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Welcome to the Vision Accounting e-newsletter for May 2018.  This is our first newsletter for the new financial year. As you know from our March newsletter, we have had a great expansion to our clientele and are now enjoying meeting our existing clients and our newly gained ones. We can definitely say Happy New Financial Year as things are going very well and are keeping us all very busy. We have also added a lovely new staff member to the team, her name is Vanessa Lloyd, who has a great CA background.  Virginia and Vanessa enjoyed working together in the mid 90’s, so it feels like she has been part of the team for years.
 

Minimum wage increase - 1st April 2018

By the time you read this, the minimum wage in New Zealand will have increased from $15.75 to $16.50 per hour.
Minister for Workplace Relations and Safety, Iain Lees-Galloway, says the $0.75 rise will benefit around 164,000 workers and their families and will increase total wages by $129 million per year.
"Raising the minimum wage was one of the Government's top priorities for the first 100 days,” he says, “and we are committed to increasing the minimum wage to $20 by 2021."

The Minister also advised that within the first 12 months of the Government’s term it will abolish starting-out rates and consider changes to the training wage. In the meantime, those rates will continue to be 80% of the minimum wage, increasing to $13.20 per hour from 1 April 2018.
READ MORE

2018 Budget Highlights.

The focus for Finance Minister Robertson’s budget is on public service spending (health, education and housing) and investment in infrastructure.

There are two tax-related announcements in the budget:
  • Changes to the bloodstock rules that will allow new investors to deduct the cost of high-quality horses acquired for breeding.
  • Inland Revenue receives $31.3 million in operating spending over the next four years to carry out its revenue-collecting role. $3 million of this is earmarked to analyse the potential to improve tax compliance in specific industries through the use of third-party reporting and withholding taxes.
The Minister also makes special mention of the tax initiatives that the new Government has already instigated since it took office in October last year:
  • reintroducing an R&D tax credit for New Zealand businesses, with a commitment to lifting research and development spending to 2% of GDP within 10 years
  • introducing ring-fencing to rental losses
  • imposing GST on low-value goods imported by bringing in GST registration for offshore suppliers
  • reversing the previous Government’s changes to the income tax thresholds, and
  • funding boosts to the Working for Families tax packages.

Do you have overseas bank accounts?


If you have an account with an offshore financial institution, including accounts maintained with certain offshore trusts, information about your overseas investments will soon by shared with Inland Revenue.

What you need to know.

New Zealand is one of 105 countries and territories that has committed to sharing financial account information to combat global tax evasion. These laws have been in place since 1 July 2017.

From August 2018, the Government will receive information about New Zealand tax residents with offshore financial accounts from other countries’ financial institutions, which might include offshore trusts.

If you have an account with an overseas financial institution (including certain offshore trusts) you’ll be required to confirm and disclose your tax residence status and tax identification number (TIN) with the overseas financial institution. The financial account information will be exchanged and will help Inland Revenue verify that everyone is paying the correct tax on these overseas investments.

What you need to do.

You have an opportunity to make sure your tax affairs are in order before Inland Revenue receives the first automatic exchange from August 2018 onwards.

If you think or know there is an error in your tax affairs, Inland Revenue encourages you to voluntarily disclose it before they identify the error.

As international tax law is complex, we recommend you contact us, to ensure you are doing it correctly.

Cleaning out the dirty money:

New legislation puts laundering in the spotlight

While New Zealand is hardly the money laundering capital of the world, we still see our share of shady activity. Every year, around $1.35 billion of fraud- and drug-related money is laundered through legitimate New Zealand businesses.
As you’ll recall from the previous newsletter, the Government has extended the reach of the Anti-Money Laundering and Countering Financing of Terrorism Act.

From October, your friendly accountant, us, will be required to comply with this revised Act. So you might notice us asking for information about your business that we didn’t used to – especially if it involves large cash transactions, or multiple companies or trusts.

One reason for the change is that criminals target high value dealers to launder money. If you’ve seen the Netflix series Ozark, you’ll know how it works. A common ploy is to buy expensive things with cash, then sell them and get ‘clean’ money back.

If you deal in high value goods, you will need to consider these new rules as cash payments of $15,000 or more in one transaction or which add up to $15,000 or more in a series of cash payments will be caught by the Act from 1 August 2019. The Department of Internal Affairs has also set up a team to help businesses comply. Go to justice.govt.nz and search for AML/CFT supervision and support for businesses. Even better, call us and we can advise you on what the Act means for your business.

News by my clients - For my clients.


Adventure Together - giving your family the map to get off the beaten track

Hi, my name is Fiona Rouse and I am the owner of a travel company called Adventure Together. We specialise in giving families the map to get off the beaten track through self-guided, tailor made holiday adventures primarily throughout Asia and New Zealand. We also have experience in Argentina, the Pacific region, Africa and the Middle East.
 
My business is inspired by my own experiences of taking the road less travelled with my husband, children, their grandparents and extended family. ​We have found that travelling in this way opens many doors and provides unique cultural insights and experiences that would not be otherwise possible.
 
I have a background in tourism and a real passion for travel. With our children now 16 and 13, we have visited over 30 countries together around the globe, providing me with a wealth of experience on how to make the most of travelling as a family.

​I use this personal knowledge and the contacts we have made on our travels to build self-guided itineraries based on your interests, family ages and available holiday time. I blend authentic experiences that appeal to travellers of any generation to create an adventure that you and your family will treasure for a lifetime.

​In addition to designing a great itinerary for you, Adventure Together’s planning services include booking of accommodation and activities, with a local guide where necessary, plus advice on everything from pre-departure preparation and packing tips to transport options and local customs in your chosen destination.
 
For more information on Adventure Together check out their website here

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

Remember

We offer the service of a one on one meeting to review your financials and help set you up for a strong 2018.
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

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Contact Us

Tel: (09) 415 0319
Email: admin@visionaccounting.co.nz
Web: www.visionaccounting.co.nz
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.)
Postal Address:
PO Box 303 157
North Harbour
Auckland 0751






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Vision Accounting Solutions Ltd · PO Box 303 157 · North Harbour · Auckland, . 0751 · New Zealand

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