The New Zealand 2024 Budget was handed down on 30 May at 2pm.

The Budget for 2024 demonstrates fiscal responsibility, provides long-awaited tax relief for 83% of New Zealanders, and allocates funds towards enhancing frontline public services for improved outcomes.

The main change is that the bright-line period will now decrease from 10 years for existing properties or 5 years for a new build, to 2 years which applies to disposals on or after the 1 July. Rollover relief rules applying to bright-line transfers of residential land have also had a complete makeover, with the new criteria applying from 1 July.

The Working for Families Tax Credit (WFFTC) is a notoriously complex scheme when it comes to determining eligibility and quantifying entitlement. This leads you to wonder how well the scheme is policed by Inland Revenue, and whether fraud is able to ‘fly under the radar’.

The concept of what is a “dividend” is very broad and starts with the default proposition that any transfer of value from a company to a shareholder is a dividend. That concept includes the simple scenario of an interest free loan to a shareholder or a person associated to a shareholder; which can also include loans between companies.

On the eve of his promotion from Associate Partner to Audit partner, Stuart Hansen reflects of the importance of Shared Common Humanity and Business Acumen to thrive in professional services.
 

With several payroll changes coming 1st April 2024, it’s important to understand the changes and how they will affect your business.

The Government has chosen to delay the phasing out of the interest limitation rule for residential property investors, as outlined in the coalition agreement between National and Act parties.

The Hon Nicola Willis, Minister of Finance, has recently unveiled proposed amendments to tax legislation aimed at rectifying the over-taxation of low-earning trusts.

The story of Freeze Dried Foods (FDF) stands out as a testament to hard work, dedication, and strategic partnerships.

As increasing interest rates have bitten and with industry sectors such as retail and construction not performing as strongly, some businesses are struggling. As the end of the financial year approaches, now is a good time to assess whether any of your accounts receivable need to be written off as ‘bad’.

For 99.9% of the time, New Zealand companies are incorporated to operate a business and derive income.

After the introduction of the Trust Disclosure rules in March 2022, in November 2023 Inland Revenue released a high-level summary (in the form of a 40-page report) of insights from the first year of reporting. While tax advisors and clients alike may have begrudgingly completed the disclosures initially, the statistics may prove to be interesting.

In the shadow of Cyclone Gabrielle, this year's budget focuses on cost of living and cyclone and flooding recovery, with the sights being shifted and narrowed down on skills, science and infrastructure to help grow the economy and make it more productive and secure.

Good news for community pharmacies, as Budget 2023 removes $5 co-payment.

Calculating Fringe Benefit Tax (FBT) on motor vehicles can be complex, due to the various permutations that can exist depending on the use of the vehicle, its type and the approach adopted by the employer. As a result, it is very common for businesses to get the calculation wrong.

One of the fundamental director’s duties within the NZ Companies Act 1993 (‘the Act’) is to act in good faith and in what the director believes to be the best interest of the company. This has traditionally been interpreted to mean decisions should be aimed at maximising shareholder returns.

The call for action regarding climate change and mitigating man’s negative impact on the planet is not new. However, there has been a shift in the last few years. It has moved from being a focus of ‘greenies’ and the ‘young’ to being accepted by the mainstream population as something that can no longer be ignored.

On 31 March 2023, Inland Revenue released a draft interpretation statement (PUB00417) addressing the deductibility of land holding costs - namely, interest, rates and insurance - and the relevance of whether the land is taxed on disposal. How will this affect you?

In response to the adverse weather events that hit in January and February this year, a number of tax concessions were released on 14 March 2023 in an attempt to provide some relief to those who were impacted.

Mid-market M&A remains strong despite economic volatility

Stuart Hansen has been appointed as our Auckland firm’s newest Associate. After leaving a career as a paramedic, Stuart decided he wanted his new role to lead on to management and ultimately partnership. He is definitely on his way.

COVID provided a welcome boost financially for many of New Zealand’s community pharmacy businesses. This is the key finding of the Moore Markhams 2022 New Zealand pharmacy benchmarking survey.

Wellington’s Driscoll Motors will clock up 100 years in business next year, owing to its adaptability and proud history of strong customer service. Moore Markhams Wellington has helped them on that journey.

A recent Inland Revenue report found that although FBT is performing its task of taxing non-cash benefits and hence supports the tax system, it was inconclusive as to whether FBT functions well. We explore this further.

Parents wishing to assist their children with buying residential property should carefully consider the ownership structure and alternate options before settlement. Inland Revenue has issued a draft interpretation regarding bright-line application in family and close relationship transactions.

Moore Walker Davey Searells, Christchurch is delighted to announce that Rachael Reedy has joined John Hendry, Matt Donaldson, Mike Ansett, Mike Ansett and Darren Hayward as a director of our firm.

After 114 years, the legislation around Incorporated Societies in New Zealand has been updated. Moore Markhams audit partner, Andrew Steel has reviewed the legislation and shares the key changes to be aware of.

Auckland firm Computer Recycling is primed to capitalise on the flourishing electronic recycling market, following a multi-million dollar technology investment.

When you design and install diverse, tailored audio-visual systems for a living, a bit of creative problem-solving becomes par for the course. And it’s that nimble and flexible approach that has helped Wellington firm Audio Workshop soften the blow of Covid while continuing to grow turnover and profit.

Inland Revenue’s “Design of the interest limitation rule and additional bright-line rules” document provides clarification on the proposed rules and seeks feedback on certain elements regarding the tax deductibility of interest on residential investment properties and the extension of the bright-line period to 10 years. 

Technology needed to meet 2050 global emissions targets is not ready but there are five steps we could take now that would make a big difference.

Shipping would be the world’s sixth largest polluter if it was a country. Powering vessels with LNG could cut emissions by 30 percent but it is controversial.