21 May 2023 21:31:00 GMT

Most Budget 2023 changes affecting household budgets centre on younger families. The 20-hours free early childhood education (ECE) currently available to 3-5-year-olds is extended to include 2-year-olds, with more money for teachers and childcare centres as well. This may free up some parents for greater workforce participation and ease household budgets. But as interest rates remain high and measures lowering petrol prices at the pump by 25c/litre end on 30 June 2023, there is no shortage of other pressures.

From 1 July 2023, public transport for children under 13 will be free, half-price for the under-25s. The $5 prescription charge is removed for all New Zealanders.

From 1 July 2024, the Government will make a 3% KiwiSaver contribution to recipients of paid parental leave who contribute at least 3%.

Business outlook

Sun, 21 May 2023 21:25:00 GMT

Business owners may continue to feel glum about their risk to reward ratio following Budget 2023.

If cost of living pressures on households ease, increased consumer spending power will be welcome to retailers. Infrastructure repair and development, increases in public housing and private construction may stimulate demand in the construction sector and downstream industries. Recovery in tourism and hospitality, increased net migration, firmer supply chains and declining global inflation (particularly in oil and food) with lower import costs should also help.

Labour shortages and wage pressures continue though measures like extending the Apprenticeship Boost initiative to the end of 2024 will help, subsidising employers and enabling an estimated 30,000 apprentices to start or continue in key industries.

There’s still huge uncertainty. Margins are tight. You need to be able to boost productivity. Watch your cash flow, manage debtors closely and monitor your exposure to risk (especially uncontrollable risk such as subcontractors increasing pressure for retention payments or businesses failing before payments are secured).

Call us if you’d like to discuss how the current climate is affecting your business.

Accelerate June 2023

Thu, 04 May 2023 00:37:00 GMT

Farming is tough work at the best of times, but the start of 2023 has been particularly testing for the industry, with the devastating impact of Cyclone Gabrielle and summer floods felt right across the North Island.

In this issue of Accelerate, we look at ways to mitigate business risks from severe weather, time-saving digital tools for farmers, and showcase some of the innovation that makes agriculture the beating heart of the New Zealand economy:

Trailblazing Kiwi farmers and growers

Thu, 04 May 2023 00:23:00 GMT

Every year, the Ballance Farm Environment Awards celebrate farmers’ achievements, focusing on issues such as biodiversity, soil, water and waste management, and animal and plant care.

Farmers across New Zealand are recognised for their hard work, innovation, and environmental stewardship. Here are three of this year’s 10 Regional Supreme winners.

Super sheep farmers

Steven and Kellie Nichol , whose family has farmed at Clarks Junction for 150 years, were celebrated for their forward-thinking approach.

Their farm, Auldamor, specialises in sheep breeding and finishing, with 4,500 ewes, 1,500 hoggets, 80 rams, and nearly 300 beef cows grazed each year.

The couple received recognition for diversifying their business and considering the environmental impact of their work.

By modifying farming practices and emphasising on-farm measuring and monitoring, stock productivity and profitability increased.

The duo introduced several initiatives, including a no-till drilling programme to improve soil health, which improved pasture resilience, yields, stock performance, and animal health.

The farm has improved its biodiversity by planting shelterbelts and forestry stands, and by implementing fencing around native shrubland and waterways.

Community engagement in Northland

Dairy farmers Andrew and Vicky Booth took the prize in Northland, and were awarded for years of work to create an environmentally and economically sustainable business.

The couple created a new wetland area, introduced active pest management, and took steps to preserve areas of native bush, encouraging the return of native birds.

Judges agreed the farm was economically and environmentally sustainable and recognised the Booths’ community work and passion for the industry.

The Booths share knowledge with their local community, and are helping to bridge the urban-rural divide by working with schools to plant 2,000 native plants each year.

The partnership has had a positive impact on local schoolchildren as they learn about looking after the environment, judges said.

Gold star for Glenbrook kiwifruit growers

Brett and Fenella Wheeler , kiwifruit farmers in Glenbrook, Auckland, took the Regional Supreme Award in the Super City for their science-based approach.

The Wheelers were celebrated for using science to tailor their growing, using data insights to adjust their planting to the natural environment.

The property’s soil is fully mapped, providing a clear picture of its structure and properties. Brett and Fenella use this knowledge to guide irrigation and fertigation with pinpoint precision, tailored to every individual plant.

The couple were also recognised for their combination of regenerative and conventional practices, and innovative methods to enhance soils, improve water efficiency and benefit the natural environment.

Focus on feed and finance during wet weather

Thu, 04 May 2023 00:05:00 GMT

New Zealand took a battering from the weather in the summer, and unfortunately, severe weather events are expected to become more common. To protect your dairy farm from the worst, here are tips on how to manage your feed and finances.

Three-Step Feed Plan

Fix Your Finances

Strategies to survive extreme weather

Wed, 03 May 2023 23:57:00 GMT

The right management choices can make a huge difference during and after an extreme weather event. Here are some key areas to think about:

Build pasture cover

Higher pasture covers provide better physical protection against pugging. Build this into the feed budget.

Animal Health

It is vital to keep cows healthy — especially if wet periods are close to mating. Be aware of magnesium deficiency, mastitis, and lameness.

Reduce the number of cows

The most effective way to improve the feeding of a milking herd is to reduce the number of stock on the property and ease the feed demand.

You could also graze off late calvers, graze replacement stock off farm, send cows to other farmers in a better position, send early culls away, or get non-dairy animals off your farm.

Head to the Dairy NZ website for more wet weather management tips, including the best grazing strategies.

Hit by the weather? Get some tax relief

Wed, 03 May 2023 23:52:00 GMT

Feeling overwhelmed about tax payments? Here are three ways Inland Revenue can help ease the pain.

Get in touch with Inland Revenue or us as soon as possible – we’re here to help.

Beef+Lamb New Zealand’s Innovation Farm Programme

Wed, 03 May 2023 23:33:00 GMT

Want to take your beef or lamb farm to the next level? Beef+Lamb New Zealand’s Innovation Farm Programme helps farmers identify tools and practices to unlock financial improvements.

The programme brings science and farming experts together to investigate and develop new farming technology.

Up to eight farmers are involved in the course at any one time, and their involvement usually lasts about three years.
Participating farms focus on developing new knowledge and delivering results that can benefit the wider farming industry.

Projects chosen for the programme tend to involve new-to-market technologies. Beef+Lamb New Zealand focuses on narrow farming categories.

Head to the Beef+Lamb NZ webpage to learn more about the programme and view some of the results from high-performance farms.

Five tech tools to digitise your farm

Wed, 03 May 2023 23:23:00 GMT

Apps and digital tools aren’t just for desk workers. There are plenty out there to help streamline your farming processes, saving you time and money.

Xero

When you’re out and about on the farm, it’s helpful to manage accounts on the move. Xero enables you to invoice and reconcile accounts on your phone and keep track of key financial information in a simple format.

Paysauce

Simplify business calculations and let employees file their timesheets digitally. Paysauce also helps with record keeping and automates staff payments.

BrightHR

BrightHR helps farm owners and managers take care of staff admin, worker contracts, sick leave, holiday requests, and enables farmers to track staff hours.

Minda

Minda allows you to record and view events anywhere, whether you’re connected to the internet or not. Farmers can keep tabs on livestock anytime, anywhere.

Figured

Figured can help farmers navigate crucial tasks such as forecasting, financial management, wage budgeting, repairs, and maintenance.

Not a fan of tech? Three reasons to think again

Accelerate April 2023

Tue, 28 Feb 2023 22:39:00 GMT

Exciting new technology has the power to transform every part of the New Zealand economy, and there are plenty of digital tools at your disposal to make your business better. In this issue, we look at how technology can make your business more efficient, cyber risks, the possibilities of remote working, how to get paid faster, and the latest tax developments:

Import supplies? Customs rules are changing

Tue, 28 Feb 2023 22:21:00 GMT

In the past, the New Zealand Customs Service has allowed businesses to combine the value of small shipments containing a number of low-value items, such as spare parts, when the value for duty of any item listed on an invoice did not exceed the equivalent of NZ$25.

Historically, Customs allowed the items to be combined with the value calculated for parts of the parent appliance or machine, and be subject to the same duty rate.

Customs has decided to do away with this practice . Going forward, the items in question must be entered on their own lines of an entry.

Get paid faster with eInvoicing

Tue, 28 Feb 2023 22:14:00 GMT

If you’re tired of chasing invoices and late payments, eInvoicing could make your life easier and save you money.

With eInvoicing, digital systems talk to one another seamlessly over a universal network, ensuring payment information is exchanged more quickly and accurately.

Businesses no longer need to generate paper-based invoices or email PDFs, and buyers won’t need to manually input details into their systems.

According to the Ministry of Business, Innovation and Employment , it costs Kiwi businesses about $26 to process a paper invoice and $23 for an email invoice, due to the amount of time spent processing, chasing, and re-sending bills. In contrast, it takes under $10 to process an eInvoice.

eInvoices are more secure, running through a safe network rather than over our email servers. There’s no risk of lost or misdirected emails or letters.

The Government is pushing for all small companies to adopt eInvoicing . All New Zealand central government agencies are now capable of receiving, sending, and paying eInvoices, and have committed to paying eInvoices of up to $1 million within 10 days.

eInvoicing brings significant savings through reduced processing costs. It eradicates administrative delays and issues, improves trading relationships, and reduces the potential for fraud. More importantly, it saves you time to focus on your business.

More than 7,300 Kiwi businesses are signed up for eInvoicing. So how do you get started?

It’s pretty easy. You can enable eInvoicing through your accounting software. Simply log in and register to send and receive eInvoices through your chosen software provider and follow the steps to get set up.

eInvoicing is usually free on most accounting software plans. You’ll need to provide a few details, including your New Zealand Business Number, and the whole process only takes a few clicks.

As long as your customer or supplier has software that connects to the eInvoicing network (called Peppol), their systems will be able to receive or send eInvoices with you seamlessly.

In an uncertain economic environment, improving cash flow and getting paid more quickly is vital. Have a chat with us about how to get started with eInvoicing, and learn how it can help your business.

Should your business go ‘remote-first’?

Tue, 28 Feb 2023 21:14:00 GMT

Since the last of New Zealand’s lockdowns, many businesses have ditched remote working for good. But what are the benefits of taking a ‘remote-first’ approach?

Around the world, an increasing number of companies are making remote working the default option for staff, abandoning the office completely in favour of a more flexible model.

With a ‘remote-first’ approach, employees can work when and where it is most convenient for them. Each member of your team can perform their duties remotely, and the needs of remote workers are prioritised.

In a remote-first workplace:

The benefits of going remote-first:

Beware of cyber scams

Tue, 28 Feb 2023 21:06:00 GMT

Digital tools can help your business become more efficient, save time, and win new customers, but there are also dangers to watch out for. Cyber-attacks and con artists could target any small business in New Zealand. Here are the latest risks:

Facebook danger

One sophisticated Facebook scam has ensnared 10 million users. Millions of people on the social network have been conned into handing over their account credentials.

The phishing scam, which is still active, pushes victims to a fake Facebook login page, where they are enticed to input their details. The scam began in September 2021 and remains active.

Worried about phishing on social media? Here’s Facebook’s advice on how to protect yourself from harm:

Don’t trust messages that:

Emails about your account always come from:

Don’t click suspicious links:

Don’t answer messages that ask for your:

Email phishing

Cybercriminals used Covid-19 to create new scams, and more recently, the monkeypox virus was used to target unsuspecting victims.

Criminals have been creating bogus resources for businesses to ‘learn more’ about safety precautions. The perpetrators send businesses a link to a bogus domain and a compromised website.

D-Link routers under attack

Tue, 28 Feb 2023 20:59:00 GMT

Although it’s the least visible piece of office equipment, wireless internet routers are increasingly being targeted by cybercriminals.

The Mirai malware botnet variant known as ‘MooBot’ has re-emerged in a new attack wave, targeting vulnerable routers made by D-Link.

Users of compromised D-Link routers might notice a slowdown in internet speeds, unresponsiveness, overheating, or unusual setting changes.

Work with your IT security team and internet network providers to update your router to the latest firmware.

If you’ve already been compromised, get in touch with your IT team and ISP immediately. Don’t forget to install all the latest updates across your routers and internet-connected devices.

Don’t forget – timely reminders for April 2023

Tue, 28 Feb 2023 20:52:00 GMT

Looking to invest in R&D this year?

Tue, 28 Feb 2023 20:46:00 GMT

The Ministry of Business, Innovation & Employment has announced that businesses performing eligible research & development can access faster and more frequent payments of the R&D tax incentive this year.

What is the R&D tax incentive?

The scheme provides a 15% tax credit to businesses conducting ‘eligible’ R&D activities and has supported more than $1 billion in research costs since its inception in 2019. A new feature has been introduced into the scheme whereby rather than receiving the credit after your income tax return has been filed and your application has been finalised by Inland Revenue, regular cash payments can be received starting in the same year as you conduct your R&D.

IRD increases visibility of sales data

Tue, 28 Feb 2023 20:38:00 GMT

From April 1, 2023, payment service providers (i.e. EFTPOS providers and online payment platforms) must provide information to Inland Revenue every six months on all transactions processed. Inland Revenue will compare this information with what businesses have filed in their tax returns. They will follow up on any discrepancies in these comparisons.

Accelerate Special Alert Year End 2023

Fri, 03 Feb 2023 01:39:00 GMT

Top tips for end of the tax year

Getting to grips with the tax issues can be a headache as March 31 approaches but fear not: we’ve summarised some key factors to think about (in addition to normal year end housekeeping such as reviewing debtors and stock for tax write-offs).

In this issue:

Higher income? Don’t forget provisional tax!

Fri, 03 Feb 2023 01:26:00 GMT

2022-23 was the first year in a while without Covid lockdowns or pandemic restrictions, meaning most businesses, especially those in the leisure or tourism sectors, enjoyed a better year.

If you’ve earned significantly more this year than in 2021-2022, congratulations! But you may want to consider an additional voluntary provisional tax payment to Inland Revenue. It could help to balance your tax payments with your growing turnover.

It’s better to chat with us about this sooner rather than later.

Check your Covid support

Fri, 03 Feb 2023 01:14:00 GMT

The worst of the Covid crisis might be behind us, but there are still important things to remember if you have received government support since 2020.

Made an incorrect application?

If you received a Covid-19 support payment and weren’t eligible, you’ll need to let Inland Revenue (and us) know ASAP.

The quickest way to disclose an incorrect application is through Inland Revenue’s myIR online platform. There, you can send a message to Inland Revenue, which will investigate the eligibility of the payments and go through the next steps with you.

Time to repay your Small Business Cashflow loan?

Fri, 03 Feb 2023 00:00:00 GMT

Review any lending received through the Small Business Cashflow Loan Scheme.

The scheme was extended to 31 December 2023 , and businesses that have repaid their loans can re-borrow until that date. Under the scheme, a top-up loan allows businesses that have already accessed lending to draw down an additional $10,000 (or more for businesses that did not initially borrow the full amount available), with a new repayment period of five years (the first two years are interest-free).

Note when your two-year interest-free period expires. Can you afford to repay your loan early to avoid unnecessary interest payments?

Watch your FBT

Thu, 02 Feb 2023 23:50:00 GMT

The Fringe Benefit tax rate rose to 63.93% in April 2021, but nearly two years later, many businesses are yet to review the impact.

Before 2021, most employers used the single rate option to pay FBT on benefits provided at a flat rate of 49.25%. Have you reassessed the cost of increased FBT?

FBT is charged on a wide range of employee benefits, including company cars able to be used privately by employees right through to gift vouchers and flowers given to employees. Most employers don’t realise they have a large FBT bill until it’s too late. It can become even more painful if benefits have been given for a long time, as in addition to the FBT payable, penalties and use of money interest may also apply.

Review the impact of FBT on your business and ensure you don’t have backdated exposure. Talk to us about the impact of the 2021 rate rise and whether there are alternatives to offering employee perks, such as offering staff higher salaries or regular bonuses.

Review your property portfolio

Thu, 02 Feb 2023 23:25:00 GMT

Major changes were introduced in 2021 limiting property investors’ ability to deduct interest payments on loans for residential homes from their tax bills. Interest on loans for residential properties purchased after March 2021 is no longer deductible. For residential investment properties bought before March 2021, there’s a phase-out of the old interest deductibility rules that will run until March 2025:

Property investors need to calculate their interest phase-out for the coming tax year and talk to us about the potential impact in the years ahead. There are exemptions for ‘new builds’ and certain types of property. Please talk to us to see if these apply.

Do you have commercial buildings?

Remember that depreciation deductions for non-residential buildings were reintroduced for the 2021 and subsequent income years.

Have you bought or sold properties in the past year?

Tell us about the split between residential vs commercial, and the full details on new loans and credit lines so we can work out your obligations, including any possible impact of the brightline rules.

Remember the new tax rules for trusts

Thu, 02 Feb 2023 23:16:00 GMT

The 2021-2022 income year saw new disclosure rules for domestic trusts , requiring trustees to prepare financial statements and provide extra information with their income tax returns.

Trustees need to disclose identification details such as name, date of birth, IRD Number and country of residence of all historical settlors where reasonably available. Make sure you’re up to speed with the requirements.

Consider asset write-offs and sales

Thu, 02 Feb 2023 23:07:00 GMT

Review fixed assets and identify any that can be written off.

Assets purchased on or after 17 March 2021 and below the value of $1,000 can be written off immediately (in most cases).

Make sure assets purchased or sold as part of a sale/purchase agreement align with the purchase price allocation in the relevant agreement. We can go over Inland Revenue’s approach to this with you if you’d like more detail.

Christmas Greetings

toddw@withersco.co.nz (Todd Wilkin) — Sun, 18 Dec 2022 22:19:58 GMT

Merry Christmas from our team

The end of another year of twists and turns is in sight! As 2022 draws to a close, it’s time to start looking to the future. What Big Hairy Audacious Goal would you like to achieve in the next 10-25 years? Spend time over the holidays thinking about what you want to achieve, then start ‘23 off with a plan.

We’re not through the woods yet, but we can prepare to be in the best shape for whatever life throws at us next!

This year's Christmas eBook provides some light-hearted reading, with ideas for preventing burnout, book recommendations, tips to minimise the impact of inflation, an island holiday inspired cocktail recipe, and key risks to manage this festive season. We hope you enjoy it!

Our office will be closing on 22 December 2022 and reopening on 12 January 2023.

From our team to yours, we hope that your turkey is perfectly cooked, your Christmas tree lights are untangled, and there’s the right amount of brandy in your Christmas cake.

Stay safe, take care, and catch up with us in the new year to put your plans into action!

Merry Christmas and Happy New Year!

Please download our Christmas eBook here .

Your GST return is due on the 28th of October

toddw@withersco.co.nz (Todd Wilkin) — Wed, 21 Sep 2022 04:51:44 GMT

Your GST return is due soon.

You need to file your GST return at the end of every taxable period ( this may be monthly, 2 monthly or 6 monthly depending on the frequency you have chosen for your business - you can check this with us ).

We can help you file your return and pay by the due date to avoid late penalties.

Have you got your paperwork in order? - You’ll need to calculate the following to work out your return:

Total sales and income for the taxable period
Total purchases and expenses for the taxable period
Any GST adjustments for the taxable period

Make sure you keep your receipt from Inland Revenue with the rest of your tax records and make any payments by the due date.

Remember: Simplify GST by keeping a record of your business income and expenses as you go.

Give us a call. We can help you with your tax obligations.

Accelerate October 2022

Tue, 20 Sep 2022 23:20:00 GMT

As a business owner, you can spend so much time building your company that you overlook some of the most important factors that drive success. When was the last time you reviewed governance, succession planning, or culture?

In this issue, we look at some of the often forgotten aspects of running a family business — and why they’re important:

Accelerate August 2022

Sun, 03 Jul 2022 23:41:00 GMT

When the average person spends 2.5 hours a day on social media, and visits more than seven different platforms a month, taking advantage of eyes on screens is a no brainer
for engaging customers. But where do you start? In this edition, we explore branding , Instagram , blogging , and Facebook advertising to help you stand out from the crowd:

Building trust through brands

Sun, 03 Jul 2022 23:28:00 GMT

When it comes to the public perception of your business, creating a brand that resonates with the right audience is key. A logo isn’t just a picture to represent your company, Case In Point Design’s Zoe Sizemore describes it as a ‘communication tool’.

“Good marketing is all about repetition,” says Zoe, a graphic designer with 18 years’ experience. “It takes eight touch points to make a sale. So, if someone sees your brand – even for a couple of seconds – you want to create a feeling of connection that generates trust. Your brand gives your business a voice and a personality.”

That feeling of familiarity could be all it takes for a new customer to choose you over the competition. Keeping your brand consistent is also a way to boost your product’s perceived value.

“If people create a logo with random fonts and colours, it doesn’t look professional. You need imagery that’s consistent across all your marketing. It’s my job to think about how your brand looks on all the platforms – from a long website banner to a small circular profile picture.”

It’s worth investing in professional branding. One business owner saw an increase in sales of 29.7% over three months after updating her product packaging design.

“Business owners are often passionate about what they do, but they might not know what their niche is, what sets them apart, or who their target audience is. We take all of that into consideration before designing,” says Zoe.

She says it’s not about using the business owner’s favourite colour, it’s about choosing a logo concept that works best for its function.

“When we’re designing, we’re thinking from the customer’s point of view, not the business owner’s,” explains Zoe, “Engaging your target audience is the most important thing.”

Mastering the art of Instagram

Sun, 03 Jul 2022 23:23:00 GMT

If you’re already on Instagram, then you’re among the 1.4 billion users making it the fourth most ‘active’ social media platform. With a more visual format, it’s also one of the easiest to get right. Here’s the latest insight from Insta expert, Tasha Meys, who co-hosts the top ranked Instagram podcast: Ace The Gram .

Q: Does every business need to use Instagram?
A: If you’re a ‘business to customer’ business and not utilising Instagram, you’re missing out on valuable marketing opportunities. Not only does Instagram allow you to get in front of people in a place where they’re already scrolling (unlike a website) but people often use Instagram as social proofing* pre or post purchase.

Q: How is it good for your bottom line?
A: For many brands we know, Instagram is one of their primary traffic drivers to their website. It can easily translate directly to sales or act as a powerful community builder for your brand

Q: What makes the best content?
A: Your content will only perform well if it’s giving value to your audience in some form. This could be through humour, aspiration, education, creativity, or inspiration.

Q: Do I need to be a pro camera person?
A: If you’re a super high-end brand where your target audience expects high-end content, then yes. Otherwise just match your content to your brand personality.

Q: What are some tips and tricks?
A: Use reels. They’re the best way to grow right now as they’re shown to more people than your followers and the algorithm loves them.

Q: What makes it easier for business owners?
A: Schedule posts so you don’t have to spend your life on Instagram. Batch content from photoshoot days then schedule them.

Q: Where should business owners go for inspiration?
A: Spend time mindfully on Instagram and pay attention to which brands and people you enjoy following. Analyse why you like their content and brainstorm how you could use that inspiration to uplevel your own strategy. Also, listen to Ace the Gram podcast for all the social media marketing tips and news you need.

* Social proofing is an extra check to get a feel for a brand. It can cause a feeling of unease or distrust if a business doesn’t have an Instagram account or if they have a ‘bad Instagram’ while an account with great photos reinforces positive feelings and trust.

9 things you need to know before you blog

Sun, 03 Jul 2022 22:08:00 GMT

If you’re on a tight budget, blogs are an effective way to build trust, boost your reputation, and provide value advice while subtly promoting your business. Not a writer? Too hard basket? Spending time pulling together a few words to educate, inform, inspire your customers or clients is worth the effort.

1. Blog writing is a chance to establish yourself as an authority in your area of expertise and educate people about your industry.

2. You can use blogs for announcements, celebrating business milestones, and showcasing events or staff gatherings.

3. Choose a topic you can write easily and passionately about and don’t worry too much about word count. As a guide, 300 words is a five-minute read but don’t worry if it’s twice or three times that length – as long as you break it up with subheadings and it’s bringing value to your client, let it flow.

4. Keep it relaxed and conversational. If you write as you speak, your customers will feel like they know you and be more likely to want to do business with you.

5. Try a simple ‘how-to’ or ‘tick-list’ style post or offer your perspective on a trending news article.

6. Avoid technical jargon or in-house jokes in your blog articles.

7. Check out your competitors to see what they’re writing about, then make sure you’re bringing fresh ideas, insight, and ideas to your blog.

8. Remember to direct followers to your blog on your social media platforms.

9. Consider SEO. Including keywords throughout your blogs will help your Google search ranking. For example, if you’re a roofer in Wellington, make sure you include words like “roofer Wellington” or “best roofer in Wellington” because these are the words people use when searching for businesses like yours.

First things first:

Most importantly, read your blog out loud to pick up glaring errors and then save, close, and read again a few days later with fresh eyes. Is it still a good read? Yes? Post it to your website blog. Congratulations, you’re now a blogger.

Take a targeted approach with Facebook

Sun, 03 Jul 2022 22:00:00 GMT

Gone are the scattergun style leaflet drops. Now, Facebook targeted advertising allows you to choose your audience and track the success of each post. Facebook automatically shows your ads to people most likely to find them relevant, but you can also further target your ad delivery in three ways.

Core Audiences: Define an audience based on criteria such as age, interests, and geography.

Custom Audiences: Get back in touch with people who have engaged with your business.

Lookalike Audiences: Reach new people whose interests are similar to those of your best customers.

It’s recommended you post 1-3 posts per week (minimum) to touch base with your customers.

If you’re new to Ads Manager, this is the best place to get started and set up your account.

Which social media platform is right for me?

Sun, 03 Jul 2022 21:55:00 GMT

Facebook – the original platform for brands looking to attract Baby Boomers and Gen X (people aged 40 – 70).

Twitter – where you can chime in on any conversation.

Pinterest – more female-focused with content on design, fashion, fitness, lifestyle, and food.

Instagram – your best photos and video clips for the older millennial demographic (people aged mostly 30 – 40).

YouTube – useful for vlogging or video diaries.

Snapchat – tell a fun, authentic story to a millennial audience.

LinkedIn – the B2B social network professionals.

Tumblr – a micro-blogging site for niche audiences.

TikTok – short-form user videos aimed at the younger market.

This week’s to do list

Sun, 03 Jul 2022 21:43:00 GMT

Accelerate Livestock Special Alert 2022

Thu, 09 Jun 2022 03:43:00 GMT

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 as determined by a process involving a review of the livestock market as at 30 April:

As the decision is clearly one that should be made on a case-by-case basis, we will discuss your valuation options when we review your 2022 Financial Statements and Taxation Returns with you.

In the meantime, if you would like more detailed information about the Herd and NSC Livestock Valuation methods or about the values themselves, please contact us.

Dairy Cattle

Thu, 09 Jun 2022 03:10:00 GMT

The values for Dairy this year have seen a strong increase across all types with values being the highest since 2014. Values for R1 heifers have rebounded strongly from last year’s drop as the impact of change to the live export rules in 2023 is offset by surging commodity prices and demand for high quality replacements.

A Mixed Age Dairy cow now has a National Average Market Value of $1,697 compared to $1,528 last year – a rise of 11%. Rising two-year heifers have increased in value by 14%, as have R1 heifers to $1,472 and $809 respectively.

Continued restrictions caused by Covid-19 have not resulted in a drop in demand for dairy products, with most countries ending restrictions part way through the 2022 income year. The farm gate milk price for 2022 is forecast to be a record for Fonterra, early indications for the 2023 are very favourable and could see the 2022 record being broken. Increases in commodity prices have also seen significant increases in inputs, particularly in relation to imported fertiliser. Continued cost increases will put pressure on farming businesses even with record dairy prices. Uncertainty continues in relation to environmental changes with carbon reporting requirements for all farmers remaining unknown, even though all farmers need to ‘know their numbers’ by the end of 2022.

Availability of labour remains a significant issue for the 2023 season even though borders have reopened. This will put significant pressure on the farmers when the new milking season starts. Total cow numbers have continued to fall, but per cow production continues to increase which is a positive outcome both for labour units required, but also environmentally.

Beef Cattle

Thu, 09 Jun 2022 03:07:00 GMT

As with Dairy, Beef values have increased on average 14% and are approaching the highs of 2017 and 2018.

Whilst increased values and demand for Beef products is positive the impact of Covid-19 continues to be felt across the industry as meat works struggle to keep up with the processing demand. Farmers have increasingly found it difficult to have stock slaughtered due to reduced capacity arising from staff shortages. Increasing inflation and cost of living pressures worldwide will have a negative effect on the demand for quality cuts, just as demand following lockdowns was beginning to increase. The conflict in Ukraine will put further pressure on world food supplies, which will help support overall demand for proteins.

Sheep

Thu, 09 Jun 2022 03:05:00 GMT

Sheep are at their highest values since the herd scheme commenced in 1987 with an average increase in value of almost 17%. Two tooth ewes increased from $191 to $224. For the first time in 25 years ram and wether hoggets have recorded the same value as ewe hoggets on the strength of an $8.50 schedule and the likelihood of $10 in the spring meaning male lambs to winter through are being highly sought after.

Drought has continued to be an issue in the 2022 season in some traditional sheep farming areas.

As in prior years sheep numbers continue to fall to less than 26 million, with slightly more than half in the South Island. Whilst wool prices have improved compared to the 2021 season, values are still depressed overall, and the increased cost of shearing means that there is very little profit in strong wool. Covid-19 related issues continue for European manufacturing, but there have been positive signs of increased demand and production.

Deer

Thu, 09 Jun 2022 03:03:00 GMT

Deer values have seen some recover with an average 11% increase in values for Red Deer, Wapiti, and related breeds. The market for velvet has also contributed to an increase in values.

Other deer breeds have recovered slightly from the large losses of 2021 for female stock. Male breeding stock have increased substantially from 2021 values but remain significantly below the peak of 2018. Values have just started to lift as key European and American markets slowly start to reopen as the rollout of Covid-19 vaccines gains pace.

Goats

Thu, 09 Jun 2022 03:00:00 GMT

Goat values have seen significant increases across all categories except breeding bucks, where values have been flat. Female milking goats however have seen an average drop of almost 27% as demand for goat milk has collapsed with milk solid returns down 22%, a reduction in quota entitlement and penalties for exceeding quota, together with changes to conditions for supply requiring the rearing of 50% surplus kids (Cabrito) to 7-9 weeks at a loss.

Accelerate Budget Special Alert 2022

Mon, 23 May 2022 04:28:00 GMT

Predictions for the budget centred on inflation, the cost-of-living crisis and climate change, narratives that the Government isn’t doing enough to help the “squeezed middle”, and business sectors signalling they are still trying to recover from blows dealt by the pandemic.

Wellbeing Budget 2022 – A Secure Future positions itself to acknowledge the difficult times we’re living in while aiming to help move towards “a high wage, low emissions economy that provides greater economic security, while providing support to households affected by cost-of-living pressures.”

Health

Mon, 23 May 2022 04:22:00 GMT

The last two years have been about trying to keep the population and the economy as healthy as possible. Not surprisingly, the 2022 budget allocates a huge slice to health. A $13b boost is planned over the next four years, for health reforms and infrastructure including hospitals, mental health, and Māori health services.

Housing

Mon, 23 May 2022 04:20:00 GMT

Housing affordability measures so far have been weakened by rising interest rates, increased lending regulation and the subsequent flight of first home buyers from the market. Budget 2022 increases price caps on eligible houses for First Home Grants and eliminates them for First Home Loans. Other initiatives fund public and transitional housing, emergency housing, the Affordable Housing Fund, and actions to combat homelessness.

Inflation and the cost of living

Mon, 23 May 2022 04:17:00 GMT

The irony of two years’ trying to keep the economy as healthy as the population, is that the economy is currently running well enough but ordinary New Zealanders can’t keep up. Soaring global inflation is predicted to ease from later this year. The Budget introduces measures designed to get New Zealanders through the meantime.

Reductions at the pump and on public transport extend for a further two months, till August.

A cost-of-living targeted payment of $350 delivered across three monthly payments from August 1, is planned. It’s a top up, it’s temporary and it’s tax-free for an estimated 2.1 million Kiwis who earned less than $70,000 last year and are aged 18 or over. It works out at round $27 per week and Inland Revenue will administer it. Nobody needs to apply. Inland Revenue will pay it directly into your bank account if you’re eligible (check that your personal bank account details are correct in myIR). Those who already qualify for the Winter Energy Payment, or who qualify for Jobseeker support, superannuation or certain other benefits won’t receive it.

To increase competitive pricing for groceries, the Government took on board Commerce Commission findings that restrictive covenants over land prevent new entrants from entering the grocery retail market. New legislation bans these, a move that may be business- as well as consumer- friendly.

What’s in it for business?

Mon, 23 May 2022 04:14:00 GMT

While some cost of living and climate initiatives may assist businesses, certain industry priorities are targeted specifically:

Business Growth Fund

Mon, 23 May 2022 04:10:00 GMT

There’s $100 million in capital funding for the new Business Growth Fund for SME businesses needing money to grow. The Government will buy minority stakes in small businesses that want to expand, investing alongside banks. Banks will refer businesses “where equity finance would be more appropriate than debt finance”, Minister for Small Business, Stuart Nash, said.

Nash, pointing out that private equity funds don’t typically invest in SME businesses but push for control, aggressive growth, and short-term results, described the Business Growth Fund having “more modest return expectations and no hard exit deadlines allowing business owners to set their own growth targets and identify the most appropriate time and path to exit.” The Government has discussed the fund with the Reserve Bank and private banks but has not yet selected banking sector investment partners.

The Minister indicated this investment model has been tried successfully in the UK, Canada, Ireland, and Australia. We don’t have details yet, but we can perhaps draw on examples from the last two years’ COVID-related business relief schemes. We expect eligibility criteria for the fund to require evidence of business viability and a New Zealand base, backed up by solid financial data and business plans outlining the kind of growth an applicant has in mind, such as expansion into new locations, new markets, or new products.

Broadband Infrastructure

Mon, 23 May 2022 04:07:00 GMT

$60 million is allocated to improve broadband in under-served areas of the country. Given how many New Zealand businesses are small and how many start up and carry on in rural areas, this may be a welcome leg up to frustrated business owners trying to grow online presence and streamline access to online services and software.

