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What's New?...
Vision Accounting

Welcome to the Vision Accounting e-newsletter for June 2015.  This is a great way for us to share important information you need to know, helpful tips and hints and practical resources to help you in business for 2015.
 

What's very exciting?

I am very excited to be included in the articles alongside the cover story in the June edition of NZBusiness Magazine. This features Fiona Clark, of Breakthrough Business Solutions, who has launched a programme for Women in Business which I have been attending. I am so honoured by her for including me in her feature article, alongside Jo Kitchen of Northcross Physio and Rehab.  NZBusiness Magazine is a wonderful magazine, which is always worth a read, as the stories are relevant to New Zealand Businesses, and this particular issue is of-course extra special as your own Chartered Accountant is featured in it. I found it a humbling experience to have been selected for this interview. Click here to read an image of the article.
 

What You Need to Know

The Budget 2015  - Safe as houses

The suspense about whether and when a capital gains tax would be introduced to New Zealand seems to have been drawn out for well over a decade. OK, the suspense is over now. Are you relieved?

The focus in this budget is on damping down property speculation rather than taking a slice off the family home.
There will be a two-year window for sales of residential property. If residential property is bought and sold within two years, it will be subject to tax. This does not apply for:
  • taxpayers selling their family home
  • inherited property, and
  • property that is being transferred as part of a relationship property settlement
The new rules will apply to properties bought on or after 1 October 2015. More detail is expected to come out in July.

It’s important to note that if you intend to sell a property outside of the 2 year timeframe, the sale may still be subject to tax, as it may still fall within other rules relating to the taxation of property. Please contact us if you are selling a property to see what rules apply.

IRD numbers
In addition, anyone buying or selling land - both New Zealand residents and non-residents - will have to provide an IRD number as part of the land registration process. All sales of land - other than sales of the main family home - will be subject to this requirement.
In addition to providing a New Zealand IRD number, non-residents will also have to:
  • provide their country's equivalent of an IRD number, and
  • open a New Zealand bank account

Other Budget matters

(A)mending the safety net

The government is giving explicit support for children in hardship. They’ve tried hard to balance this so as not to undermine incentives to work.

Benefit rates will increase for families with children by $25 per week after tax. Beneficiaries who work part-time will be expected to find 20 hours’ work each week rather than the 15 hours currently required. And while most sole parents and partners of beneficiaries were expected to be available for part-time work after their youngest child turns five years old, they will now be expected to make themselves available after their youngest turns three.

Childcare assistance for low-income families will increase from $4 an hour to $5 an hour for up to a maximum of 50 hours of childcare a week for each child.

Working and studying for families

Student Allowances for families with children will increase by $25 a week.

Both the Working for Families (WFF) in-work tax credit and the WFF tax credit abatement rate will increase from 1 April 2016:

  • Low-income working families earning $36,350 or less a year, before tax, will see an extra $12.50 per week and some very low-income families will receive $24.50 extra
  • Working families earning more than $36,350 will receive more from WFF, but the amount is dependent on each family’s income and it won’t be more than $12.50 a week
  • Families earning more than $88,000 a year will see slightly lower WFF payments, with the average reduction being around $3 a week

ACC levies

ACC levies will continue to fall, with cuts of $375m forecast for 2016 and a further $120m in 2017. If cut as forecast the average motor vehicle levy, including the annual licence fee and petrol levy, could fall to around $120 in 2016.

KiwiSaver

The $1,000 kick-start incentive payment is no longer available to people enrolling in KiwiSaver. However, this does not affect existing KiwiSaver members in any way.

This Month’s Top Tips

How do you know what to insure?
 

It’s a bit of a Murphy’s Law principle that businesses often don’t really come to grips with their risk management plan (or the lack of one) till some random accident takes out a key manager or lead hand and it hits everyone what it will mean for the business.

No one can plan for everything but every business should have a sound grasp of the kinds of risks that might hit them hard. And every business should put strategies in place to minimise risk and deal with it, if the unthinkable happens.

