CLIENT NEWSLETTER – SPRING 2021

In each article below we have given a short summary of the topic so if you would like to read more please click on the link to our website for the full article and newsletter.

 

It was a relief to see Auckland drop to level 3 and enable some of our clients resume business. We have continued to work throughout this lockdown to support you and have been impressed with how many clients have learned from previous lock downs by applying for the support packages as soon as they were available.  

If you haven't already accessed the support schemes they are all listed here with links and if you are unsure if you quality, please contact us and we can help you.

 

"New Builds" discussion document

Since the Government's announcement in March, regarding the tax deductibility of interest on residential investment properties and the extension of the bright-line period to 10 years, investors have been waiting for more detail on the new rules. On 10 June 2021, Inland Revenue released a 143 page discussion document titled "Design of the interest limitation rule and additional bright-line rules", which provides further clarification on the proposed rules and seeks feedback on certain elements.......Click here to read more

The "Ute" - Kiwi icon or tax dodge

Recently, there has been a large volume of media attention being directed to the 'ute' and it has become a focal point of protest action against the Government. The Government announced the "Clean Car Discount" scheme in June, which from 1 July until 31 December 2021 will see purchasers of imported electric vehicles receive a rebate of $8,625 for new vehicles, and $3,450 for used vehicles. Purchases of new and used hybrid vehicles will also be eligible for a rebate of $5,750 and $2,300, respectively......Click here to read more

Paid parental leave - for who?

Included in the 2021 budget was a boost to all main benefits, including an increase to paid-parental leave. From 1 July 2021, eligible parents will be entitled to a maximum of $621.76 a week (before tax), an increase of 2.5% on the prior rate of $606.46.  While the monetary increase is no doubt welcomed, a recently released UNICEF report suggests that New Zealand's child-care policies remain inferior among OECD countries. The report ranks New Zealand in the bottom third of "rich countries" after accounting for the duration of paid leave available, access, quality and affordability of childcare.: .....Click here to read more

Cryptocurrencies - are they on your radar?

Cryptocurrencies have been garnering worldwide attention recently, particularly with Bitcoin's dramatic rise to over NZD$90,000 for a Bitcoin in April 2021, and its subsequent 50% crash through May and June.Other cryptocurrencies, deemed 'altcoins', have also seen similar price volatility. These coins adopt the same principles as bitcoin, with slight changes and tweaks to differentiate them. 'Dogecoin', featuring a dog as its logo, saw a 12,000% increase this year, propelled by tweets from Tesla founder Elon Musk. Clearly, some people are making large amounts of money in this space, and the Inland Revenue does not want to miss out on its share.......Click here to read more

Self Employed meals

If an individual operates as a sole-trader, as opposed to trading through a company, it allows for a simplified structure with fewer formal set up tasks (and costs) and greater flexibility and control. However, differences can arise in how the income and expenditure of a sole trader is calculated, compared to a company. Tax deductible meal allowances is one such difference......Click here to read more   

Stability and succession

The challenge of a global pandemic has emphasised the importance of a stable workforce. Many businesses are evaluating how to create a rewarding workplace which maximises staff retention. Added to this, the baby boomer generation is starting to look at how to exit from their businesses completely. This is giving rise to an increase in the number of employee share scheme (ESS) arrangements being put in place. Not only do employees feel rewarded and more connected to the company, they are encouraged to grow the value of their shares. ......Click here to read more  

Team Update

 We are sad to say Nadia Marinkovich departed McIsaacs at the end of August.  We wish Nadia all the best for her future endeavours.  If you normally contact Nadia, please now contact on one of our directors.


Please continue to stay safe everyone.

All the best from the team at McIsaacs.

 


 



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Please note: The above E-newsletter notes and the related articles on our website are of a general nature and therefore we urge clients who may be affected by these changes to contact us to discuss your specific circumstances before making any changes or drawing any conclusions.

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    159 Hurstmere Road
    P O Box 331 626
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