It’s long overdue. “Rural broadband is particularly critical to small businesses because it can enable major productivity improvements such as better access to information across supply chains.” ( Small and Medium Businesses in New Zealand, Report of the Small Business Development Group, 2016 )

Climate

Mon, 23 May 2022 04:04:00 GMT

Climate change initiatives in Budget 2022 follow the Government’s recently released Emissions Reduction Plan, and several initiatives have already been announced in that plan. $2.9 billion of funding (sourced from cash proceeds from the Emissions Trading Scheme) is allocated to investments to be made by the Climate Emergency Response Fund (CERF), such as:

Forestry and agriculture sector investments include:

Notably absent are tax concessions which could assist here, such as FBT exemptions for employer-subsidised public transport or electric vehicles.

Accelerate June 2022

Thu, 05 May 2022 23:20:00 GMT

As we head into winter, we tip our hats to the Kiwis working the land. The 83,000+ workers who face a unique set of unpredictable and uncontrollable challenges. We look at budgeting tools, Three Waters Reform, weather worries, technology, and the mental health crisis.

Developing habits to keep costs under control and your business in order are just as important as the physical and mental wellbeing of you and your employees. When you look after yourself, you’re ensuring the success of your farm.

In this issue:

Managing farm debt

Thu, 05 May 2022 23:12:00 GMT

If you’re feeling uncertain about your next year of farming, you’re not alone. Farmer confidence is at its lowest point in 13 years with more than 11% of respondents to a Federated Farmers survey expecting a drop in profit over the next 12 months. On a more positive note, when Federated Farmers asked members about their relationship with their bank, 67% of the 900+ respondents were satisfied.

Whatever your position is, it’s always beneficial to talk about managing farm debt.

How you handle cash flow is important to your suppliers and lenders, so even if you have a great accountant, make sure you personally have a grasp on your finances. You could ask your business banker for a budget template or jump online.

DairyNZ has handy budgeting tools on its website that will take some of the head scratching out of the equation. It provides templates and guides you can print and work through, as well as ‘opportunity calculators’, including:

DairyNZ budget templates include a sensitivity table to help you assess risk from changes in pay out, production, and farm working expenses.

Lincoln University also has budget templates for farmers, and ASB Bank suggests a cloud-based budget system called Figured that plugs into Xero.

Also income equalisation schemes provided by Inland Revenue may allow for some cash flow flexibility on tax payments arising from income fluctuations.

Talk to us about which options might best suit your business.

How to maximise damaged crops

Thu, 05 May 2022 23:05:00 GMT

If you’ve been adversely affected by this year’s wet weather, the Foundation for Arable Research (FAR) can help you figure out how to make the most of your damaged crop. FAR Board Chair Steven Bierema and CEO Alison Stewart met with grower representatives in May for a post-harvest look at grain drying and seed cleaning facilities. These short on-farm meetings provided an opportunity to share information about grain and seed drying and cleaning options.

The advice from FAR is that sprouted grain is unsuitable for use in the milling, brewing, and food industries, but it can be fed to livestock. The feeding value of the sprouted grain is not greatly reduced. In some cases, it appears sprouting may actually improve the feeding value. Sprouted wheat should be processed similarly to non-sprouted wheat, but it may have a higher moisture content, which can lead to spoilage and mould growth during storage. If there is any question about the presence of moulds or toxins, have the grain screened. Interested in a workshop with FAR? Keep an eye on their website for future dates.

Keeping tabs on stressed staff and why you need to check in

Thu, 05 May 2022 23:00:00 GMT

A Southland counsellor researching mental health issues facing young men in the rural sector has confirmed what she suspected: there’s a perception of shame in speaking up.

“Young rural men don’t seek help,” says Kathryn Wright. “They suffer in silence.”

As the wife of a Te Anau deer farmer and mother of a shepherd, Kathryn’s always been aware of stress in farming. As part of her master’s degree research, she conducted a survey of more than 300 men aged 16 – 30.

“Unsurprisingly, the number one reason young men don’t speak up when they’re struggling is a feeling of shame and embarrassment,” she says.

Kathryn is encouraging farm owners and managers to check in with their workers and give them the opportunity to raise concerns.

“If you have a young man straight out of school or home, have them over for a meal and bring them into your fold,” suggests Kathryn. “Also, ask open-ended questions like ‘How are you doing today?’ rather than ‘How are you?’. You will reap the benefits of having happier staff who feel supported.”

Five signs your employee could be stressed

Tough choices under proposed water reforms

Thu, 05 May 2022 22:54:00 GMT

Changes proposed to drinking water, wastewater, and stormwater legislation are ruffling feathers in rural communities. If adopted, the Three Waters Reforms could mean water systems, currently owned and originally set up by locals to supply each other with water, will be run by four new entities and regulated by a new authority, Taumata Arowai.

What does this mean for you?

Many schemes currently operate on goodwill amongst neighbours and as soon as regulations come into play, those relationships could sour. On top of all the paperwork, finding up to $5,000 to meet regulations and provide evidence they’re supplying clean water will be too much for some and they’ll opt out to escape the bureaucracy. Federated Farmers Senior Policy Advisor Nigel Billings says the non-financial cost will be the strain on relationships between landowners and that’s the real loss for the farming community.

What can you do?

Federated Farmers wants anyone supplying fewer than 50 people to be exempt from the regulations. However, the government insists every water supplier become registered and meet new requirements under its legislation. The lobby group is calling for feedback from rural landowners in June. It continues to engage with Taumata Arowai on a constructive basis and intends to raise the issues brought up by its members.

Take action: call Federated Farmers and have your say.

Fewer accidents = less financial strain

Thu, 05 May 2022 22:48:00 GMT

New Zealanders are among the best in the world at looking after their livestock and crops, but are we missing something when it comes to looking after our people?

In 2020, there were more than 22,700 farm-related ACC injury claims, which came at a recovery cost of $84 million. That’s over 60 farmers injured every day, not to mention the ripple effect on their families and communities.

In fatal farm accidents, there’s almost always a farm vehicle involved, so it’s important to remember the simple measures you can take to avoid unnecessary injury and financial strain.

Let’s talk tax: changes to GST and KiwiSaver

Thu, 05 May 2022 22:44:00 GMT

GST

Goods that are exported from New Zealand can be zero-rated, with GST being able to be claimed on purchases or expenses incurred in providing those exports. Recent changes to the GST rules which impact the export of goods include:

While not affecting New Zealand farmers directly, non-residents can now claim import GST (NZ GST levied at the border) provided the imported goods are sold to GST registered persons in New Zealand. This will allow for more efficient processing of GST costs on imports where this applies.

KiwiSaver

If you have employees signed up to KiwiSaver, let them know they can now request changes to their rate through their myIR account or by contacting their KiwiSaver scheme provider.

Raise your farm’s value by reducing its environmental impact

Thu, 05 May 2022 22:04:00 GMT

The Ministry for Primary Industries is funnelling money into technology research with a focus on fast tracking the delivery of a digital solution for Farm Environment Plans (FEPs).

FEPs help to identify and act on environmental risks on-farm and show progress on environmental objectives. It’s hoped that by monitoring our standards with high-tech solutions, farmers can build export value by satisfying global consumer expectations.

Agricultural products make up around 80% of the country’s total exported goods, so ‘smart farming’ to lead the world in environmentally friendly practices is a logical move.

Dairy Women’s Network Awards

Thu, 05 May 2022 21:43:00 GMT

Calling for nominations

The Dairy Women’s Network (DWN) is calling for nominations for its Regional Leader of the Year award . The award celebrates its volunteers who host gatherings, organise workshops, offer support and keep rural women connected. Head to the DWN website for details.

Accelerate April 2022

Tue, 08 Mar 2022 21:50:00 GMT

As the workforce undergoes digital transformation, and we continue to live alongside Covid-19, it’s a relief to discover a survey by Otago University found 71% of respondents positive about their productivity while working from home.

But what impact does the new way of working have on your business? Are you up to speed on who pays home office expenses? Thought about what your company would do if you were sick for a week? Feeling time-poor and want to change that? Read on for insights and answers to these questions – and more:

Navigating the new world office

Tue, 08 Mar 2022 21:04:00 GMT

Pre-Covid, we never would’ve imagined working from home could be so welcomed and productive. The pandemic has pushed many companies to make the long-needed leap into the digital world, and as a result, remote working offers a lifestyle like never before.

Now, your team can ditch the commute, gain more flexibility for family life, and avoid the distraction of a busy workplace. The changes, however, have thrown up some fresh questions regarding accounting, culture, and connectivity.

Who pays home office expenses?

How do I know my staff are working effectively?

The swift move towards remote working has left many businesses without a culture to match the new work practices. Create policies that directly address new challenges posed by remote work to help your company culture carry over into the digital world and provide employees with much-needed guidance. Consider adopting regular informal one-on-one check-ins rather than time consuming annual performance reviews. You will enable your team to be more transparent about how they’re feeling, address any concerns, and stay on track to reach their goals.

How do we retain a feeling of team connectivity?

From virtual yoga to online clubs and cooking classes, 2022 will see more teams building their culture online. Friday drinks can be conducted via Zoom and group trivia sessions can create a feeling of fun and camaraderie.

While some staff will be enjoying the convenience and sense of freedom that comes from flexible working, be mindful others might be experiencing stress, feel overwhelmed, or isolated while navigating the new way of working.

Could your business survive without you?

Tue, 08 Mar 2022 20:50:00 GMT

Would your business still thrive, or would it suffer a catastrophic failure if you suddenly stepped away?

It’s tough to remove yourself from the day-to-day operations when you’re passionate and busy. However sudden accidents, illnesses, or family emergencies can – and will – happen and you need to be able to step back knowing your systems are robust enough to cope.

For your business to work for you, you need to make yourself replaceable. Large corporations have plans in place to mitigate what’s known as ‘Key Man Risk’. But when you run a small entrepreneurial venture, who is the backup?

The more you can train and empower your team to perform the business’s essential daily functions without micromanagement, the closer you’ll be able to enjoy a lifestyle business.

Establish repeatable and scalable support infrastructure to run the daily operations and create a great team that you can lean on. Your staff need a common purpose – knowing why what they’re doing matters – as well as clear expectations around their roles. By creating a suitable work environment, where employees both individually and as a team are more efficient and likely to enjoy what they do, you’ll breathe easier knowing they have your back (and your business) in an emergency.

Finally, it’s important to know what the business looks like without you. An exit strategy is often thought of as the way to end a business — which it can be — but in best practice, it’s a plan that moves a business toward long-term goals and allows a smooth transition to a new phase. That may involve re-imagining business direction or leadership, keeping financially sustainable, or pivoting for challenges.

A fully formed exit strategy takes all business stakeholders, finances and operations into account and details all actions necessary to sell or close. Strong plans recognise the true value of a business and provide a foundation for future goals and new directions.

Top Tips:

Time is money – make the most of it

Tue, 08 Mar 2022 20:35:00 GMT

We’re all familiar with the phrase ‘time is money’ so why isn’t it tracked in the same careful way as our finances to maximise both? Remote working has brought with it a wave of disruption and time is a hot commodity. Here are four ways you can re-set and prioritise productivity.

#1 Get your team on the same page

Streamlining your online systems ensures everyone has access to the same information to avoid doubling up on work. Sites like Monday.com or Asana manage tasks and track progress with easy-to-read charts and tables.

#2 Appoint a chief time officer

Believe it or not, larger companies are making this a standalone role to improve efficiency. Smaller businesses could make it part of someone’s role or raise the issue in meetings, so it stays front of mind.

#3 Watch your waste

Take a moment to evaluate simple things like the steps taken to get from one place to another that may be sucking up time. Is the movement unnecessary and therefore unproductive? Are you using energy to shift stock when it could be stored in a smarter location? Could there even be creative ways to harness your employees’ talent rather than letting fresh ideas go to waste?

#4 Get some help

An effective boss can accomplish a huge amount, but nobody can do it all. Leaders are constantly forced to make trade-offs between extremely important priorities. Focusing on any one thing means neglecting something else, so task an assistant with keeping you on track, on time, and removing incidental tasks from your plate.

Get up to speed with employment law changes

Tue, 08 Mar 2022 20:28:00 GMT

We’ll keep you up to date as further developments are announced.

Accelerate Special Alert Year End 2022

Wed, 02 Feb 2022 02:19:00 GMT

Between Covid restrictions, a downturn in income, government payouts, and tax breaks, we understand if your head is spinning as the financial year wraps up. That’s why we’ve done a round-up of relevant tax information you may have missed, so you can ensure everything is in order and there are no unwanted surprises come 31 March 2022.

Six Ways to Stay On Top Of Tax This Year End

Wed, 02 Feb 2022 02:02:00 GMT

1. First, let’s talk Covid

The two most important things to remember are:

a) Retain any documentation you have surrounding payments and subsidies you’ve received from Inland Revenue or MSD.

b) Got employees working from home? The 2021 COVID-19 Protection Framework means a new approach to covering their costs. Remember, if an employer pays for an employee’s expenditure or loss when they fork out for extra power, phone charges, printer ink, home office supplies or equipment, then the payment is tax-free, not subject to PAYE, and deductible for the employer. If you estimate the payment, you need to keep track of (and evidence of) how you calculated it.

2. Earning more than $180K?

3. It’s a matter of Trust

From the 2021-22 income year there are new disclosure rules for domestic trusts. Trustees will need to prepare financial statements and provide extra information with their income tax returns.

4. Residential property investment?

Now that interest on mortgages taken out for residential property acquired after 27 March 2021 is non-deductible, if you have a property with existing mortgage interest that fits the frame for the interest phase-out applying from 1 October, we can calculate the interest phase-out for this year for you. And let us know if you bought or sold residential investment property during the year so we can give you an accurate picture of your tax exposure now and going forward. The brightline test for property sales on or after 27 March 2021 is now 10 years (up from 5 years for properties acquired between 29 March 2018 and 27 March 2021).

5. Got a Small Business Cashflow loan, or considering one?

We absolutely understand the financial pressure you’ve been under, and while repayments are not compulsory in the first 24-months, our tip for saving money long-term is to pay off the loan before interest starts being charged. If you’re struggling, and your business has experienced a 30% decline in actual or predicted revenue over the period of a month (compared with the same month last year due to Covid) you may still be considering a loan. Applications are open until 31 December 2023 through the Inland Revenue website .

6. Wage Subsidy Scheme reporting

Inland Revenue is reviewing WSS payments that weren’t reported in the ‘Government Subsidies’ field of the 2021 IR3/IR3NR income tax returns, so if this was you, talk to us. Please keep any receipts or documents so when we make the amendment, we can provide supporting information to Inland Revenue. And keep all relevant information together for accurate reporting for the 2022 year.

Accelerate February 2022

Fri, 17 Dec 2021 02:56:00 GMT

When you work hard for your money, it’s important to stop and ask whether your money is working for you. That’s why we’re focusing on ‘working smarter’ in this issue. From property and budgeting to investing and streamlining, we’ve got fresh insights and tips to help you achieve more freedom and boost your bottom-line.

In this issue:

Residential investment property: what you can claim for

Fri, 17 Dec 2021 02:49:00 GMT

If you’ve invested in residential property, you may be scratching your head over whether recent tax changes affect you.

If you borrowed to acquire residential property before March 27, 2021, interest deductions will be phased out over the next three years. If you bought on or after March 27, 2021, you won’t be allowed to deduct interest incurred after October 1, 2021. There are exemptions to this – call us if you’re not sure.

Wondering if it’s worth claiming for operating expenses like vehicle costs when you travel to your rental property? It all adds up, so here’s what you can claim for:

REMEMBER:

If you’ve taken out a loan for a business purpose, e.g., to buy a new business asset, and the loan is secured against a residential rental property, you’ll still be able to claim the interest as an expense.

Six financial myths busted

Fri, 17 Dec 2021 02:45:00 GMT

Those long-held beliefs holding you back from financial freedom need to be dispelled. Take a closer look at budgeting and money management.

Myth: I need a credit card for emergencies.

Reality Check: Someone who just lost their job won’t be able to pay rent or their mortgage with a credit card. That’s why having an emergency fund that’s the equivalent of three months’ earnings is a must.

Myth: To invest, you need to be rich.

Reality Check: Investing is as easy as online shopping. It is not about the amount you earn, but the amount you save that builds wealth. Start investing small amounts consistently over a long term to build a sizable return.

Myth: Buying a home is better than renting.

Reality Check: Having a home is considered a good investment. However, sometimes it simply doesn’t make sense. If your business means you’re on the move a lot, renting is cheaper, and allows you to concentrate on work without the stress and cost of maintaining a house.

Myth: Saving for retirement starts when you’re 40.

Reality Check: In your 40s, financial responsibilities are often at their peak as kids head away to university, home renovations and holidays are on the cards, and health issues arise. If you haven’t started already, rest assured that investing a little every month will ease stress later in life.

Myth: I’m not earning enough to save.

Reality Check: It’s tempting to funnel every available dollar back into your business, so think of your savings as a necessary emergency fund. Create a budget, and stick to it, and automate payments and investments at the start of each month.

Myth: Having a loan is bad.

Reality Check: Taking a loan to build an asset that gives a higher return than the interest on it is profitable. By taking a loan, you can create wealth with limited financial potential but it’s important to speak to your accountant to discuss the smartest option for you and your business.

Time to grow? A guide to attracting investors

Fri, 17 Dec 2021 01:59:00 GMT

If you don’t have the working capital to invest in significant expansion, it might be time to consider bringing investors on board. Pitching to raise funding can be a nerve-racking experience, so here are some tips to impress:

Time is money: make the most of 2022

Fri, 17 Dec 2021 01:51:00 GMT

Are you familiar with the ancient Japanese philosophy of ‘Kaizen’? It’s the principle of continuous improvement that can make a huge difference to the efficiency of any company and is saving some of the world’s most powerful companies millions of dollars a year. Sound good? Here are ways you can embrace Kaizen to improve your business.

What’s your waste? This isn’t just about what’s ending up in the rubbish, it’s also unnecessary movement, overproduction of stock, waste due to mistakes, and time spent waiting. Examine whether the waste is avoidable or could be made more efficient.

Get organised! Create a standardised work week so the same things are happening on the same day or time. Organise your equipment so everything has a home, and everyone knows where it is.

Create visual systems. Get everything out of your head and onto a board – the goals and priorities, how you’re tracking, and who’s responsible. It helps with communication and eases the pressure on you because you now don’t need to be there to answer all the questions.

Non-utilised resources. Listen to your team; their ideas and even their hidden talents could be put to good use.

You don’t have to spend millions on flash solutions. Simply get down to basics, understand the root cause of the problem, and put systems in place. It’s about making your life easier, less frustrating, and gaining more time to be an efficient, effective business owner.

Is it time to power down?

Fri, 17 Dec 2021 01:45:00 GMT

Screens have become so omnipresent in our lives that internet addiction is recognised by the World Health Organisation as a mental health condition. Here are our top tips for switching off.

Resist FOMO – It’s tempting to respond immediately to every ding or vibration alert from your phone but checking emails at three set times each day is enough.

Communicate – Let people know about your plans to be offline at set times during the day.

Out of sight, out of mind – Turn off your phone, or at least temporarily silence your email and social media alerts, and then get your devices out of your line of sight until you’re ready to reconnect.

Get moving – A quick walk around the block or a five-minute stretch will relax those muscles in your neck, back, and shoulders that suffer when you’re hunched over
a keyboard.

Rest your eyes – To relax and refresh your eyes, gaze into the distance every 20 minutes for 20 seconds.

Create a safe (tech-free) space to rest – Sleep is a time for your body and mind to rest and repair from the day’s stressors, so make your bedroom screen-free.

How to get the creative juices flowing

Fri, 17 Dec 2021 01:30:00 GMT

A smart business owner not only encourages innovative ideas from staff, but also follows up and implements fresh, new concepts. It makes your team feel included, valued, and may pay dividends with great new systems. So, how do you foster creativity in your crew?

Make brainstorming easy. When employees have a wide-open whiteboard to work with, you never know what ideas might come up. A great digital version is Stormboard where each digital sticky note can house its own whiteboard for a productive brainstorming session.

Encourage individuality. Let your employees know you value their thoughts and ideas by showing genuine interest with follow up questions. What started as a watercooler quip may evolve into a game-changing concept.

Provide a stimulating atmosphere. Consider a workspace that has ambient noise. Avoid sterile whites, greys, and beige in favour of relaxing pastel colours with bold orange or red in the shared space for a more energised atmosphere.

Accelerate December 2021

Tue, 02 Nov 2021 03:23:00 GMT

Thank you for all your support this year — we appreciate you!

Whether you’re seeking extra staff to cover the Christmas rush, wanting to avoid paperwork mishaps and breaches of the Holidays Act 2003, or looking to refine your onboarding experience, we’ve got you covered in our final issue for 2021:

Summer staff generation: a how-to guide

Tue, 02 Nov 2021 03:02:00 GMT

Getting the staff you need over the silly season during a global pandemic is tough. If you’ve tried Seek, Careers, and Trademe with no luck, maybe it’s time to think creatively. And remember, while our unemployment rate is low, there are always going to be part-time workers looking for more hours or full-timers looking for a change.

Here are six fresh ways to find new staff:

Five steps to seamless hiring in 2022

Tue, 02 Nov 2021 02:54:00 GMT

So you’ve found the right person for the job, now what? Here are the next five steps you need to take.

Step 1: Make an offer

Step 2: Sign the employment agreement

Step 3: Get prepared for their first day

Step 4: Complete any remaining paperwork

Step 5: Get them settled in

Anything else keeping you up at night?

Tue, 02 Nov 2021 02:45:00 GMT

COVID-19 Business Helpline

Drawing up a new staff contract this summer?

Tue, 02 Nov 2021 02:02:00 GMT

Comply with the law to stay out of hot water

1. All employees must have a signed employment agreement before they start work.

2. All employees have minimum rights that are set out in law, including:

3. Employee work hours must follow the legal rules.

Onboarding: how to do it right in 2022

Tue, 02 Nov 2021 01:54:00 GMT

Keeping staff can be just as tricky as finding them. So, how do you ensure newcomers feel informed and welcomed from the get-go? Create a memorable welcome pack as part of your onboarding experience. This could include:

Five things all employers should consider in early December

Tue, 02 Nov 2021 01:36:00 GMT

Taking time out over the summer? You can have an ‘annual closedown’ for your whole business or part of it but give employees at least 14 days’ notice in writing. You can ask staff to take their existing annual leave. If they don’t have leave left, they can take leave without pay or you can both agree to them taking annual leave in advance.

Need employees to work the public holidays? The only way you can make employees work on a public holiday is if it falls on a day they normally work, and the requirement to work on the public holiday must be included in their employment agreement.

Know how much you need to pay them? If the public holiday falls on the day they would normally work, you pay them time and a half and give them a paid day off. If the holiday doesn’t fall on a day they normally work, you pay them time and a half.

Employees asking to cash up? Staff can cash up up to one week of their minimum four weeks’ annual holidays in any entitlement year if you’re okay with it. If not, you must decline in writing (but you don’t have to give a reason).

Need to modify an employment agreement? There are rules to follow, so head to Employment New Zealand or New Zealand Workforce Manager .

Accelerate October 2021

Tue, 24 Aug 2021 23:05:00 GMT

What does it mean to humanise your business and how important is it for future success?

Humanising your business is all about creating a brand that feels familiar, relatable, and magnetic to your customers. It’s running a company where employees proudly call you honest, reliable, and inclusive. If you can achieve this, people will feel more connected to your business, more compelled to buy from you, and more likely to want to work for you:

Four Steps to Social Media Success

Tue, 24 Aug 2021 22:12:00 GMT

1. Have absolute clarity about your positioning. What do you stand for as a business, who is your target audience, and what do you do (in simple lay terms)?

2. Understand the ‘internal questions’ your customers might have, meaning what are the obstacles that stand in the way of a customer buying from you. If you understand this then you can create content that answers these questions.

3. Establish what platforms your customers live on. Different demographics favour different platforms and each platform has its own ‘culture’.

4. Ensure you communicate with your customers using an appropriate tone. Take Skinny mobile and Spark as an example. They are owned by the same company and broadly speaking they deliver the same product. However, they communicate with their customers in a completely different way.

Turn your story into profit through digital marketing

Tue, 24 Aug 2021 22:08:00 GMT

What’s the story behind your business? Do your customers get an insight into what happens behind the scenes? Telling your story through digital marketing is a powerful way to humanise your business, engage customers, and distinguish yourself from competitors. AD HOC ’s Andrew Ferdinando has trained and coached more than 2,000 New Zealanders as a virtual marketing director. Here are his tips for effective storytelling through digital marketing.

What does humanising your business mean when it comes to digital marketing? We talk a lot about showing customers behind the brand. Consumers are becoming more discerning about who they buy from. Showcasing the ‘who’ and the ‘why’ behind your business helps people understand what you stand for. The easiest way to do this is to introduce the people who are calling the shots.

Why is telling your business story on social media so important right now? In almost every category competition is high. Telling your story is a great way to distinguish yourself from others. A great example of a company that has done this well is Lewis Road Creamery . New Zealand is full of dairy companies yet Lewis Road Creamery has set itself apart as a premium brand with highly effective storytelling.

What are the most powerful ways to tell your story online? There are so many ways to produce content. The stats consistently tell us that video is the most effective format. However, you should go with a form of content that suits you. This could be written articles (blogs), imagery, illustrative designs, infographics, audio (podcasts), email newsletters, etc. Content can be delivered in many different ways.

Which New Zealand business does this well? One of AD HOC ’s clients, Red Badge , is a large security firm with an extensive workforce across New Zealand. They wanted to showcase the fantastic team who represent their brand so well. Inspired by the social media account ‘Humans of New York’, they created a series of content named ‘Humans of Red Badge’ where they introduce us to different team members, and we can meet the person behind the uniform.

If you have a limited budget, what should you focus your spend on? Don’t spread yourself too thin. Find one or two platforms and concentrate on these. Start by creating one quality piece of content on a regular basis and commit to doing this consistently.

What’s a social media myth you’d like to bust? There is no magic bullet. Social media is simply another marketing channel. Like all marketing, it requires a strong strategy, creative execution, and technical ability. And you need to give it time.

What are some no-no’s when it comes to social media? The most important thing is to be consistent. If you dip your toe in occasionally, it’s highly unlikely you’ll see success.

How can business owners engage their staff to help humanise their business? Educate your team as to why marketing is important. Then identify the people who are keen to be involved with the social media efforts. Remember, Jamie Oliver was discovered when he was a very young chef at the River Café in London. A documentary TV crew was at the restaurant interviewing the owners when they came across this young man in the corner who was born for the camera and super keen to be involved. Perhaps you have a Jamie Oliver in your business. Get them engaged!

Finders keepers: attract the best team and keep them keen

Tue, 24 Aug 2021 21:28:00 GMT

The unemployment rate is down to 4% and for some industries like hospitality and horticulture, the labour shortage is crippling. For others, like the construction sector, COVID-19 has drawn a double-edged sword: endless work but a lack of skilled labour. Whether you’re looking to expand and hire, recruit to replace, or keep your hotshots in-house, here are our top tips for getting and keeping a skilled workforce.

Ensure there’s room to move

Bored or stagnating employees will soon be using their downtime to scan job sites. Offering career progression or the chance to upskill ensures they feel valued. It also shows you’re loyal to your staff by promoting from within. Make those opportunities clear to new as well as existing staff so they know there’s always the chance to train for sideways slides or higher-ranking positions. Map out a career path for your staff so they are not just in a job, but a long-term career.

Personal life matters

It’s unavoidable; what’s going on at home affects job performance. Mental health days or offering the opportunity to work out personal issues creates a feeling of being supported, which builds loyalty and a feeling of stability. You could also take the time to make a note of birthdays, acknowledge milestones outside the office, and recognise hard work.

Regular catch-ups

Whether it’s a formal monthly meeting or a chat over Friday pizza, regular check-ins are key. They’re not only important for making your team feel genuinely heard but may also offer insight into streamlining systems or ensuring your staff has the tools they need to do their job well. Everyone’s ideas are worthy of your time and generate the feeling of inclusivity.

Flexibility is key

COVID-19 has proven that working from home can improve productivity. Starting or finishing earlier or later simply to avoid rush hour traffic has also been shown to improve mental health. You may consider a four-day workweek. A trial here in New Zealand found productivity increased 20%, staff satisfaction improved, and stress levels decreased. Encouraging work-life balance is a valuable leadership tool that pays genuine dividends in the office.

Switch up your advertisement

Rather than listing technical requirements or preferred qualifications, try switching to qualities and personal attributes that would gel with your existing employees. It shows you’re making an effort to create the best work environment. Some of the most successful ads show a clear career path and progression possibilities.

Be open to potential

They may not be the full package right now, but recognising the future stars is essential. Talk to local schools and universities to secure their best graduates for those entry-level roles. Also, employees who’ve been with the company for years may find fresh enthusiasm and thrive in a mentor or training role. Attracting and retaining the right employees is all about giving opportunities. And let’s face it, that’s a win-win scenario. Employees appreciate when management invests effort in making them better and are more likely to return the love with initiative, pride, and hard work.

Seven unspoken rules of working from a cafe

Tue, 24 Aug 2021 21:21:00 GMT

Whether it’s the hustle-bustle, the creativity it inspires, or its lack of household distractions, the ‘coffice’ is rapidly becoming a top choice for flexible workers looking to escape the monotony and isolation of working from home. But just like any work environment, there are house rules.

Up with the play on equal pay?

Tue, 24 Aug 2021 21:15:00 GMT

Equal Pay Amendment Act

CCH New Zealand Employers Handbook

Employment NZ website

Wellbeing toolkit at your fingertips

Tue, 24 Aug 2021 21:08:00 GMT

Five Ways to Wellbeing

Mental Health Foundation’s website

Accelerate August 2021

Mon, 05 Jul 2021 23:36:00 GMT

While it’s been a rollercoaster of a year so far, many Kiwi companies are still setting aside time and energy to do planet-friendly business because it can be vital to recovery, winning new customers, and long-term success. So, how is the construction industry tackling sustainability? What about the food sector ? And what steps can you take in 2021 to show your commitment? And, if you’re a company director , there are some quick general reminders about your role.

Building a more sustainable future

Mon, 05 Jul 2021 23:25:00 GMT

Despite facing material, timber, and labour shortages, the building industry is still working hard to advocate for more sustainable ways of doing business. New Zealand Certified Builders’ Communications and Group Services Manager Karla Farrar explains why sustainability was the theme for this year’s AGM, Conference and Expo, held in June.

Why did you choose sustainability as the theme for the annual conference?

Climate change can no longer be ignored. Since the Covid-19 lockdown, more builders are becoming aware of their social responsibility with the disposal of building waste. On top of this, homeowners’ interest in sustainable homes is growing, and they are also choosing locally made products where possible. Our keynote speaker, Team Green Architects ’ Sian Taylor, presented on ‘How to make sustainable building more affordable’. We also had four educational speakers speak about Passive Houses , Zero Carbon Building , Blower Door Testing , and Electric Vehicles and Homes. Our expo included more sustainable building product suppliers this year as well.

What challenges does the building industry face in becoming more sustainable?

There are lots of factors to becoming more sustainable. The fastest way to do this is cleaning up our building waste and how the councils manage this in the regions. The councils have been slow to respond to our requests, but changes are happening. Product manufacturers also need to be more responsible for their packaging and use more recyclable products. Building design and changes to the building code would be the next thing to tackle.

How are your members contributing to a more sustainable industry?

Building sustainability is becoming more ‘normal’ in our industry. Our members are talking about it more and so are the suppliers. Designers and architects are also talking more to our builders about it. The main councils are also taking the topic more seriously. Building waste is a hot topic in our industry at the moment and we had Mark Roberts, Senior Waste Planning Advisor from Auckland Council speak at our conference. We are slowly getting more communication on the topic of building waste and how our builders should manage this. Many of our builders are pushing their local councils to do more and their efforts are starting to pay off all around the country.

What does a more sustainable building industry look like for NZCB?

All our members are trade qualified in carpentry level 4 and the majority are also part of the Government – Licensed Building Practitioners scheme . Part of being involved means you have to complete so many hours of training per year, so they get exposed to all the latest products and building techniques on a regular basis. Sustainable building is the way of the future and here to stay, so it will only improve in the years to come.

Developing a more sustainable industry requires a lot of education, changes to building design, and the type of building products used. The NZCB Board and the NZCB Chief Executive Grant Florence work hard on advocacy with the government to get our concerns heard. We had representation from the current government, the opposition, and senior staff from MBIE at our conference, so their hard work is paying off.

To find out more about how NZCB helps its thousands of members to grow, thrive, and succeed, visit www.nzcb.nz

Walk the talk with a greener supply chain

Mon, 05 Jul 2021 22:05:00 GMT

Working towards a sustainable supply chain isn’t a walk in the park, but it’s worth every step, according to Raglan Food Co co-founder Tesh Randall. Her multi-award-winning company supplies dairy-free products to 600 stores around New Zealand, Singapore, Hong Kong, and the Pacific Islands.

Describe all the ways you are working to achieve a sustainable supply chain?

We use Sea Freight to bring in our coconut cream from Indonesia. We consolidate our freight deliveries to our warehouse, so we only need one drop-off per week. We use glass jars and bottles for our products instead of plastic, recycled cardboard cartons, and paper for packaging rather than bubble wrap or Styrofoam. We use local, organic fruit wherever possible in our recipes. Our power is provided by Meridian’s 100% renewable network. Our wastewater from washing out our brewing tanks is pumped up the hill to the local avocado farmer and used to irrigate the avocado trees. We recycle our other waste like pallets, steel drums, and cardboard in creative ways here in the community (for example, people who run local gardening projects come to pick them up). We take responsibility for all the emissions generated by our supply chain by being a Carbon Zero Certified business, so all emissions are accounted for at the end of the year, and we pay to offset them with native forest projects.

What challenges have you faced in working towards a sustainable supply chain?

From the beginning of the business, we’ve tried to do things as sustainably as possible. But as long as vehicles continue to use fuel a truly green supply chain won’t be possible because the amount of battery power required to have a large truck run on electricity isn’t currently feasible. I read recently in Bill Gate’s book on climate change that; “Even with big breakthroughs in battery technology, electric vehicles will probably never be a practical solution for things like 18-wheelers, cargo ships, and passenger jets. The problem is that batteries are big and heavy. The more weight you’re trying to move, the more batteries you need to power the vehicle. But the more batteries you use, the more weight you add — and the more power you need.” I hope this isn’t the case and one day technology will allow large trucks like the ones which deliver our yoghurt to stores to be powered on sustainably generated electricity.

How important is it to Raglan Food Co to have suppliers and partners that align with its business values?

As a Certified B-Corporation, part of our onboarding process is to have suppliers sign a Code of Conduct that outlines our values and the things we do and don’t want to see from our suppliers. A big part of that is doing things as sustainably as possible.

How does having a more sustainable supply chain improve business success?