When you are thinking about insurable risk for your business, emotion can sometimes derail the process unless you put a framework in place to assist in the decision making process. You also need to assess whether you can manage risk through your own resources first. 

There is no one rule to apply to insurance risk as everyone’s situation is different. However, start by brainstorming up every conceivable risk. Then divide your list into two columns:
  • What are the potentially catastrophic events that may affect your business?  What are the events that could result in financial loss, cause you to 

Ask us a question

Have you got an accounting question that leaves you worried or confused?

We love a challenge – see if we can come up with the answer that gives you the ‘ah ha! moment'.

Contact Virginia at Vision Accounting NOW on 09 415 0319
Tel: (09) 415 0319
Email:
admin@visionaccounting.co.nz
Web:
www.visionaccounting.co.nz
Postal Address:
PO Box 303 157
North Harbour
Auckland 0751

Physical Address:
106A Bush Road, Albany, Auckland
(When posting documents please use the PO Box address, as there is no mail delivery to our street address. Thank you.)
 

Remember

We offer the service of a one on one meeting to review your financials and help set you up for a strong 2016.
This one meeting can make a huge difference to the cashflow and profit of your business.

If you would like to schedule a business review meeting, or have a no-obligation chat – we’re happy to help.     

Thanks, and have a great month,
Virginia and the team at Vision Accounting



Please forward this email to a friend if you feel it would be of use to them.
substantially change your lifestyle or force you to close down your business? These are ideal risks you should think about insuring for.
 
  • What are the risks that might potentially cause you to suffer losses but which you could manage out of your own resources such as cash assets? Generally, you may not need to insure against these risks.
Whenever they start to work through their insurance plan, most people tend to think about things rather than people - the buildings, the vehicles, plant and equipment. You also need to factor in the impact if key people were suddenly not there to make everything run smoothly.

Do a double take and consider whether you’ve really taken human capital risk into account. What would be the effect if you couldn’t work for six months, for example? Who are the other key people in your business? What would be the impact if they couldn’t work for six months or if they couldn’t return to work at all?

Often people make the mistake of over or under insuring in the wrong area and find there are gaps in their risk management plan. If you’re not quite sure where to start, talk to us first to help break it down and put you in touch with the right people who can give you the professional advice in structuring your risk management plan.

Sharing news from my clients with my clients

 
If you have something noteworthy to share, or have an up and coming event that may be of interest to my other clients, please provide me with the information, and if possible and suitable I would like to include it in my newsletters or send it separately to a selection of my clients (with their permission).

Below please find the details of a seminar later this year. And although technically the Early Bird Special has expired, you as my clients are still able to obtain this discount, if you enter in the code VISION when booking online.
 

Social Media Conference
EARLY BIRD SPECIAL UNTIL 31 May 2015

Every year, passionate business owners, key influencers and industry thought leaders come together for the annual social media marketing conference of the year presented by The Online Business Academy Ltd. This year, on 18 September 2015, they will be hosting 220 live attendees at the Rendezvous Hotel in Auckland with live streaming outside of Auckland and Internationally. The event runs from 8.30am to 5pm.

People come to the event to connect, learn, network and be inspired. If you are a small to medium business owner and you are looking to expand your social media portfolio or are even just starting out; or if you work in social media for a corporate, or if you specialise in social media and you want to expand your online marketing efforts or maximise your business online, then join them this year and be inspired.

The Online Business Academy looks forward to bringing you exceptional speakers, such as Annah Stretton, Simon Laird of Google, and Evan Hick of FaceBook, packed with the most up to date information, real life case studies and hints and tips that you can implement straight away.

This year the theme is ‘The Revolution of Human Communication’. It’s social media with an emphasis on your customer – engagement, measurement, social interactions, build and maintaining reputation, using communities like Facebook Groups and LinkedIn Groups and ultimately keeping your customers or ‘tribe’ coming back for more. To keep you entertained for the day they have two MC’s Jam and Chad.
Book on-line at www.socialmediaconference.co.nz .

(for a limited time you can get a full day pass at the early bird rate of $347)

 
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