There are three key changes to the bright-line rules which are the rules that tax gains on the sale of residential property. From 1 July 2024, the bright-line period returns to its original form of 2-years. This means, if you sign an agreement on or after 1 July 2024 to sell a residential property, and the sale does not occur within 2 years from when you acquired the property, then… Read more
If you offer accommodation or ride share services in New Zealand via an electronic marketplace (e.g., Airbnb or Uber), new GST rules apply to you from 1 April 2024. Previously, if your turnover did not exceed the $60,000 GST registration threshold, your services were not subject to GST. Now, however, the electronic marketplace is required to charge GST to the customer on the provision of your services, regardless or the… Read more
The depreciation rate for commercial and industrial buildings will revert back to 0% from the 2024-25 income year. Commercial and industrial buildings are buildings with an estimated useful life of 50 years or more, based on their whole-of-life basis rather than end-of-life basis. These buildings will remain ‘depreciable property’ which means historical depreciation deductions remain recoverable when the building is sold. Commercial and industrial building fit-out will remain depreciable, but… Read more
An ever-changing business landscape can present unforeseen challenges for any business at any time. Identifying risks and opportunities in your business model and creating a Business Plan will help you prepare for difficulties or adversities and provide clarity in the event of a crisis in the future. Now is an ideal time to document a clear Business Plan: Defining what you, as business owners, want from the business; this includes… Read more
Remember to provide all the relevant documents we will need to put together your financial statements for the year. Have you got yours ready? Here is our checklist for information we need – most of which is automatically available for us if you use Xero. Income: Sales Commission received Interest received (if the investment is under the business name) Professional fees Rent received (business) Expenses: ACC Accounting fees Advertising Cellphone… Read more
As a brand, you want to be seen as professional, trustworthy and capable. But there’s also a strong argument for letting down the professional facade occasionally to use a little humour in your marketing, your communications and the company’s brand personality. Are we joking? Making gags in professional marketing? We’re totally sincere about this. In fact, humour is actually what your customers want, according to the latest consumer research. So,… Read more
Where has the time all gone to? The end of the financial year is almost on us. 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 an end of tax year checklist. So, to avoid scrambling this time next month – take a breath, take note, and take action. Being prepared is the key to avoiding end-of-year financial… Read more
2tppwx1fagfgf1iflsdltw Marc Olivier Jodoin Nqoinj Ttqm Unsplash In a tough business environment, the right digital tools can give your business the edge over your rivals and take you to the next level. Innovative apps in nearly every industry have emerged over the past few years to help companies save time and become more resilient. Six reasons to jump onto the Xero App Store Xero customers can access more than 1,000… Read more
As of 10 March, the coalition government has confirmed the return of interest deductibility for property investors, with the phased-in changes taking effect from the next financial year. As a result, legislation is expected to be passed allowing you to deduct 80% of your interest expenses on property investments in the year to 31 March 2025 (ie from 1 April 2024). Note that the previously proposed 60% allowance for the… Read more
Running an online business has become a reality for a huge number of business owners in recent years. There are an estimated 12 million-24 million eCommerce sites across the globe and those numbers have risen sharply since the pandemic. But although online shopping may be convenient, there’s still a real desire for physical shops and in-person retail. So, if you’ve been running a successful eCommerce business or online side hustle,… Read more
At this stage, there are still many unknowns as ministers assess new legislation and review existing policies. One key area to watch is the tax treatment of property investors. It’s been widely discussed that National plans to shorten the bright-line test for property investors to two years from 10 years, returning the law to its 2015 setting from 1 July 2024. New builds will not be exempt from the two-year… Read more
Here are some of the major changes businesses should watch out for: 1. Reintroduction of 90-day employment trial periods The government has extended the availability of 90-day employment trial periods for all businesses, reversing changes made in 2018, which scrapped 90-day trials for businesses with more than 20 employees. 2. Clean car discount and ‘ute tax’ to end The clean car discount, allowing people to claim back up to $8,625… Read more
You’re running a business, so you know the legal requirements around producing accounts and submitting tax returns. But do you truly know WHY you’ve engaged an accountant? And do you understand the value that a good accountant and business adviser can add to your company? As a business owner, managing director or CEO, there are three main areas of the accounting proposition that you’re probably most interested in: –… Read more
Goods and services tax (GST) is a tax on most goods and services in New Zealand, at a rate of 15%. As a business owner, you’re likely familiar with how this works. Your customers pay it when buying your goods and services and you collect GST on behalf of the government. Your business is a ‘taxable activity’. The goods and services you supply to consumers are taxable and the government… Read more
When it comes to repairs and maintenance on a rental property knowing what can and can’t be claimed can be tricky. Example scenario: Sam owns a rental property that was rented out for 33 weeks of the 2023 financial year. The tenants moved out in October 2022 and Sam found that the kitchen needed some repairs before it could be rented again. Sam decided to move into the property in… Read more
The new year is a new beginning. If you are a business owner, this is often the time of year when you reflect on where you are at and think about your business goals for the year ahead. Setting goals is an essential part of personal and professional growth. These could be lofty goals, or even setting out a business plan to achieve some more mundane (but equally important) projects.… Read more
While some businesses shut completely over the summer break, many stay open. Businesses have the difficult task of balancing their rotas to keep things running smoothly. If you’re maintaining a skeleton staff over Christmas, offer incentives and ensure staff get the chance to take turns to cover shifts, so everyone gets some time off to see their loved ones. If you’re taking on extra staff, make sure you follow sound… Read more
Budgeting is about estimating your revenues, projecting your expenses and detailing the allocation of funds, so you stick to (and don’t overrun) your agreed budget ceiling. How does budgeting affect your business? Having a clear, agreed budget gives you a structured framework for your financial decision-making. It’s a practical way to control your costs, monitor performance and adapt your strategic and financial decisions to meet changing economic conditions. Using budgeting… Read more
We have been using email software called Karbon for a while and they have some great features to help us keep your details safe. One of those features is the Karbon Client Portal and Magic Links. We’ll be using these from now on for our correspondence with clients. This platform will facilitate the sending, receiving, and requesting of documents and information in a more secure manner. When we request information… Read more