I think staff feel more motivated when they’re working in a business that is trying to do things better. It’s depressing to look around and see all the problems in the world and not feel like anything is being done. I also know that customers really appreciate buying products from a responsible, ethically minded company. I believe this is the future of business, so even though it might take time, effort, and investment, it will eventually pay off.

Have you got any advice for businesses who want a greener supply chain?

Go through the process of becoming a B-Corp and Carbon Zero certified. As part of that, you will have to analyse everything about your business and supply chain, and once you have all the information, you’ll be in a better position to improve things.

Six simple ways to make your business more sustainable

Mon, 05 Jul 2021 21:51:00 GMT

Directors: Know your role

Mon, 05 Jul 2021 21:37:00 GMT

If you’re a director, make sure you’re up to speed on both company law and the accepted code of behaviour required for the job. If you ignore the underlying principles of ‘good faith’ and ‘duty of care’ you could be fined up to $200,000 or face jail time. Remember to:

Accelerate Livestock Special Alert 2021

Tue, 01 Jun 2021 21:41:00 GMT

Give careful consideration to your livestock election choices. Even though changes were made to the Herd scheme in recent years, there is still flexibility around how to value increases in numbers – if you increase your numbers during the year, you can choose an alternative valuation option to value that increase. Whether you take that option or elect to value the increase using herd values will depend on several factors, such as:

As the decision is clearly one that should be made on a case-by-case basis, we will naturally discuss your valuation options with you on review of your 2021 Financial Statements and Taxation Returns.

If you’d like one, we can also provide a detailed report explaining the main features of the Herd and NSC Livestock Valuation methods, as well as a summary and graphic illustration of the Herd Scheme Values from 1987 through to 2021.

Dairy Cattle

Tue, 01 Jun 2021 21:30:00 GMT

The values for Dairy this year are again a mixed bag, with some values increasing against the general trend of decreases. The overall values for dairy have not had the same recovery as sheep and beef values from last year’s drops, which perhaps is a consequence of tougher environmental challenges for dairy farming as compared to sheep and beef. The drop in value for R1 heifers is likely due to the prohibition of live animal exports from 2023. Values are likely to fall in future years as the full effect of the ban flows through to values.

A Mixed Age Dairy cow now has a National Average Market Value of $1,528 compared to $1,525 last year – a rise of 0.2%. Rising two-year heifers have recovered from last year’s drop in value increasing by 5.6 to $1,291. Rising one-year heifers have decreased by 4.1% to $707.

Covid-19 has not resulted in a drop in demand for dairy products with the farm gate milk price remaining very strong for the 2021 season and in the forecasts for the 2022 season. Where uncertainty remains is in relation to environmental changes, many of which have had their commencement date deferred by a year due to Covid-19. This has provided a counterweight to the increased farm gate milk price. It is likely that there will continue to be a drop in the total number of dairy cattle in New Zealand as environmental changes force a reduction in numbers. Existing production levels will likely be maintained through better genetics. As a result, we are unlikely to see a spike in values as occurred following record farm gate milk prices in the past.

Availability of labour is a significant issue for the 2022 season as many migrant workers have returned to their home countries. This could result in a reduction in cow numbers and a move to further automation in the future.

Beef Cattle

Tue, 01 Jun 2021 21:23:00 GMT

Beef values have recovered some of the loss in value last year but still sit below 2015 values with only modest increases across all categories except breeding bulls.

Covid-19 continues to have a significant impact on values, but increased vaccination rates will see many countries start to re-open which should result in increased demand for quality cuts as restaurants re-open and people have money to spend with travel likely to continue to be constrained for at least the next 12 months.

Sheep

Tue, 01 Jun 2021 21:20:00 GMT

Like beef, sheep values have bounced back from the large drop in 2020 to return to largely what they were in the 2018 year. All categories of sheep have seen double digit increases in value except two tooth ewes and breeding rams which were the only category to decline in value. Two tooth ewes increased from $177 to $191, which equals the second highest value on record. This is consistent across almost all categories of sheep and indicates that markets have recovered well from the uncertainty posed by Covid-19 last year.

Drought has continued to be an issue in many traditional sheep farming areas with much of the upper South Island and the North Island experiencing drought conditions during the 2021 season.

Sheep numbers continue to fall, as they have done consistently since the peak of a little over 70 million in 1982, to less than 27 million now. Whilst sheep meat values have improved, wool values remain depressed, including premium wool where European manufacturing has struggled to recommence following repeated Covid-19 lockdowns. As countries reopen it is likely that a new wave of demand will follow.

Deer

Tue, 01 Jun 2021 21:13:00 GMT

Deer values have been the hardest hit by Covid-19 with values of Red Deer down from between 40 and 55% since the highs of 2019. Breeding Stags are the only category where values have not suffered large losses, with values down 20% from 2019.

Other deer breeds have suffered even larger losses as the main markets for venison remained closed for much of the 2021 season. Values have just started to lift as key European and American markets slowly start to reopen as the rollout of Covid-19 vaccines gains pace.

Goats

Tue, 01 Jun 2021 21:09:00 GMT

Goat values have maintained much of the gains from 2020 with values being a mixed bag in the 2021 year. On average values have increased by 1.7% across all categories and breeds. The largest average gains were seen in mohair producing goats as demand for alternative fibres remains strong. Milking goat values fell on average 2.6% as demand flattened.

Accelerate Budget Special Alert 2021

Mon, 24 May 2021 02:31:00 GMT

As the first Budget since last year’s election as well as all the pandemic chaos, maybe it’s not surprising that Budget 2021 is a cautious one, emphasising wellbeing and aiming to stimulate sufficient activity to drive growth, spending, and confidence.

Tagged ‘securing our recovery’, welfare support is highlighted. For business, a bundle of economic recovery measures unpack into training, infrastructure, and transformation plans in targeted industry sectors.

Changes affecting New Zealand businesses and investors are largely off-stage of the Budget. Some have already happened with more to come. The minimum wage increase and the new 39% tax rate on income of $180k+ had the spotlight until changes to property investment took centre stage, extending the bright-line test period and phasing out mortgage interest deductibility on residential investment property. For employers, the Matariki public holiday is waiting in the wings, along with upcoming changes to sick leave (increasing employer-funded sick leave from 5 days to 10).

The debt we shouldered to get through the pandemic will be part of the scenery for the foreseeable future, although it must be said that the foreseeable future is not very far ahead just now. In a pre-Budget speech in early May, Minister of Finance Grant Robertson commented on global supply chain issues saying, ‘The ongoing economic impact is uncertain and most forecasts continue to emphasise the likelihood of continued volatility.’

Businesses facing supply constraints may view improvements to wages and conditions as more items on the cost side of the balance. But across the Tasman, the Australian budget has just injected significant amounts into construction and infrastructure and their mining industry ’s back in boom. A possible skills drain overseas makes labour another potentially tight resource in the supply chain. The challenge may be to secure sufficient human resources and/or realise productivity gains to stay competitive.

Catch up with extra detail on:

Industry, infrastructure and housing

Mon, 24 May 2021 02:22:00 GMT

Budget Special Alert 2021

Long-term plans are being run through the Ministry of Business, Innovation and Employment, to increase productivity across 7 areas of the economy. So far, Industry Transformation Plans (ITPs) have been developed for the agritech and construction sectors, and are currently being developed for digital technologies, advanced manufacturing, food and beverage and forestry and wood processing sectors.

Investment in research and development and increasing our effectiveness as exporters will be critical here. Research and development tax incentives to promote business innovation are quantified in Budget papers as $40m for 2018/19, $213m for 2019/20 and $313m for 2020/21 in taxation foregone. The presumption is of a continuing trend at least for now.

SMEs in the tourism sector are promised $200m to drive recovery in the sector, with focus on the hardest hit regions of Kaikoura, Mackenzie District, Queenstown Lakes, Fiordland and South Westland. The package also commits $15m deployed by New Zealand Māori Tourism to support Māori Tourism operators.

A new Regional Strategic Partnership Fund is being established with $66.11m, reprioritised from existing commitments, funded through the Provincial Growth Fund. It supports regional recovery and development priorities, including creating more productive, resilient, and sustainable regional economies.

A $57.3b programme of infrastructure spending is planned from 2021 to 2025, including $10b in roads and public transport projects, and $810m on rail.

A new Housing Acceleration Fund commits $3.8b over four years to fund infrastructure and delivery of large-scale projects, providing a mix of public, affordable and market housing.

$380m is allocated for Māori housing solutions, including building new houses in areas with high rates of Māori housing deprivation and repairs to existing stock. $350m from the Housing Acceleration Fund has been ring-fenced for infrastructure to support the new builds.

Several initiatives relating to tenancies are being introduced, totalling around $100m, including $16m for enforcement of Healthy Homes Standards.

Education, training and employment

Mon, 24 May 2021 02:17:00 GMT

Budget Special Alert 2021

Just over $1b of new operating funding is committed to education along with just under $730m of capital funding over 10 years.

$44m for a digital skills training programme over two years will help provide core digital skills training to up to 60,000 small businesses, with supporting advisory services to help 30,000 businesses create digital business action plans.

The Training Incentive Allowance will be extended, enabling more people to access financial support for employment-related training. A 13.4% increase in Vocational Education and Training (VET) funding allocates $279.5m to implement a unified funding system to better support work-integrated provision and learner needs and to help sustain a regional network of VET provision.

A ‘Social Unemployment Insurance Scheme’ is proposed, like the ACC system in some ways, but for unemployment. The proposal provides a worker who loses their job with 80% of their income for a fixed period, with minimum and maximum caps. The scheme will be jointly designed by a Social Insurance Tripartite Working Group comprising the Government, Business NZ and the New Zealand Council of Trade Unions, with stakeholder and public consultation this year.

Health and welfare

Mon, 24 May 2021 02:10:00 GMT

Budget Special Alert 2021

Total expenditure on health in the next financial year is budgeted at $24b, including $968m in capital investment, largely allocated to capital investment in facilities, infrastructure, and technology of District Health Boards. A $4.7b increase in new health operating funding is forecast across four years.

All benefit rates will increase by $20 a week from 1 July 2021, with a second increase on 1 April 2022. Families and whānau with children will also receive a further $15 per adult per week from 1 April 2022. The Government will increase the Minimum Family Tax Credit threshold from 1 July 2021 in line with increases to benefits.

Accelerate June 2021

Fri, 07 May 2021 00:49:00 GMT

Averting hazards is a year-round concern for farmers, but winter weather can add a whole new dimension with darker, colder mornings and rougher terrain. Whether it’s quad bikes, stock, or machinery, now is the time to remind staff about safety on the land. Halfway through the year is also a practical time to plan out the next six months. Any staff training , wellbeing management , or business growth on the cards? We showcase some powerful people (and tools) who can help you with that.

Avoid harm on the farm

Been thinking about crush protection devices for your quad bikes but the cost is putting you off? ACC and WorkSafe can help ease the financial strain. If you’re self-employed or own a small-to-medium-sized farming business, you could be eligible for a cash back offer .

Cash back on quad bikes

Fri, 07 May 2021 00:41:00 GMT

Each year, quad bikes are a major cause of death and serious injury in New Zealand – but installing crush protection devices could help lessen the impact.

Log in to MyACC for Business online to find out if you’re eligible for the $180 (+GST) crush protection device cash back . It applies to up to two Quadbar, Quadbar Flexi, and ATV Lifeguard crush protection devices, which start from $595 (+GST). They can be bought at Farm Source, Quadbar NZ, LifeGuard, and Trax Equipment.

West Coast farmer Colin van der Geest can vouch for the importance of roll bars following an incident where one of his workers was driving a quad bike and herding a cow out of a paddock and into a lane.

“It’s a flat site and at the end of the land there is a narrow 1.5m gap between a strainer post and a drain,” says Colin. “The crafty cow decided to go through there and our guy tried to cut her off with the bike. The cow made it through, but my man rolled the bike into the drain. He escaped with bumps and bruises, but if it had not been for the roll bar, the bike would have fallen on top of him in the drain.”

Leptospirosis – it only takes a splash!

Fri, 07 May 2021 00:32:00 GMT

While coming into contact with animal waste is all in a day’s work for farmers, it’s not something to be taken lightly, especially during winter. A small amount of contaminated urine can cause leptospirosis , an infectious disease with a potentially high risk to people and animals.

Who’s at risk?

Anyone working close enough to farm animals to be splashed or sprayed with urine or urine-contaminated water. Cuts, sores, and skin grazes increase the risk of infection, as does licking your lips and eating or smoking before washing and drying your hands.

What’s the best way to manage it?

Leptospirosis is hard to get rid of so minimisation is best. Make sure you’re on top of antibiotic treatment, vaccination programmes, making staff aware, supplying protective gear, and promoting hygiene practices. For more advice, visit WorkSafe .

What are the symptoms?

If you’re affected by leptospirosis, you might not feel any different or it could feel like a bad case of the flu. Severe cases can result in permanent complications with some people unable to return to farming.

Think you’ve been splashed?

Women in the know who can help you grow

Fri, 07 May 2021 00:23:00 GMT

Want to take your farming business online? Finding it hard to stay fit and healthy? Seek help from three 2020 NZI Rural Women NZ Business Award winners.

Go digital with agri-experts

“We know how to drive a tractor and a successful marketing campaign,” says Grass Roots Media owner Chelsea Miller, who manages social media communications and campaigns for the food and fibre sector across New Zealand. Based in Manawatu, but operating in the digital world, the Grass Roots team of four won the Emerging Business Award. They have helped rural businesses such as NZ Young Farmers, Hurricane Agriculture, MealTime Stock Feed, and Kuhn get ahead using online communications.

Design your farming future

Combining her farming heritage and creative talent, Becks Tosswill helps bring agribusiness brands to life through design and strategic thinking. Her company Farmers Daughter Design Studio , which operates from
a 650-hectare hill country farm in the Wairarapa, won the Creative Arts Award.

“We help businesses big and small make their mark on the primary sector in New Zealand with visible, competitive, and compelling branding and design,” says Becks. “Working from the ground up, we provide insightful, inspiring creative that opens up business possibilities and perspectives. We identify your strengths and ambitions and target the people your brand speaks to.”

Get fit on the farm

Looking to get fit but too far from the gym? Kate Ivey, who lives on a High Country Station adjacent to Aoraki Mount Cook, feels your pain. Kate runs DediKate , an online health and fitness community and app for busy New Zealand women. The community has over 1,500 members and Kate’s workouts are streamed from
her home (and her other trainers’ homes all around the country) directly to yours.

“Around 45% of my members live rurally, like me!” says Kate, who won the Rural Health and Wellbeing Excellence Award. “I love being able to help busy women make exercise a consistent part of their lives. We have weight training, HIIT, cardio, boxing, yoga, Pilates, pregnancy and postpartum workouts, rehab, meditation, and more.” You can sign up for Kate’s free two-week trial here .

Upskill your staff with T

Fri, 07 May 2021 00:08:00 GMT

If you’re keen to teach your staff new tricks on the farm but struggling to find the time to do it, take a look at Farm 4 Life HUB . Founded by local personality Tangaroa Walker (known as T), the HUB has close to 1,000 videos with dairy farming education available 24/7.

Your staff can learn all about feeding, calf rearing, machinery, cow shed repairs, maintenance, and more, from the comfort of their own home. Delivered by the hilarious T and industry leaders, it’s the easiest way to give your team the experience they need before they need it. You can create a custom plan for each person or team to match their roles and responsibilities on the farm. There’s even a free seven-day trial so you can see if it’s for you before committing.

Founder T is a true community and industry leader running a successful 500-cow dairy farm, reaching millions as the much-loved face of Farm4Life, and authoring a book about how farming turned his life around.

Income equalisation scheme

Fri, 07 May 2021 00:01:00 GMT

To ease financial pressure post-COVID-19 or in the wake of other extreme events, it might be worth considering the income equalisation scheme available for farmers and growers. Income equalisation, including the environmental restoration scheme , can even out fluctuations in your income by spreading gross income from year to year. To find out if you’re eligible, head to myIR , where you can:

Please contact us to discuss this if you think this might work for you.

Be KYND and stay healthy

Thu, 06 May 2021 23:27:00 GMT

After spending more than 30 years working in the emergency department, Dr. Tom Mulholland (a former forestry worker) decided he wanted to help people manage their health to avoid ending up in ED with preventable illnesses. So, he launched KYND , an app that measures physical, mental, and social health to help ensure staff are performing as efficiently and safely as they can.

Thousands of people use the app to monitor and manage their health, plus Tom and his team are using corporate reports and workplace testing to support employee health at companies such as Fonterra Dairy for Life, PGG Wrightson, 2degrees, and BNZ.

Accelerate April 2021

Tue, 09 Mar 2021 04:31:00 GMT

How do you ensure you’re providing a positive customer experience? Ask them, listen, then make changes. A positive customer experience will bring people closer to your company, connect them to your brand, and get your products and services in their physical or virtual cart. In this issue, we offer a step-by-step guide to gathering meaningful customer feedback, communication tips. We also look at how the new 39% tax rate will affect business owners.

Does the new 39% tax rate affect you?

New Zealanders earning over $180,000 a year will now pay a 39% tax rate, which came into effect on 1 April 2021. If this includes you, are you aware of how your tax obligations change when it comes to shares, property, FBT, superannuation tax, or trusts? Find out here .

New 39% tax rate: what next?

Tue, 09 Mar 2021 04:26:00 GMT

The new 39% marginal rate that applies to all employment income over $180,000 is now in force. Consider how the new rate will affect you and your business.

The 39% tax rate and…

Trusts?

From now on, you’ll need to disclose a lot more information to Inland Revenue in your annual trust tax returns. The additional information will provide the Government with information on how trusts are being used, particularly with the introduction of the new 39% tax rate. As part of their annual income tax return, trustees will now have to disclose:

FBT?

A new Fringe Benefit Tax (FBT) rate of 63.93% will apply for all-inclusive pay above $129,681 and the single rate and pooling of non-attributed fringe benefit calculations. The 42.86% rate for non-attributed benefits will no longer apply. Talk to us about your current FBT profile and we can review it together.

RWT and RLWT?

If you earn interest, this will be taxed at 39% (RWT) from 1 October 2021. If you’re selling property covered by the bright-line test, Residential land withholding tax: (RLWT) will increase from 1 April 2021 to 39% (except where the vendor is a company).

Beneficiary income from a trust?

If you receive beneficiary income from a trust let us know if you’d like to know more about your tax position.

Property or shares?

If you are looking to purchase assets such as property or shares, or already have such investments, it would be prudent to assess your overall investment strategy so that it meets your commercial and personal goals, including your tax profile.

Such investments are able to be held in companies or a trust, which have tax rates of 28% and 33% respectively, however on distribution to individuals in most cases the individual’s tax rate will effectively be applied.

A strong note of caution – the main reason for any restructuring of your investments should not be due to any perceived tax benefits arising out of the restructure. Any restructuring should be focused on achieving key objectives such as successful commercial, risk, succession, and asset protection outcomes. Talk to us and we
can review and assist you with planning to meet your objectives.

Superannuation contribution tax?

Time to check whether you have employees whose Employer Superannuation Contribution Tax (ESCT) and Retirement Savings Contribution Tax (RSCT) rate threshold exceeds $216,000. The tax rate for these has risen to 39% (as of 1 April 2021).

Additional employment income?

The tax change applies to all employment income over $180,000 a year, including bonuses, back pay, redundancy, and retirement payments. As an employer, take account of when additional remuneration to employees may affect their tax obligations and make sure tax is deducted correctly.

How you can get meaningful client feedback (that doesn’t cost the earth)

Tue, 09 Mar 2021 04:11:00 GMT

Whether you intuitively know the importance of client feedback or COVID-19 has brought it front of mind, now is a pivotal time to find out what people think of your products and services and ensure you’re making meaningful, sustainable progress.

Your clients or customers experience your business in a way you never can. They’re an incredible source of knowledge and insight. Push away any fears you have of gaining genuine feedback and use this step-by-step customer feedback guide to propel your business forward.

Your step-by-step guide to meaningful customer feedback

Tue, 09 Mar 2021 04:06:00 GMT

What Lies Beneath offers client feedback with depth as well as a masterclass for those who want to learn the tricks and bring client feedback skills in-house.

Good communication = repeat customers = more profit

Tue, 09 Mar 2021 03:56:00 GMT

Did you know customer retention is faster and, on average, costs up to seven times less than customer acquisition ? If you’re looking to improve your bottom line by turning your current customers into lifetime customers, here’s the best way to communicate with them.

Communicate kindly

Customer service is key, whether it’s in-person, on the phone, or via email, it’s what everyone remembers. Mistakes and delays are inevitable in business, but people are happier to ride those waves with you if you communicate in a kind and friendly manner. It’s not the mistakes that lose clients, it’s the lack of communication around it. If you’re not responsive, they think you don’t care. If they think you don’t care, they are more likely to look for a new company.

Communicate early

Put yourself in your client’s shoes – if something doesn’t turn up on time, you’re left wondering, right? Communicate early if there is going to be a delay or problem they need to be aware of. People are really understanding if you say something early, rather than leave it until later when it affects their day negatively. Plus, speaking up early about a problem or issue will build trust.

Communicate when necessary

You often hear ‘regular communication is best’, but what if you’ve got nothing to say? Concentrate on creating great e-newsletter content so they’re more likely to welcome the next one. Sending irrelevant, untimely, or lacklustre messages won’t improve your relationship. Understand when people need your services and communicate to them then. Trying to pressure them through too many emails or calls won’t end well.

Communicate cleverly

If your potential client or customer has requested a quote, you know they’re going to read that email so throw in something small at the bottom of it that communicates your message. Or how about putting a joke or inspired one-liner underneath your email signature to brighten someone’s day?

Minimum wage goes up

Tue, 09 Mar 2021 03:48:00 GMT

Have you updated your payroll systems and processes for the new minimum wage? The adult minimum wage increased from $18.90 to $20.00 per hour on 1 April.

The starting-out and training minimum wage rates have also gone up – from $15.12 to $16.00 per hour.

Accelerate Special Alert Year End 2021

Thu, 11 Feb 2021 01:29:00 GMT

Ticking items off your end-of-year tax checklist this month? We’d like to highlight a number of changes that have come in since COVID-19 hit so you can sail as smoothly as possible into the new financial year:

6 things you should know before filing your EOY Tax post COVID-19

Thu, 11 Feb 2021 00:00:00 GMT

1. New rules to keep cash flowing

If money is a bit tight as the financial year draws to a close, here are four tax measures focused on providing and enabling cashflow that you might like to consider:

2. Asset threshold lowering

Put aside time to review your asset expenditure. Identify any assets (valued up to $5,000) that you need and buy them before 17 March 2021. This way, you’ll be able to claim an immediate deduction for these assets under the low-value asset write-off as the threshold drops from $5,000 to $1,000 on 17 March 2021. The temporary $5,000 threshold was a concession as a result of the COVID-19 relief measures introduced, and from the 17 March 2021 the $1,000 threshold is an increase from the $500 amount that was previously in place prior to 2020.

It’s also a good time to ensure records are up to date on any commercial buildings as depreciation for tax purposes is available on commercial buildings for the year ended 31 March 2021.

3. Earn over $180,000 a year?

If you’re one of the 75,000 Kiwis impacted by the new 39% tax rate , review your business and investment structure with your accountant before 1 April 2021. The marginal tax change, rushed through last December to help pay for the COVID-19 recovery, applies to all employment income over $180,000 a year. It includes extra pay earned in the course of employment, such as bonuses, back pay, redundancy, and retirement payments. It is timely to consider such payments in relation to the 2021 year, as well as reviewing dividend payments.

4. Keeping subsidy records crucial

While COVID-19 related wage and leave subsidies are non-taxable, keep accurate records of any subsidy you received and which staff member it was paid to, in case the Ministry of Social Development asks to review your records down the track.

5. R&D loss tax credit

Start-up companies are able to cash-out their tax losses arising from eligible research and development (R&D) expenditure , and avoid carrying the losses through to the next income year. The credit can only be for:

The rules around R&D expenditure are detailed and eligible R&D expenditure will require approval from Inland Revenue. So if you’re looking to claim under these rules, you will need to start looking at this sooner rather than later, and keeping records of such expenditure as it occurs.

6. Staff reimbursements and allowances

Make sure you have a good record of any reimbursements and allowances paid to employees for expenditures – generally and in account of new COVID-19 related Working from Home tax changes. Remember:

Paid parental leave applications online

Wed, 10 Feb 2021 23:09:00 GMT

Now’s the time to let staff know applying for paid parental leave just got easier. As of March 2021, your staff can apply for paid parental leave via myIR on the Inland Revenue website . The site can now pre-populate information it already holds for customers, such as contact details, name of employer(s), and an estimate of average weekly income for employees, making the process much quicker.

Accelerate February 2021

Tue, 12 Jan 2021 23:47:00 GMT

Healthy, wealthy workplaces in 2021

If there’s one thing the year-that-shall-not-be-named brought home: wellbeing is a business issue. When it comes to health and safety in the workplace, is a policy, plan, and hazard register enough? An increasing number of small and medium Kiwi businesses are taking further action to ensure the health of their people and profit off the back of COVID-19.

What more can you do?

A physically and mentally healthy workplace has wide-ranging business benefits, so in this newsletter, we’re going to outline the extra health and safety steps you can take in 2021.

Take this free online workplace wellbeing quiz to help you and your team rate your workplace and decide where to start: www.good4work.nz

Keeping you and your staff pain-free in 2021

Tue, 12 Jan 2021 23:38:00 GMT

Whether you and your staff are sitting or standing at work, there are risks to physical and mental wellbeing that can be easily avoided. Here are some top tips from Erin Holland from Active+ , who’s an experienced physiotherapist in occupational health.

What are the key health and safety risks when you’re working in an office?

You’re often sitting for large chunks of time in an office so the primary risk is not enough movement and breaks. If you’re always static, you’ll start to develop discomfort, pain and if left untreated – long-term injury to your neck, arm or hand.

What do business owners need to look out for?

And if you’re driving…

What are the key health and safety risks when you’re standing a lot for work?

The chance of discomfort, pain and injury is underestimated in workplaces where people are on their feet a lot, like in a warehouse. If you’re walking around you won’t have too much of a problem. It’s the static standing that can cause sore feet, knees, hip and back. Long-term effects can be debilitating, including inflammation to the arch of your foot ( Plantar Fasciitis ), which can cause so much pain it becomes impossible to stand, and it’s tricky to fix.

What do business owners need to look out for?

Lead by example – be a mental health champion

Tue, 12 Jan 2021 22:17:00 GMT

Did you know the main reason people take time off work is due to poor mental health ? So, it’s in your best interest to promote positive mental health at work. Plus, stats show investing in building and maintaining good mental wellbeing at work boosts productivity, sales, creativity, and customer satisfaction.

Here are some straightforward, effective ways to lead by example:

Implementing health and safety so it sticks

Tue, 12 Jan 2021 22:08:00 GMT

Have a health and safety policy and plan in place? Great! But how can you ensure everyone’s 100% on board? Here are four simple steps from Livewire HR to get your crew on the same page.

Health and Safety: Do I need help getting it right?

Tue, 12 Jan 2021 21:54:00 GMT

Since the Health and Safety at Work Act 2015 came into place, specialised advisors and consultants have been popping up all over New Zealand. But how do you know who’s genuine? We talk to Rebecca Jenkins from Livewire HR , who says it’s all about doing your groundwork.

What should businesses look for when seeking help?

The old saying ‘you don’t know what you don’t know’ is very true. It starts by asking questions and learning about health and safety. Then find someone you trust who can advise you clearly about what you actually need. Check to ensure they have qualifications in H&S, NEBOSH ( National Examination Board in Occupational Safety and Health ) or at least Level 6 in Health and Safety. Interview them just like you would an employee.

Are there any misconceptions about what consultants do?

Yes, that it costs an arm and a leg. Definitely the higher the risk you have in your business, the more you need and the more regularly you need to be covering it (and hence higher costs).
But covering the basics and doing those well in most businesses is completely and realistically achievable without it costing the earth. We’re not here to make life hard, so talk to us about what would work for your business and we’ll try our best to incorporate that in your normal activities.

Can people call and have a chat for free?

We always offer a free 30-minute consultation to answer questions. We’re experts in HR and H&S, which means we can advise on both and how they interact with each other. For example: Does your job description include expectations around H&S? Many don’t.

How can people get their ducks in a row to save money and time on health and safety?

The more planning you do, the easier and cheaper my job is. So, have copies of your job description, employment agreements, and any health and safety you already have in place. Secondly, get some training. A one-day course to gain an understanding of what the law requires is about $250, which is a small price for valuable information.

Final word…

Accelerate December 2020

Mon, 02 Nov 2020 02:52:00 GMT

We hope you’re able to take some time for rest and relaxation this summer. After the year we’ve all had, it’s important to recalibrate , reconnect , and create a positive mindset for 2021 . Enjoy your time with family, friends, the summer sun, and copious amounts of pavlova.

The power of practicing acceptance

Mon, 02 Nov 2020 02:47:00 GMT

In a world of unpredictability and stress, our instinct brings cravings to survive, compete, and strive. But acceptance, not a comparison, is what will get us through.

“There are ways to find ease in acceptance without negative inner feelings, it just takes practice,” says Nichola Stuart, Founder of the Empowerment Foundation. “Instead of sitting in the ‘uncomfortable chair’, find ways to shift your mindset and develop a sense of empowerment in your new normal.”

Why knowing your staff ‘learning styles’ is good for business

Mon, 02 Nov 2020 02:41:00 GMT

Ever handed out a business document for your team, only to find half of them abandoned at the table? Or discovered a staff member nodding off during a graphic, chart-filled presentation? It could be because the communication style you’re using isn’t resonating so they’re unintentionally switching off.

Everyone learns differently and while we’ve known this for centuries, the VARK modalities, developed by New Zealander Neil Fleming in 1987, were the first to offer a quiz with help sheets so people could use it to learn and teach better. VARK stands for Visual, Aural, Read/Write , and Kinesthetic . The idea is that we use one (or a mixture) of these modalities when learning information.

Why is it important to be aware of your own, and your team’s, learning styles? Knowing how each of your staff members best learn can enhance their communication skills, improve performance, better your new-hire processes, reduce conflict, and increase the range of communication strategies used in your business.

Whether it’s rules, guidelines, job changes, systems, and processes, or change within the business, it’s your job to ensure staff learn in the best way for them. Once you know how each of your staff learns (there is a range of online quizzes), assess your communication channels, and adapt them to ensure no one misses out on valuable information.

New ways to communicate with staff

Mon, 02 Nov 2020 02:01:00 GMT

If you’re assembling a wooden kitset table, would you prefer to watch a video demonstration, read instructions or diagrams, or talk to someone who’d done it before? How you best learn could influence the way you’re delivering information to your staff. To make sure you cover all your teams’ learning needs, pick a selection of these communication approaches:

Visual: Learn by seeing

Charts, graphs, flow charts, lesson outlines, picture aids, and symbolic arrows, circles, hierarchies, and other devices used instead of words.

Aural: Learn by hearing

Reading aloud, verbal instructions, discussions, repeating to a colleague, oral feedback, email, phone conversations, texting, discussion boards, oral presentations, classes, tutorials, and talking with other students and teachers.

Read/write: Learn by reading and writing

Manuals, reports, essays, assignments, PowerPoint, lists, diaries, dictionaries, quotations and words, words, words…

Kinesthetic: Learn by doing

Demonstrations, simulations, videos, and movies of “real” things, as well as case studies, practice, and applications. If it can be grasped, held, tasted, or felt, it will resonate!

Christmas parties and presents on a budget

Mon, 02 Nov 2020 01:57:00 GMT

While it’s been a financial rollercoaster of a year for most Kiwi businesses, Christmas time invites us to pause and celebrate what’s gone right and thank the people we rode with. Here are eight ways to keep your costs down without sacrificing festive fun.

How digital are you?

Mon, 02 Nov 2020 01:53:00 GMT

We all know we live in a digital world, but what does that mean for your business? Should you worry whether your website looks good and reads well? Do you really need Facebook and Instagram to get clients? And should you be utilising online tools to boost productivity?

The answer is a resounding YES. Going digital can save you money, increase security, grow your customer base, and help you to become more efficient and collaborative in your approach to business. Scared to dive into the digital world? Unsure where to start? Spend 15-minutes taking three short quizzes to find out how well you’re doing in the digital space and what you need to do to stack up against your competitors in 2021.

Business health check

Mon, 02 Nov 2020 01:48:00 GMT

Accelerate October 2020

Mon, 31 Aug 2020 00:21:00 GMT

How the rest of 2020 will play out for Kiwi businesses is anyone’s guess. But with more than 85% of SMEs expecting a lower profit in the next nine months (according to New Zealand’s Prosper Small Business Resilience Survey), the more prepared you can be for the unexpected, the better. In this issue we look at what’s keeping business owners up at night , cost control , GST obligations , and the latest law changes that could affect your business in the next six months.

4 burning questions SMEs are asking

Mon, 31 Aug 2020 00:13:00 GMT

This time last year, you might have been pondering Christmas bonuses or booking your summer holiday, but with a completely different business landscape in front of us, your head is no doubt filled with different questions. Here we explore four common topics keeping Kiwi business owners up at night.

“How can I put my prices up without losing customers?”

If you need to change your pricing to make ends meet, be honest and up-front with your customers at all communication points.

“I’ve decided to restructure. What’s the best way to do this?”

Restructuring is never easy but if it’s necessary to keep your business afloat, there’s a process you can follow to keep stress to a minimum.

“I want to sell my business. How do I get it ready for sale?”

Selling your business involves a lot of homework. You need to get it looking as “shiny” as possible before getting it valued by your accountant or advisor. Here’s how:

“Am I eligible for more Government funding?”

Don’t trip! GST mistakes to avoid

Sun, 30 Aug 2020 23:22:00 GMT

GST can be a thorn in your side but if you understand when it’s due, what to pay, and make the most of your accounting software, you’ll escape unscathed. Here are four of the most common mistakes we see business owners make with their GST.

Smart ways to get your costs under control

Sun, 30 Aug 2020 23:16:00 GMT

Cashflow has been a big issue for thousands of businesses this year, and when the money’s not rolling in, it can help to rethink your costs. To do it effectively involves more than just keeping an eye on outgoings. It’s about looking at all the moving parts of your business to see if your systems (or lack of) are costing you unnecessarily. Here’s how:

Muck in: Do a cost control audit to work out where your big cost centres are and look at your systems for managing them.

Be aware: Don’t just slash your expenses. Track costs and look out for opportunities to trim fat or take a different approach.

