With the introduction of the Taxation (Annual Rates for 2025–26, Compliance Simplification, and Remedial Measures) Bill in late 2025, and ongoing amendments to the tax regime, SMEs in New Zealand face a new compliance landscape. What may sound like simpler rules, can demand new planning, new systems and fresh discipline. With your business advisory hat on, it’s crucial to understand how these changes could affect your year-end planning and next year’s tax strategy.
What is changing in tax compliance?
The new Bill, introduced in September 2025, aims to simplify tax compliance for the 2025–26 tax year and beyond. While the intention is to reduce the administrative burden, any change to the tax system requires careful attention.
A notable change is refinements in GST reporting requirements, and expanded digital filing obligations. For instance, businesses may need to transition to more advanced accounting software capable of meeting the real-time reporting demands now being encouraged under the updated legislation. This could also necessitate additional training for internal teams to ensure they stay compliant and avoid penalties associated with missed or inaccurate filings.
Additionally, the changes aim to close existing loopholes in tax deductions and credits, meaning greater scrutiny on expense reporting. Areas such as entertainment expenses, depreciation claims, and fringe benefit tax (FBT) reporting may now require further clarity and stricter documentation. These shifts emphasize the need for proactive financial planning, as businesses will have to adapt quickly to the evolving regulatory environment.
Why this matters for your business
For any business owner, the phrase “tax simplification” sounds like a welcome relief. However, simpler rules do not mean no action is required. The responsibility to correctly work up your tax positions, manage asset bases, calculate deductions, and align with policy changes remains firmly with you.
There is a real risk of falling behind if you assume that “simpler” means you can relax your financial discipline. Less time spent on compliance should ideally mean more time spent on strategy and growth. But to get there, you must first understand the changes and adjust your processes accordingly.
Practical steps for December and early 2026
As we approach the end of the year, it is the perfect time to get your business ready for these changes. Taking a few practical steps now can ensure a smooth transition into the new financial year.
- Review your assets and depreciation: take a close look at your asset purchase history and current depreciation schedules. It is important to ensure they are accurate and aligned with the latest rules before any new simplification measures take effect.
- Update your internal processes: this is a unique opportunity to strengthen your tax governance. Good data management is the foundation of sound tax compliance hence why it is important to review your documentation practices, and record keeping ensuring they remain robust.
- Map your new workflow: as your advisors, we will be working to understand how these changes specifically affect your business. We will help you map out any adjustments needed in your internal workflows to guarantee you remain compliant and efficient.
How Moore Markhams can help
At Moore Markhams, our purpose is to help people thrive, and that includes navigating the complexities of tax changes with confidence. We are here to provide the expert financial guidance you need to turn these changes into an advantage for your business.
We can work with you through dedicated advisory sessions to prepare for “tax simplification readiness,” ensuring you understand exactly what the changes mean for you. To support this, we can provide a straightforward checklist to help you review your internal controls, documentation, and data management.
We invite you to connect with us for an early workshop or webinar on these important changes. Let’s work together to ensure your business is not just compliant, but strategically positioned for growth in 2026 and beyond.
