Newsletters, Candy Gillespie Ltd, Matamata Newsletter December 2007

Office News

Our office will close on Friday December 22nd and reopen on Monday January 8th. For urgent enquiries, we will be checking emails and the office answer phone on a regular basis so please leave a message.

From a staff perspective there were few changes to the team. Karyn Walters and Anna Davey have returned after maternity leave. Ben Blackett now has Nate to keep him awake and Michael Candy, true to his 2016 prediction is to become a dad in January.

The CGGC (Candy Gillespie Grandparent Club) is looking forward to welcoming Alan Candy as the 8th member.

 

Office Essentials

 

-       Wages

Reminders for the Christmas period

·         Employees may request to cash up one week of annual leave per year after the entitlement has arisen. The net payment will not be the same as a normal week, the PAYE will need to be calculated at lump sum rates and house rental (if any) is not deducted.

·         If you're employing relief staff over the Christmas period make sure they fill out an IR330 and if we process your PAYE, please let us know about any staffing changes.

·         Timesheets – we are now getting used to this as being good practice. For those who have employees with a work visa, timesheets are now often requested by Immigration NZ to ensure compliance.

-       ACC

While you are checking your ACC bill, make sure that you are on the correct industry classification. If you are on the wrong classification, you could be paying too much. If ACC don't know what industry you are in, they default to industries with high levy rates. Making sure this is correct could save you money. If you are unsure, we can review this for you.

-       IRD due dates and payments

If you are paying IRD by cheque, allow plenty of time for delivery (say 5 days) before due date to avoid additional interest and penalties. Internet banking is the safest and best option and we encourage clients to use this method of meeting IRD obligations.

 

-       Brightline Test

If you are selling residential property you have owned for a short period then be careful that the transaction does not become subject to the potential of any profit becoming taxable through a breach of the Brightline Test. You should note:

 

  • The 2 years starts from the date the solicitor lodged the title – not the date that settlement occurred.  This could add up to 2 weeks onto the time frame.
  • When looking at selling, the contract (Sale and Purchase agreement) cannot be dated before the 2 years is up.  It does not depend on the settlement but when the initial negotiations occurred.
  • The family home is exempt from these rules.

 

Dairy Farmer Clients

In 2017 May balance date clients received around $5.52 per kg/ms with a variance due to the previous year's production and capacity adjustments. In 2018, on current estimate the payout, subject to the same variables, will be $6.42 which is a +16% increase.

 

Minimum Wage

The minimum wage will increase to $16.50 per hour from 1 April 2018.

 

New Government and 2018

By now you should be aware that there is a new government in place and 2018 is almost upon us. In no particular order, here are a few of the government initiatives that will face us in the coming years.

 

  • Family Assistance Package - significant changes to the family assistance package starting July 2018 plus cash payments for new parents.
  • Tax Working Group - an investigation into the fairness of the tax system. There is a generous time frame for reporting back and a commitment to public consultation so we expect no significant changes to the tax system for three to four years. The two standout issues are the question of capital gains and the taxing of NZ made profits by offshore companies.
  • Gold Card Clients – the introduction of a Winter Energy Payment of $450 single and $700 per couple for those on main benefits (including NZ Super).
  • The Brightline Test will be extended from two to five years and tax rental losses ring fenced against future profits.
  • The repeal of the tax cuts announced by the previous government which were to take effect on 1 April 2018.
  • Increase Paid Maternity Leave from 1 July 2018.
  • Free fees for first year of post-secondary education from 1 January 2018.
  • Increase in Student Allowances by $50 per week.
  • Minimum standards for warm and dry rental homes. The Healthy Homes Guarantee Act 2017 has been passed by parliament.
  • Will introduce a ban on overseas property speculators from buying existing houses.
  • Will tighten the criteria for overseas investors in rural land.
  • Will stop Housing NZ selling state houses and will establish the Kiwibuild program.
  • Will resume contributions to the NZ Superannuation Fund.
  • An Independent Climate Commission will be setup. A process will be established for setting net zero carbon emission goals.

 

Skill Shortage

Because of our buoyant economy and relatively low unemployment rate, nearly every business type suffers from a skill shortage. Every employer should have a plan that answers these questions.

-       How do I train my staff better and faster?

-       How do I retain better staff longer?

 

Trusts

As client's individual circumstances change, so does the need or desire to protect assets through Trust ownership. New rules are being introduced around trust compliance. We will advise of the implications of these as they become law.

 

We wish all our loyal clients a Merry Christmas and a Happy New Year.