Unite your team: Bring everyone together to monitor and analyse inputs and expenses. Reviewing and developing your systems? Get your team’s feedback.

Look to your peers: How do your costs compare to others? If a business of a similar size and production system to you is performing well, but spending less, explore what they’re doing differently.

Seek advice: Got a good idea of where the issues are, or feeling totally confused? Talk to your advisors about your next steps.

Residential Tenancies Amendment Act in force

Sun, 30 Aug 2020 22:53:00 GMT

Big changes to tenancy legislation are underway, with the 12-monthly limit on rent increases already in effect to help tenants struggling financially following Covid-19. Early next year we’ll say goodbye to 90-day no-cause terminations and rental bidding, and tenants will be able to make small changes to properties – such as baby proofing or hanging pictures. A last minute change brought in means landlords will be able to terminate tenancies with 14 days’ notice if a tenant assaults them, and allows victims of family violence to end a tenancy with two days’ notice.

Big gain for gender equality in the workplace

Sun, 30 Aug 2020 22:45:00 GMT

Equal Pay Amendment Bill

Employment NZ website

Business health check

Sun, 30 Aug 2020 22:39:00 GMT

Bringing home the bacon

Sun, 21 Jun 2020 22:05:00 GMT

Pop-up restaurant founder Stacey Jones from Mount Maunganui describes time in lockdown as a ‘tale of two halves’ for her business Kitchen Takeover .

“It was hard because my seven events sold out in 24 hours before lockdown and they all had to be cancelled. But this was good because it forced me to pivot and move really quickly into something new, which would never have happened if I hadn’t had my hand forced.”

Stacey decided to package up her pop-up restaurant night into a dinner party box – a fine-dining experience delivered to your door.

“One of the challenges of the pop-up restaurant is that I spend months developing menus with chef Shane Yardley and experiences that are completely unique,” she explains. “The boxes are great because they allowed me to scale up and get the edible experiences into more people’s hands.”

Stacey is a big believer in the ‘innovate or die’ saying and views each one of her business ideas as a big prototype.

“You’re always moving forward and changing things to get a better end result. We’re in the very early stages of Kitchen Takeover – At Home , but it’s going really well. We sold out of all our boxes in the first and second round so I think that’s a good sign of market validation.”

Top businesswoman Theresa Gattung , who was involved in the conception of My Food Bag , is a fan, and one diner described it as “having a five star restaurant in your home”.

Kitchen Takeover pop-up restaurants are now back in full force in the Bay of Plenty. Stacey’s future plans include a physical food innovation space and a food festival to celebrate local producers. “Not sure when I’ll sleep…” she laughs. “It’s overrated anyway!”

Metal Art finds silver lining during lockdown

Sun, 21 Jun 2020 22:03:00 GMT

When the pandemic hit, engineering company Metal Art from Wellington carved out new opportunities. The interior and exterior furniture specialists designed and produced more than 1,000 hand sanitiser stands for Progressive supermarkets nationwide and Initial Hygiene .

“Around 50% of our regular business dropped away so we knew we had to change our focus fast,” says Managing Director Carl Longstaff. “We developed a new product line of hand sanitiser stands and manufactured and supplied gel. Thankfully we have managed to maintain full employment for our 35 staff and I’m confident these products will continue to see strong demand by companies, government departments and organisations dealing with the public face-to-face.”

He says COVID-19 emphasised the importance of supporting local businesses where possible.
“Our steel is produced less than 50 metres down the road from us and we outsource where we can – be it powder from Dulux or sandblasting from Seaview Blasting . We try to get things as close to home as we can because at the end of the day we want to deal with locals and with people we trust.”

Accelerate August 2020

Fri, 19 Jun 2020 05:25:00 GMT

While lockdown wrapped up in June, the impact on the labour market, the workplace, and relationships within it, is far from over. It’s still a confusing and challenging time for many business owners and staff. Whatever you’re experiencing, we hope you’ll draw inspiration from our stories of business innovation , take on board our mental health tips , and consider bringing on a business mentor to help you achieve your goals.

Five ways to boost mental well-being at work

Fri, 19 Jun 2020 05:17:00 GMT

If you’re a business owner or manager, there’s a lot you can do to support your staff to maintain positive mental health and in turn, keep your business profitable. Studies say ‘happy employees are more likely to be productive employees’ (Kaplanet al., 2009) and ‘employees who believe their employers care about their wellbeing have been shown to be more engaged at work than others.” (Rhodes, L. et al., 2002).

When life gives you lemons, pivot.

Fri, 19 Jun 2020 05:06:00 GMT

The world of work has been transformed this year and the only way forward is to adapt. Here are two businesses who rejigged their offering to keep the invoices rolling and experienced great success.

Metal Art finds silver lining during lockdown

Bringing home the bacon

Pop-up restaurant founder Stacey Jones from Mount Maunganui describes time in lockdown as a ‘tale of two halves’ for her business Kitchen Takeover .

Stacey decided to package up her pop-up restaurant night into a dinner party box – a fine-dining experience delivered to your door.

Stacey is a big believer in the ‘innovate or die’ saying and views each one of her business ideas as a big prototype.

Top businesswoman Theresa Gattung, who was involved in the conception of My Food Bag , is a fan, and one diner described it as “having a five star restaurant in your home”.

Why mentors are worth their weight in gold

Fri, 19 Jun 2020 04:52:00 GMT

Looking to improve your business? Gaining a fresh perspective from someone who’s lived and breathed business challenges could be the ticket. We talk to Chief Executive of Business Mentors New Zealand , Sarah Trotman, ONZM, about why having a mentor to listen and provide support and guidance can be invaluable for SMEs.

How did the interest in Business Mentors change this year?

The interest in Business Mentors New Zealand increased dramatically over the COVID-19 period. From the week before Level 4 commencing, to the first full week of Level 4 lockdown, we received an increase of 278% in registrations from business owners needing the support of a mentor. We monitored a steady increase, peaking during Level 3, week commencing 4 May 2020, where we received a further increase of 166% in new registrations being submitted. The number of mentors who offered their assistance over this time also increased.

What are the main challenges mentors have been able to help with?

Business owners have needed help in bringing their business online, re-adapting brands, determining changes in consumer buying behaviour and planning for the future. Other challenges have been cash flow management, supply chain issues, and decision making.

Why is having a business mentor following one of our most disruptive business years on record, so important?

Friends and family can be a support, but it’s a mentor who has lived experience and challenges businesses are facing. Business Mentors New Zealand matches mentors with business owners carefully, ensuring sector experience and/or competency match.

What are the main benefits of having a mentor?

Mentors have experience and empathy for small businesses. They are there to provide one-on-one support to business owners, who are wanting to grow or need help solving specific business challenges. Mentors can offer guidance, act as a sounding board, challenge thinking, and provide business owners with an independent and fresh perspective.

Isolation was a big issue during COVID-19 and business owners still face it. Is this something mentors help with?

Research from Business Mentors New Zealand in 2018 found 80% of business owners surveyed had felt a sense of isolation. Self-isolation due to COVID-19 may have added to business owners’ sense of being alone. Our mentors were able to remotely support owners using video technology and by phone with any business challenges. They acted as an empathetic ear and critical sounding board for those who needed it.

For more information or to be matched with a mentor, visit www.businessmentors.org.nz

Personal grievances where employment relationship is triangular

Fri, 19 Jun 2020 04:45:00 GMT

Recent changes

A triangular employment relationship is when you are employed by one entity, but your work is actually under the control or direction of another entity. For example, under the labour for hire model or via a recruitment agency.

The changes: Up until mid-2020, employees could only bring a personal grievance against their employer (e.g. the labour hire company), and the third party they worked for couldn’t be added to the claim. Now, under changes made by the Employment Relations (Triangular Employment) Amendment Act 2019, the “controlling third party” can be added to the claim against the employer, and potentially be responsible for providing remedies to the employee.

If you contract labour through triangular employment relationships, be aware of the implications for your business and employment practices where you might have third party responsibilities.

Business health check

Fri, 19 Jun 2020 04:41:00 GMT

Having a hard time working through staff disputes? Employment NZ’s mediators offer a range of high quality mediation and case management services to help work through disputes and employment relationship breakdowns.

Considering redundancies? Make sure you follow the workplace change process to reduce the risk of a personal grievance. Redundancy should only happen after all redeployment options have been exhausted. Head to Employment NZ or Wolters Kluwer HR resources for more information.

Workers on call? Remember zero-hour contracts no longer exist. If you plan to have staff on call, you must:

Accelerate Livestock Special Alert 2020

Wed, 03 Jun 2020 23:28:00 GMT

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 as determined by a process involving a review of the livestock market as at 30 April. For a closer look, here’s some analysis on specific livestock classes:

Keep in mind

Careful consideration needs to be given to your livestock election choices. Even though changes were made to the Herd scheme in recent years, there is still flexibility around how to value increases in numbers – if you increase your numbers during the year you are able to choose an alternative valuation option to value that increase. Whether you take that option or you elect to value the increase using herd values will depend on a number of factors, such as:

As the decision is clearly one that should be made on a case by case basis, we will naturally discuss your valuation options with you on review of your 2020 Financial Statements and Taxation Returns.

If you’d like, we can send you a detailed report explaining the main features of the Herd and NSC Livestock Valuation methods, as well as a summary and graphic illustration of the Herd Scheme Values from 1987 through to 2020. Just let us know.

Dairy Cattle

Wed, 03 Jun 2020 23:18:00 GMT

The values for Dairy this year are a mixed bag, with some values increasing against the general trend of decreases. The overall values for dairy have held up far better than sheep and beef values. This has occurred for two reasons, firstly R1 and R2 values are influenced by live export demand, with live exporters securing dairy heifers at a premium to the local market. Second, the demand for replacement herds following Mycoplasma Bovis has had a supportive effect on values

A Mixed Age Dairy cow now has a National Average Market Value of $1,525 compared to $1,513 last year – a rise of 0.8%. Rising two-year heifers have dropped by a little over 4% to $1,222. Rising one-year heifers have increased by 7.59% to $737.

The impact of COVID-19 has not been as widely felt in dairy values compared to sheep and beef , but has created significant uncertainty for the future outlook in terms of the farmgate milk price and consequently market values for dairy cattle. COVID-19 is likely to see some retrenchment in international markets, which could see demand for traditional New Zealand dairy products fall, but at the same time there is increased demand for some of our niche products, particularly for pharmaceuticals. It remains to be seen what impact this will have in the short term.

Changes to the proposed water quality standards have provided some relief for farmers, and dairy farmers in particular. However, water quality standards will continue to pose a risk to production capacity where nitrogen fertiliser is essential to maintain milk volumes. Labour shortages are also likely to create issues due to the unavailability of migrant workers as a result of COVID-19.

Beef Cattle

Wed, 03 Jun 2020 23:13:00 GMT

Beef values have fallen back sharply as a direct result of COVID-19, with both processor capacity and overseas demand having an impact on values. R1, R2 and Mixed Age Cows have fallen in value by 26.64%, 19.05% and 19.56 % respectively, the lowest values in five years.

As with sheep and deer , COVID-19 has had a significant impact on values, and presents significant uncertainty across all markets for the foreseeable future. Overseas demand is likely to remain muted for a considerable time as European and US restaurants remain closed.

On the domestic front, renewed threats to land use from forestry, water quality requirements, particularly in relation to fencing waterways and an upcoming general election all paint a picture of uncertainty over the coming 12 months.

Sheep

Wed, 03 Jun 2020 23:09:00 GMT

After four years of increasing values, 2020 has seen steep decline in values with an 18% average drop. A two-tooth ewe is now valued at $177 compared to $214 in 2019. This equates to a 17.3% decrease. Only rams bucked the trend with a small increase in values to $340.

Drought has also played a part in the depressed values as farmers, particularly in the North Island and upper South Island have had to destock. Values have started to pick up again in the past month, but uncertainty in international markets, particularly the high value restaurant trade in Europe and the United States leaves a large cloud hanging over future values.

Deer

Wed, 03 Jun 2020 23:05:00 GMT

Deer values have seen a significant reversal of the gains of the past five years and have dipped below the 10-year average across all types. This is even more keenly felt in the “other deer breeds” class as the demand for trophy animals suffered significantly because of COVID-19.

Goats

Wed, 03 Jun 2020 23:00:00 GMT

Perhaps the shining light amongst generally depressed values are the values for all classes of goats with values up on average 15.6% across all types. Increased values have arisen from a combination of increased demand for mohair and goats’ milk and increased demand for goat’s meat as an alternative to beef and lamb.

Accelerate Budget Special Alert 2020

Sun, 17 May 2020 23:18:00 GMT

It’s hard to imagine a Budget being delivered into a more singular situation. The 2020 Wellbeing Budget’s one job is to help New Zealand recover from the impact of the pandemic. The lockdown to safeguard us from a public health crisis has been phase 1. The Budget takes us into phase 2: economic recovery while staying clear of a second wave of COVID-19. We don’t know at this stage how many more phases there will be.

The fear and uncertainty of the last few months has primed us to cut spending where possible and keep hold of every available dollar. The Budget 2020 theme is that for our economy to recover, people need money in their pockets and the confidence to spend it. For that to happen businesses need to be able to hold their teams together and grow.

The Update published by Treasury in the budget papers notes that $62.1b has been made available to support the COVID-19 response. That includes $12.1b to date and the $50b COVID-19 Response and Recovery Fund established in the Budget. $13.9b of the Fund has already been applied. $15.9b is marked for more kickstart measures. $20.2b is in kitty because the only thing we’re certain of right now is more uncertainty still to come.

The jobs budget

Sun, 17 May 2020 23:11:00 GMT

The focus is on sustaining existing jobs, job creation, job training and retraining. To support this, Budget 2020 allocates funds to infrastructure investment, business support, housing development and construction, an environmental jobs package, and a trades and apprentices package.

Sustaining existing businesses

The economic response to COVID-19 from March forms a backdrop to the Budget. Although the Budget doesn’t introduce any new tax measures, it builds on the business support strategies:

Job creation, training and retraining

In some sectors, it is hoped to generate activity creating new jobs. Other sectors will see a jobs exodus. People will need to retrain, either for restructured businesses or moves to other sectors. Budget 2020 addresses this with:

Our Communities

Sun, 17 May 2020 22:00:00 GMT

It’s a Wellbeing Budget: investment in health is critical. The brief is to keep everything going as well as being prepared for further response to the pandemic, with a total investment of $5.6b in services and $755m in capital investment, including:

Transport infrastructure receives $197.1m operating total and $1.1b total capital, including $399.5m to replace the ageing inter-island ferries, and $421.7m to replace ageing locomotives and upgrade maintenance facilities.

The Budget invests nearly $1b for the core provision of education services, as well as $186m from the COVID-19 Response and Recovery Fund , specifically for supporting distance learning for students during lockdown.

The primary sector’s critical role in economic growth is acknowledged in a core package of nearly $500m. $193.5m is pledged to continuing the Mycoplasma Bovis Eradication Programme and $79.6m for rebuilding the forestry Emissions Trading Scheme (ETS) infrastructure.

New Zealand Department of Justice court buildings receive a $163.5m capital upgrade for health and safety. Emergency services receive $47.8m to upgrade its communication network.
Some expenditure, such as that for adult education and water safety, is relatively small but could make a difference for many.

We know this Budget runs up debt and we’ll pay for it further on. This is generating lively debate to say the least. It’s not like we’re alone. Every country on the planet is facing hard choices at the moment. If we can stimulate growth over the coming quarters, we’ll be in a more realistic position to talk about good fiscal control.

Small Business Cashflow Loan Scheme

Wed, 13 May 2020 04:57:00 GMT

As another measure to assist eligible small-to-medium businesses adversely affected by COVID-19, the Government has launched the Small Business Cashflow Loan Scheme (SBCS).

From 12 May 2020, businesses employing up to 50 full-time staff may apply to the Inland Revenue Department for loans of $10,000 plus $1,800 per employee. The loans:

Inland Revenue will administer the scheme . Applications are open through myIR from 12 May 2020 to 12 June 2020. To apply, select ‘Apply for a Small Business loan’ In the ‘I want to’ section of myIR .

What you need to apply

To apply for the SBCS loan you need to:

Keep in mind

If you provide false or misleading information or receive any subsidy or payment you were not entitled to, you may be subject to investigation, including for offences under the Crimes Act 1961 or the Tax Administration Act 1994.

After the initial two-year period (when repayments aren’t compulsory), Inland Revenue will notify you of the regular instalment repayments required. If you miss repayments, you will be charged interest at 3% plus the use of money interest rate (currently 7%).

Under certain circumstances, Inland Revenue may consider you to have defaulted on the loan (the terms currently available set out what constitutes an ‘Event of Default’). In such circumstances, the outstanding amount will become immediately due and payable, and subject to interest at 3% (if the event of default has happened after the initial two-year period) as well as use of money interest.

Keep your longer-term finance strategy in mind. For instance, if you plan to go to your bank for funding over the next three years, consider how they will view your application if you already owe up to $100,000 plus interest to the government via Inland Revenue. It may tip the balance against your funding application. If you’re not in desperate need of working capital right now, your long-term relationship with your bank may be your better option.

Our Recommendation

Speak to us about whether the SBCS loan is right for your business and if you need support with your application.

Accelerate June 2020

Mon, 04 May 2020 22:08:00 GMT

Disruption is nothing new for farmers. For years, they’ve been battling drought, market volatility, Mycoplasma bovis , and now COVID-19 . But, like the rest of New Zealand, staying positive and reviving the economy are their priority. In this newsletter, you’ll get a snapshot of what’s happening on local farms, on the environmental front, and what guidance, support and tax relief is available to help farmers wade through the uncertainty.

Looking on the bright side

Mon, 04 May 2020 22:01:00 GMT

“We’re all in the same storm, just different boats” rings true when it comes to the impact of COVID-19 on farmers around New Zealand. Despite challenges for all, most will agree that being an “essential” is a good waka to be in. Let’s hear how things are panning out for two regional winners of the 2020 New Zealand Dairy Industry Awards .

Nick and Rose Bertram, Woodville Hawkes Bay/Wairarapa Dairy Industry Awards Share Farmer of the Year

Seizing opportunities and working smart are all in a day’s work for Nick and Rose Bertram. The young couple (with five kids in tow) have had to look hard at their cashflow management after drying cows off two months early due to drought.

“We got good milk payout compensation but there won’t be another decent milk cheque until October. To even out our cashflow, we’re going interest-only on our mortgage for the first half of the season. Then in the second half we’ll pay twice as much. That way we’ll be in the same financial situation this time next year as what we’d budgeted,” says Nick, 33, who has been farming for 16 years.

What to feed their cows was another burning question for the Bertrams, who are 50/50 sharemilkers on the McNeil’s 150ha, 440-cow Woodville property.

“We bit the bullet and put enough palm kernel on contract until Christmas. We needed certainty and okay, we had to spend more, but we budgeted for that and now we can guarantee our production until Christmas,” explains Nick. “We don’t have an in-shed feeding system, so it’s the best option and won’t upset animal health.”

Nick says it’s great to see more optimism in the farming community following weeks of concern.
“We’ve had more rain, the grass is growing again, and people are seeing the light at the end of the tunnel. Everyone has had to manage their farm and staff differently but farmers have all been really proactive.”

Ralph and Fleur Tompsett, Ashburton Canterbury/North Otago Dairy Industry Awards Share Farmer of the Year

“We’ve had a degree of insulation against disruption in the ag-sector throughout COVID-19 and I think many would agree we are pretty fortunate,” says Ralph and Fleur Tompsett, who look after 1130 cows on the Fleming family’s Ashburton farm. “It’s a privilege to feel like we are running our business almost as usual while many are enduring considerable pain.”

The couple are equity partners in the 50% sharemilking business on the 297ha South Island farm. Ralph and his four staff are focused on getting the farm into a suitable position for the coming season.

“We’re looking quite strong. We’ve actually had a drier than normal autumn, which benefits our heavy soils, so we’ve capitalised on that. Livestock are in good condition. Winter crops are looking good. The team is motivated and raring to go for the challenges of winter and spring. We’re looking pretty well set up but that can always change at the drop of a hat.”

Keep taking environmental sustainability seriously

Mon, 04 May 2020 05:06:00 GMT

There’s no doubt greenhouse gas emissions and waterways will have had their own ‘staycation’ thanks to COVID-19, giving our planet some relief. But, with the Climate Change Response (Emissions Trading Reform or ETS) Amendment Bill still in progress, and with upcoming changes to freshwater legislation, now’s the time to strengthen your commitment to environmental sustainability.

#1 Get your Farm Environment Plan sorted

As part of general business planning and management, you need a Farm Environment Plan written and in action well before the deadline of 2025. This means you’ll need to gain a solid understanding of your emissions footprint, where those emissions are coming from, and what you can do to manage them. The Government is revisiting the impact agriculture is having on the environment in five years and if they’re not happy, farming could be at risk of receiving a broad-based tax under the ETS. For advice on writing a Farm Environment Plan, check out Fonterra’s Tiaki programme .

#2 Help protect our waterways

To improve the quality of New Zealand’s waterways, the government is proposing changes to the National Policy Statement . These could include new requirements to control farming activities, five-metre setbacks from streams and some drains, and resource consent for agricultural intensification.

What’s the agriculture sector doing? It’s already working towards good water quality outcomes with regional water regulation initiatives, farm environment plans, Good Farming Practices , catchment groups and Dairy Tomorrow work streams.

What can you do?

Support when you need it

Mon, 04 May 2020 04:48:00 GMT

Farming is challenging and unpredictable. That’s why having the support – financially and holistically – is key. Here are several ways you can access guidance during the ups and downs.

#1 The Farm Debt Mediation Scheme

Farmers under financial strain will have access to extra support and guidance from next month. The Farm Debt Mediation Scheme , which comes into play on 1 July, provides mediation services to help farmers and their creditors work through debt issues. This means farmers can expect a structured, confidential, and impartial negotiation process that leads to an agreement on how to proceed.

#2 Stay well in your bubble

Unexpected challenges put pressure on your business and family, which is why it’s so important to do the little things that keep you sane. Check out www.farmstrong.co.nz for farmer-to-farmer tips and videos (backed by well-being science) on stress, burnout, sleeping, healthy eating, thinking and more.

#3 Tax relief for Mycoplasma bovis farmers

The Government will be introducing legislation to help farmers whose herds were culled in response to the Mycoplasma eradication programme . It will allow you to spread additional income from the cull over the next six years, as long as:

The legislation is yet to go through Parliament but it will apply retrospectively, from the 2017/18 income year. For more information, head to Inland Revenue’s website .

Business health check

Mon, 04 May 2020 04:33:00 GMT

NZX Milk Price Futures Contracts in a nutshell

Mon, 04 May 2020 04:27:00 GMT

NZX has developed milk price futures and options contracts in response to the need for risk management tools for New Zealand’s dairy industry. To help you get your head around the tax treatment of these contracts, Inland Revenue has released a determination – G31 NZX Milk Price Futures Contracts: an expected value approach . It’s clear and simple and applies to all transactions entered into on or after 1 April 2020.

If you’re considering using these contracts, make sure you understand how they work and seek advice from a broker. Call us if you’d like to talk through the tax implications.

Cashflow and cost control

Thu, 23 Apr 2020 02:52:00 GMT

More than ever, cashflow is a vital part of staying afloat, whether your business is in recovery or growth mode. Revenue, profit and your bottom line will all resume their importance when we’re back to “normal” (however that’s going to look). But keeping everything running is the priority for now. Regular cashflow forecasts will help you keep that in focus.

If you can’t reach your targets for income, reining in your costs may give you a little extra head room to manage cashflow while you plan your next move.

Cost control can be a challenge when it’s hard to pinpoint hidden costs or where established ways of doing things cost more money than they should. You may also have been coping with unexpected expenses, as you’ve adapted your business for unplanned circumstances.

It’s more than just keeping an eye on outgoings (though that’s important). It’s about looking at each aspect of your business and business systems (or the gaps where there should be business systems) to see if poor practice is driving costs up unnecessarily.

It can be useful to break it down. You can look at cost centres such office supplies or freight. Or you can look at what those costs do for your business. It can help to analyse costs in terms of cost of sale and overheads.

Cost of sale and Overheads

Cost of sale (also known as Cost of Goods Sold or CoGS) is how much it costs you to make a sale.
In a business which sells products, CoGS is based on the price paid for the product, plus any costs necessary to put the merchandise into inventory and make it ready for sale, including shipping and handling. You can even break it down to calculate the cost of sale of individual units.

A business that provides services calculates cost of sales by looking at the amount of money that goes into providing a service. It’s important to have a system to track time the team spend directly involved delivering the service.

Overheads are general business expenses. They can’t be tracked directly to sales. Overheads are what it costs you to open your doors (whether online or actual) every morning.

Have a plan

Now might be the time to trim every expense that’s not related to your core product or service. Are you able to work with your providers to ask for discounts or more favourable payment terms on either cost of sale or overhead expenses?

Analyse your costs and involve your team, including frontline sales staff. It might be a false economy to cut back on advertising, as customers are online looking for bargains and price-checking alternatives. Targeted campaigns might work better. Can you pinpoint the products most likely to bring the fastest or best return and hold back on products that are a slower sell? If you have old or slow-moving stock, can you discount it and convert old stock to cash? If you can attract customers now, you may be able to spotlight your other products.

Every dollar you can pull back from your costs can go straight into cashflow. Talk to us if you’d like to review your costs and your systems to keep costs under control. Whether your sales are boom or bust, you want to make sure that your costs aren’t holding you back.

Head in the cloud? That might help

Fri, 17 Apr 2020 04:57:00 GMT

Business sustainability in uncertain times

For business owners, it is hard to predict when things will return to normal. Even when lockdown measures ease, there is still a huge amount of uncertainty about when customers will come back and if the marketplace will still support your business.

Many businesses are wondering if they’ll be able to recover. The anxiety driven by so much personal and professional uncertainty is still very real.

It hasn’t been all bad. Unexpected bonuses have included more birdsong in our lives, renewed appreciation of our families, friends and colleagues, and a lot of creative baking.

The upside for some has included renewed confidence in their business and their people. We are deeply appreciative of how our teams and business contacts have adapted. This flexibility might be critical as we continue to adapt to a succession of new normals. Some businesses will be scrambling just to reopen. Others may see a need to restructure or to extend those elements that worked well for them during the crisis.

Businesses already functioning well with cloud software found the transition to working remotely reasonably smooth. Some that were partially operating in the cloud were able to complete the leap with some dedicated IT support (with varying combinations of long hours, Tim Tams and swearing).

What could your business look like from here? Even as a stand-alone business, you’re already part of a network of suppliers, customers, business advisors and regulators who are increasingly operating online. Can you streamline your setup for smoother, secure online interaction with them?

Streamline?

For example, is your paperwork still largely that? Paper? Do you lose time to manual coding, data entry and filing? Has your annual accounts cycle started each year with dropping into us with the proverbial shoebox full of statements, invoices and receipts? Moving them to electronic format might save time and money.

Products such as Receipt Bank and Hubdoc can help. They extract the key information and present it in a manageable format for downloading or processing with a connected accounting software.

Places to start:

Click and collect?

Not all businesses are suited to online trading, but many have surprised themselves with how they could adapt to this model. Even businesses which traditionally only work face to face have seen opportunities to shift essential products to click and collect or delivery models.

Summing up

After all this time as a business owner trying to get your head out of the clouds, maybe this is the perfect time to put it back there.

As with all business decisions, consider the risks and talk to us about how it might work for you. Involve your IT provider to identify not only the easiest but also the most secure options for you.

Wage Subsidy COVID-19

Thu, 16 Apr 2020 02:46:00 GMT

By now, many whose businesses have been affected by COVID-19 have applied for support through the wage subsidy. If you are one of them, keep in mind that the subsidy comes with specific conditions.

If you haven’t yet applied for the subsidy and you are an employer, click here to apply. If you are self-employed, click here .

We want to help you keep your business afloat and keep your team together. If anything changes that may affect your eligibility or entitlement to the subsidy, you must notify the Ministry of Social Development (MSD) within 5 working days. Let us know if we can help.

Main requirements

If you are entitled to the subsidy:

Your declaration and obligations

When you applied for the subsidy you made a declaration about your business and how you would use the subsidy, including that:

You have also consented to the MSD publishing information about your business and the level and duration of any subsidy provided to you on a publicly available register.

The subsidy commits you to retaining and paying your employees. You can only vary employment agreements with employees with their agreement. You agree to repay the subsidy or part of subsidy if you:

You may be subject to civil proceedings to recover any amount received that you are not entitled to and/or to prosecution for offences under the Crimes Act 1961.

COVID-19 Business Support

Thu, 16 Apr 2020 02:23:00 GMT

The Government has announced new relief measures to boost confidence and help small and medium-sized businesses get through the COVID-19 crisis.

The package includes:

Tax loss carry-back scheme

This enables a business to offset a loss in a particular tax year against a profit in a previous year, producing a refund of the tax paid in the previous profitable year, boosting cashflow. Businesses expecting to make a loss in either the 2019/20 year or the 2020/21 year can estimate the loss and use it to offset profits in the previous year.

A tax Bill being introduced the week beginning 27 April will include a temporary mechanism for this. The Government proposes a permanent scheme, subject to public consultation in the second half of 2020, to apply for the 2021/22 and later income years.

Inland Revenue’s website notes taxpayers “do not need to rush to re-estimate their provisional tax before 7 May. Part of the proposed law change would make it possible for them to re-estimate it after the date of the final instalment. This will give them more time to work out any estimated loss for the 2020/21 income year.”

Change to tax loss continuity rules

The tax loss continuity rules will be relaxed from the 2020/21 income year to support businesses trying to raise capital. Currently, if a company has more than a 51% change in ownership it cannot keep its tax losses. The change allows more businesses to carry forward losses. A tax Bill for introduction in the second half of 2020 will set out the detail. The new rules will include a ‘same or similar business’ test, meaning the business must continue in the same or a similar way it did before ownership changed.

Greater flexibility around tax deadlines

Inland Revenue will have greater discretionary power to extend due dates and timeframes, or to modify procedural requirements set out in the Revenue Acts. This could include extending deadlines for filing tax returns and paying provisional and terminal tax. At this stage, the power will be time-limited for a period of 18 months and will apply to businesses affected by COVID-19.

It’s expected that the tax Bill for introduction on 27 April will include amendments to the Tax Administration Act 1994.

Supporting commercial tenants and landlords

The current timeframe for commercial landlords to cancel a lease will be extended from 10 to 30 working days. The changes allow for more time for breaches or defaults to be remedied, covering:

The Government is also extending timeframes for commercial mortgages and home loans. The timeframe for lenders will be extended:

These changes are included in the Bill to be introduced on April 27 and will apply retrospectively once passed.

Free business consultancy support

Businesses will be able to access free, specialist support for issues including business continuity planning, finance and cash flow management, HR and staffing issues, and potentially any sector-specific issues. The Regional Business Partner Network will scale up advisory services, so more businesses receive support over the next year. Existing helplines often used by businesses, such as those operated by the Employers and Manufacturers Association and the Canterbury Chamber of Employment and Commerce, will also be extended.

Our Recommendation

We expect to see further support for businesses and households as we go on. Meanwhile, contact us so we can work together on how these changes could support your business recovery.

Accelerate Special Alert COVID-19

Tue, 17 Mar 2020 21:47:00 GMT

COVID-19 has forced the big questions. How do we slow transmission, protect the vulnerable and how do we recover? Stories that have inspired range from Italians singing from lockdown to lift morale to business innovations to safeguard customers . Proactive businesses are sending out reassurance on client and staff health and business continuity. Talk to us early about the impact this is having on your business and what we can pull together to help.

The Government’s response to COVID-19 aims to support recovery – individual, community and economic – and cushion the economic impact.
The $12b assistance package, “the most significant peace-time economic plan in modern New Zealand history”, includes:

Business Cashflow

Tue, 17 Mar 2020 21:29:00 GMT

Tax relief measures for the government’s economic response to COVID-19 include:

Depreciation: Depreciation deductions for commercial and industrial buildings will be re-introduced from the 2020/21 income year. Available to all sectors, these apply to new and existing buildings on a permanent basis. Building owners can adjust provisional tax payments immediately in anticipation of the additional deductions.

Write-offs: As a two-stage incentive to encourage spending, tax write offs will be available for more low-value assets. Initially, for the 2020/21 income year, assets costing up to $5,000 will be eligible for immediate write-off. As a permanent measure, from the 2021/22 income year, the existing $500 threshold will increase to $1,000.

Provisional tax: Currently, taxpayers with residual income tax of $2,500 or more pay provisional tax. From the 2020/21 tax year, this threshold will increase to $5,000, so fewer businesses will need to pay provisional tax.

Interest: Businesses and individuals who are struggling because of COVID-19 and can demonstrate they’re unable to pay tax by the due date may be eligible for a use-of-money interest (UOMI) write off. This applies to all tax payments including provisional tax, PAYE and GST due on or after 14 February 2020, for two years, unless the Government extends it. Inland Revenue will release details on how they will test this.

Wage subsidies

Tue, 17 Mar 2020 21:20:00 GMT

From 17 March for the next 12 weeks, wage subsidies are available for employers affected by COVID-19 and struggling to retain employees. Employers may apply who suffer (or project they will suffer) a 30% or more decline in revenue for any month between January 2020 and June 2020 (compared to last year). Applications may also be based on forecast revenue loss within the period.

The subsidy is:

The lump sum payment covers 12 weeks. The maximum an employer can receive is $150,000.
Under the scheme, employers:

You can apply for the subsidy through the Work and Income website . MSD aims to pay no later than five working days from when applications are received.

Leave payments

Tue, 17 Mar 2020 21:13:00 GMT

A leave payment scheme runs for the next 8 weeks, providing support to businesses with employees, contractors and the self-employed staff unable to work because they are in isolation, or sick, or caring for others with COVID-19. The payment amounts are the same as those for the wage subsidies and can be backdated to 17 March 2020.

This does not affect any paid leave entitlements owed and is available even if an employee is on paid leave for part of the period. It is not available to those who can work from home, and whom their employer can pay normally.

Employers can apply for the leave on behalf of any self-isolating or sick employee. The Ministry of Social Development (MSD) pays employers, who are required to pass it on to affected employees. MSD will pay on a fortnightly basis once it receives an application.

Employees, self-employed, and contractors legally working in New Zealand are eligible. Those who self-isolate must do so in accordance with public health guidance and register with Healthline . Those who went overseas from 16 March 2020 are not eligible for this payment for self-isolation on their return. Workers ill with the virus can only access the scheme for time spent on sick leave from 17 March 2020.

