You may be eligible for Working for Families assistance. It can be complicated to work out your entitlement. If your circumstances change your entitlement might too. And you need to be aware of the tax implications.

Family Tax Credit is available to eligible families who meet the income threshold, with children under 16 years, children aged 16 or 17 if they’re financially dependent on the carer, and children aged 18 years if they are at school or tertiary training and still financially dependent.

In-work Tax Credit is available to eligible families who don’t receive an income-tested benefit or student allowance and have some weekly income from paid work. You are no longer eligible to receive it if you stop working or start receiving an income tested benefit or student allowance. If you receive it, and your work hours change, advise Inland Revenue. If you take an unpaid break from work, you may be able to keep receiving this tax credit for up to 2 weeks. Again, advise Inland Revenue.

Minimum Family Tax Credit guarantees a net income level, currently $35,316 for the 2025-26 income year. To receive it, at least one parent in the family must be working for salary or wages.

Best Start is a payment of up to $3,838 per year, available to the main carer of a child aged from new-born to three years, if the applicant is a NZ citizen or permanent resident, or cares for a child who is a resident and present in NZ.

FamilyBoost entitles eligible families to reimbursement for up to 25% of early childhood education (ECE) fees, up to a maximum of $975 per quarter (after the 20 Hours ECE and Ministry of Social Development’s childcare subsidy have been taken into account).

Inland Revenue needs to know if you receive other types of income to ensure your entitlements are correct. If you receive Working for Families Tax Credits, you cannot use losses from businesses, investments, or rental properties to reduce your income or to work out your entitlement.

Have you considered the benefits of using a family trust? We share five ways that a trust can help you shelter your personnel assets and protect the future of your family and business?

Have you ever wondered about the best ways to protect you and your business?

We’ll look at how you can use a trust to shelter your assets.

What is a trust?

Before we go any further, let’s explain exactly what a trust is and how they can be used.

A trust is a legal arrangement where a person (the settlor) transfers ownership of certain assets to another person or entity (the trustee) to hold for the benefit of one or more third parties (the beneficiaries). These assets could be money, property or shares etc.

It's essentially a separation of legal ownership from beneficial ownership.

These are the three main parties involved in a trust

Settlor: The person who creates the trust and contributes the assets. In this instance, the settlor is likely to be you, the small business owner.

Trustee: The person or entity (this could be an individual or a company) who holds legal title to the assets and manages them according to the trust deed. They have a fiduciary duty to act in the best interests of the beneficiaries. Trustees are likely to be you and your family members, or anyone in the business who you decide to make a trustee.

Beneficiaries: The individuals or entities who are entitled to benefit from the assets held in the trust. This will usually be the family members or other interested parties that you wish to be beneficiaries of the assets held in the trust.

What’s a trust deed?

The rules for how the trust operates are set out in a legal document called a ‘trust deed’.

The trust deed is a legal document that formally establishes a trust. It outlines the trust's rules, names the settlor, trustees, and beneficiaries and defines the trustees’ powers and duties.

The deed also dictates how assets within the trust are to be managed and distributed to protect personal assets from business liabilities.

How can you use a trust to protect your personal assets?

Running a business comes with a certain amount of inherent risk. There’s potential for the business to go bust, for creditors to come after your assets, or for individuals and organisations to make legal claims against you and the business.

Setting up a family trust to shelter your personal assets allows you to separate your personal financial security from these inherent risks of running a business.

The trust creates a legal barrier between your individual wealth and any financial liabilities or claims arising from the business.

Here are the five key reasons why a trust is worth considering

- Shield your personal assets from any business liabilities:

If your business faces bankruptcy, lawsuits, or significant debt, your personal assets can become vulnerable. This is especially true for sole traders or partnerships, where you don’t have the protection of limited liability as an incorporated company.

By transferring your assets to a trust, these assets are legally owned by the trustee, not you personally. This makes them inaccessible to the owner's personal creditors, in most cases.

- Mitigate the risk of being an entrepreneur:

Being an entrepreneur involves taking on certain risks. Sales can plummet, businesses can fold and unexpected external conditions can scupper your well-laid plans as a business owner.

