As part of the Taxation (Annual Rates for 2023 – 24 Multinational Tax and Remedial Matters) Bill, the trust tax rate will increase from 33% to 39% from 1 April 2024.   The new tax rate may be cause for concern for individuals with assets held through trusts, as even those not considered high-income earners may end up with their trust paying tax at a high rate of 39%. Inland Revenue…  ..read more

The new National coalition government has decided to keep the “app tax” initiated by the previous Labour government in 2023. During election campaigning National had promised to reverse the change that would have seen GST imposed on accommodation and transportation providers on platforms like Uber and Airbnb. However, now as they seek means to fund their coalition policy initiatives, they’re sticking with Labour’s plan, and the change will happen next…  ..read more

If enhancing your business strategies is on your list of New Year’s resolutions, now is a good time to revitalise your approach and set the stage for success in the upcoming year. In the unpredictable world of business, finding a little certainty can make all the difference and tools such as budgeting and cash flow forecasting can significantly reduce the level of uncertainty, allowing you to anticipate challenges, learn from…  ..read more

Owning a residential rental property can be a lucrative investment, providing a steady stream of income for property owners as well as long term capital growth. However, when it comes to tax considerations, the type of rental income—short-term or long-term—can significantly impact your financial obligations. Whether you are a short or long-term rental property owner, you must report your earnings on your annual income tax return. It’s crucial to keep…  ..read more

If you’re a business owner or taxpayer in New Zealand, you’ve likely encountered terms like ‘no GST’ and ‘zero-rated GST’ transactions. These terms refer to specific tax treatments under the Goods and Services Tax (GST) system in New Zealand. In this blog post, we’ll break down these concepts in simple terms to help you understand the difference. No GST transactions No GST transactions are those where the goods or services…  ..read more

The IRD has recently published an interpretation statement (IS 23/08) to provide guidance on how GST applies to different transactions between a unit title body corporate, its members, and third-party suppliers. A UTBC is a separate legal entity to its members.  It can decide whether to register for GST.  UTBCs are generally considered only making taxable supplies to their members in the form of members’ levies.  The value of supplies…  ..read more

In the unpredictable world of startups, maintaining a cash surplus can be a lifesaver. It provides a safety net in case sales don’t meet expectations or unexpected expenses arise. Aside from providing security, surplus cash also paves the way for expansion opportunities, handling large bills, or purchasing essential equipment. While injecting personal capital or taking out a loan can aid in creating a cash surplus, let’s explore some other effective…  ..read more

If you operate as a self-employed lawyer, IT specialist, architect, manage a firm or agency, or provide professional services in any capacity, your time is your most valuable asset. As such, it’s crucial to ensure that you’re charging appropriately for your services, not only to maximise your income but also to maintain fair wages for your staff and strike a healthy work-life balance for yourself. In this post we look…  ..read more

As a small business owner, you’re likely already wearing many hats. But the hat of a financial analyst might seem a little oversized, particularly if your background isn’t in finance or accounting. However, understanding financial ratios can be a game-changer for your business, helping you assess your business’s financial health and make informed decisions. Financial ratios: what are they? Think of financial ratios as a thermometer for your business’s financial…  ..read more

In the world of business, one constant factor you are likely to encounter is change, particularly in the financial landscape. One such change that can bear significant implications for small businesses is rising interest rates. Understanding how this impacts your business and identifying solutions to counteract these effects can be key to sustaining and growing your business. With the election out of the way, business people and mortgage holders are…  ..read more