Support for beneficiaries and superannuitants

Tue, 17 Mar 2020 21:06:00 GMT

Main benefits will rise by $25 per week from 1 April 2020. From 1 July 2020, working families with children who don’t receive a main benefit and have some employment income each week won’t have to satisfy the hours test to receive the In Work Tax Credit (previously a minimum of 20 hours a week for sole parents and 30 hours a week for couples with children). These are introduced as permanent changes.

As a temporary measure, the Winter Energy Payment to superannuitants and beneficiaries will double in 2020, beginning on 1 May 2020. This means $40.91/week for single people and $63.64/ week for couples or people with dependents.

Accelerate April 2020

Thu, 05 Mar 2020 20:25:00 GMT

Have you recently become a landlord ? Are you hosting boarders at home? Did you enjoy a jam-packed Bookabach this summer? With the property law and tax changes that have surfaced recently, we’re here to keep you well-informed – wherever you are on the property ladder.

From Airbnb to boarders: what’s new for property owners?

Wed, 04 Mar 2020 23:53:00 GMT

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:

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.

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.

Short-stay rental property in a trust? Your questions answered

Wed, 04 Mar 2020 23:32:00 GMT

Q: If property held in a trust is rented out by the trustees for short-stay accommodation, who should declare the income, and what deductions can be claimed?
A: The income belongs to the trustees and will generally have to be declared in the trust’s tax return. However, some or all of the income may be allocated as beneficiary income, which means it would be taxed at the beneficiary’s tax rate rather than at the trust rate. Expenses relating to the income (rates, insurance, repairs etc.) can be deducted but only partly if the expenditure also relates to private use or non-income-earning use of the property.

Q: If property held in a trust is rented out by a beneficiary of the trust for short-stay accommodation, who should declare the income, and what deductions can be claimed?
A: The income belongs to the beneficiary because they’re the one granting the licence to the guests to stay. Non-capital costs related to earning the income can be deducted, but some of these costs will only be partly deductible if they also relate to private use of the property.

What’s new in 2020?

Wed, 04 Mar 2020 23:27:00 GMT

Partnership Law gets a makeover:

The Partnership Law Act 2019, which governs business partnerships (for example, the rights and responsibilities of partners to each other and to third parties) comes into effect in April. The modernised Act is a lot easier to understand and apply than its 1908 predecessor.

Investment income changes:

Do you pay or receive interest, dividends, PIE income, or taxable Māori authority distributions? New reporting and administration rules apply from 1 April. Payers now need to report more frequently (and electronically) and recipients have to give their IRD number to their investment income payer (ie, bank) to make sure they’re on the right tax rate. For the full list of changes, visit www.ird.govt.nz/investment-income

Staff use of telecommunications tools and usage plans:

Inland Revenue has released a guidance statement for employers wanting to reimburse an employee for the employee’s cost of their phone, tablet or computer. If the device is mainly used by the employee for business purposes, the employer can reimburse 75% of their total bill. If the tool is mainly used by the employee for private purposes, but required for business purposes, then the employer can pay the employee 25% of their total bill. In both cases, the income is non-taxable. There is also a proposed provision to allow $5 a week to be non-taxable to an employee where payments made to employees to reimburse for the use of their personal mobile device is $5 or less per week.

Are you a landlord? Keep up with the changes

Wed, 04 Mar 2020 22:53:00 GMT

With a third of New Zealanders renting homes, and some for a lifetime, it’s key to have clear, fair rules for tenancies. The Government’s tenancy law reforms announced late last year aim to improve tenants’ security and stability while protecting landlords’ interests. The Residential Tenancies Amendment Bill is now making its way through Parliament, with the Select Committee due to report on it in June this year. We’ll keep you posted on the changes.

What landlords need to know:

Changes relating to damage, methamphetamine, and unlawful rental premises:

Five steps to a healthy rental property

Wed, 04 Mar 2020 22:46:00 GMT

To boost the quality of rental properties in New Zealand, the Healthy Homes Guarantee Act was passed in 2017. If you’re a landlord, there are five actions you need to take to ensure your property meets the Healthy Homes Standards.

By 1 July 2024, you need to provide:

Accelerate Special Alert Year End 2020

Tue, 04 Feb 2020 21:01:00 GMT

Come 31 March, Parisians will be celebrating Eiffel Tower Day and Christopher Walken will turn 76, but Kiwi businesses owners will have only one thing on their mind – the end of the financial year. How’s it looking for you? Know what you need to do? To help make the information- gathering process hassle-free, we’ve put together a four-week checklist . So, to avoid scrambling this time next month – take a breath, take note, and take action.

Your four-week checklist to keep tax time low-stress

Tue, 04 Feb 2020 20:55:00 GMT

Week 1: First things first

Talk to your accountant or bookkeeper. They’ll tell you what you need to do before 31 March including what you can claim for and what you can’t. Remember, tax time is busy for them too, so the more prepared you are, the smoother the process, and the better the result.

File your return on time. Don’t waste your hard-earned cash on unnecessary interest and penalties. Get your accounts up to date, tidy up loose ends and file on time.

Week 2: Your assets and stock

Review your inventory. The value of your stock affects your business’s taxable profit. Do a meticulous stocktake before year-end. Get rid of any out-of-date or damaged items and write them off.

Extra assets on board? Year-end is the time to ditch surplus assets. If you can sell them, great, otherwise write them off.

Week 3: Your spending

Sooner rather than later. If you’re planning to buy any new equipment or assets, do it on or before 31 March (rather than 1 April) to reduce your taxable income and gain a full month’s depreciation.

Got invoices and receipts for your expenses? It can be tricky to keep track of everything so if you’re not already, go digital. Scanning receipts and saving electronic invoices in the cloud saves time and space.

Week 4: Your staff

Payroll up to date? Now’s the time to check your payroll system only includes current staff and that all their details are correct. Ensure former staff don’t have access to company systems.

Remember tax on bonuses: Special bonuses this time of year can be a great way to reward and motivate staff, just remember to get the tax right on any lump sums made. Also keep in mind any bonuses for the current year, and holiday pay or long service leave paid out within 63 days after 31 March can be deducted against your current year income.

New kilometre rate for claiming motor vehicle expenses

Tue, 04 Feb 2020 20:42:00 GMT

Are you using your car for business purposes? It’s timely to outline the process for claiming tax on your work vehicle expenses.

If you are a company and provide vehicles to staff (including yourself!), you will need to make sure you’ve got your fringe benefit tax position right. Talk to us as there are exemptions that may apply for specific types of vehicles or where restrictions are placed on the use of company owned vehicles.

Accelerate February 2020

Sun, 05 Jan 2020 23:26:00 GMT

It can often take a well-deserved break to see your business in a new light. Maybe the summer holidays inspired new business ideas, ignited a desire for innovation, or made you realise you want to approach things differently.

Whatever your goals for 2020, it’s worth taking the time to consider networking, investment and R&D opportunities, as well as future-proofing your business with a patent or trade mark. If you didn’t get a chance to step back from your business over the holidays and need some inspiration to take things up a notch in 2020, listen to our selection of top business podcasts.

R&D – is it for me?

Sun, 05 Jan 2020 23:24:00 GMT

Are you looking to take your business to the next level?

Introduce new revenue streams?

Dig deeper into the science or technology behind what you do?

Innovation can be a hard road but with the right people and financial backing, it can be a game-changer. Right now, there are tax credits, funding programmes and other resources available that are specifically designed for Kiwi businesses aiming to increase their R&D activity in New Zealand.

Where to first?

Whether you’re exploring a bright idea or increasing your R&D investment, talk to Callaghan Innovation . New Zealand’s innovation agency connects people, opportunities and networks. They also provide R&D funding support for businesses with grants such as:

Discover how Callaghan Innovation has helped other Kiwi businesses grow at: www.callaghaninnovation.govt.nz

Connect for success

Got the brainchild but no funding? You need an investor. Here are three ways to tap into people interested in helping Kiwi businesses thrive.

Already invest in R&D? You might be eligible for a 15% tax credit from the 2019/20 income year. Before you can submit a supplementary return to obtain a tax credit, you’ll need to enrol through myIR . The rules are complex, so give us a call and we can work through the eligibility criteria and tax implications with you.

Pay your taxes by cheque?

Sun, 05 Jan 2020 23:08:00 GMT

Five new ways to do it.

If you normally write a cheque to pay for your taxes, it’s time to decide how you will pay in the future. As of 1 March 2020, Inland Revenue will no longer be accepting cheques. By the end of the last financial year (June 2019), only around 5% of payments received by Inland Revenue were by cheque, so they made the call to phase them out.

Here are five faster, cheaper and safer ways to pay your taxes:

New fees

Sun, 05 Jan 2020 23:02:00 GMT

Patent Amendment Regulations 2019

Trade Marks Amendment Regulations 2019

Protect yourself with patents and trade marks

Sun, 05 Jan 2020 22:57:00 GMT

If you’ve got a new invention, are launching a brand or marketing a new stream of business, it’s important to consider whether you need a patent or trade mark. Both take at least six months to process in New Zealand, so the sooner you do your homework, the better.

What are the benefits of a patent?

** Applying for a patent? Be careful about revealing details of your invention to other people before you have filed your application: doing this may cause your application to be declined.

What are the benefits of a trade mark?

** Before you do anything, check to see if a trade mark or logo like yours is already on the NZ Register , at www.iponz.govt.nz .
** If you need protection in other countries as well as New Zealand, talk to an IP lawyer. They do extensive searches of brand names across all relevant categories, advise on similar companies and can tell you whether your application is likely to be accepted.

10 inspirational podcasts for the busy business owner

Sun, 05 Jan 2020 22:45:00 GMT

Spend a bit of time commuting or travelling for work? Podcasts are the new radio. Here are 10 free series that will educate and entertain whether you’re going long distance on a sales trip or stuck in city traffic. Find them on the author’s website, Spotify or iTunes .

Reminder: Rental losses ring-fenced from 2019/2020 tax year

Sun, 05 Jan 2020 22:14:00 GMT

The new law on ring-fencing rental losses is now in force, which means:

The new rules apply from the start of the 2019-2020 income year and apply to:

Own a rental property? We’re happy to talk you through your tax implications so you don’t get caught out.

Four top time-saving tips

Sun, 05 Jan 2020 22:09:00 GMT

Not enough time in the day to get everything done? Try these tips to keep calm and increase productivity.

Accelerate December 2019

Fri, 08 Nov 2019 01:01:00 GMT

December is notoriously hectic and we know you’ll be in the middle of a squillion-and-one things right now. That’s why we’re talking ‘self-care and staff-care’ this month’, quick tips worth reading over your morning coffee or lunch.

We’re all looking forward to taking a well-earned break over the summer and hope you are too. Merry Christmas to you and your family, and if you’re hitting the road – travel safe and enjoy every moment.

Six planet-friendly ways to show staff you care this Christmas

Fri, 08 Nov 2019 00:43:00 GMT

Got your staff Christmas gifts sorted? There’s still time! Think outside the box and be good to your people, and the planet, with these sustainable Christmas gift ideas.

Gift an experience: Why not shout your staff a chance to try something new? Grab a voucher for a local eatery or attraction or check out www.redballoon.co.nz for inspiring experiences – from arts and entertainment to watersports and tours. No packaging in sight.

Be charitable: Create more joy and less waste by heading to www.thegoodregistry.com , where you can buy gift cards that enable staff to make donations to charities they care about. Or for a bit of fun, do good by grabbing a pile of poo, a pair of chickens or a pineapple at www.oxfam.org.nz/unwrapped . Remember, donations over $5 are eligible for a tax credit.

Gifts that grow: From single trees to bonsai and culinary hampers, NZ’s leading living gift company, Tree Gifts , has something for everyone. Plus, they do corporate branding.

Keep it simple: If you’re stuck for ideas, Google The Pressie Box . They’ve got hundreds of different corporate gift boxes, baskets and tins, including eco-friendly options for the budget-conscious or big spender.

Sustainable branding: www.allaboutpromo.nz is NZ’s only carboNZero certified promotional product and branding company with more than 500 sustainable gift options.

Get browsing: From home and garden, health, beauty, food and drink, you can browse local, eco options online at sites such as Green Elephant and EcoWarehouse .

Getting holiday pay right

Thu, 07 Nov 2019 23:22:00 GMT

Do you have staff taking leave over Christmas? Are systems in place to make sure everyone gets what they’re entitled to? Even if someone else handles your payroll, you are responsible for making sure holiday pay and leave payments are handled correctly.

Remember:

Five simple ways to finish the year feeling relaxed (not rushed!)

Thu, 07 Nov 2019 23:18:00 GMT

Is less stress at the top of your Christmas list? For the sake of your sanity and the best interests of your business, follow these steps to remain calm and collected as the year comes to a close.

New Trusts Act 2019:

Thu, 07 Nov 2019 23:11:00 GMT

What you need to do

If you’re protecting your family property in a trust, there may be changes you need to make before the new Trusts Act comes into force in January 2021.

The changes to the Trusts Act (the first in more than 60 years!) aim to make trust law more efficient and accessible, lower admin costs, simplify core trust principles and essential obligations for trustees, and make it easier to resolve disputes.

While it might seem an eternity away, 2021 will whip around quickly, so here’s what you need to do.

New GST on low-value imported goods

Thu, 07 Nov 2019 22:49:00 GMT

Overseas businesses selling goods valued at $1,000 or less online to New Zealanders are now required to register for, collect and return GST where their supplies to New Zealanders exceed (or are expected to exceed) $60,000 in a 12-month period.

This is good news for local businesses who may have been at a competitive disadvantage by having to charge GST on their sales, when their foreign competitors didn’t. Want to know more? Read the special report here .

Business Health Check

Thu, 07 Nov 2019 22:36:00 GMT

Accelerate October 2019

Fri, 30 Aug 2019 04:37:00 GMT

Whether you’re a solopreneur or managing a team, the more balanced, flexible and diverse your business is – the healthier it will be. So, over the next few months, shine a light on your HR. Take an honest look at any gender pay gap , consider more flexible ways of working , research better performance reviews , or commit to creating a sustainable work/life balance . One thing’s for sure, looking after yourself and your people will give you a competitive advantage and set you in good stead for 2020.

Why closing the gender pay gap is good for business

Fri, 30 Aug 2019 04:29:00 GMT

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?

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

Work. Sleep. Eat. Repeat?

Fri, 30 Aug 2019 04:12:00 GMT

Find a better balance with these helpful hacks

Working harder is not always smarter. Burnout is common among business owners and staff who are pushed to the limits. Ultimately, it’s not good for business or your personal life to be burning the candle at both ends. But how on earth are you expected to fit it all in?!

Here are some useful ways to create a crystal clear line between work and the rest of your life.

The busy person’s guide to stress-free performance reviews

Fri, 30 Aug 2019 04:04:00 GMT

How well are your staff performing? Do they love their job? Performance reviews, an open two-way conversation held once or twice a year, are a great way to find out. While you’re not legally bound to do appraisals, they’re a great tool to keep your business running smoothly.

Property sales on IRD radar

Fri, 30 Aug 2019 03:50:00 GMT

Buying or selling a home? You’ll now need to provide your IRD number as part of the transaction process. The change will allow IRD to know who’s flipping owner-occupier homes on a regular basis, and better enforce the existing law that ensures people pay tax on the profit. The move won’t impact the rules around who’s required to pay tax on investment property though.

Business health check

Thu, 29 Aug 2019 02:46:00 GMT

Accelerate August 2019

Fri, 05 Jul 2019 00:19:00 GMT

Agricultural sustainability continues to be a hot topic, with the Government, the corporate sector, conservation groups and local farmers taking our country’s environmental footprint more and more seriously.

From the Government’s $8.5m budget investment in reducing and mitigating agricultural emissions plus $25 million into the Agricultural Climate Change Research Platform , to Ballance’s Farm Sustainability Scheme and a range of sustainability and young farmer awards – we’re moving in a positive direction.

By working together, there’s hope we’ll reduce our environmental impact dramatically over the next few decades. In the meantime, let’s celebrate the progress we’re making – and the people behind that progress.

Proof you can profit from going ‘eco’ on your farm

Fri, 05 Jul 2019 00:10:00 GMT

Sustainable business practices are good for the planet and its people, but can you make money from it? Here are three of the 2019 Ballance Farm Environment Award winners, who say – yes you can.

For Dannevirke’s Simon and Trudy Hales , being sustainable is about future-proofing their 970ha beef and sheep farm near Weber. As the fourth generation to work the farm, the Hales strive to build annual equity to ensure profitability – all while improving the land using environmentally friendly initiatives.

They have removed stock from most of the Akitio River to maintain a healthy waterway, developed a robust plan to ensure the health and safety of farm workers, and propagated native seedlings using locally sourced seeds, which will be planted to promote shrub growth and enhance the health of the ecosystem in riparian areas. Further native planting is on the cards to improve the farm’s aesthetics and reduce soil loss caused by erosion.

Small and savvy in the Naki

For internationally renowned biointensive gardening educator and restoration grazing consultant, Jodi Roebuck – it’s all about respecting the environment to yield results – both for the farm and financially.

Roebuck Farm , located 11.6km south-west of New Plymouth, is a sustainable and profitable small scale working farm boasting a thriving market garden loaded with lettuce, rainbow microgreens, rocket, kale, mustard, carrot, radish and more. It’s intensive, chemical free and bringing home the bacon to Jodi’s family of four.

Jodi and his wife Tanya Mercer specialise in biointensive farming – growing more food in less space. The couple’s three hectares produces high-value, fast-growing greens with short days to maturity, achieving more return per hectare. They also run educational opportunities, including interactive on-farm activities for people interested in sustainable food production on limited land.

For this Taranaki couple, soil health and quality are top priority with all growing, harvesting and pasture management undertaken with this in mind. They’ve planted companion crops between varieties of cash crops to lighten the pressure from insects and pests. Weeds are removed by hand with help from a range of different tools, and not a spray in sight. There’s also a large amount of shelter planted on the hillside to help protect the farm from wind and reduce erosion.

Leaders in the field

Taking an eco-friendly approach has reaped environmental, social and economic benefits for the owners of Tirau’s Dennley Farms . With their sights set on a low input, low footprint farm and animal welfare at the heart of everything they do, owner-operators Adrian and Pauline Ball aim to improve people’s perception of the dairy industry by leading by example on their 194ha Waikato dairy farm.

By closely studying crops and soils using best practice agronomy, the couple optimises crop and animal yields without compromising environmental health. They work with nutrient suppliers to make sure fertilisers are applied, and soil is tested, at appropriate times.

The dry stock farm is completely off-grid, using solar power, a deep well water supply and solar electric fencing. The cropping and finishing farm, which runs along the side of the Waihou River, has 20m or more fencing setbacks to encourage revegetation of the river banks. Future plans include fine-tuning farm grown feed requirements, trialling crops and practices that reduce the farm’s footprint further year-on-year, introducing more energy-saving and cost-effective infrastructure to the asset base, and maintaining growth across the dairy platform and beef breeding enterprise.

Agricultural apprenticeships – are they fruitful?

Thu, 04 Jul 2019 23:43:00 GMT

A Q&A with Mike Stephens, General Manager, Primary ITO

Struggling to recruit ambitious workers? Find out how two new apprenticeships, developed by Primary ITO and Federated Farmers , could help you tackle your skill shortage.

How does the Federated Farmers Apprenticeship Dairy work?
We match apprentices to relevant farms where they can ‘earn while they learn’, develop their skills on-job and grow their careers. Employers enjoy motivated staff, and learn and grow throughout the apprenticeship too.

How does an employer get involved?
Farms wanting to take on an apprentice in the programme sign up to a farm charter to ensure they provide the best work environment, on-job training and career development for their apprentice. Since it launched two years ago, nearly 180 farms have signed the charter. This means the farming community is willing to invest to bring people on and put them on a premium pathway to farm management and even ownership.

How many apprentices are signed up?
There are now nearly 100 apprentices in the programme throughout New Zealand. This number is building and we’re working first on identifying people whose interests match the sector, like working outdoors and with animals, then helping match them with the best dairy farmers.

What are the main benefits to employers?
Employers are matched with employees who have a long-term commitment to the industry. Employers recognise that by leading the training of an apprentice it adds value to their farm with motivated staff and will support them in a career with a recognised learning pathway to farm management.

How is the Horticulture Apprenticeship scheme going?
It has generated a lot of interest and there are apprentices across many types of horticulture. About 50 people have started one of the horticulture production apprenticeships launched last year with our industry partners.

Why should an employer sign up?
Employers get improved access to skilled workers committed to their industry. With a shortage of both skills and people, attracting the smart, innovative people the sector needs is of critical importance. Primary ITO is working alongside industry to recruit motivated and career-oriented people to the sector and this helps with retention, productivity, succession planning and more.

Why is it so important to have initiatives like these?
All of the employers we work with give us the clear message that they need skilled workers and that they will invest in training them. Across all our industries, we know that the future will be driven by value and innovation – not volume – and these apprenticeships help grow the future industry leaders to make this happen.

Take stock and thrive

Thu, 04 Jul 2019 23:03:00 GMT

Top tips for working ON your business in 2019

When you’re head down in the day-to-day running of your business, it’s hard to know what needs to be done behind the scenes to ensure future success. You don’t have to set aside an entire day to get all your planning, accounting and networking done. Do it in small intervals throughout the year. Choose a time when you know you’re not going to be knee deep in calving or picking and make it a priority. Working ON your business is just as important as working IN it.

Whether you want to expand, develop or maintain your current activity, consider the following advice.

Health and safety: Say it loud and proud to lower the risk

Thu, 04 Jul 2019 22:49:00 GMT

A ‘she’ll be right’ attitude towards health and safety won’t cut it. You’ve got to make a conscious decision to be safe and get everyone in your team thinking about health and safety every step of the way. Here are a few ways to do this effectively:

Business health check

Thu, 04 Jul 2019 21:57:00 GMT

Budget Special Alert 2019

Wed, 05 Jun 2019 04:29:00 GMT

The lead-up to the Wellbeing Budget has been well signposted even if the track’s been somewhat muddied by drama. It’s a bold step to try and quantify progress in other than strictly financial terms. The brief is to implement change and manage the country’s finances.

The focus is on 5 priority areas:

Mental health initiatives include a new frontline service for mental health, funding boosts to existing suicide prevention services, more nurses in secondary schools, and 1,044 new Housing First places to tackle homelessness.

Child wellbeing measures see a $320m package to address family and sexual violence, assisting young people out of state care into independent living, increased funding to decile 1-7 schools to take financial pressure off parents, and indexing main benefits to wage growth from April 2020, meaning benefit payments will rise in line with wages – not inflation.

Māori and Pasifika are supported by a major boost for Whānau Ora (family health) focusing on health and reducing reoffending, support for the Pacific Employment Support Service and Te Reo and Pacific languages, and a $12m programme targeting rheumatic fever.

While it’s hoped that increasing health and wellbeing in New Zealand will foster increased prosperity, the business community gaze will be on building a productive nation , and transforming the economy , as well as on tax policy ahead.

Building a productive nation

Wed, 05 Jun 2019 04:23:00 GMT

Innovation is seen as the key to assist New Zealand industries in the transition to an economy high in productivity but low in emissions. The challenge is for businesses to be more innovative and New Zealanders to adapt to changing job markets.

The R & D legislation born out of last year’s budget has passed and it’s up to Kiwi businesses to take up opportunities there. The Budget allocates $157m to support the “Commercialisation of Innovation” package of initiatives to invest in research and science. An “Innovative Partnerships Programme” seeks to attract globally leading firms and innovators. “Business Connect” establishes a cross-agency digital platform of business-focused services.

New start-up businesses have been spotlighted as likely to run with some of these initiatives, the Minister for Research, Science and Innovation calling them “the ultimate champions of innovation that often introduce more radical, disruptive innovations than more established firms”.

But how does a start-up expand? The Budget establishes a $300m fund to support venture capital investments taking “mid-size” start-up businesses to the next level. This is designed to stimulate growth and help businesses remain onshore, reducing pressure on companies to sell prematurely to overseas buyers.

The initiatives also fund vocational education and training. These include reforms to boost apprenticeships and trade training, increased subsidies to Tertiary Education Organisations, wage subsidies, and funding for an “Industry 4.0” demonstration network to help businesses embrace smart technologies and data driven solutions.

Transforming the economy

Wed, 05 Jun 2019 04:19:00 GMT

On the global stage, New Zealand’s economy has obvious vulnerabilities: its reliance on export, uncertainties affecting major markets and political instability across many regions, complicated by a lack of coherent global action on climate change.

This Budget has focused on climate change, land use and national infrastructure. With a capital boost of over $3b, the aim is to create opportunities for businesses, regions, iwi and others to transition to a sustainable low-emissions economy.

The $229m Sustainable Land Use Package will fund projects to protect waterways and wetlands and support farmers and growers in using their land more sustainably. It provides funding for advice to farmers; support for Māori agribusiness and farmers changing over to more environmentally sustainable and higher value production; improving on-farm emissions data and upgrading decision and regulatory tools; protecting high value food exports; and updating the country’s official assurances system. An additional $49m is allocated to help transform the forestry sector and support the One Billion Trees programme.

$1b over the next two years is allocated to modernising KiwiRail. Reduced carbon emissions and increased regional business opportunities are key drivers. If taking heavy traffic off our roads reduces our road toll, the payback will be in human capital.

Tax and the Budget

Wed, 05 Jun 2019 04:12:00 GMT

Further developments with digital services tax and collection of the International Visitor Levy were announced and the Government remains committed to modernising and simplifying the tax system.

Pre-Budget

The major announcement pre-Budget was that Capital Gains Tax is now off the table and that has pretty much overshadowed any tax announcement since. The Government also announced two specific pre-Budget tax measures:

GST on telecommunications

The Government has announced a proposal to change the GST of telecommunications so that these would be aligned with the treatment of other remote services and based on the residency of the supplier. The main implication of this new proposal concerns roaming services provided by telecommunications providers in that:

Repeal of racing totaliser duty

The racing totaliser duty or betting levy will be phased out. It represents 4% of betting profits, amounting to $13.9 million in 2018. This sum will be redistributed to the racing codes and Sport New Zealand, with a proportion set aside to reduce gambling harm.

Meanwhile, the tax policy work programme is still progressing and the next stages of Inland Revenue’s Business Transformation programme look at the administration of student loans, KiwiSaver and child support. We’ll keep you updated.

Accelerate June 2019

Wed, 01 May 2019 04:28:00 GMT

With exporting, the stakes are high, so it’s vital to do your homework before taking the plunge. We explore the research you need to do and talk to a fashion duo who’ve cracked the overseas market.

You’ll also discover if you’re eligible for an R&D tax credit , why you’ll love an NZBN and the good news on plastic pollution .

Keen to export: know where to start?

Wed, 01 May 2019 04:23:00 GMT

Here’s what you need to think about before hitting the (overseas) ground running.

To explore the above in more detail, Google: NZTE’s Export Essentials Guide.

Hotmilk a hit on the global stage

Wed, 01 May 2019 00:53:00 GMT

When long-time friends Lisa Ebbing and Ange Sloan teamed up to launch fashion-forward maternity lingerie, they had a global brand in mind. Now, just 7% of their business is local with international sales streaming in via their thriving website and the 300 stores across the globe selling their provocative but practical products.

Here’s what Lisa and Ange have to say about their exporting journey, plus a few gold nuggets of advice for businesses looking at expanding offshore.

At what point did you think Hotmilk could fly internationally? Immediately! We knew straight away that to get the volume we needed, we’d have to go overseas. The immediate reaction we had to our product from retailers in New Zealand alone encouraged us to move very swiftly into other markets.

What was your first exporting step? We started in Australia and went door-to-door visiting stores to showcase the product and we exhibited at trade fairs. Within three years we had cemented the brand in New Zealand, Australia and the UK. Our early stage website enabled anyone searching “nursing bra” to find us and our stockists.

How did you do your international market research? Trade fairs and expos are a great way to understand the market. Watching what other people in the industry are doing helps too.

Who did you go to for export advice? We went through New Zealand Trade and Enterprise (NZTE) and had a number of mentors over the years. We definitely waited too long to get expert advice, so I always tell people to do it first!

Export NZ advises: Don’t assume that what sells here, will sell there. Do you agree? Definitely. We’ve learnt not to take it for granted that what works in one country will work in another. There’s a massive difference between all the countries we do business with. For instance, the UK loves black underwear, the US loves nude. We have to have different margin expectations between countries too.

What costs are involved with exporting? The duty, taxes, freight and logistics of 3PL warehousing and the travel involved are definitely expensive. Make sure you do your homework first to avoid surprises.

How did you cope with the increasing sales? We’ve always had an amazing team in place at head office, and 3PL (third-party logistics) warehouses and our factory relationships have been critical.

What logistics did you have to consider before exporting? Where to service each market from, for example: EU from the UK, Canada from the US, Australia from New Zealand. We are looking at a centralised warehouse, perhaps in Hong Kong. Registering for tax and duties is another thing to consider, and pricing, as it does vary considerably between markets.

What’s your advice for businesses looking at exporting? Get advice, advice, advice! Before you think you need it, put your hand up and ask for help. It’s not easy being global, it means you have a lot of balls up in the air at any one time, but it’s definitely rewarding and exciting!

For Hotmilk’s top exporting tips, click here .

Hotmilk’s top exporting tips

Wed, 01 May 2019 00:45:00 GMT

For more about Hotmilk’s exporting journey, click here .

NZ says goodbye to millions of single-use plastic bags

Wed, 01 May 2019 00:41:00 GMT

It’s taken 17 years to follow in the footsteps of Bangladesh, the first country to ban single-use plastic bags, but we’re finally there! From 1 July, single-use plastic bags can’t be sold or given away in New Zealand. It’s all part of the Government’s programme to reduce waste and build the foundations for our transition to a ‘circular economy’ where eventually waste will be designed out of the system.

So, what IS a single-use plastic shopping bag? They’re the plastic bags with handles (made of plastic up to 70 microns in thickness) found at supermarkets, takeaways, and other retailers.

The phase out also applies to heavier boutique-style shopping bags and the ‘emergency’ bags currently offered by some supermarkets as an alternative to a free single-use bag. It includes bags made of degradable plastic (ie, biodegradable, compostable and oxy-degradable) regardless of whether the plastic material is sourced from fossil-fuel, synthetic compounds or from biological sources such as plants.

Which plastic bags are still allowed? Bin liners, bags for collecting pet waste and barrier bags used when buying meat, fruit and vegetables (unless they have handles).

What can we expect at the checkout? Manufacturers and retailers have until 1 July to phase out single-use plastic bags completely, or face six-figure fines. Retailers are offering reusable bags, paper shopping bags or even cardboard boxes to help customers adjust. The Government is encouraging shops to move away from any single-use option, including paper.

What can people use instead? There are loads of different reusable bags on the market, including bags made from heavier-duty plastic, hessian, lightweight nylon, cotton, recycled fabric or jute. Shoppers can also use wheeled trolley bags, backpacks and home-made bags. The trick is remembering them!

6 Ways the NZBN will save you time and money

Wed, 01 May 2019 00:35:00 GMT

Whatever the size or shape of your business, the New Zealand Business Number (NZBN) will make doing business easier, faster and more professional.

Here’s how:

More than 675,000 Kiwi businesses have their NZBN, do you? Head to https://www.nzbn.govt.nz/

Conducting R&D? Cash in!

Wed, 01 May 2019 00:00:00 GMT

Are you conducting research and development on home turf? You could be eligible for a tax credit of 15% on eligible R&D expenditure. The Government have introduced legislation bringing in a new R&D tax credit effective from the 2019/20 income tax year (1 April 2019 for most taxpayers) to encourage more Kiwi businesses to invest in new or improved processes, services or goods. It means innovative companies can receive a tax credit and maybe then have a bit of extra cash to help grow their business when they need it most.

So, who can get the tax credit, and who can’t?

YOU MAY BE ELIGIBLE IF YOUR R&D ACTIVITY:

YOU’RE NOT ELIGIBLE IF:

Could this apply to you?

Make sure you have clear, accurate information about the project’s content, scope and costs involved (including appropriate apportionment of overheads). You can’t create the documentation at the end of tax year. It needs to be done as the R&D is progressed. Clearly record your R&D expenditure as it is incurred so it’s easily identifiable. The documentation requirements are detailed so it is important to do this correctly.

Unsure if you’re eligible? Call us to talk about your R&D project.

Business health check

Tue, 30 Apr 2019 23:39:00 GMT

Looking to export? Get insights and tips at an NZTE workshop near you or book a meeting for expert advice. Running an R&D project? Get your paperwork sorted for your tax credit application. Consider gifting staff or customers a good quality reusable bag to support the single-use plastic ban.

Accelerate April 2019

Mon, 11 Mar 2019 03:48:00 GMT

With close to one million New Zealanders aged 10-24, it’s important to be up to speed on what impact the newest generation will have on your business. That’s why we’re looking at how to attract Gen Z workers , why Facebook is right for your business , and the benefits of hiring apprentices .

What is your business doing to attract the next generation?

Mon, 11 Mar 2019 03:45:00 GMT

Gen Z (born after 1995) are tech-savvy, entrepreneurial, out-of-the-box thinkers – people you want on your team. Here are four ways to attract and retain New Zealand’s next generation of workers.

1. Tinker with your tech

Gen Z live and breathe technology – they don’t know life without it. You’ll need to enable your people to collaborate and communicate in the cloud and on any device as well as provide video calling using FaceTime or Zoom .

2. Keep it simple when you hire

These digital natives suss everything on their smartphones, including jobs. Keep your job ad short and sweet, make it easy and fast for people to apply and include a short video of your office or a staff testimonial. Invite people to record a one-minute video to introduce themselves and add to their application.

3. Hone in on health

Health and wellness is a top priority but you don’t need a massive budget. From free gym passes, fruit baskets or a healthy lunch shout – staff wellness programmes come in all shapes and sizes.

4. Encourage their entrepreneurial spirit

Gen Z are more likely to look for a piece of the business pie. They understand business ownership and will want to know how their role impacts all facets of your company. Take this seriously and you could be on to a winner.

Facebook: Why your business needs it (and how to use it!)

Mon, 11 Mar 2019 03:38:00 GMT

Are your ideal customers adults? Then your business needs to be on Facebook because that’s where their eyeballs are. Time-poor or don’t have a clue where to start? Get some answers with these six most frequently asked questions.

1. Why should my business be on Facebook?

Facebook is the most cost effective way to promote your small business right now. It’s basically ‘word of mouth’ on steroids. It’s your chance to tell more people about your services and how you can help them – bringing in more enquiries more often.

2. How much do I need to spend?

You can start small by spending $100 a month on Facebook advertising to boost the number of people who see your posts and set up targeted marketing campaigns. Or just post engaging content regularly, which doesn’t cost a thing.