With your personal assets held in a trust, you can take calculated business risks knowing that your family home, savings and other personal investments are safeguarded. The family trust provides you with a crucial safety net to secure yours and your family’s future.

- Enhance your estate and succession planning:

Protecting your personal assets is the key function of the trust. But a well-managed family trust can also help with the orderly transfer of your assets to future generations.

Having the family trust set up prevents your hard-earned assets from being tied up in your estate upon death. This is great for estate planning and helps your immediate family achieve a smoother transition and protects these important assets from potential claims against the estate.

- Balance control vs. ownership:

As the business owner, once your assets are held in a trust you are no longer the legal owner. However, through a trustee or appointor role, you can still maintain a significant degree of control over how the assets in the trust are managed and distributed

Even though you no longer hold legal ownership of these assets, you can still balance a level of control over the assets, while also enjoying the benefits of reduced liability and risk.

- Benefit from better tax planning, in some instances:

Asset protection is the primary driver of a family trust. But having the trust in place can also make it easier to distribute income among beneficiaries in different tax brackets. As such, there may be an opportunity to enhance the overall tax position of the whole family.

Tax planning within a trust structure is a complex area and should always get professional advice from your tax adviser.

Having worked so hard to create a profitable business, it’s vital to take every opportunity to protect your personal assets and the future prosperity of your family and loved ones.

Think you’re ready to grow?
Ask yourself these 4 questions first

Growth is exciting, and with the right planning, it can be a turning point for your business. 

But whether you're taking on more clients, expanding your services, or launching into a new market, it's important to first make sure your financial foundations are solid enough to support what’s next

 Here are four key questions to ask yourself before scaling up -

1.   Do you have enough cash flow for the next stage?

Growth often means spending before you earn. You might need to stock up on supplies, hire more staff, or invest in new technology. Do you have the working capital to manage that gap? If not, it could be time to explore funding options, stagger your expansion, or adjust your timeline.

2.   Are your systems and processes built to scale?

Can your current invoicing, inventory, and reporting systems handle increased demand? Review your software, automate what you can, and build in capacity now so your systems won’t buckle under the pressure of a larger operation.

3.   Is your pricing model sustainable as you grow?

Bigger business brings more overheads and greater complexity. Are your current margins wide enough to cover these costs? Now’s the time to adjust your pricing so it reflects the extra time, effort, and resources needed to deliver at scale without eating into your profits.

4.   Are there any tax or compliance implications?

Business growth can push you into new tax brackets,
GST thresholds, payroll obligations or even overseas tax obligations if you are dealing with overseas customers or doing business overseas. Make sure you stay compliant. The last thing you want is a surprise tax bill just as your momentum is building.

How to use forecasts and scenario planning

For centuries, accounting was all about reviewing historic information – but that only told you about the past, not what was going to happen in the future.

If you’re only looking back at past periods and historic numbers, this limits the insights you can achieve for your business. With a backward-looking ideology, it becomes difficult to plan, run through different scenarios or understand the path of the business going forwards.

Forecasting changes this. With the right data analysis and forecasting tools, you can project sales, cash, revenue and profits into the future – and get in control of your business.

A forward-looking view of your business journey

Forecasting switches the focus of your financial management. By moving to a forward-looking view of your business journey, you can see further down the road – and that helps to spot any opportunities and avoid common business pitfalls.

Forecasting adds value by:

- Highlighting the data patterns – a forecasting tool takes your historic data and projects it forward in time. This helps you and your advisers spot patterns, trends, gaps and opportunities, revealing the true ‘story’ behind your business accounts. For example, forecasting may reveal a predicted seasonal slump in the next quarter, allowing you to plan ahead and proactively take action to minimise negative impacts.

- Giving you a future view of your business – instinctively, business owners will look back at prior periods to assess performance. There’s value to reviewing your historic actuals, of course, but using forecasting helps you to look forward, rather than just backwards. Forecasting is the satnav, showing you the road ahead, rather than the rear-view mirror showing you the road you’ve already travelled.

