For some, the increase in the trust tax rate from 33% to 39% has prompted them to ask the question – should we wind up our trust? Rather than looking at the purpose of having a trust with a narrow tax lens, it may be of benefit to consider your circumstances more...

A common complaint made by employers is that the amount of time it takes to meet their FBT obligations is disproportionate to the amount of tax it actually generates. This frustration is arguably borne out in the number of mistakes that are often made when calculating...

Inland Revenue has commenced consultation on what topic should be covered in its next Long-Term Insights Briefing (LTIB). Inland Revenue, like other government departments, is required to produce a LTIB once every three years. The purpose of an LTIB is to identify and...

The depreciation rate for non-residential buildings has been reduced to 0%, effective from the 2024 / 25 income year. However, commercial fit-out remains depreciable. This makes the distinction between the two important because it is the difference between not being...

Over the last 18 months there have been a number of businesses fall over – which in and of itself has not been surprising given the recent economic climate. However, one element that serves as a warning for us all is the flow on effect of those failures. Not just in a...

Tararua District Council is teaming up with our accounting firm to dive deep into the long-term economic effects of Cyclone Gabrielle and other pressures on the Tararua District farming community. With nearly 70% of our land classified as rural, agriculture is a key...

It comes as no surprise that since New Zealand entered an official recession in December 2023, individuals and businesses have been forced to take steps to cut costs to survive the impact. Having not experienced a recession since March 2008, many New Zealanders might...

It is important to regularly ask whether you are providing the products that your customers want and whether there are any new products that you could provide to ensure you are evolving with changing times as you look for the next income stream. There are plenty of...

For the first time since 2010, personal tax rate thresholds will change from 31 July 2024. The change was announced as part of the 2024 budget. When personal tax thresholds are not regularly adjusted to take into account inflation or wage growth, individuals end up...

What was a temporary tax concession, relating to donated trading stock, has now become a permanent one. Prior to March 2020, in most cases, if a business donated trading stock it resulted in deemed income equivalent to its market value. This resulted in a business...

BAU is a phrase that is used to describe “business as usual”. It is a good barometer of whether anything strange or unusual has occurred or whether things have been BAU. Invariably, non BAU transactions will occur: an insurance payout, a large asset purchase, a fine...

After a relatively quiet few years through the Covid pandemic, Inland Revenue’s (IR) audit activity has slowly started to increase over the past few years. In 2021, IR’s campaign had a focus on the real estate sector, where the concern was around real estate agents...

Rates are rising across the country, with a recent economist’s report showing an average expected rise of 15%. This is the largest rise the country has seen since 2003, which begs the question, where is all the money going? Inflated construction costs and widening...

A brief summary of the tax changes included in the 2024 budget.  Income Threshold (existing)  Income Threshold (from 31 July 2024)  Tax Rate (%)  $0 - $14,000$0 - $15,60010.5$14,001 - $48,000$15,601 -...

Along with changes to the interest deductibility rules, legislation has been passed which repeals the current bright-line tests, replacing them with a new (or old) 2-year test.  The changes repeal all of the previous tests and replaces them with a 2-year test...

With the new Government now firmly settled in, legislation has been passed which reverses the interest deductibility limitation rules that were introduced by the previous government in 2021. As detailed in the legislation, the new rates are as follows: Date interest...