3. Do I need a Facebook expert or can I do it in-house?

If you don’t have a spare $4k to spend per month with an agency, do it in-house. Find someone within your business who wants to take ownership of it and get them trained in Facebook Ad Manager. Facebook content needs to come from the beating heart of the business so make sure the person looking after it knows the business, your voice and your customers. But remember, they’ll still need you to be involved to make it authentic. You, and your team, need to appear in the content and help create it.

4. My budget is small, what’s something effective I can do myself?

“Just start posting. The secret to social media marketing is consistency,” says Auckland digital marketing coach Andrew Ferdinando. “If you’re consistently posting engaging content, your audience will grow. There are people who have created an audience from scratch, with zero advertising budget, because they create engaging content.”

5. But I’m not a writer!

You don’t have to be – try Facebook Live. The live video streaming means you can use your phone to record yourself discussing something related to your industry, products or services and you’re done. It’s a powerful medium that doesn’t have to be polished.

6. When will I start to see traction on Facebook?

Look at your Facebook results over a 12 month period – not per campaign or post. “It’s not like a print or magazine advert – the benefit comes from long term content,” says Andrew Ferdinando. “You can get fantastic value from Facebook if you post consistently good content throughout the year.”

Today’s apprentice is tomorrow’s foreman

Mon, 11 Mar 2019 03:30:00 GMT

Why apprenticeships work so well

With New Zealand’s construction industry going ballistic, a lot of construction companies are looking to hire new staff. Do they stick with their subbies, bring in qualified builders or take on an apprentice? Stefan Cammell, owner of Cammell Projects in Queenstown believes it’s an employer’s responsibility to upskill the next generation and take on apprentices.

“Taking on an apprentice is an investment in the future of your business and the construction industry,” says Stefan, who’s been building for 20 years. “It’s a win-win. You’re helping train someone young and motivated and they’re picking up how your business operates, the ethics of your company and your systems. When they become qualified they’re a huge asset to your business.”

What makes a good apprentice?

Cammell Projects’ most recent recruit is 26-year-old Heather Scott-Smith, who joined the crew in May 2018 after responding to a Facebook ad.

“I messaged Stef and said ‘I’m a chick, can I apply for the job?’ and he said ‘of course!’, which was awesome because I’ve had some people treat me differently because I’m female,” says Heather, who’s welcomed the move from her hometown of Dunedin to bustling Queenstown.

“Heather is an example of a great apprentice,” says Stefan, who’s brought on six apprentices over the past nine years. “She’s diligent, listens, takes on board information and works hard. That’s what you need to look for when bringing someone on.”

Two years into a four-year apprenticeship with BCITO (New Zealand’s largest provider of construction trade apprenticeships), Heather loves learning something new every day in a supportive working environment. The hardest part of the job?

“The frustrated look on Stef’s face when I don’t understand what he’s talking about!” she jokes. “It’s great to work for someone who wants to do big jobs not little patch ups. We’re both going in the same direction and I want to work for Stef for many years to come.”

Apprenticeships well worth the time and effort

Stefan says he gets a real kick out of watching his apprentices grow and become skilled but admits it’s more than just teaching the nuts and bolts of carpentry.

“A lot of apprentices are straight out of school so you’re teaching them life skills as much as how to be a builder. You’re teaching them how to turn up to work on time, interact with adults, look after themselves… so it’s a guidance role as well.”

A member of New Zealand Certified Builders, Stefan urges business owners to take the teaching role seriously.

“Apprentice training needs to be treated with respect. Signing off training units when the apprentice isn’t up to standard isn’t helpful to the apprentice or the industry – it undermines the whole scheme. There’s an onus on the builder to make sure their apprentice is getting the training they need and achieving sign off once competent.”

Own residential property? Take note!

Mon, 11 Mar 2019 03:20:00 GMT

In an effort to level the playing field between property investors and home buyers, a new law ring-fencing rental losses looks set to come into effect on 1 April 2019.

It means you’ll no longer be able to offset tax losses from your residential properties against other income (e.g. salary or wages, or business income).

However, the losses will be able to be used in the future when the properties are making profits, or if you are taxed on the sale of land.

Need more information? Give us a call.

April Tax News

Mon, 11 Mar 2019 03:16:00 GMT

ACC and Student Loan rate changes from 1 April:

Tax Working Group report released:

The Tax Working Group has now reported to Government with capital gains tax the biggest issue up for discussion. It’s still a long road before we see changes to the New Zealand tax landscape but you can expect to hear the Government’s response to the report in April. We’ll keep you updated!

Business health check

Mon, 11 Mar 2019 03:05:00 GMT

Answer these three questions this week and you’ll be well on your way to creating relevant, engaging content for your Facebook business page:

Get ready for the end of the tax year!

Tue, 12 Feb 2019 03:05:00 GMT

While sorting your end of year tax paperwork sounds about as fun as spilling coffee on your keyboard, once it is done, it’s done – and now’s the time.

With not long until year end, we encourage you to spend a few minutes this week reading our top tax tips plus the latest changes you need to be aware of in 2019.

10 smart year-end tax tips

Tue, 12 Feb 2019 02:58:00 GMT

What’s new in the world of tax?

Tue, 12 Feb 2019 02:07:00 GMT

Payday filing

We have mentioned this in the past, but don’t forget payday filing for employers is compulsory from 1 April 2019. Please contact us if you need any help with complying with the new process and rules.

No more cheques for IRD

Do you send post-dated cheques for tax payments? It’s time to go digital!

From now on you’ll need to use online banking to make future-dated payments as the IRD no longer accepts post-dated cheques. Plus, if you’re one to put your tax payments in the Inland Revenue’s dropboxes, you’ll now have to head to an IRD office reception area during office hours to do so.

Writing off bad debt? Get your ducks in a row

If you’re expecting a tax break from writing off bad debt, you may also expect to hear from the IRD asking you to prove the debt is, in fact, bad. A new ruling means the IRD could request evidence of any steps you took to recover the debt (before writing it off) and proof there is no reasonable likelihood the debt will be paid. So, get your paperwork in order!

Minimum wage glides closer to $20

Tue, 12 Feb 2019 01:57:00 GMT

The starting-out and training minimum wage rates will increase from $13.20 to $14.16 per hour (remaining at 80% of the adult minimum wage) and the Government has set indicative rates of $18.90 from 1 April 2020 and $20 from 1 April 2021.

People are everything

Wed, 09 Jan 2019 21:18:00 GMT

You could be selling the most innovative product on the market, using slick systems and the hottest marketing campaign in town, but if you don’t have good people – good luck!

People are everything in business. That’s why it’s so important to know your employer responsibilities and how to manage the employment process to ensure high productivity, a solid reputation, and attract and retain staff that love their work. This month, find out what you need to do regarding domestic violence leave , payday filing and get HR tips to keep you and your staff smiling.

Heard about the new Domestic Violence – Victims’ Protection Bill?

Wed, 09 Jan 2019 21:14:00 GMT

Here’s what it means for you.

#FACT New Zealand police respond to 270 domestic violence incidents every day and it’s estimated that’s only the tip of the iceberg – with 80% of incidents going unreported.

#FACT Did you know domestic violence already costs New Zealand workplaces at least $368 million a year due to higher turnover and lost productivity? Addressing the problem directly will be better for business and victims of domestic abuse.

Imagine trying to work while juggling court, counselling, and your family’s needs following a domestic violence incident. This is the situation for thousands of Kiwis, but it’s set to improve with the new Domestic Violence – Victims’ Protection Bill coming into effect on 1 April. The law enables people affected by family violence to apply for specific leave and flexible working arrangements to help them keep their jobs during a challenging time.

What does this mean for you?

Local companies such as Countdown, The Warehouse and ANZ already offer domestic violence leave – and it’s time for the rest of the country to follow suit. As an employer, you need to be aware of what leave and flexible working arrangements victims of domestic abuse are entitled to, what you have to do, and how to support your staff.

10 days’ domestic violence leave

Employees will be able to apply for up to 10 days’ domestic violence leave per year to deal with the effects of domestic violence, such as court appearances, doctor visits and looking after children.

More flexibility at work

To support staff affected by family violence, you are required to provide flexible working conditions, such as changes to:

Stay open-minded and make a plan

Now’s the time to think about how you’ll approach requests for domestic violence leave. It’s a good idea to put together a practical plan to ensure you respect and protect your staff members’ privacy throughout the process. Keep in mind you could get requests for leave for a range of reasons including physical, sexual and psychological abuse, harassment, threats, intimidation and financial abuse. If you need help putting together a plan, please call us.

It’s time to gear up for payday filing

Wed, 09 Jan 2019 21:00:00 GMT

Hundreds of Kiwi business owners are enjoying the benefits of payday filing – are you? If not, you’ll need to be by 1 April when payday filing becomes compulsory. Now’s the time to work out how you’re going to integrate it into your payroll processes and save time on your tax obligations.

Payday filing means you need to:

Remember, the due date for payment remains the same at the 20th of the month (or 5th and 20th of the month for twice-monthly filers).

How do I payday file?

There are three ways to file electronically – direct from payroll software, file upload from myIR or onscreen via myIR.

How do I shift over to payday filing?

Need to know how payday filing works for schedular payments, shadow payrolls, employee share schemes and holiday pays? Let us know and we’ll talk you through it.

Payroll Pain Relievers

Wed, 09 Jan 2019 20:53:00 GMT

With New Zealand ranking as one of the most complex payroll environments in the world, it’s no wonder many Kiwi employers choose to offload payroll headaches to bookkeepers, accountants, or payroll intermediaries. This trend is picking up steam: with Inland Revenue’s “Payday Filing” scheme kicking off 1 April 2019, instead of reporting PAYE to Inland Revenue on the 20th of the following month, you’ll need to report every payday (though some employers may have different situations and can choose otherwise).*

The bad news? With anti-money laundering rules in effect, even getting someone else to do your payroll is about to get more complicated.

If we’re handling your payments to staff or Inland Revenue, we might need to get more information about your business and identity.

If you’ve got someone else handling these payments, like a bookkeeper or a payroll service provider, they might need to do the same thing. If you can’t get into the office to meet with them, this might include tasks like getting a copy of your driver’s licence certified by a JP or lawyer. Good fun.

Now the good news! Certain PAYE Intermediaries, like PaySauce, are exempt from the AML obligations. They (and others like them) won’t need to badger you for identity verification or more info about your business. PaySauce is also the first payroll intermediary up and running with Payday Filing. (Note that some intermediaries are not exempt – it’s important to check).

If you’d like us (or whoever helps you with your payroll) to take care of payroll calculations so you don’t need to spend time becoming a holiday pay guru, we could migrate you onto a platform like PaySauce for the best of both worlds – payday filing and AML payroll headaches sorted.

* [ IR Payday Filing – What You Need to Know | Knowledge | PaySauce ]

Hiring? Look for traits not talent

Wed, 09 Jan 2019 20:42:00 GMT

Business health check

Wed, 09 Jan 2019 20:33:00 GMT

Six ways to ‘do good’ by your staff

How cyber-secure are you?

Thu, 25 Oct 2018 22:31:00 GMT

Blackmail, extortion and identity theft might sound like something straight out of a blockbuster movie but cyber crime is not only a reality, it’s on the rise and research shows the average Kiwi business isn’t prepared.

Is New Zealand really under threat, we’re so far away!

Unfortunately ‘out of sight, out of mind’ doesn’t apply to cyber criminals. More than a quarter of Kiwi businesses surveyed by Grant Thornton in 2017 faced a cyber-attack in the previous year, placing us eighth in the league table of 37 countries surveyed.

What can happen if I’m attacked?

Cyber security threats, which include data breach, insider threat, cyber bullying and more, can mean facing larger financial loss from reputational damage, theft of customer details and intellectual property, and infrastructural damage.

How much protection do I need?

It can be as simple as switching on two-step verification on your email but if you rely on sensitive data or store personal information about staff and customers, you’ll need to do more. Being proactive could mean software updates, setting up logs, using cloud services (if you’re not already) and securing devices.

Unfortunately, it’s not a question of ‘if’ but ‘when’ your business will be attacked, so take action to protect your business. To find out the best way to keep your business safe in 2019, give us a call.

Watch out for Spam!

Thu, 25 Oct 2018 22:28:00 GMT

With the recent increase in spam emails supposedly from the IRD, keep an eye out for the subject heading: “GST returns due in 5 days”. If you get one, delete it.

Are you in charge of keeping the office or work-site safe?

Thu, 25 Oct 2018 22:25:00 GMT

Locking the doors is one thing but you need to take extra steps to ensure your workplace is safe and secure before you head away this Christmas. The last thing you want is for someone to access your work space and hurt themselves. Take time to check every square inch of your work environment, inside and outside, so you can rest assured nothing will go wrong while you’re away.

Manage a construction site?

Here are nine questions to ask yourself before you head to the beach:

Checklist: Can your business survive the holiday period?

Thu, 25 Oct 2018 22:21:00 GMT

While the Christmas/New Year period is traditionally a slow time of year for business, you still need to meet your expenses.

Ensure your bases are covered before you clock off for the year.

1. Plan ahead

Do a budget to figure out how much you are going to need to cover your overheads. This is especially important if it’s going to be several weeks before you start earning a crust again.

A cashflow forecast will help you identify any issues before they become problems.

2. Get your cashflow in order

3. Don’t forget taxes

IRD expects GST and provisional tax payments to be made on January 15. Interest of 8.22% and late payment penalties apply if you don’t.

Here’s a tip: If paying both is going to hurt the bank account, prioritise paying the GST. You can utilise the services of an IRD-approved tax pooling provider such as Tax Management NZ to pay the provisional tax later. They reduce IRD interest by up to 30% and eliminate late payment penalties.

As always, we’re happy to work with you so you have nothing to worry about while you enjoy your summer break.

How to enjoy all the bells and whistles without the tax headache

Thu, 25 Oct 2018 22:08:00 GMT

Parties and gifts are all part of the festive fun but they can cost a small fortune. Here’s a list of the rules around entertainment expenses so you know what’s deductible and non-deductible before you fork out for your staff and customers.

Remember to keep your invoices and receipts for business entertainment expenses and if you have any questions about what’s deductible and non-deductible, give us a call.

Holiday cashflow blues

Thu, 25 Oct 2018 22:03:00 GMT

Many businesses start to worry about their bank balance around now. The holidays looming recall unpleasant memories of last year. All the regular expenses (wages, rent, suppliers and so on) are still due, but the people who pay you are either away on holiday or slow payers awaiting payment themselves.

Instead of a relaxing break the holidays can be filled with stress. The brutal facts are that December/January are the worst months for slow paying clients.

These are “holiday cashflow blues”.

The classic symptoms:

A clear and concise cashflow strategy is so important to keep your head above water these holidays. It may also improve your business’ cashflow for the whole year ahead.

5 steps from smartAR.com :

And… enjoy the beach!

Business Health Check

Thu, 25 Oct 2018 21:53:00 GMT

Do your Christmas housekeeping!

Handling your growing pains

Thu, 06 Sep 2018 23:29:00 GMT

Besides the uncertainty of how long the growth period will last, it’s common to lose focus on some of the factors that play a key role in the success of your business – your people, capital, forecasting and legislation that can affect your daily operations.

Avoid getting lost in the chaos of growth by looking out for ‘blind spots’, which are things you don’t realise can go wrong due to a lack of knowledge or the classic ‘she’ll be right’ mentality. A little time spent learning and preparing today means a better chance of success tomorrow – a good offence is the best form of defence, after all.

My Food Bag shares growth tips and tricks

Thu, 06 Sep 2018 23:26:00 GMT

With a concept based on delivering a week’s worth of recipes and the ingredients needed to make them, it’s no surprise that within three years the company reached $100 million in annual revenue and had 30,000 customers across 14 cities in New Zealand and Australia.

We chatted to CFO Alex Boyo to learn a little more about the company’s growth strategy.

How did My Food Bag manage rapid growth?

There’s always a lot of risk that comes with rapid growth for any business. For us, a big part of risk management is simply about making good business decisions. The three most important things that guided our decision making were:

Did you have a growth strategy, and if so, what did it consist of?

Yes, absolutely! We opened up a brand new food category in New Zealand by identifying and creatively solving one of the most common everyday problems all households have: what to cook for dinner? The strategy therefore had an amazingly powerful customer underpinning and was then developed around:

What are your tips for overcome growing pains?

Grow with the (cash) flow

Thu, 06 Sep 2018 23:19:00 GMT

If cash flow is king, forecasting is queen – and making informed estimates doesn’t have to be confusing. Give us a call to chat through your objectives and we’ll help you develop a valuable, detailed and easy to digest profit and cash flow plan so you can confidently stay on track as you grow.

Financing business growth with provisional tax

Thu, 06 Sep 2018 23:08:00 GMT

There are several options available when it comes to accessing money to invest in your business.

However, did you know that provisional tax payments are also a source of finance?

Tax Finance, an option offered by an IRD-approved tax pooling provider such as Tax Management NZ (TMNZ), lets you free up working capital by deferring a provisional tax payment to a later date, without incurring IRD interest of 8.22 percent and late payment penalties.

The cost is cheaper than using your business overdraft or an unsecured loan. Approval is guaranteed, and no security is required.

Who might Tax Finance suit?

It will suit those who:

How does Tax Finance work?

How anti-money laundering legislation impacts you

Thu, 06 Sep 2018 22:59:00 GMT

In response to a growing number of laundering incidents in New Zealand, the government has made changes to the law, which now affect accountants and small businesses like yours. As of this month (October 2018), we’re required to put new preventative measures in place to help tackle money laundering and financing of terrorism.

What does this mean for you?

We might need to ask you for more information about your business than what we have in the past, especially if it involves large cash transactions ($10,000* or more in one transaction). You may also be asked for additional information about your identity.

If you’re a real estate agent or your business involves sports and race betting or dealing in high value goods, take note – the anti-money laundering legislation will extend to you from next year. To find out what the changes mean for your business, give us a call.

* For more information see Justice Department commentary

Get up to speed – new rules for motor vehicles

Thu, 06 Sep 2018 22:49:00 GMT

If you’re a sole trader or in a partnership (and use your own vehicle for business), you can claim your running costs as an income tax deduction. Traditionally, if you own a company you’re liable for FBT any time you provide non-cash benefits (like motor vehicles) to your staff. Recent amendments to the income tax legislation, however, now allow close companies to use the kilometre rate (where one or two motor vehicles are provided to shareholder employees for their own use) to calculate deductions for motor vehicles instead of paying FBT.

We’d love to talk you through these changes over coffee, but in the meantime, here’s a summary.

You can now claim a deduction based on a kilometre rate method. This method uses set rates, which are divided into two tiers:

The following rates per kilometre will apply for the 2017/2018 income year:

As an aside, note where employees are reimbursed for work travel using their own vehicle, a transitional rate of 76c / km is available for the 2018/2019 income year to calculate their tax-free reimbursement amount.

The legislation can be tricky, but with a little advice from an expert (like us!) you can rest assured you’re paying the correct amount of tax and staying onside with the IRD.

Business health check

Thu, 06 Sep 2018 22:43:00 GMT

Visualise, plan and prepare for growth

When you consider every large corporation started out as a small business, the idea of growth is exciting! To avoid growing pains, however, the first step is to create a focused vision for your business. Here’s how:

When looking to expand, the visualisation and planning stage is sometimes half the battle, so don’t be afraid to ask an expert for help – you can always call us for a chat!

The trust issue

Tue, 03 Jul 2018 00:52:00 GMT

Do you have a family trust? Thinking of forming one as a way to future-proof your assets for you and your children? Take note – the Trustee Act is getting a makeover. While there are still a few parliamentary hurdles to jump, now’s the time to get your head around what the new bill will mean for you and your business.

In a nutshell

Last August, a new Trusts Bill was introduced to Parliament – the first big change to New Zealand’s trust law in more than 60 years. With up to 500,000 trusts operating in our country, they are an essential part of our legal system but the current legislation is no longer cutting it.

The current Act: Narrow in scope, expensive and too complicated.
The proposed bill: More efficient, better guidance for trustees and beneficiaries and easier to resolve disputes.

What changes will affect my business?

Tue, 03 Jul 2018 00:49:00 GMT

#1 Extending perpetuity laws

At the moment, when you set up a family trust, it has a time limit of 80 years. Then you have to wrap it up and distribute the assets. The new legislation suggests extending it to 125 years, which may involve significant succession planning adjustments.

#2 More information access for beneficiaries

In its draft form, the Trusts Bill proposes to give most trust beneficiaries the legal right to financial reports on the state of the family trust – meaning they’ll be able to request more information including ‘who’s getting what’. Whether beneficiaries have the right to request this information under our current law is a bit of a grey area.

Because this potentially opens a can of worms for trustees, this proposal has been controversial and has attracted a lot of feedback from trust advisers. We will have to wait until later in the year to see what changes (if any) are made to this proposal.

How will the Act change my role as a trustee?

Tue, 03 Jul 2018 00:46:00 GMT

Up until now, a trustee’s job description has been clear as mud with many families getting into strife unaware of their trustee’s responsibilities. If the new bill comes into place, a trustee’s role will be clearly outlined, and include:

I have a family trust, what do I need to do?

Tue, 03 Jul 2018 00:44:00 GMT

Get your paperwork in order: Document your trust actions carefully (if you don’t already) and make sure they’re accurate.

Revisit your succession planning: Talk to us to make sure your succession plans still make sense if this legislation goes through.

Review your trust: There might be opportunities to improve your tax structure, reduce your risk profile and better your family’s financial situation.

Know your CRS obligations: New Zealand uses the Common Reporting Standard for the automatic exchange of information (AEOI) to help tackle global tax evasion. This means Reporting New Zealand Financial Institutions (NZFIs) have new IRD obligations, so you’ll need to know if your trust falls into this category.

Join us for coffee! A quick, pain-free chat now (about all of the above) could save mountains of paperwork, and headaches, down the track. Give us a call, email or book a meeting time.

Is a family trust right for me?

Tue, 03 Jul 2018 00:27:00 GMT

Family trusts are a popular way to protect and manage your assets, such as the family home, for you and your family, now and in the future. They can have a valuable role to play, but they’re not suitable for everyone. Here are the pros and cons of family trusts to help you decide if it’s worth investigating further.

Five good reasons to form a family trust

Three disadvantages of setting up a family trust

What’s next?

Get professional advice from the start. We can answer any questions you have about trusts, being a trustee, administering a trust deed, and the proposed new Act. Contact us today to book an appointment to meet with us.

Think before you leap: What are my responsibilities as a trustee?

Tue, 03 Jul 2018 00:19:00 GMT

8 things to know before becoming a trustee

To claim or not to claim?

Tue, 03 Jul 2018 00:14:00 GMT

Planning a summer business trip with a personal holiday tacked on the end? Renting out the bach and unsure what expenses can be claimed? Whatever your situation, we want to make sure you’re getting the expense claim tax break you’re entitled to.

Here’s the lowdown on legal costs for trust admin, travel expenses, mixed-use assets and sponsorship.

Facing a legal bill for your business or trust? Good news.

Generally speaking, you can deduct any business-related legal expenditure carried out by your company and/or trust if total legal expenses incurred are less than $10,000 in a tax year.

Examples of deductible claims include: expenses relating to protecting trade secrets of the business, opposing the extension of a competitor’s patent, defending an allegation of an infringement of copyright, defending traffic infringements brought against company employees while on company business, and costs for appointing company directors.

Travel expenses – what can I claim?

If your business involves hitting the road, you can claim business travel as an expense. The best way to prove the business portion of your travel expenses is to keep a diary of your travels. Hang on to your itinerary, invoices and tickets. Jot down the reasons for the trip, date of the trip, and costs of any car hire, air/bus/taxi fares, accommodation, meals and incidentals, as well as the time spent on business and non-business activities.

Mixing business with pleasure? If your trip contains a private or capital element you can claim a 100% deduction (where the holiday aspect is incidental to the work element) or an apportionment (where there are two purposes for the trip, both truly separate). If the work side of things is just incidental to the holiday, no deduction can be made.

Got a bach? Claim away.

If your holiday home is being used privately and for income-earning purposes (and is also unused for 62 days or more) you can claim mixed-use expenses. There are three categories to be aware of:

These rules can be a little complicated, especially if a company is involved in the mix, so it may pay to come and have chat to sort out how they apply to your business specifically.

When is sponsorship fully deductible?

For sponsorship to be fully deductible, your business must be promoted and any element of private enjoyment must be incidental.

Sponsorship examples that are fully deductible:

Business health check

Mon, 02 Jul 2018 23:44:00 GMT

Check your expenses and save

Know how much you’re spending on printing, advertising, and taking clients out to lunch? Or does it come as a shock when you do your GST returns? If your company is growing, your expenses may too, but in some cases it could be a lack of attention causing spending to creep up. Take a few minutes this week to track your expenses and see where you can save money.

Our three top ‘money-saving’ tips

Budget Special Alert 2018

Mon, 21 May 2018 21:50:00 GMT

“We are committed to living within our means and having a buffer to deal with the risks and shocks that a small country like New Zealand inevitably faces.”
Hon Grant Robertson, Finance – Minister

There weren’t too many surprises with the 2018 Budget. It marks a point on a continuum rather than signifying an actual threshold crossed. The Government has been signposting their direction all year and proposals relating to tax and other sectors are still out for consultation and may not start to be realised until next year at the earliest. No big carrots. No big sticks.

Transformation and building are the keywords being employed to address social and infrastructure deficits. Treasury forecasts economic growth at an average of 3% a year over the next four years with a surplus for the 2018/19 year of $3.7 billion. Part of the strategy is to slow debt repayment but if the surpluses and economic growth rate behave as forecast, the net debt to GDP ratio should decrease below the targeted 20% within four years.

Health

Mon, 21 May 2018 21:47:00 GMT

Health spending is the headliner of the 2018 budget, with an extra $750 million allocated to capital spending and an additional $3.2 billion to operational funding over the next 4 years. The Minister described this as “bread and butter funding”. The new capital is slated to replace and refurbish hospitals and healthcare facilities. The additional operational funding is ticketed against a long list, including:

Free doctors’ visits for everyone under the age of 14 and low-cost GP visits for all community service card holders will help make it an easier decision for many to seek primary health care.

Tax

Mon, 21 May 2018 21:39:00 GMT

“Our tax system will be fairer and more balanced to encourage investment in the productive economy.” Grant Robertson

The budget position on tax is something of a watching brief. The Tax Working Group (TWG) was a tangible presence while the Budget was read but their interim report is not due out until September this year, their final recommendations coming out early 2019. In the meantime, the measures announced include:

Compliance agenda

Mon, 21 May 2018 21:36:00 GMT

The message for businesses, of course, is to ensure tax compliance is a priority, all those i’s dotted, all those t’s crossed.

Supporting innovation – R&D

Mon, 21 May 2018 21:34:00 GMT

The Budget allocates $1 billion over four years to finance tax incentives for more research and development (R&D) by Kiwi businesses. R & D has had something of a Stop Go course over the last decade with a range of measures deployed. These have included grants to off-set costs at the front end and tax credits to give some relief at tax time.

The Government will reintroduce a non-refundable R&D tax credit at 12.5%. It applies to businesses with eligible R&D spend of over $100,000 per annum (up to a maximum of $120 million) and will apply to expenditure incurred from 1 April 2019.

This is intended to supplement the existing (R&D) loss tax credit which lets innovative companies access their tax losses sooner so they have cash on hand to help grow their business. Eligible companies can cash out R&D loss tax credits for a given tax year. And the tax credit approach is balanced with R&D tax incentives in the form of innovation grants designed by MBIE and Callaghan Innovation.

Where this leaves the majority of Kiwi businesses is a bit of an unknown. $100,000 is a significant capital threshold for dedication to R&D in a given year. And R&D investments are long-term investments. Businesses need to be able to commit funds or attract investment for programmes that run over a number of years. Incentives for innovation need to be sustainable over time, with a long-term commitment from the Government. The proposals are still being worked over, and it remains to be seen how the rules will apply to software and what benefits can be obtained by businesses in a tax loss position.

Provincial Growth Fund

Mon, 21 May 2018 21:31:00 GMT

The broad aim is to lift regional productivity potential. All provinces are eligible for funding. However, some areas have been identified for early investment. If you would like to explore this further please contact us.

Education

Mon, 21 May 2018 21:30:00 GMT

Housing

Mon, 21 May 2018 21:28:00 GMT

The fringe issue

Wed, 16 May 2018 23:57:00 GMT

One of the team’s aims is to ensure employers have the right business structures and documentation in place. And it turns out that many don’t.

If this sounds like you, now’s a good time to put things right. Regardless of whether you’re acting correctly or not around FBT, a lack of proper records leaves you in a weak position and liable to negotiated settlements (that is, having to pay more than you expected) or, worse, serious penalties.

Most FBT revolves around company vehicles, so let’s look at what IRD expect from you if you provide one to any of your staff:

So, what can you do?

For an SME owner, that’s quite a daunting list, and a good reason to talk to your accountant. An expert, independent set of eyes will help you determine what you need to do in all cases, what you don’t need to do, and also how to go about doing it (including creating proper documentation).

The value of expert advice is heightened by some of the finer points of FBT legislation. For example, did you know that if an employee takes a vehicle home one evening and returns to work with it the next morning, the laws says it’s been available for private use on two days?

Did you know that IRD expects you to check that employees are adhering to restricted use policies at least once every quarter?

Did you know that just because a vehicle has your company logo on it, that doesn’t automatically make it a work-related vehicle, which then means it doesn’t automatically become exempt from the usual requirements of FBT?

Did you know there is also a new option for some companies that have one or two vehicles to elect to use the motor vehicle expenditure rules rather than pay FBT in certain circumstances?

If you didn’t know all those things, take a bow – you’re in great company! FBT is complex, to say the least!

The good news is that IRD also recognises this and will work closely with you to help you comply. The best approach is to get professional advice (that’s us) and, where appropriate, go to IRD for a written opinion on any matters that aren’t crystal clear.

That way, even if IRD disagrees with your FBT return, they’ll see that you’ve taken reasonable care to get things right and may not impose penalties.

So, when are you liable for FBT? Any time you provide non-cash benefits to your staff – which means the list is potentially endless. In practice, however, most non-cash benefits fall into one of these categories:

Thinking of exporting? Don’t just think – act!

Wed, 16 May 2018 23:51:00 GMT

If you’ve ever contemplated trying your hand in international markets, remember that you don’t have to be a Fonterra to make it. With the right preparation and support, even a small business can take on the world.

We recently interviewed Jim Henderson of Business Consulting for Banking about the keys to international success. Here are some key excerpts from that interview.

Q: Jim, let’s start by you telling us about yourself and your business.

Jim: My business is BC4B , Business Consulting for Banking. We’re located in Auckland, Wellington and Christchurch. We’re independent banking, payments and working capital specialists helping importers and exporters be successful in sourcing and selling product overseas.

Q: What are the main reasons for exporting goods or services?

Jim: Increased sales, more customers, increased profit margins and perhaps increased utilisation of capacity, say production capacity.

Q: What would be some reasons for not doing it?

Jim: The complexity in manufacturing and selling goods successfully overseas is much more than in New Zealand. Understanding what those complexities are and managing those risks is really important.

Q: What are the biggest pitfalls?

Jim: Many businesses have started exporting and come unstuck. Some spectacularly and some have managed to recover, but underestimating what’s required in terms of investment and capital and money and time and process to develop a market overseas is a big pitfall. Then there’s understanding the working capital investment required to keep that business running and growing overseas. Making and selling goods within New Zealand has a relatively small timeframe from getting an order, producing goods, selling them and getting paid. That financial supply chain is really short.

When selling overseas, that financial supply chain becomes a whole lot longer, so it perhaps takes longer to get an order. The order might be larger, so there’s more time to produce the goods. Distance to market, that’s greater. Then maybe you’ve got goods in-country overseas, so you can supply your distribution network or your customers overseas just in time, and maybe it gets longer to get paid. Maybe it’s more difficult to get paid overseas. Those are important financial issues to understand at the start.

Then there are customs in different countries. Our biggest markets for exports from New Zealand is Australia. The way they do business is slightly different to ours. Their laws and regulations are different. In a lot of areas they are very similar, but in some key areas they are not. Understanding those issues and how your product might be perceived in that market is important. You need to spend time building relationships. Selling goods isn’t just about the value that your product brings to the end-buyer. It’s about relationships.

Q: What about compliance issues?

Jim: Australia has different structures in terms of registering business, information that you have to provide, what’s available through the Australian Tax Office relative to the IRD in New Zealand. Their customs rates and tariffs require understanding. Not all goods produced or manufactured in New Zealand can be sold into Australia. Apples as an example.

Q: What would your recommendation be about the key sources of advice to put around yourself?

Jim: New Zealand Trade and Enterprise is clearly a key place to go. MBIE is another good place. Business New Zealand is another one. New Zealand is an outward-looking country and so the New Zealand government and associations like the Chambers of Commerce , for instance, provide a lot of specialists to help businesses understand the business model that’s going to work best for them in their country. Every business is different and every industry is different.

You’d certainly want to engage your accountant. A lawyer. Your contract, the terms of trade need to be specific to the markets you’re going to. Certainly finance is important as we’ve mentioned, so a bank. One of the services that we offer is an independent source of information and a network to a lot of banks, insurance companies and non-bank providers.

Exporting is more complicated and complex than selling domestically, but the benefits are huge. There’s a broad range of people in New Zealand willing to help new exporters discover and work at being successful. Don’t shy away from it. Get the right advice, grab the bull by the horns and be successful.

Changes to Families Package

Wed, 16 May 2018 23:19:00 GMT

Because the changes will be made automatically, you don’t need to do anything. Anyone who isn’t a Work and Income client may need to apply for Best Start tax credit through Inland Revenue.

Boosting Working for Families tax credits

From 1 July the eldest-child rate will increase to $5,878 a year, and for subsequent children to $4,745. The abatement threshold will increase from $36,350 to $42,700, and the abatement rate from 22.5% to 25%. This means that the amount of the family’s income at which Working for Families tax credits starts reducing is increased, however the amount of the reduction has increased from 22.5c in the dollar to 25c in the dollar. The result is net increase to families receiving Working for Families tax credits.

Best Start

The Best Start payment of $3,120 a year (or $60 a week) per child is designed to help families meet costs in a child’s early years. It will be available to all families in their child’s first year and for low- and middle-income families in the child’s second and third years. Best Start payments will be abated at 21% for income above $79,000. It will be made available for children born after June 30 and will replace the Parental Tax Credit.