- Helping you scenario-plan – with a financial model of your key drivers, combined with accurate forecasting, you can quick answer your burning ‘What if…?’ questions. Forecasting lets you run different scenarios, with different drivers, to see how business decisions may pan out over time. If option B performs better than option A, that’s invaluable information when defining your next strategic move.

- Making informed, evidence-based decisions – having ‘the full picture’ of combined historic numbers, forecasts and longer-term projections aides your business decision-making. Forecasting gives you solid evidence on which to base your strategy, and helps to red flag any threats that are looming on the horizon – giving you the best possible information to keep your executive team informed and on the ball.

- A deeper relationship with your accountant – forecasting also helps us to get a far more granular view of your business. This helps to spot potential areas of performance improvement, and to give you the best possible strategic advice, all backed up by solid, empirical data and management information.Talk to us about the benefits of forecasting

If you want to get in control of the destiny and results of your company, come and talk to us. Forecasting helps you highlight your future threats and opportunities – and create a proactive strategy to improve the performance of your business.

High unemployment: what does this mean for your small business?

Unemployment in New Zealand has been steadily rising over the past two years. The [unemployment rate] (https://tradingeconomics.com/new-zealand/unemployment-rate) has risen from 3.4% in Q1 of 2023, to 5.1% in Q4 of 2024.

The rate has remained static for Q1 of 2025, but this prolonged high rate of unemployment may be having a detrimental impact on the future of your small business.

Let’s look at the alignment between unemployment and your future growth.

1. Reduced consumer spending:

With more people out of work, consumers have less disposable income to play with.

This leads to customers tightening their belts and less consumer spending on non-essential goods and services. This can directly impact your sales and monthly revenue, forcing you into a corner where prices (and margins) must be decreased to encourage more sales.

2. Low morale and poor employee retention:

While a larger talent pool might seem beneficial, high unemployment can sometimes create a sense of job insecurity among your existing employees.

Unstable economic conditions can lead to decreased morale, higher stress levels, and a potential struggle to retain top talent, who may feel less secure in their current roles.

3. Difficulty securing loans and funding:

Banks become more risk-averse when there’s evidence of high unemployment, poor economic conditions and unpredictable market conditions.

The recent [CPA Australia Asia-Pacific Small Business Survey] (https://www.cpaaustralia.com.au/-/media/project/cpa/corporate/documents/tools-and-resources/business-management/small-business-survey/2024-2025-market-summaries/sbs---new-zealand-market-summary-2024-25.pdf?rev=2a53fa4cf5864c69a8d880d0d25ce6a4) found that only 26.4% of Kiwi businesses expect it to be easy to access finance. Reduced access to funding can lead to poor cashflow, slower growth and an increasing need to reduce costs.

4. Decline in overall business confidence:

The combined impact of poor economic conditions and high unemployment is significant.

This unpredictable and unstable outlook can have a major effect on business confidence. New Zealand's ANZ Business Outlook Index fell sharply to 36.6 in May 2025 from 49.3 in the previous month. This may deter your small business from investing, innovating or expanding – all factors that could hinder your own long-term growth and stability.

Talk to us about getting your business through the tough times

High unemployment and tough economic forecasts make trading more difficult. But there are still ways to control your spending, drive growth and do your bit to provide employment.

Book a meeting with our team to look at strategies for making your business more agile and key tactics for overcoming these current external challenges.

Bringing your cashflow processes into the digital age

Keeping on top of your cashflow is even more important during tough economic times.

With global uncertainty, recent high inflation, energy prices soaring, supply chain challenges, cash is likely to be tight over the coming year. Cloud technology and fintech apps, can give your business the best possible control over its cash.

Why is cashflow so important?

To keep your business operating, you need enough money coming into the business to cover your outgoings – with enough surplus cash to deliver a profit.

In recessionary periods consumers have less disposable income to spend on your products and services. Business customers will be looking to reign in their spending on suppliers. As a net result, your business is likely to make fewer sales and will bring in smaller revenues.

This means:

- Reduced income coming into the business.

- Less cash in the business to cover your operational expenses.

- Not enough money in the bank to pay suppliers, utility providers or payroll costs.

