New Zealanders who read the news are acutely aware our population is growing older. We’re living longer too and having fewer babies. These facts mean New Zealand superannuation costs have increased and are likely to continue to do so. This raises the question of whether superannuation payments will be available to those who retire in […]
New Zealand is one of the few countries where a comprehensive capital gains tax system doesn't exist. That said, there are a range of rules on our statute books that do tax land sales. Probably, the most commonly known test is what’s referred to as the the ‘bright-line test’. This is interesting, because despite being widely […]
OCR AND INTEREST RATES. If you’ve been living in New Zealand for the past couple of years, you’ll know we’ve been at war with the inflation beast. This has affected the cost of doing business and the cost of living. Ultimately, the effect of high inflation is businesses paying more for the inputs they need […]
If you’ve read our last article on the OCR and interest rates, you’ll know when the Reserve Bank reduces the OCR, the wholesale rates banks borrow money from the Central Bank falls. This can result in our registered banks reducing their short-term interest and deposit rates. POSSIBLE EFFECTS Debt to Income (DTI) rules became operational […]
Have a look at most businesspeople and you’ll find a trust or two in their structure. Trusts in one form or another have been used for eons, primarily to hold and protect assets and pass on wealth to successive generations. Trusts can be likened to insurance policies, providing asset protection against creditors and relationship claims […]
Most New Zealanders are aware if they acquire and dispose of land within a certain period of time, tax may be payable to Inland Revenue. The tax, commonly referred to as ‘Brightline Tax’ was introduced via the Brightline rules by the National Government in October 2015 as an attempt to ensure property speculators paid their […]
It’s no secret – Labour was not fan of those involved in property. Extension of the Brightline period, loss of interest tax deductibility and changes to tenancy laws were favoured policies of the Red Team that negatively affected property investors and tenants alike. That story is changing now we are led by a National Government. Indeed, […]
Trusts dominate the wealth landscape. They’ve been used for eons and successive generation to hold and protect wealth. Given the humble trust is such a popular vehicle to hold assets and produce income, it’s no wonder the IRD have turned their attention to reviewing trusts to establish if they’re operating as they should be. Unfortunately, […]
One of the most predicted changes the Budget introduced was a change to the trustee tax rate. As soon as the top marginal income tax rate increased to 39%, it was a forgone conclusion the Government would alter the trustee tax rate too. The only matter the jury was out on, was the timing. Clarification […]
If you’re asking where your slice of the Bread & Butter Budget is, you’re not alone. Primarily, business per se weren’t the recipients of much Budget assistance. Those two thirds of the SME Community polled pre-Budget release certainly didn’t have their expectations dashed. That in itself was hardly surprising, given this was a Budget presented […]
New Reporting Regime Now that we are completing Financial Statements and Tax Returns for clients for the 2022 financial year it’s appropriate to remind you of the increased scrutiny Trusts are receiving from the Commissioner of Inland Revenue Department (IRD). We informed you this would occur back in October 2021. Under the new reporting regime […]
This article is the last in the series of three which discusses estate planning. Our first two articles concentrated on Powers of Attorney and Wills. This article specifically canvasses the value of a Memorandum of Wishes and the types of provisions typically found in such a document. Read on to establish if you need a […]