Winter Energy Payment

The Winter Energy Payment is aimed at helping people on a benefit, New Zealand Superannuation or a Veteran’s Pension to heat their homes in winter. It provides $20.46 a week for single people, and $31.82 a week for couples or people with dependent children. It will be paid from 1 July to 30 September 2018.

ACC announces changes to CoverPlus Extra

Wed, 16 May 2018 23:06:00 GMT

ACC has also issued a reminder that CoverPlus Extra policies are being cancelled when invoices are not paid by the due date.

Other recent changes include how payment plans and credit payments are managed. If you’re affected by these changes, you’ll receive an updated schedule from ACC, so there’s nothing you need to do. If you want to discuss your payment schedule with ACC, call their freephone number, 0800 222 776. If you would like us to manage that for you, please let us know.

Business health check

Wed, 16 May 2018 23:03:00 GMT

Things to do this month

By now you should be thinking about whether you have all the information you need to give us to complete your annual accounts. If you haven’t, put getting the information together to give to us at the top of your to-do list.

Run your eye over all your compliance activities – not just FBT. Are you recording all income accurately and paying the right amount of GST? Are your PAYE systems robust? Ask yourself: “If IRD audited the business tomorrow, would I be able to provide them with full and accurate records?” If not, put things right asap. And if you’re not sure, call us for a chat.

Being the beginning of a new income year, it’s also crucial that you plan and budget for the coming year if you haven’t already – cashflow is king! Managing your cashflow by having a good picture of your expected income and expenses (including tax payments) will help plan for the best timing of capital expenditure or coping with requirements of increased stock levels for your business. We can help you with this – give us a call.

Service with a smile

Wed, 21 Mar 2018 03:04:00 GMT

Want to win new customers? Ok great. But whatever you do, don’t ignore the ones you already have. Studies show that the longer your customers stay, the more they’ll spend with you*. Happy customers = loyal customers = boosted bottom line.

*Depending on the type of business, reducing the loss of customers by just 5% can boost profits by 25% to 95%.

Ref: Multiple effects of business plans on new business ventures – Burke, A; Fraser, S and Green, F; Journal of Management Studies Vol. 47 Issue 3 pp. 391-425, May 2010

Feel the love

Wed, 21 Mar 2018 03:02:00 GMT

How raving fans can rock your business

You may have heard the term ‘raving fans’. It’s a passionate subset, usually about 10-15% of your customer base, who are so in love with your business that they shout it out from the rooftops. They keep coming back, not because it’s convenient, but because they want to. And even if you’ve had a bad moment, they’ll stick with you while others shoot out the door.

These people are GOLD, and the very best ambassadors for your brand. So how do you go about reciprocating their loyalty and growing their numbers?

According to global leaders like Apple, Starbucks and Amazon, the trick is to ‘ do right and delight ’. We’re talking customer service with bling; giving 100% then adding that surprising bit extra. Here are some tips to try:

Under promise and over deliver.

It’s tempting to promise the world to your customers. But be careful – because then you have to live up to the hype! A better approach is to deliver more than your customers expect. Tell them that their parcel will arrive within in three days for example, and then send it overnight. Or throw something extra into the deal, like a percentage off their bill.

When you surprise and delight your customers with added value, they’ll return the favour in kind – raving about your fantastic service to their friends and contacts, who are then primed to become your next customers.

Be consistent – day in, day out

While it’s good to inject a bit of wow factor from time to time you also need to get the basics right. It starts with being consistent, and making sure that your customers’ experience is seamless across the board.

With every interaction – be it in person, online or over the phone – your clients need to know what they’re going to get, and that they can count on you to deliver. That’s what keeps them coming back – and, over time, moves the relationship from happy customer to loyal, raving fan.

Turn lemons into lemonade.

On the odd occasion that things do go wrong (and they will), don’t panic. Always remember that it’s less about the issue itself and more about how you handle it. A slip up is often the best chance to lift your game, showcase your ability to listen to your customers and potentially turn a peeved client into a loyal one.

When a problem is resolved quickly and efficiently, in a friendly and responsive manner – the negative becomes a positive. PS: smiles help too!

Ask for honest feedback.

A satisfaction rating from 1-10 isn’t really going to help you. But when you dig deep and ask specific questions, like ‘what’s the one thing we can do to improve’ – then you’ve got something to work with.

It’s important that you follow through, and act on this feedback of course. And keep your customers in the loop. Because people love to know that their opinions matter – it strengthens the relationship, and gives them a vested interest in your success.

Also, while we’re on feedback, never underestimate the power of a good old-fashioned testimonial. Once you have your raving fans, be sure to use their reviews on your website, throughout social media and on all your marketing material. True stories from enthusiastic customers are powerful. Leverage them!

Finally, always remember that while raving fans are happy to tell everyone about the things they love about your company – disgruntled customers can’t wait to rattle on about their bad experiences. We know which scenario we prefer. What about you?

Cleaning out the dirty money

Wed, 21 Mar 2018 02:57:00 GMT

New legislation puts laundering in the spotlight

While New Zealand is hardly the money laundering capital of the world, we still see our share of shady activity. Every year, around $1.35 billion of fraud- and drug-related money is laundered through legitimate New Zealand businesses.

As you’ll recall from the previous Accelerate, the Government has extended the reach of the Anti-Money Laundering and Countering Financing of Terrorism Act.

From October, your friendly accountant will be required to comply with this revised Act. So you might notice us asking for information about your business that we didn’t used to – especially if it involves large cash transactions, or multiple companies or trusts.

One reason for the change is that criminals target high value dealers to launder money. If you’ve seen the Netflix series Ozark (it’s a goodie!), you’ll know how it works. A common ploy is to buy expensive things with cash, then sell them and get ‘clean’ money back.

If you deal in high value goods, you will need to consider these new rules as cash payments of $15,000 or more in one transaction or which add up to $15,000 or more in a series of cash payments will be caught by the Act from 1 August 2019. The Department of Internal Affairs has also set up a team to help businesses comply. Go to justice.govt.nz and search for AML/CFT supervision and support for businesses.

Even better, call us and we can advise you on what the Act means for your business.

Price hike hacks

Wed, 21 Mar 2018 01:55:00 GMT

How to manage an increase without losing customers

The decision to raise your rates is a tricky one. But in the end it’s not the hike itself that’s important, it’s how you implement it.

Netflix, for example, put its prices up recently. And while their customers didn’t like it, after a few rumblings, the majority stayed on. So what did this entertainment giant do to make the pill easier to swallow?

They timed it.

They were about to release the new season of hit series House of Cards, Stranger Things, and The Crown, so were able to say to their customers ‘for the extra money, you’ll get brand new episodes of your favourite shows’. It was a smart move – adding value to offset the shock.

There are other ways you can introduce pricing changes, in a way that softens the blow for your customers. Two strategies include:

Explain why the price has risen.

You’ll find that customers will be more understanding if you take the time, upfront, to tell them why you’re introducing the change.

Perhaps there’s been a rise in the cost of manufacturing or delivery. Or maybe it’s been a long time since the last adjustment. Communicating these points clearly – and in advance – means your customers will have time to prepare, and will feel valued and respected. There may even be a rush on sales, as they’ll want to get in before the new pricing takes hold!

Whatever you do, don’t apologise for the increase. Instead, be confident and show the customer why it’s fair and reasonable.

Offer a bonus to offset the price rise.

People honestly won’t mind paying more as long as they feel they’re getting value for money. Which is why it’s a great idea to announce a price hike, then at the same time let your customers know that they will be getting more than they did before.

Enhancing the quality of the materials you use, offering new options within your range, providing education, or even introducing new packaging for your product can help sweeten the deal and justify your move.

In the end, raising your prices doesn’t have to go hand in hand with losing customers. Often it can even lead to a better quality of customer – one who has a firmer grip on the value you provide.

Minimum wage increase: 1 April 2018

Wed, 21 Mar 2018 01:49:00 GMT

By the time you read this, the minimum wage in New Zealand will have increased from $15.75 to $16.50 per hour.

Minister for Workplace Relations and Safety, Iain Lees-Galloway, says the $0.75 rise will benefit around 164,000 workers and their families, and will increase total wages by $129 million per year.

“Raising the minimum wage was one of the Government’s top priorities for the first 100 days,” he says, “and we are committed to increasing the minimum wage to $20 by 2021.”

The Minister also advised that within the first 12 months of the Government’s term it will abolish starting-out rates and consider changes to the training wage. In the meantime, those rates will continue to be 80% of the minimum wage, increasing to $13.20 per hour from 1 April 2018.

More at www.beehive.govt.nz/release/minimum-wage-increase-1650-hour . And call us if you need advice on implementing the rise for your staff.

Is climate change affecting your work?

Wed, 21 Mar 2018 01:46:00 GMT

Regardless of your stance on global warming, there’s no denying that we’ve had some unusual weather patterns of late. This summer was one of the hottest and stickiest on record – hampering output at times, and making it difficult to operate efficiently.

But an overheated workplace is more than just a productivity issue. It also affects safety. On-the-job accidents and injuries are more common during hot weather, so managing extreme temperature is something that all employers need to address.

This has been a workplace health and safety consideration for some years now, according to WorkSafe’s Deputy General Manager, Investigations and Specialist Services Simon Humphries.

“Employers have a legal obligation under the Health and Safety at Work Act 2015 (HSWA) to identify risk in the workplace and mitigate that risk appropriately. Managing extremes in workplace temperature – both hot and cold – is one of these risks,” he says.

“Recognising the signs of thermal discomfort or stress and raising concerns is important for both businesses and workers to manage health risks that come from working in an environment that is too hot or too cold.”

Signs of heat-related illness in the workplace include:

Fainting, heat stroke, cramps, rashes, exhaustion and fatigue.

Tips to prevent heat-related illness or injuries:

Make sure you have plenty of cool drinking water on hand. Encourage your employees to wear lighter clothing and take more breaks. Use temperature control / HVAC systems indoors. Schedule physical work to cooler times of the day. Use machines to reduce physical activity. Provide shade and sunscreen for employees working outdoors. Equip workers with information and training to help manage heat-related fatigue and illness.

More at worksafe.govt.nz/topic-and-industry/temperature-at-work/

Business Health Check

Wed, 21 Mar 2018 01:30:00 GMT

Things to do this month

What shape are your end-of-year accounts in?

Mon, 19 Feb 2018 00:02:00 GMT

Be a good Scout to avoid end-of-year migraine

Being prepared is the key to avoiding end-of-year financial drama and stress.

We’ll probably adjust your reports or accounts. Once we’re done, lock all accounts relating to the financial year – and keep them secure.

Parental leave puts an onus on employers

Sun, 18 Feb 2018 23:56:00 GMT

Prime Minister Jacinda Ardern probably won’t take 18 weeks’ paid parental leave when she has her baby this autumn, but New Zealand law says she’s entitled to it.

Staff who’ve worked for you or any other employer for an average of at least 10 hours a week for any 26 weeks of the year preceding the birth or assumption of care of a child can take paid parental leave so long as they are the primary carer of the child and take leave to care for the child.

Whether that staff member can take extended leave without pay will depend on whether they have been employed with you for an average of 10 hours a week for the previous six months. If so, they can take six months’ leave (in total, i.e. including primary carer leave). If they’ve met these criteria for a full year, their total leave is one year.

If employees give the right notice for the right parental-leave reason, you have to keep their jobs open until they return to work. If they’re taking more than four weeks’ parental leave, you have to keep their jobs open, unless those jobs are defined as key positions or there’s redundancy.

If any of those jobs are key positions, or there’s redundancy, affected staff go into a 26 week “period of preference” at the end of parental leave. That means that if any time during those 26 weeks you have a job that’s similar to what they were doing, you have to offer it to them first.

A job may be a key position because it needs special skills and there aren’t enough people with those skills. Or it would take too long to train or find a temp to do the job. Affected staff can disagree that their jobs are key positions.

There are rules around communication regarding employee applications for parental leave and employer responses, and whether or not the employee is going to return to work. We can help you avoid stepping on any landmines here.

Safe as houses: Stop Press!

Sun, 18 Feb 2018 23:51:00 GMT

To make this happen, changes to law are currently making their way through Parliament. It is expected these will receive Royal Assent in March. And it is expected that this will affect properties acquired on or after the date of Royal Assent.

We will have more for you on this when the legislation passes. Meanwhile, if you are in the process of entering into sale and purchase agreements to acquire property, please give priority to discussing the tax implications with us.

Starting a business is the easy part. Now let’s talk about your exit strategy.

Sun, 21 Jan 2018 21:06:00 GMT

What does that mean, exactly, and how would you know if you’re thinking strategically enough or not? One way is to imagine you’re about to put your business on the market. What would a potential buyer hope to see in your business? What would you add or take away to make it more attractive?

We recently interviewed Rob Young, whose company Platform 1 works with business owners on ensuring they get the best possible return when selling their business. Rob’s insights into how to think strategically may surprise you. His advice is simple, clear and easily within reach of anyone committed to creating a successful business.

Here’s an abridged transcript of the interview. For a full transcript, click here . Listen to the interview here.

Succession Planning for Small Businesses: An interview with Platform 1 Partner Rob Young

Sun, 21 Jan 2018 20:58:00 GMT

Click here to listen to sound file.

Rob, what are the biggest mistakes people make around succession planning?

Not starting early enough. Generally, an owner will wake up after New Year’s and say “I’ve had a gutsful, I’m going to sell it,” and they will ring a broker on the 3rd of January and expect to have the business sold by the middle of January! It just doesn’t happen. Planning needs to start two to four, even five years out.

What are the key things that people need to think about and when?

What options they’ve got for disposing of their business. We think there are five different ways to do it.

How would you characterise the Platform 1 model?

Our model is a gradual buy-out and we go and find the Manager. This is over a gradual period, so we will work with an owner and figure out what kind of individual would be right to run the business. We find that individual and develop a plan where they buy in gradually over 3 to 6 years. The objective is to get the owner out of the business physically as quickly as possible by transferring relationships and processes to the incoming person, so the owner becomes more of an investor rather than a manager.

What are the most important steps to prepare for a sale?

The most important thing to get your house in order. Get your systems and processes in place so the business isn’t reliant on the owner, making sure that the business can run as a standalone entity. That is the first consideration and you’d want to talk to your trusted advisors who would be able to help you with that – accountant, lawyer, etc.

Also maximise your profit, making sure that you are not taking decisions to minimise your tax liability – because what you’re trying to do is create a profitable business.

What is your sense of how well SME owners manage succession planning right now?

‘Not very well’ would be the answer. It is something that people think is going to happen in the future so put off.

One of the things people don’t think about enough is that retirement doesn’t need to be doing nothing. If your business can run as an asset without your involvement, you don’t have to sell it completely, so not selling down 100% of the business is a viable option. You don’t necessarily need to sell the whole business.

Do you think that is one of the reasons why people put off thinking about selling the business?

It’s 100% the reason and that’s why it’s a good idea to think about this before you become semi-incapacitated. If you get your business ready for sale when you’re fit and active, you will find it’s a lot happier to go through with a better outcome – rather than getting to the stage where all you want to do is just get rid of it, you’re not maximising the value of your business.

If you do that, whether you end up selling it or not, you’ve got a business that is running well.

Absolutely, and you’ve got choices. The most important thing when you want to maximise the value of the business is to have choices, and the last thing you want is a lack of choices because you’re tired, grumpy, have had enough or just can’t physically work in the business.

Of those different options for selling your business, how would somebody choose which is the most appropriate option for them?

Always get advice through your trusted advisor, your accountant, lawyer, etc, an advisory board director, somebody who has a little bit of knowledge with you and your business and talk to them about what you want to do in the future.

The most important thing that I find throughout any transition business is owners not necessarily knowing what they want to do in the future. They think they want to retire but they don’t know what they’re going to do when they do. Think about what you’re going to do in whatever you call “retirement” and make sure it is a viable option for you rather than jumping to some sort of conclusion that you think might be the right option for you, but certainly talking to your advisors is the most important thing to do.

New law will make dirty money easier to spot

Sun, 21 Jan 2018 20:36:00 GMT

Previously, only a few types of organisation had to comply with the legislation. Following amendments to this legislation passed last year, it is now confirmed that this legislation extends to these groups taking effect from these dates (or earlier if the Government legislates by an Order in Council):

If you are in any of these categories, of course you must make sure that your business complies. We can point you in the right direction. But please also note that as your accountant we are in one of the categories that must comply with the changes. And to do this, be aware that we will sometimes need to ask you for more information than we have in the past. This is because we need to be able to document that we have verified your ID and both you and your business entities are all above board.

IRD into Stage Two of Business Transformation

Sun, 21 Jan 2018 20:32:00 GMT

Enhancements include the traceability of GST transfers, and Notifications and Alerts sent when there is something for you to do in your myIR account.

From April, IRD will address more areas, including:

But the biggest change will be to tax law.

AIM (Accounting Income Method), a new option for calculating provisional tax, allows payments to be based on your actual profit in that period – so if you don’t make a profit, you won’t pay provisional tax.

Income tax returns about to get easier

Sun, 21 Jan 2018 20:28:00 GMT

In April, IRD will also introduce payday reporting of PAYE information – that is, employers will need to report employee payments to Inland Revenue (IR) every pay run. To give you time to put systems in place, businesses will have a year before it becomes mandatory.

Hand in hand with that, IRD will begin collecting PAYE info for the 2018/19 year to allow pre-population of income tax returns. That should make life a bit easier for SMEs. What’s more, the release of Working for Families is being brought forward to 2019, to coincide with tax returns being done under the new system, which – again – will make things simpler for SMEs.

What are the new Government’s tax priorities?

Fri, 19 Jan 2018 03:49:00 GMT

One of the first questions business owners ask when a new government enters power is what changes, if any, are coming in the area of tax.

Revenue Minister Stuart Nash provided a good steer on that when he addressed Chartered Accountants Australia and New Zealand last November.

The biggest question, he said, is whether our current system is fit for purpose. A week later, the government demonstrated its commitment to finding an answer by announcing the tax working group, to be headed by Sir Michael Cullen. Its brief is wide and includes specific emphasis on GST (but is unlikely to include GST rates) and the overheated housing market (almost certainly by focusing on speculative property buying).

Other issues the Minister highlighted:

If you’ve ever wondered if you might have a tax refund tucked away at IRD, here’s some good news – a proposal for refunds to be issued automatically.

That’s part of IRD’s ongoing drive to work well with business. One thing you can expect to see is better communication with tax professionals before policy proposals are developed or implemented. That should minimise well-meant but fundamentally unworkable policy being introduced.

Business health check

Fri, 19 Jan 2018 03:45:00 GMT

With the end of the tax year approaching, check your systems and documentation now and plug any gaps. A good approach is to dig out the EOY checklist you got from us last year and use it identify any information you need to start gathering now. That way, you won’t be rushing frantically later when we need the information.

Take Rob Young’s advice and check that your business is fit for sale. If it relies fully on you, plan a one-month holiday in a year’s time and start setting things up to run without you. Ask us and your lawyer what we’d do differently if we were you. And focus on profitability rather than minimising your tax liability.

Wishing you a safe and happy Christmas and a prosperous new year!

Tue, 14 Nov 2017 23:22:00 GMT

Thank you for all your support this year.

This is our last newsletter for the year. We know you are probably busier than ever so we will keep it short.

Are you still tacking up the tinsel while thinking about everything on your to-do list? Do you have all your reindeer in a row or is your sleigh skidding into the silly season? Check your cashflow to make sure the business is in good shape for December and January tax dates.

Don’t leave it late – get tax sorted before Christmas

Tue, 14 Nov 2017 23:11:00 GMT

The timing of these payments isn’t ideal as many of you will be indulging in the delights a summer break offers.

But it’s important that you don’t neglect your tax obligations – especially as Inland Revenue will charge 8.22 percent interest and late payment penalties if you don’t pay the tax you are required to pay on time.

That’s why we have put together some suggestions to help you get tax-ready before Christmas.

You’re probably already doing these things, but it never hurts to be sure. We’ve also mentioned an option that gets around paying provisional tax when IRD tells you to.

Review your books

Make sure your records are accurate and up to date, to get an indication of your overall cashflow position.

Prepare a quick budget

Figure out what you are going to need to cover overheads while on break, especially if it’s going to be several weeks before you start earning again.

Complete jobs early

Prioritise work that can be finished quickly so you can bill clients and have money in your bank account before Christmas.

Cast your eyes over your debtors’ ledger

See if those who owe you money can pay early (sweeten the deal by offering a slight discount). Chase outstanding invoices.

Buy time with other creditors

Explain your situation and see if you can pay suppliers later.

Consider using tax pooling

IRD-approved tax pooling intermediaries such as Tax Management NZ offer payment plans that let you choose how and when you pay provisional tax. These wipe late payment penalties, and you are charged interest which is lower than that of IRD’s.

As always, we are happy to work alongside you to come up with a strategy and talk through your options. Give us a call.

Presents and parties

Tue, 14 Nov 2017 23:05:00 GMT

Take a minute to refresh yourself on what is deductible as a business related expense.

Presents

Are you thinking of gifts for clients, business associates or team members?

If gifts consist of food or drink, you can only claim 50% of the expense as a tax deduction. If gift baskets or hampers contain some food or drink and some other goodies, the food or drink items are 50% deductible but the other gift items are 100% deductible.

Note that when you claim the tax deduction, you need to apportion the expense between the 100% deductible items and the 50% deductible items. Let us know the details.

Parties

The basics: an expense is business-related if you spend the money to help your business earn income. Business-related expenses are generally fully deductible. If the expense does not help your business earn gross income, it is a private expense, not claimable as a deduction.

Purely promotional events put your brand out there and are a marketing expense for the business. But entertainment events such as Christmas parties inhabit a grey area sometimes.

1. Are you planning a promotional event open to the general public? Sponsoring the local Santa parade?

2. Are you planning an event for charity? A Christmas party at the local hospital? Serving Christmas dinner at the local homeless shelter?

3. Are you celebrating a spectacular year and taking your team to Raro for a weekend?

You will need to make a GST adjustment for any entertainment expenses which are 50% deductible. This will be required when your income tax return is filed. We can help you with this.

Business health check

Tue, 14 Nov 2017 22:56:00 GMT

Things to do this month:

Becoming an employer of choice

Thu, 19 Oct 2017 21:11:00 GMT

Read our feature in this month’s Accelerate to find out more.

How do you draw talent to your door?

Thu, 19 Oct 2017 21:07:00 GMT

Google has staff friendly initiatives that attract top candidates. Your business may be a long way from Google, but it can still be known as a good place to work.

At Google, staff are allowed to take a day out of every week to work on a project they think is important. The result? Fifty percent of Google products come from this 20 percent staff time.

Google has various initiatives that help make the company an employer of choice. It doesn’t necessarily follow that you should copy what Google does. But it does suggest that being creative in building your business culture may help you to also be an employer of choice.

Becoming such an employer may bring various benefits: applicants are keen to work for you, people envy your employees, you receive unsolicited vacancy inquiries, and your most talented workers stay with your company. All those are good for your bottom line.

How do you achieve that? Well, find answers to more questions, like:

Point 2.) above shows what staff want. But what do those priorities mean for you? It points to a need to be clear about opportunities for staff, for open communication between staff and management, and good relationships between everyone.

Management sets the tone for relationships. Being open and clear about opportunities for personal growth is part of that. In addition, staff quickly pick up on poor relationships between managers, and managers who are cool to staff can hardly be surprised if staff have cool relationships with managers.

The challenge for you may be to separate your business stresses from relationships, and having your approach to relationships come from your heart.

Every employee is different, and that means doing little things for an individual can have a big impact on the person – and cumulatively on your business. But that means building relationships, one by one. One US business sends flowers to the employee’s spouse on the couple’s wedding anniversary, thanking the recipient for his or her support.

Why not ask your staff for ideas they would like to see? Asking is not the same as guaranteeing they will happen – although your team should see some initiative introduced if you take this step.

Some things that may make your business an attractive place to work are:

1. Providing opportunities for employees

Giving employees the freedom to do interesting work that not only drives your business, but also drives personal satisfaction. Again, that requires that you know your employees.

2. Having a unified vision

Having staff who embrace what you do and how you do it. If you don’t have a unified vision that people can decide whether to embrace – or not – you’ll have different visions
. . . or none.

3. Nurturing ideas

Creating a business culture that encourages listening and sharing – encouraged, because that’s what staff see happening.

Becoming an employer of choice may mean acknowledging difficult truths – like how you communicate – and making changes.

But when you have people keen to work for you, you regularly receive unsolicited vacancy inquiries, and your most talented workers stay, you’ll have the best workers doing their best work. You’ll spend less on recruitment and training, have more experienced staff, reduced stress, and a positive effect on your bottom line.

IRD has good news and bad news on FBT

Thu, 19 Oct 2017 20:57:00 GMT

Whatever the reason, Inland Revenue has good news and bad news.

The good news is that IRD has consolidated all its published statements on motor vehicle FBT into one 57-page document with a logical flow, making the topic easier for you to understand. Although that doesn’t necessarily mean it’s easy!

The bad news is that IRD’s views on how FBT applies may, in some circumstances, be a bit contentious.

The new document, according to IRD, should give taxpayers increased certainty in understanding their FBT obligations in relation to motor vehicles, and lead to better compliance.

There is potential for uncertainty over interpretation of some matters, so give us a call if you are unsure about how this may apply to your business.

Nations work together to report some account activity

Thu, 19 Oct 2017 20:53:00 GMT

New Zealand is one of about 100 nations working together to get rid of hiding places, by operating to the Common Reporting Standard (CRS), which came into effect in New Zealand in July this year.

What CRS requires

New Zealand financial institutions now must:

We’re not suggesting that if you’re a foreign tax resident who has, or controls, an account with a New Zealand financial institution, that you’re a tax evader. However, information about your account may be reported to the IRD, and the financial institution may ask you to supply documentation about your account.

If New Zealand has a relevant agreement with the country you live in, IRD may pass your information on to your home authorities – and those authorities may do likewise with Kiwis living in their country.

In some circumstances, family trusts which engage providers to manage their investments may have reporting obligations under CRS. It’s best to talk to us if you have any questions.

IRD bless America

CRS is a bit like the United States’ Foreign Account Tax Compliance Act (FATCA), but it’s an international initiative. FATCA requires US citizens and tax residents to report their worldwide income to the Inland Revenue Service (IRS), regardless of where they live.

It also compels foreigners with accounts in the US to pay the tax they’re supposed to. All non-exempt foreign financial institutions must register with the IRS. Rigorous stuff.

Although all foreign financial institutions had to register with the IRS almost three years ago, there was uncertainty about whether, and how, FATCA applies to New Zealand family trusts without an obvious US connection. Which leads to our next question . . .

Does a family trust have US obligations?

A trust will have obligations under FATCA if it is a foreign financial institution. There are four categories of such institutions, but the most relevant one for family trusts is Investment Entities. The Inter-Governmental Agreement between the US and New Zealand defines what these are.

That said, most family trusts don’t meet the Investment Entity criteria because they do not have “customers” or are not “in business”.

Keeping across your CRS obligations

CRS has due diligence and reporting obligations, especially about:

If you’re thinking there are complexities and technicalities to FATCA and CRS, you’re right! Happily, we can help. Get in touch if you have questions.

Better control coming over hazardous substances

Thu, 19 Oct 2017 20:42:00 GMT

How things have changed! Today, regulations govern the handling and use of all hazardous substances. And, like many other safety matters, those regulations are being constantly reviewed.

If work brings you or your staff into contact with hazardous substances, from 1 December you’ll have to follow the new hazardous substance rules under the Health and Safety at Work Act. The Environmental Protection Authority (EPA) will also have a new enforcement responsibility in relation to importers and manufacturers.

What you will need to do differently

You will still work with the EPA to apply for new hazardous substances approvals. The EPA will still manage applications for new approvals – whether for new substances, or for particular persons – but the safety rules move from the EPA into the Health and Safety at Work Act that will be implemented by WorkSafe. WorkSafe will then decide if the requirements in the HSW HS regulations will manage the risks to people in workplaces.

Under the new regulations, fewer substances will require certified handlers. However, handlers will get more training, better information and be subject to more robust competency requirements.

When the new regime comes in to effect, all currently approved hazardous substances will remain approved. They will also retain the same approval number.

Business Health check

Thu, 19 Oct 2017 20:27:00 GMT

Things to do this month

Business culture, and how it affects profits

Fri, 22 Sep 2017 00:01:00 GMT

In this issue, we focus on some aspects of business culture that could play a part in the success of your business. Enjoy!

Business culture tied to business performance

Thu, 21 Sep 2017 23:59:00 GMT

While it’s easy to think of business culture as a bit soft compared with, say, achieving sales, in fact it’s anything but. A 2014 study reported that public companies named in a “Best Places to Work” list in 2009 outperformed the S&P 500 by 115 percent in the following five years.

The Glassdoor study suggests that a culture that engages and motivates employees helps the bottom line. But the reverse isn’t true: A company’s success isn’t enough to produce a positive culture, and companies that succeed without a positive culture are likely to see performance decline.

So if your business is performing well, great. But if it’s doing so at the expense of employee satisfaction and happiness, chances are that your current success is unsustainable – especially in economically tougher times.

So how do you address that? Read on for four things you could look at. 1. Get the best from your younger staff

According to one article, only 29 per cent of millennial employees were emotionally engaged and loving their jobs. If millennials continue to be emotionally disengaged in their jobs, think of the waste of talent – and the hit on the bottom line.

The solution is to understand what motivates each person. For example millennials are typically willing to give up a substantial amount of salary to work at a job that provides a better environment. When recruiting, market and build your culture to get the best possible applicants.

In addition, millennials prefer companies with better diversity and inclusion programmes .

2. Get the best from older staff too

That may sound at odds with what matters to millennials, but it’s not really. The key point is that at an organisational level, an age discrimination climate has negative effects on employees’ commitment and a firm’s performance. On the other hand, a positive age diversity climate is linked to higher company performance.

In other words, what’s good for older employees is also a good fit with the values of your millennial staff.

Creating a discrimination-free culture (don’t limit it to age – include gender, culture, sexual orientation and other issues too) is worth the time and effort it takes. Don’t rely on your gut feeling, though. Read up on the issue or, better yet, engage a specialist to help you. It’ll be time and money well invested.

3. Get flexible (and get the best from everyone!)

A 2014 investigation into the UK job market revealed that job ads rarely mentioned flexible working options, making great opportunities effectively “invisible” to some of the sought-after top talent – talent that might have contributed strongly to company performance.

We’re not just talking about working mothers here. Working fathers appreciate flexible conditions, as do high performers who want the freedom to work as they see fit, rather than be constricted by unnecessarily prescriptive work hours, for example.

4. Do your staff think like owners?

What do you think that did to Rent-A-Car’s reputation? It soared like an eagle.

Give your staff the autonomy to put customers first, and your business will benefit. If you’re in retail, trust staff to make quick decisions about refunding unsatisfied customers or replacing goods they didn’t like. If you’re in transport, devolve all but the most complex decisions to whoever has the most customer contact – and watch customers issues get sorted quickly and, mostly, effectively.

Your own time will get freed up, your customers will be happier, and so will your accountant!

New Zealand a digital standout, but is your business?

Thu, 21 Sep 2017 23:50:00 GMT

New Zealand is a “standout nation” according to the latest Digital Evolution Index, released by Tufts University in Boston in July.

The report, by the university’s The Fletcher School, identifies New Zealand as among the digital elites, having high levels of digital development and a fast rate of digital evolution.

Has your business contributed to this result? One way to be up there is to use digital technology to strengthen company culture. Social media creates experiences. But more than that, it can help change and support culture in a business by:

Social media apps that may help your teams network and perform better include TeamedWith , Slack , Culture Amp and Betterup .

GST made easy

Thu, 21 Sep 2017 23:18:00 GMT

Do you hate it when GST return time rolls around? If so, you’re in good company. For many business owners, the pain isn’t so much having to hand money over to IRD, but having to prepare and file a return.

But that pain is easy to avoid. Here’s how:

The section inside your myIR account called “My GST” lets you:

Don’t have GST drag you or your business down. If you struggle with any part of it, or are unsure about anything, contact us.

New Zealand trust law to be overhauled

Thu, 21 Sep 2017 23:10:00 GMT

Parliamentary plastic surgery is in store for the Trustee Act, to make trust law easier to access and understand.

On 1 August, Justice Minister Amy Adams introduced the Trusts Bill to Parliament. This will be the first significant change since the introduction of the Trustee Act 1956.

The old Act has been viewed as being narrow in scope, with trust administration being complicated and expensive.

Most trusts, like family trusts, business trusts and protective trusts, are set up with a trust deed or other document, like a will. These are known as express trusts.

In the new Bill, it expressly states that trustees will have to:

Although a trustee must not use a trust for self-benefit or act where there is a conflict of interest, many trust deeds specify situations in which a trustee can act in their own interest, such as when a trustee is also a beneficiary.

The Bill does not address relationship property issues, which will be considered as part of a broader review of relationship property law, by the Law Commission.

There should also be no need to change existing family trusts, as the new Act will largely restate existing law.

A new process for disclosure

The draft Bill includes a process for disclosure of trust information. This includes the trust deed, documents relating to the property and administration of the trust, and other information holding trustees accountable. Trustees will have some flexibility with disclosure, but the Bill favours keeping beneficiaries informed.

Exceptions for specified commercial trusts

If a specified commercial trust arrangement was created before the beginning of the Act, it will be exempt from some provisions. That could reduce the need to amend existing terms, like trustees keeping particular information and providing certain information to beneficiaries.

Specified commercial trusts created after the beginning of the Act will be able to modify or exclude particular provisions, like preventing beneficiaries terminating the trust by unanimous consent where that would run across financing arrangements made to protect the rights of lenders and borrowers.

The FMCA and trusts

Particular express trusts subject to the requirements of the Financial Markets Conduct Act are not subject to some of the Bill’s requirements. The FMCA is to be amended to reflect the Bill’s wording with regard to various duties relating to the functions of supervisors and managers.

If you would like to discuss what a trust would entail or what your responsibilities might be as a trustee, contact us.

What does all this mean for you?

Quite possibly, little or nothing. But if you’ve had a trust quietly ticking away in the background for some years, it could mean a lot. Our advice is to get in touch with us to discuss your trust and any possible impact. A few minutes doing this now could save a lot of pain later.

Government ponders taxation error correction solutions

Thu, 21 Sep 2017 23:06:00 GMT

Here’s some good news. Inland Revenue proposes integrating PAYE into normal business activity. For example, by allowing employers to use payroll software to make corrections to returns.

Another idea is to allow employers to report the employer superannuation contribution tax (ESCT) withheld, at an employee level.

These are small but useful changes that could simplify your life. Here’s another: a law change so that overpaid PAYE income that is not repaid still remains taxable as PAYE income.

