Leadership That Delivers webinar and Covid Policy for customer contact

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Interest limitation on residential investment property

The Government has released draft legislative proposals to limit interest deductibility for residential property investments. From 1 October 2021:

for properties acquired before 27 March 2021, interest deductions on loans will be phased out at 25% per year over 4 years, until 31 March 2025
for properties acquired after 27 March 2021, interest deductions will not be deductible (unless the property was acquired by an offer made on or before 23 March 2021 that could not be withdrawn before 27 March 2021)

The focus is on residential investment properties which can be used for long term accommodation. Typically, this would mean a house or an apartment, whether it is used for providing short-term or long-term accommodation, or even left vacant. It leaves out:

  • the main family home
  • several types of residential property, including farmland, certain Māori land, student, employee, and rest home accommodation
  • property developers, who can continue to deduct interest expenses
  • new build properties, which are exempt from the interest limitation rules
  • hotels, and other businesses set up to provide short-term rather than long-term accommodation
  • owner-occupiers who rent to flatmates

The proposed rules also contain allowance for interest deductions on a taxable sale of residential property, although deductions may be limited to the gain on sale.

Keep in mind that the proposals will be considered by Parliament and may change before being introduced.

Talk to us about how the proposed rules affect you and the impact on your tax liabilities.

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Join us for our Leadership That Delivers webinar

Are you a company director?  It’s essential that you understand your role and how to accelerate your organisation’s performance with a clear framework

On Wednesday November 17th at 12pm, join us for part two of our governance webinar series, Leadership That Delivers, where you’ll:

  • Dive deeper into the four pillars of leadership
  • Discover the key responsibilities, tasks and KPIs for the leader role
  • Learn proven ways to develop your Governance Framework Plan

Register by clicking below and if you are unable to attend we’ll send you the recording later.

If you missed part one of our governance webinar series, access the recording HERE.
You’ll gain more value from part two if you’ve seen part one.

Part two is available here.



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New COVID-19 Framework

The Government’s announcement on the next stage in the COVID-19 response plan introduces a new framework of measures that will commence when 90% of eligible New Zealanders are fully vaccinated.

The new framework has three levels: Red, Orange and Green. Each has different levels of restrictions. At all levels businesses will be able to operate, in some form, for vaccinated people.

The advice states, If a business, organisation or service does not wish to request proof of vaccine, they will have to operate with strict limits on capacity and space requirements. They may need to close in Orange and/or Red levels.

Tax and Trust Covid Policy

At Tax and Trust we will be following the Government framework on operating in person services. From next week we will have our office open with one fully vaccinated staff member at a time. We will ask you to wear a mask when you come in to the office, make sure you contact trace and we will provide hand sanitiser.

We have the ability to receive paperwork in a contactless manner if you prefer.

We definitely recommend you create your own Covid Policy so that when your customers ask you are ready with your response on how to keep them and yourselves safe.

For more information on the levels visit the Covid 19 website.

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COVID-19 Business Support – updated

The Government has announced another round of Resurgence Support Payments. Contact us now if you have questions or would like help with an application.

From 12 November 2021, the Resurgence Support Payment will be paid fortnightly instead of three weekly.

Businesses can receive $3000 per business plus $800 per full-time employee (FTE), up to 50 FTE (up from$1500 plus $400 per full-time employee) The maximum fortnightly payment is $43,000.

If you are self employed, or a sole trader you can receive a payment of $3,800. The eligibility criteria remains the same.

We have been finding some clients that are eligible have not applied, which means they are missing out on funds they could be accessing.


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