Starting from 1 July 2024, NZ families may be eligible to receive FamilyBoost, a childcare payment designed to help households manage the cost of early childhood education (ECE). This initiative aims to ease the financial burden on caregivers by allowing eligible households to claim up to 25% of their weekly childcare fees, with a maximum payout of $975 every three months. Who Can Benefit from FamilyBoost? To qualify for FamilyBoost, you must meet the following criteria: Caregiver of a child or children aged 5 and under: You must be responsible for the care of young children in this a ..read more

As of June 2024, Xero has decided to retire WorkflowMax, a job management tool by Xero. However they have also announced that the WorkflowMax brand has now been acquired by BlueRock, a tech-led business advisory firm who are working to develop this further. WorkflowMax by BlueRock, will be available for customers from 2024 and Xero will have an ongoing revenue share agreement with BlueRock in connection with WorkflowMax by BlueRock. What do you need to do? It is critical that you migrate to your future replacement solution– whether that be WorkflowMax by BlueRock or another solution in the X ..read more

  We are committed to keeping our clients informed about important updates that impact their business. As you may know, Xero is introducing a new set of business plans starting on 12 September 2024. One of the most significant changes is the transition away from the Xero GST Cashbook to the new Xero Ignite plan. What Does This Mean for You? New Plan Details: The Xero Ignite plan, priced at $35 per month (excluding GST), will replace the Xero GST Cashbook. This new plan is tailored to meet the needs of small businesses by providing essential accounting tools in one streamlined package ..read more

  Cryptoassets, also known as cryptocurrencies or virtual currencies, are becoming increasingly significant in today's digital economy. What you make from selling, trading or exchanging cryptoassets is taxable. What are Cryptoassets? Cryptoassets are cryptographically secured digital representations of value that can be transferred, stored, or traded electronically. They use distributed ledger technology like blockchain to ensure secure and transparent transactions. Are cryptoassets taxable? In New Zealand, cryptoassets are treated as property for tax purposes. This classification affects ..read more

  Hon Nicola Willis, the Minister of Finance, delivered the 2024 Budget on Thursday, 30 May 2024. The Minister announced that Budget 2024 delivers on key commitments including the following: a fiscally responsible Budget that delivers on the Government’s commitments the tax relief that gives average-income households up to $102 per fortnight plus Family Boost childcare payments up to $150 per fortnight targeted investments in public services, including healthcare, education and law and order savings across government to responsibly fund tax relief and boost frontline services in ..read more

  From 1 July 2024 the bright-line property rule is changing. Under this new rule, the bright-line test period will be reduced from 10 years to 2 years, which means you will only need to pay tax on any profit made from selling a residential property if you sell it within 2 years of purchasing it. This applies to properties sold after 1 July 2024​. The date you sell matters If you sell a property on or after 1 July 2024, the bright-line rule will only apply if the property is sold within 2 years of purchase. However, if you sell before that date, the current bright-line periods apply. This ..read more

  The New Zealand government has proposed changes to tax legislation to ease the over-taxation of low-earning trusts. These changes, recommended by Parliament’s Finance and Expenditure Committee, amidst the scrutiny of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill. Finance Minister Nicola Willis has expressed her support for these amendments, highlighting the government’s intent to ensure equitable tax treatment for high-income individuals, regardless of how their income is generated— directly or through a trust. However, an unintended consequence o ..read more

  Budget 2023 announced that from 1st April 2024, the trustee tax rate is going to increase from 33% to 39%. This change will affect all those who have family trusts registered in New Zealand. Inland Revenue has since the release of the change released guidance around how it may perceive some taxpayer transactions and structural changes: A company is owned by a trust and changes its dividend paying policy:Inland Revenue is fine with companies adjusting their dividend payouts to owners based on changes in tax rates or the owners' needs, seeing this as legitimate, not tax avoidance. Howev ..read more

The landscape of GST is set to change significantly from 1 April 2024, affecting businesses and individuals involved in ride-sharing, food delivery, and short-term accommodation services. Suppliers operating through these platforms will not need to register for GST themselves if they continue to make under $60,000 per year; instead, the platforms will be responsible for charging, collecting, and remitting GST on the services provided. What You Need to Know: GST on Digital Platforms: Platforms will now be responsible for charging GST on services offered, even for providers earning under the ..read more

  This year, significant tax changes are expected as the new Government implements its policies and progresses some from the previous administration. Key anticipated changes include: 1. Income Tax Threshold Changes: Finance Minister Nicola Willis hinted at personal tax rate changes in the upcoming Budget. The National party proposed adjusting income tax brackets to counteract inflation, effective from July 1. This includes increasing the thresholds for various tax rates, e.g., the 17.5% rate threshold from $14,000 to $15,600. 2. Impact on Related Taxes: Changes in personal tax ra ..read more