Finally, if a business allows an employee to repay overpaid income, the law is about to be clarified so that this does not create a liability for FBT.

Tax law is complex and probably always will be. Small changes like these all add up, and we welcome their lightening of the load on business owners like you.

Business Health check

Thu, 21 Sep 2017 23:00:00 GMT

Things to do this month

Tax is payable on rental income . . . mostly

Thu, 17 Aug 2017 04:23:00 GMT

If you receive income, you must pay tax. So if you have rental income, you have to pay tax on it, right?

Maybe, maybe not – if you get rent from boarders or homestays.

Boarders and homestays

When you get income from boarders or homestays, your tax position depends on how many boarders you have, and how much you charge, compared with the IRD’s standard-cost method. In other words:

If you have . . . Then the standard 2017 cost is . . .
One or two boarders $263 a week for each
Three or four boarders $263 for boarders one and two, and
$215 for boarders three and four

If you charge less than standard-cost figures for four or fewer boarders, you don’t have to declare that income.

With standard-cost, when you charge more than the IRD figures you may have to pay tax. If you claim for losses, your return must not only show all payments received, but list actual costs, backed up by full documentation (this is called the actual-cost method).

Actual-cost method

Your tax position is unequivocal if you have five or more boarders – you must report that income. If you and your spouse or partner have boarders and tax is payable, the person who’s most directly involved each day should declare the income.

If you get your rental income in advance, it’s taxable in the year in which you receive it.
Owning property for generating rental income is not, usually, classified as carrying on a business, but you may deduct related expenses. Those include:

Rental property expenses should still be deductible even when the property is temporarily vacant.

You can’t charge GST on rent, or claim it on the property’s purchase price or ongoing rental costs. But when you claim deductions, you use the cost of the expense, including GST. However, that’s not the case for homestays, farm stays, bed-and-breakfast businesses, short-term stays (think Airbnb below) and other types of “commercial dwelling”.

One exception is if you buy a house for development, but rent it out as an interim measure. In that case the developer can claim the GST input tax on the purchase. However, if the house is used concurrently for taxable and non-taxable purposes, adjustments may be needed. It can be complex and we can help you with this.

Rentals and depreciation

The land a rental property is located on is not depreciable because it can’t be consumed and has no replacement cost. However, buildings, fixtures and land improvements are considered technically depreciable, even though they have a depreciation rate of 0 percent.

Chattels, like stove and carpets, will depreciate, and you may choose to calculate those and deduct the total as an expense.

Must I pay tax on holiday home income? That depends

Thu, 17 Aug 2017 02:56:00 GMT

If you rent out your holiday home sometimes, you may have to pay tax on that income.

The IRD says you have a “mixed-use” holiday home if, during the tax year, you use it for:

It is still private use if you receive rent from family members, or from non-family members who pay less than 80 percent of market rates.

The property becomes “income-earning” if you get rent from non-family members at 80 percent or more of market rates.

You can keep the property outside the tax system if it’s privately owned, and your income-earning revenue is less than $4,000 a year. But then you can’t claim any of your related expenses. You can also remain outside the tax system if you make a loss, and your gross income from income-earning use is less than two percent of the property’s rateable value.

If an expense relates to income-earning use and private use, you need to apportion it using this formula:

Expenses × income-earning days
income-earning days + private use days

If you make a loss from your mixed-use holiday home, and your gross income from income-earning use is less than two percent of the rateable value, you can’t claim the loss in the current year. You must carry it forward to offset against income from your holiday home in a future tax year.

Boats and aircraft may generate a tax liability

Thu, 17 Aug 2017 02:49:00 GMT

Sometimes boats and aircraft are used for private and commercial purposes. In such cases, the income from their use may be liable for tax.

Boats and aircraft (valued at more than $50,000) become mixed-use assets if they are used privately sometimes, and commercially at other times – and not used at all for 62 days of the tax year.

Income-earning days include time you spend either occupying or using the asset to:

But just taking the craft out for repair, or to fix normal wear and tear, is private use.

You must keep a detailed logbook for each mixed-use asset that records:

Airbnb usually a tax case on its own

Thu, 17 Aug 2017 02:44:00 GMT

If you use Airbnb to provide short-term accommodation in your house in which you also live, the IRD’s “mixed-use asset (holiday home)” rules don’t apply and guests are not classed as boarders. Except when you list a whole house which is vacant for 62 days each year, mixed-use asset rules do apply and calculations differ from those for homes where the hosts also live.

Claimable expenses

Anything you spend as an Airbnb service provider may be claimed as an expense. For shared expenses, like power and Internet, claims need to be fair and reasonable.

You can claim some home utilities, rates, insurance, and interest – and all food and other consumables that guests use. You can also claim depreciation on chattels and appliances used by guests only. You can claim some depreciation on other shared chattels and appliances, like claiming a portion of utilities.

If you spend money to keep your property attractive for guests, you can claim some of those costs.

You’ll have to apportion expenses and, to do that, you need to know:

Your apportionment calculation then is:

Guest floor area + (total shared floor area x [one divided by total guests plus family] x percentage of year you have guests).

Then you divide that product by total floor area, and the resulting figure is the apportionment percentage you use for expenses.

If your room or home was unavailable for part of the year, your calculations must reflect that.

Unlike residential rent, GST applies to Airbnb. You must register for and file GST if your turnover is $60,000 or more in the past 12 months, or will be $60,000 or more in the next 12 months.

There’s a lot to this, so we recommend that you get professional advice.

Tenants must be informed of insulation status

Thu, 17 Aug 2017 02:38:00 GMT

It’s been compulsory since 1 July last year for any new tenancy agreement to include an Insulation Statement. That means landlords must record if rentals have insulation, where it is, the type of insulation and its condition. That allows tenants or potential tenants to make more informed decisions about renting.

Insulating rentals is now mandatory

On top of that, if you have rental property without floor and/or ceiling insulation, you have until 1 July 2019 to install it. If you don’t have an Insulation Statement, or your property remains uninsulated from 1 July 2019, you can be fined up to $4000.

The insulation requirements don’t apply to in-ground concrete floors and integral ceilings-floors in a multi-storey dwelling.

Note that it’s illegal to install or repair electrically conductive insulation, known as foil insulation, in any residence. A breach could cost you up to $200,000.

Creditors get more protection from indebted businesses

Thu, 17 Aug 2017 02:34:00 GMT

A threshold for reportable tax debt is now in effect, giving creditors greater protection from businesses owing debts of more than $150,000.

The IRD is now allowed to disclose to certain credit reporting agencies, information about companies with significant tax debt. An Order in Council set a threshold of $150,000, so a company’s tax debt over that amount may be disclosed. This took effect on 29 June.

Disclosure may inform smaller creditors who would otherwise not know they were dealing with a business with a significant tax debt.

Business Health Check

Thu, 17 Aug 2017 02:29:00 GMT

Things to do this month:

Keep cash crowned as king

Fri, 21 Jul 2017 02:59:00 GMT

The following six takeaways are essential for business success:

Cashflow is not profit – and vice versa

Fri, 21 Jul 2017 02:53:00 GMT

The purpose of a business is to make money, and that means you have to know the difference between profit and cashflow.

Net profit is what you have left after you deduct all your business expenses from all your revenue. You change net profit only by changing the things that affect revenue and expenses. For example, if:

Cashflow comes from various sources. However, it also covers operating expenses, taxes, equipment purchases, repayments, distribution, and so on.

Note that a profitable business does not always have good cashflow. And a business with good cashflow is not always profitable. For example, you can have good cashflow, and loss-making expenses.

To work out how fast you can grow your business, you need to look at your projected cashflow. We can advise you on this.

Fairer tax rules affect cashflow

Fri, 21 Jul 2017 02:50:00 GMT

A tax bill passed in May made changes that affect cashflow.

Companies get more choice with RWT

From 2017-18, companies can choose to not deduct resident withholding tax on a fully imputed dividend paid to a corporate shareholder. A fully imputed dividend has a tax credit passed on because the company’s already paid tax.

A third tax option for some shareholder-employees

Shareholder-employees of close companies (with five or fewer participants) who receive regular salary or wages, and variable amounts of other employment income, now have a third option as to how they pay tax.

They can now split their income so the base salary is subject to PAYE and the variable amount is paid out before tax. Previously they had to choose either one or the other.

A shareholder-employee who decides to either apply provisional tax to all their earnings, or use the new split method, is committed to either choice for three years.

It’s complicated – imputation credit anomaly tackled

Companies owned in common, but not wholly owned, can now transfer imputation credits as part of what IRD calls “loss grouping”.

Owned-in-common companies with part-owned loss-making businesses have been able to transfer losses to profit-making companies, benefiting both – except for imputation credits. The more tax paid, the more imputation credits available.

However, when losses were transferred to the profit-making company, the latter’s tax bill shrank, meaning there were fewer imputation credits to be passed on.

The changes allow the “profit” company to pay a fully imputed dividend despite loss grouping, keeping the benefit of the loss transfer.

Not so complicated for LTCs, though

With the loss limitation rule being removed for most Look Through Companies, losses that were previously restricted and carried forward are now freed up from 2017-18 and available for offsetting against income. However, LTCs that carry on through a partnership or joint venture will still be subject to the loss limitation rule.

The loss limitation rule ensures the losses an owner can claim reflect their economic loss in the LTC. The deductions an owner can use are limited to the contribution the owner has made, or is liable for.

IRD AIMs to please – next year

Fri, 21 Jul 2017 02:44:00 GMT

The Accounting Income Method (AIM)

More and more small and medium enterprises (SMEs) have digital accounting systems for better business decisions. Integration between accounting software and IRD’s systems and processes is happening.

SMEs use tools like these to track how their business is performing. This same information can, therefore, also be used to make provisional tax payments on an actual results basis.

Businesses make provisional tax payments in most cases six times a year at the same time as GST payments, or monthly for those who file GST returns each month. The payment is based on the results achieved in that tax year, matching payments to cash flows as closely as possible.

AIM will help new businesses pay tax only on results they achieve. The same goes for businesses with seasonal income – because tax payments adjust to the season, as well.

Several ways taxpayers can get caught out

Fri, 21 Jul 2017 02:38:00 GMT

Airbnb income

If you rent rooms or homes through Airbnb, you may not realise that the IRD considers you to be a landlord. Your rental income must be included in a tax return.

If you’re unsure of your tax obligations please consider seeking professional advice.

Overseas rental property

You must declare any rental income you get from properties overseas. You can claim deductions for rental-related expenses, and you may also be able to claim a credit for tax paid in the other country on that income.

Complexities can arise when loans and mortgages are held overseas. Call us if this applies to you.

Overseas trusts

Under New Zealand law, trust matters are settlor-based. This means New Zealand tax treatment of the trust depends on where the settlor of the trust lives. As a trust does not have a legal personality, there is no concept of residency for trusts. However, a trust is recognised as a taxpayer, so New Zealand generally verifies the residency of the trustee to determine which income of the trust is subject to New Zealand tax .

If you own shares in a foreign company

You will have to pay tax in New Zealand on foreign share dividends unless:

Dividends paid by overseas companies to transitional residents or non-New Zealand tax residents are not taxable in New Zealand for the transitional period.

The rules surrounding Foreign Investment Funds and Controlled Foreign Companies are complex and you should get professional advice on the taxation of offshore investments, whether from us or your financial advisor.

Overseas-issued credit/debit card

Having an offshore credit or debit card may or may not trigger New Zealand tax obligations. Note, though, that even if foreign withholding tax has been deducted on foreign income, that does not necessarily mean the income is no longer taxable in New Zealand.

It can be tricky to work out your tax position. Call us if you’re not sure.

Contractors get more tax choice

Fri, 21 Jul 2017 02:28:00 GMT

The way contractors pay tax changed on 1 April, giving greater choice, and making it easier to get tax right.

The rules around schedular payments have changed to allow this, and are compulsory for all contractors hired by a recruiter — or other labour hire business — and those previously under schedular payment rules.

Other contractors can opt in if their payer agrees to deduct tax on their behalf.

Contractors already under schedular payment rules

Contractors must complete the new tax rate notification form (IR330C) when starting any new job. On this form, they pick their preferred tax deduction rate . New Zealand tax residents can pick any rate from 10 percent to 100 percent.

If you complete the form but don’t pick a tax rate, the labour hire business will deduct tax at 20 percent. If you don’t complete the IR330C, the no-notification rate of 45 percent will apply.

Self-employed contractors

If you contract directly for any business and do not have to have tax deducted by the hirer, you may choose to have tax deducted from your payments. You and the payer must agree to this approach, and a written record of the agreement should be kept. If you work for several businesses, each must agree to the request.

If a payer doesn’t agree, you will continue to pay tax for that work as previously.

Use-of-money interest charges for underpaying provisional tax are also changing. From the 2018 tax year, new rules mean fewer people will have to pay it.

Paying contractors

If your business hires contractors you need to follow the following steps when paying them:

R&D tax credit changes can boost cashflow

Fri, 21 Jul 2017 02:24:00 GMT

The R&D Tax Credit regime allows a “cash out” of an organisation’s R&D tax losses. The cashed-out amount must be repaid from future income.

In general, a taxpayer will be eligible for the cash out if they:

The “cash-out” is subject to maximum caps and will be clawed back in certain circumstances such as a substantial shareholding change or the disposal of R&D assets. Only expenditure that doesn’t meet the threshold to be capitalised as an intangible asset qualifies for the tax credit. If you think you may be eligible please contact us.

Business health check

Fri, 21 Jul 2017 00:56:00 GMT

Get a clear cashflow picture before third quarter.

Cashflow forecasting is important because if your business runs out of cash it won’t be able to operate. You now have one clear month before the third quarter to get the best possible clarity around cashflow.

How often you forecast cashflow depends on the soundness of your business, although you really cannot do it too much. If your business is struggling, you should be forecasting and revising your cashflow every day.

Focus on cashflow now to:

If you would like to have a chat about your business cashflow, let us know.

Communication important in managing debtors

Wed, 28 Jun 2017 04:57:00 GMT

Like any relationship, timely communication between creditors and debtors goes a long way to avoiding trouble. One of those tools for small businesses is the financial web.

The financial web describes the growing electronic connectivity between small business, accountants and financial Institutions, particularly when coupled with Cloud computing.

According to Xero , the continued expansion of the financial web will help small businesses make smarter decisions, improve cashflow, get paid faster and access capital quickly.

At the same time, traditional practices still go a long way to helping small business stay on top of debtor management.

If you don’t have large reserves of cash, you may want to reduce your terms to 10 days or seven days. You should also:

In the case of debt collection costs, the Fair Trading Act requires you to disclose your terms of trade to customers at the time credit is given.

Your terms of trade must include provision for the recovery of collection fees. Make sure your terms of trade are clearly identified on your website, invoices and statements.

Give your business a medical

Wed, 28 Jun 2017 04:42:00 GMT

The end of June marked the quarter point for this financial year, making it a good time for a business health check.

Comparing your past three months to the same period in previous years can show if your business has been growing, and most accounting programmes will easily produce year-to-date reports.

When you identify changes and opportunities, look at the challenges you had, and work out your profit for the year, you’ll be better able to make decisions about staffing or stock levels, and have a clearer idea of how much tax to put aside.

There are other things:

Of course, we are always happy to give you a hand.

Case studies: Debt management frees up six-figure sums

Wed, 28 Jun 2017 04:35:00 GMT

Two case studies show what a huge difference proper debt management can make to a business.

November 2014-March 2016

An established professional service firm – operating in provincial New Zealand since the 1950s – had grown in a competitive market and become the leading service supplier.

A new business manager had been brought on to coordinate the client services delivered by five partners/directors. As part of her brief, she also explored smartAR as an option to coordinate essentially five different credit processes, as each partner was doing something different.

When she started, the client (with about $8 million turnover) was taking an average of 68 days to turn an invoice into cash at the bank. She turned that around in 18 months.

Outcome:

Historic Debtor Days: 68 Days – $ 1,490,410.96
Debtors 18 months later: 25 Days – $ 547,945.21
Missing Cash Returned: $942,465.75

June 2015-February 2016

An electrical services business outside Auckland provides services to the wider Auckland region.

Because of the nature of the accounts person’s role and the amount of outstanding cash, the client was open to considering another solution. The owner was mainly concerned about how to manage an external resource, and the security of clients’ data.

After a review of other smartAR reference sites and the introduction to their nominated account manager, the owner had a high level of confidence and trust in the smartAR staff and service.

The combination of an owner who was enthusiastic to improve cashflow, and a skilled account manager, saw debtor days quickly decline.

Outcome:

Turnover: $4,000,000
Historic Debtor Days: 68 Days – $ 840,154
Debtors nine months later: 48 Days – $333,967
Extra Cash Returned: $506,187

Do large businesses really call the shots?

Wed, 28 Jun 2017 04:24:00 GMT

Large companies are ‘killing’ New Zealand’s small businesses by making them wait too long for payments.

The need for a policy or terms of trade is crucial when it comes to smaller business working with larger companies. For example, New Zealand’s largest firm, Fonterra, changed its payment terms for contractors and suppliers last year, so now it can take a small business between 60 and 90 days to get paid.

According to a recent report from Dun & Bradstreet, larger companies were the slowest to pay, averaging 8.1 days later than normal. As highlighted in the graph below, late payment times for New Zealand businesses vary from year to year based on the size of the firm.

The late payment problem is shared with the Australian economy, with more than 62 percent of small businesses encountering late or unpaid invoices in the past year.

Here are some tips to avoid late payment:

Source: Dave Birch, SmartAR

You can now use PAYE for employee share schemes

Wed, 28 Jun 2017 04:19:00 GMT

Since 1 April this year, new tax rules have applied to share purchase benefits provided by an employer to an employee.

In this case, a benefit occurs when the amount the employee pays for the shares is less than market value. IRD then sees this as employment income.

Before 1 April, a benefit received from a share purchase agreement was subject to neither PAYE nor FBT. The employee had to file a tax return including the benefit and pay the tax on it.

IRD had compliance concerns with the old method as there was no transparency around when employee share scheme benefits were received by employees and also considered the previous system restricted the use of employee share schemes. There was uncertainty, a degree of unfairness, and there could be either under-taxation or over-taxation.

Now an employer can choose to withhold tax on income a staff member receives under a share purchase agreement. The employer also has to report to IRD in the employer monthly schedule (EMS) the value of any benefits an employee receives under a share purchase agreement.

If you want to know more, contact us.

Ideas wanted about employee share schemes for start-ups

Wed, 28 Jun 2017 04:17:00 GMT

The Government is trying to figure out a fairer tax regime for employee share schemes in start-up businesses.

An officials’ issues paper released on 30 May, ‘Taxation of employee share schemes: start-up companies’, outlines possible deferral rules for start-up companies in this position. The paper expands on a proposal raised last year.

The thinking is to make it possible to defer the taxation point for employees – with a corresponding deferral of the company’s deduction. The proposed deferral rules would delay the time of taxation to when the shares are sold or listed on a stock exchange.

The paper follows the development of new rules for taxing employee share schemes, as described in the Taxation (Annual Rates for 2017-18, Investment and Employment Income, and Remedial Matters) Bill, introduced on 6 April this year.

The issues paper is looking for submissions about the design of a deferral scheme. This means you can present your ideas on the scope, nature and timing, deductions, administration and compliance of any deferral scheme. More especially, you might want to think about whether it will affect your business. If it does, we’re happy to help you with your submission.

Submissions may be sent to:

policy.webmaster@ird.govt.nz
with ‘Taxation of employee share schemes: start-up companies’ in the subject line.

The closing date is 12 July 2017.
Source: www.taxpolicy.ird.govt.nz

Do you run a business from home? Then this affects you

Wed, 28 Jun 2017 00:55:00 GMT

The tax deductibility rules around running a business from home changed on 1 April this year.

Under the new rules, the premises for a home business have to be a separately identifiable part of the house, which is used mainly for business. This does not mean it has to be an actual, closed off room.

There will be a choice of methods for calculating a claim for use of home:

If you need more detail, contact us.

The right way to collect debt

Mon, 26 Jun 2017 21:36:00 GMT

Before you follow up on debt, you want to be sure you supplied the right goods and services, in the right quantities, to the agreed standard, for the agreed price and within the agreed timeframe.

In collecting a debt, you must not use force or pressure, or harass or hassle anyone, or mislead or deceive the debtor. You must not pass on false or private information, and you cannot charge unreasonable debt collection fees.

Do not tell a debtor that they will be fined or face legal and court costs on top of the original debt. This is a breach of the Fair Trading Act.

One approach that’s proven successful is to visit slow payers and ask them how they are finding your company’s service. One businessman reports that with this approach he almost always got payment on the spot, or soon after.

Accelerate July 2017

Mon, 26 Jun 2017 21:34:00 GMT

Managing debtors can be a challenge for SMEs. Accelerate July focuses on debtor management. We hope you pick up some ideas that help make this part of your business go more smoothly.

Slow payers cost you real money

Fri, 23 Jun 2017 00:15:00 GMT

You may:

What you can do

Online tools make debt management easier

Thu, 22 Jun 2017 22:40:00 GMT

ARCollect

ARCollect says you can stay on top of receivables without worrying about staff performance and customer behaviour. It’s made to:

Innovative Online Debt Management (IODM)

With IODM , you upload your outstanding invoices, and IODM automatically schedules the reminder letters, debt collection letters workflow, all with SMS and/or text messaging. IODM gets you paid in three easy steps: Upload debtors, select debtors to be notified, count your money.

Credit2Control

Credit2Control gives you an online dashboard to monitor customers at a glance or drill down on individual companies and their behaviour. You can review company activity on an ongoing basis, identify early warning signs, handle disputes within the online platform and manage collections easily and cost-effectively.

There are many online tools. We can suggest others.

Accelerate Budget Alert 2017

Wed, 31 May 2017 03:08:00 GMT

The Budget combines tax breaks for working families with support for innovation and investment in business. The surplus predicted is largely earmarked for capital spend on infrastructure and there’s an intention to keep cutting back our net debt.

Business owners may see new opportunities, particularly in the emphasis on innovation and infrastructure, but they’ll have to make their own luck and keep those wheels turning.

A family show

Wed, 31 May 2017 03:03:00 GMT

Tax brackets

There’s a broad recognition that while the average wage has risen, the tax rates haven’t flexed to accommodate it. Moves into a higher tax bracket bit into wage rises for lower and middle income families. The Government aims to tackle this by stretching the lower tax brackets. From 1 April 2018, the $14,000 income tax threshold will increase to $22,000 and the $48,000 threshold to $52,000.

The tax rates aren’t changing but the points where they cut in are changing (though there’s no change for the top tax bracket). If you were earning $22,000 a year, you receive a $560 tax saving each year; if you were earning $52,000 a year, it’s an annual tax saving of $1,060.

Family Tax Credit

Balanced against the changes to the tax thresholds are changes to the Family Tax Credit. The abatement threshold will decrease from $36,350 a year to $35,000 and the abatement rate will increase from 22.5 cents to 25 cents in the dollar. So if you receive the Family Tax Credit, the amount of Family Tax Credit you receive will start to decrease sooner and by more as your earnings increase.

The Family Tax Credit itself will increase for the first child under 16 by $9 a week, and for the other children under 16 by between $18 and $27 a week each.

Independent Earner Tax Credit

The Family Incomes Package gets rid of the Independent Earner Tax Credit (IETC). Less than a third of eligible people actually claim it during the year and increasing the $14,000 tax threshold to $22,000 largely compensates those who were receiving the IETC.

For some middle income earners, the combination of the new tax thresholds and disappearance of the IETC results in an annual tax saving equivalent to the value of a flat white and big brekkie for two or a couple of mid-size grocery runs, depending on whose calculator you use.

Housing assistance

After staying at the same levels for the last decade the Accommodation Supplement will increase. The Supplement assists beneficiaries, pensioners and lower income working families to meet rental, board or mortgage payments. For smaller households it will increase by $25 to $75 a week and for larger households by $40 to $80 a week. Increases will be geared to recognise where people live in areas where housing costs have increased most.

Students who receive the Accommodation Benefit will see this increase by up to $20 a week.

Business time

Wed, 31 May 2017 02:57:00 GMT

The Government’s Business Growth Agenda invests $1b over the next four years. Our economy and population have already been growing strongly. Over the next four years, this growth might be slowed down by the inflation that tends to follow economic growth as well as factors beyond our shores if growth rates slow in the trade regions that are so important to us.

The Agenda supports continued growth by investing in innovation, developing our skilled workforce and paving the way – literally – with infrastructure spending on roading, transport and communication networks. This includes investment in infrastructure to support tourism, recognising the pressure increased visitor numbers have put on existing facilities but also acknowledging the corresponding increases to revenue.

Innovation

The Business Growth Agenda aims to nurture innovation in New Zealand businesses and attract research and development from overseas.

The Agenda extends the second round of funding to the Government’s Innovative New Zealand programme. Some of this is earmarked for strategic science investments, and research and development grants. The Strategic Innovation Partnerships Programme has been expanded with a goal to attract 10 multinational companies to undertake R&D activity in New Zealand by 2020. Economic development funding will be spread across various government initiatives.

Feasibility

So-called black hole expenditure is back on the table for discussion. This is the money businesses spend on trying to get new ideas to fly. Early stage spending is often not tax deductible and it’s a deterrent to business innovation not to be able to recover funds spent on testing feasibility, if it turns out the idea doesn’t work. Hence a perception that the business is throwing its money down a black hole.

Businesses can be hog-tied by the capital limitation: if it’s capital expenditure it’s not tax deductible, but in the early days of testing out whether projects will work and are commercially viable it can be hard to be clear on what’s capital expense and what’s not.

The Government discussion document, ‘Black hole and feasibility expenditure’ proposes measures to ensure the tax treatment of feasibility expenditure is clearer, and that it won’t receive black hole treatment. Submissions on the proposals close on 6 July 2017. If you would like to discuss how this could affect your business, please call us.

Public services and social investment

Wed, 31 May 2017 02:51:00 GMT

The Social Investment Package proposes $321 million to support the most vulnerable people in our communities: vulnerable children and their families, children with behavioural difficulties and people affected by mental health issues.

Quake recovery

Wed, 31 May 2017 02:48:00 GMT

Shoring up the National Disaster Fund is a priority so from 1 November this year the Earthquake Commission (EQC) premium rate will increase from 15 cents per $100 in cover to 20 cents per $100 in cover. This increases home owners’ annual EQC premiums by up to $69 per year.

Use Apps to Fire up your business

Thu, 11 May 2017 02:34:00 GMT

Are you using all your devices to their best advantage? They should be operating for you as an ‘office when you’re out of the office.’ For example, if you’re on the road and you need to answer an inventory question or check how often a customer orders, you can use your notebook or phone to have the information at your fingertips.

The number of mobile apps designed to save you time and money is mind boggling. Here are a handful we like – but we really recommend you do your own research and find the ones that work best for you.

Hubspot and Salesforce are powerful tools for growing and managing your database. They are inbound marketing and sales platforms that help you attract visitors, convert visitors to customers, close sales and develop marketing relationships.

Trello is a multilevel app for managing projects. Trello’s boards, lists, and cards enable you to organise and prioritise tasks in a co-operative, flexible and rewarding way across your workforce.

Viber and What’s App reduce the cost of international calls. Calls between other users, no matter where in the world they are, are free. And calls to mobile numbers around the world are cheap as chips.

Both Viber and What’s App sync your contacts, messages and call history with your mobile device and use your phone’s internet connection, instead of your cell plan’s voice minutes, so you don’t have to worry about expensive calling charges for your business calls.

GotoMeeting for web teleconferencing reduces expenses for communication and can eliminate the need to travel to meetings. Work can happen anytime, anywhere. GoToMeeting with HD video conferencing is a simple yet powerful way to collaborate in real time so business can be undertaken anytime, anywhere.

Provisional tax and you: this year

Thu, 11 May 2017 02:26:00 GMT

Further changes to provisional tax will be coming next year, starting 1 April 2018. But what does it mean for you this year? For provisional taxpayers who pay using the standard method, there are two changes to the way IRD will charge UOMI from the 2018 tax year.

The first change applies to smaller taxpayers (including companies and trusts) using what’s called the ‘safe harbour’.

It’s good news for you if:

The second change applies to other taxpayers
If your tax liability is $60,000 or more, and you have paid provisional tax for the year based on the standard method, then:

If you pay using the standard method
It’s important you pay the uplift amount on the provisional tax dates required or you’ll run the risk of incurring UOMI. IRD will charge UOMI on the uplift amount or a third of the actual liability, whichever is the lower amount. Late payment penalties will also apply if payment is not made on time.

Provisional tax amounts may be substantial and hard to manage. In addition, you may not know your taxable profit for the year until months after balance date. If your income is seasonal and difficult to forecast, or you have an unexpectedly profitable transaction or contract, you could end up owing IRD an amount you’ll struggle to pay.

Choose the right payment method
Volatile or seasonal income means you may prefer to use the estimation or GST ratio methods to calculate your payments – in which case you will be subject to the same provisional tax rules as before.

The new pay-as-you-earn option, the accounting income method, which IRD hopes will address those issues, is not available until 1 April next year (to coincide with the start of the 2019 tax year).

Until then, it is important to talk to us if you are going to have trouble meeting your provisional tax obligations. We can work with you to devise a plan and discuss options like the use of Tax Management NZ to mitigate your risk if you cannot pay on time or in full.

Whatever your tax challenge, we can help.

Save costs with smart cloud-based accounting software

Thu, 11 May 2017 02:22:00 GMT

Concurrent with the new Act, IRD is also making more and more taxation reporting and payment options available online. For some small businesses, especially those that tried it when it was first available and gave up on it, that may be an intimidating prospect. However, IRD has made their online sites more user-friendly over time.

We encourage the use of widely available accounting software packages, to take advantage of changes brought in by the new Act. Using the online option will make your business easier to run. But it won’t just be in relation to IRD reporting.

Switching to online accounting software like Xero (there are many others) removes a lot of stress for you in terms of compliance and reporting. What’s more, we often find that a time-consuming part of doing end of year work for some clients is first tidying up the bookkeeping. That then becomes a cost to you – and an avoidable one at that.

Cloud-based accounting software packages for small business can cover everything from revenue management to salesforce records, your billing system, bank reconciliation, inventory management, HR, customer records and a whole lot more.

Here are the biggest benefits of using cloud-based accounting software

By reducing time spent on bookkeeping, you’ll free up time for gaining customers, extending your reach and expanding your profile in the market.

Switching to a new bookkeeping system can be daunting at the best of times, and it’s certainly not a panacea for poor record keeping. If you’re interested in making the move, contact us to discuss your options and to plan a methodical transitional process along with any training needed for you and your employees. Time spent doing this will likely repay you many times over!

The Accounting Income Method – no more guesswork with provisional tax

Thu, 11 May 2017 02:08:00 GMT

Many business owners find calculating and paying provisional tax one of the most difficult areas of compliance. So any opportunity to simplify this has to be welcome.
The accounting income method is a grand name for a simple but smart change. It allows you to use your accounting software to calculate and pay your provisional tax, taking the guesswork out of the process. If that sounds a lot like how you calculate PAYE, that’s because it is. Although these changes don’t take effect until April 2018, now is a good time to start planning for them. We’ll look deeper into this in future issues, so watch this space.

Other business-friendly measures include reducing or removing UOMI for the vast majority of business taxpayers. In the past UOMI has been seen as unfair, because even if a business paid the correct amount of provisional tax during the year it could still incur the interest. As of April 1 this year, this charge is considerably reduced through the extension of the safe harbour rules.

In addition, there are new rates for UOMI. As from 8 May, they have changed to:

The rates are reviewed regularly to reflect market interest rates.

The combination of the accounting income method and the other provisional tax changes will reduce the impact UOMI has on small businesses. The changes also remove the one per cent incremental late payment penalty for new GST, income tax, and overpaid Working for Families tax credits.
If you’d like more information about these changes, or how they could benefit you, get in touch with us and we’ll be happy to walk you through them.

Tax Simplification- IRD is making it easier for you to manage your tax

Thu, 11 May 2017 01:03:00 GMT

Positive tax changes that we’ve been signalling for some time are finally taking effect, with key aspects of The Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act and the Taxation (Annual Rates for 2016-17, Closely Held Companies, and Remedial Matters) Act having come into force on 1 April.

Revenue Minister Judith Collins was bullish about the changes, stating, ‘This package gives businesses more certainty about their tax payments and more time to focus on growing their business’. While she would say that of course, she’s essentially right.
Key aspects include provisional tax changes, changes to use of money interest (UOMI) and penalty fee interest, and simplified reporting for businesses. There are also changes to tighten New Zealand’s disclosure requirements for foreign trusts.

Will yours be one of the small businesses to benefit from this tax simplification? Almost certainly, because the new accounting income method, due to take effect in April 2018 and explained below, will take the headaches and guesswork out of paying your provisional tax.

Of course, change – even positive change – can cause anxiety. What do you need to do to take advantage of these changes? Do you need to do anything differently to comply with them? As always, the best course of action, if you have any questions, is getting in touch with your accountant. We’re here to help.

Some changes to specific types of companies:

Closely Held Companies (CHC)

Small Closely Held Companies represent a significant proportion of New Zealand’s 400,000 companies. The new rules, which are intended to simplify compliance, cover Resident Withholding Tax, capital gains, and the payment of provisional tax.

Look-Through Companies (LTC)

These limited liability companies operate with a tax structure that allows the company to transfer income and expenditure directly to shareholders. Changes to the legislation are designed to ensure LTCs operate as closely controlled companies (as originally intended). The changes are complex, and while the changes include removing the deduction limitation rule for most LTCs, they also affect LTC-owning trusts and their beneficiaries, and the amount of foreign income that can be earned, among other things.

Changes to ‘Safe Harbour’ rules

As part of the changes to the provisional tax rules, the Bill increases the current ‘safe harbour’ threshold at which UOMI applies, from $50,000 to $60,000, and extends the safe harbour to companies rather than just individuals.

The safe harbour threshold basically means that if you have paid tax on the standard uplift method of paying provisional tax (last year’s tax bill, plus 5%) and your tax bill is less than $60,000, you won’t be hit with interest. UOMI may be applicable only from the third instalment.

Before the third provisional tax payment, we can assess your year’s trading and work out how much tax you need to pay.

The amendments also add three requirements to tighten application of safe harbour rules. These will 1.) require a taxpayer to actually make the three instalments required under the standard method to enable them to use the safe harbour; 2.) prohibit a taxpayer who has a provisional tax interest avoidance arrangement from using the safe harbour and 3.) prohibit a taxpayer who has paid the first two instalments under the standard method from changing to the estimation method.

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