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Year-end tax planning for Australian businesses operating in New Zealand

Year-end tax planning for Australian businesses operating in New Zealand

As we approach the end of New Zealand’s tax year (31 March for most) it’s a good idea to check off these tax planning tips. It will help us to get the best result for you as we prepare your New Zealand income tax returns.

Many businesses have been impacted by COVID and there are tax planning tips in here that may help. So consider these tax tips in the run-up to New Zealand’s year-end so that we can help you to get the best outcome.

Our experienced team is well versed in the things to watch out for when it comes to Australian companies carrying out business activity in New Zealand.

Which foreign exchange rates can you use when converting Australian transactions into New Zealand currency?

Which foreign exchange rates can you use when converting Australian transactions into New Zealand currency?

Inland Revenue has released a document which approves foreign exchange rate sources which can be used in order to convert a foreign currency amount into New Zealand dollars for tax purposes.

The notice also approves the use of mid-month, end-of-month and rolling average currency conversion methods where appropriate. These methods can be used unless specifically excluded under New Zealand’s Income Tax Act 2007 or if the Commissioner states otherwise.

We now offer Taxpayer Insurance

We now offer Taxpayer Insurance

In the past, a tax audit has been a tax audit. However recent legislative changes now allow Inland Revenue to carry out “mini-type” tax audits which may be in the form of general widespread questions.

Inland Revenue (IRD) can take an interest in the taxation affairs of any New Zealand taxpayer at any time, even if you have never been targeted before. Whether it is an Income Tax, GST or Payroll Return, IRD can still initiate an enquiry. 

This can result in time and additional costs for us to liaise with IRD and help you resolve any issues.

We have got you covered.

My Australian-based employee wants to live in New Zealand – Do I have to register as a New Zealand employer?

My Australian-based employee wants to live in New Zealand – Do I have to register as a New Zealand employer?

We often get questions from Australian employers on how to deal with the situation where an employee is looking to resettle in New Zealand or they are looking to employ someone who is based in New Zealand.

An Australian employer has an obligation to account for withholdings to Inland Revenue if they are carrying out business from within New Zealand and they have engaged the employee to assist them to carry out the business activity over there.

New Zealand’s COVID-19 Traffic Light System

New Zealand’s COVID-19 Traffic Light System

New Zealand is moving to a new way of restricting movements during COVID-19 outbreaks. The new traffic light system commences on 3 December 2021 and is designed to allow greater freedom to vaccinated New Zealanders while curbing freedoms to those who choose to remain unvaccinated.

As you might guess from the name, regions in New Zealand will be zoned either green, orange or red and the zones will change in relation to the local COVID situation.

Do your New Zealand employees need to be vaccinated?

Do your New Zealand employees need to be vaccinated?

The New Zealand government will be releasing a tool in mid-December to assist New Zealand employers to determine if their employees need to be vaccinated.

This is part of the process designed to protect businesses and workers from COVID-19 as New Zealand prepares itself to transition to the new COVID-19 protection framework which kicks in from 3 December 2021.

New Zealand Moves The Goalposts With Regard To Rental Properties And Tax

New Zealand Moves The Goalposts With Regard To Rental Properties And Tax

The New Zealand government has announced a number of changes that will directly impact on taxpayers who own a residential rental property in New Zealand.

Some of the changes will only impact on you if you purchased a house on or after 27 March 2021 while some of the changes will impact on all taxpayers who own residential rental properties in New Zealand.

Inland Revenue Clamping Down On Sales Of New Zealand Properties Bright-Line Rule

Inland Revenue Clamping Down On Sales Of New Zealand Properties Bright-Line Rule

Inland Revenue is in the process of contacting taxpayers who they believe will be subject to the new bright-line test as a result of selling properties in New Zealand that were purchased after 1 October 2015.

The bright-line test was introduced to provide Inland Revenue with some certainty on when there was an “intention to sell” at a profit when someone purchased a property.

If your property was sold within 2 years of acquisition, and you were not lived in for at least 50% of the time, then chances are you are going to be caught under the bright-line rule which made the profits subject to income tax.

Changes to New Zealand’s Covid Assistance – Small Business Cash Flow Loan Scheme

Changes to New Zealand’s Covid Assistance – Small Business Cash Flow Loan Scheme

The re-elected New Zealand Labour government has moved to make changes to the Small Business Cash Flow Loan Scheme implemented soon after New Zealand’s lockdown response to Covid-19.

Firstly, applications for the loan have been extended by 3 years. That means that applications can be made for the loan right up to 31 December 2023.

New Zealand’s Latest – Auckland Business To Continue At Level 3

New Zealand’s Latest – Auckland Business To Continue At Level 3

New Zealand has recorded the first Covid-19 positive tests and the country has gone straight and to control. The tests show that this is a newly introduced strain of the virus and has no links to suggest that there has been any dormancy or re-emergence of the virus last experienced by the community some 102 days ago.

Although Auckland was put into Level 3 for 3 days this has now been extended and Auckland will remain in a mostly locked down situation for another 11 days, making up one incubation cycle.

So what does this mean for Auckland businesses?

Inland Revenue To Provide Interest-Free Loans To New Zealand Businesses

Inland Revenue To Provide Interest-Free Loans To New Zealand Businesses

After frustration with the New Zealand banks who have been dragging the chain in regard to extending loans to small businesses, Inland Revenue has been directed to fill the breach. And it has all happened by accident.

Loans of up to $100,000 will be available, interest-free, for businesses suffering as a result of the Covid-19 outbreak.

New Zealand Extends Period Of GST Zero-Rating For Goods Exported To Australia Delayed Because Of Covid-19

New Zealand Extends Period Of GST Zero-Rating For Goods Exported To Australia Delayed Because Of Covid-19

Inland Revenue has issued a public statement with regard to issues being faced by New Zealand businesses who are facing challenges in exporting their products to Australia as a result of the COVID-19 pandemic.

Usually a supply of goods exported within 28 days of the “time of supply” is zero-rated for GST purposes. This means GST is applied at the rate of 0% and is therefore free of New Zealand GST.

New Zealand Moves To Alert Level 3 From Midnight Monday, 26 April 2020 – What Does That Mean For Your Business?

New Zealand Moves To Alert Level 3 From Midnight Monday, 26 April 2020 – What Does That Mean For Your Business?

New Zealand is getting ready to open up for business. From midnight on Monday, 26 April 2020 New Zealanders will be able to open their doors and have a peek outside to a very changed world.

Employees should continue to work from home, if possible. But you will be able to open your New Zealand business premises, if you can do so safely.

The workplace needs to be operating safely. That means it needs to comply with the Alert Level 3 criteria.

New Zealand Income Tax Losses To Be Converted Into Tax Refunds

New Zealand Income Tax Losses To Be Converted Into Tax Refunds

As a further response to the impact that Coronavirus is having on New Zealand businesses, further tax concessions have been announced by the New Zealand Government.

These concessions will allow New Zealand businesses to offset forecast losses against income recorded in previous years on which New Zealand income tax has been paid.

All You Need To Know About The New Zealand Wage Subsidies

All You Need To Know About The New Zealand Wage Subsidies

Since the New Zealand government announced the wage subsidies there have been some changes to the terms and conditions so we thought it was time to bring you up with the latest including how to apply.

In this article we summarise the amounts you can receive, the conditions that attach to it, your obligation to retain workers and the details of your company that will be available to the public as a result of your application.