- In the worst-case scenario, insufficient cashflow for you to continue trading.

What can you do to improve your cashflow situation?

The more informed you are about your cash position, the more you can do to prepare for any cashflow gaps. It’s this foresight that can make all the difference when you’re battling against tough external economic forces and a downturn in sales.

If you want to safeguard your cashflow, these are some sensible steps to take:

- Switch to cloud accounting – accounting and finance technology has moved on in leaps and bounds in the past decade. The best [cloud accounting platforms] (https://www.forbes.com/advisor/business/software/best-cloud-accounting-software/) all offer a detailed reporting of your cash position. These software tools will generally offer real-time data, giving you up to date cash numbers.

- Integrate with cashflow forecasting apps – cloud accounting platforms let you add third party apps to create a custom app stack of helpful business tools. There are plenty of cashflow forecasting apps to choose from, giving you the ability to predict your future cashflow position.

- Plan ahead for the cashflow gaps – when your forecast shows a shortfall of cash coming up, that’s the time to take evasive action. If you can see that there’s a cash hole approaching next month, it’s time to look at ways of raising extra finance to fill that hole. That could mean extending your bank overdraft, taking out a small business loan or taking out an invoice finance facility with a lender.

- Look for opportunities to cut your overheads – one way to even up your cashflow is to cut down on your expenditure. If you can cut back on overheads, expenses and unnecessary costs, this can help you re-balance your cash position, even when cashflow is getting tight. Look for cheaper suppliers, buy in smaller quantities and take every opportunity to cut costs and keep your spending more sensible.

- Update your prices and your sales strategy – raising your prices is one way to bring in more cash, with the same volume of sales. But it's a balancing act. Putting your prices up can alienate existing customers and could see you losing customers, but if you can find the sweet spot for your pricing AND also drum up more sales, you can quickly increase revenue and give your cash inflows a healthy boost.

- Review your cashflow reports regularly – it’s important to look at your cashflow numbers and reporting regularly, not just at period-end. This is particularly important when economic times are tough. With the most current cash information to hand, you can make informed business decisions and aim to keep the business operational. Talk to us about updating your cashflow processes

With your business in a healthy cashflow position, you give yourself some solid financial foundations for riding out the global recession. No business is invulnerable in these conditions, but with liquid cash in the business, you have more flexibility and more capital to play with.

Book a meeting and let’s see how we can improve your cashflow processes.

KiwiSaver employee and employer default contribution rates will rise from 3% to 3.5% starting 1 April 2026, with a further increase to 4% from 1 April 2028.

From 1 February 2026, KiwiSaver members can apply for a rate reduction to 3% (which will then also apply to the employer contribution). The period of the rate reduction is limited, and KiwiSaver members need to keep reapplying as needed.

The Government is halving its annual maximum contribution from $521.43 to $260.72 a year and cutting it completely from 1 July 2025 for those earning above $180,000 a year.

16 and 17-year-olds will now be entitled to employer contributions from 1 April 2026 and the government contribution from 1 July 2025.

Budget 2025 potentially affects different sectors of the economy in different ways. What are the risks and opportunities for your business?

If your business is retail, it remains to be seen whether Budget 2025 will bolster consumer confidence to a point where the retail sector can rebound the way it’s been hoping to.

Investment Boost and associated measures will bring some welcome tax relief and encourage spending on business assets to boost productivity. But with tax incentives, a key question is whether businesses have the funds to spend in the first place.

In the building sector, the injection of funds into infrastructure should spur activity for construction and adjacent industries, generating employment and whetting the appetite to invest in productive assets.

However, the increased funding of $35m/year for Inland Revenue audit and debt enforcement should put taxpayers on notice to be vigilant about their tax obligations and manage tax debt proactively.

As ever, the Budget doesn’t exist in a vacuum. Global economic uncertainty remains a limiting factor, with many businesses cautious about over-extending, although some are working hard to see opportunities despite the uncertainty.

Let us know your concerns about your specific business. We can discuss how Budget 2025 might affect your plans, and what the risks and rewards might be.

Are you thinking of retiring in the near future? Now’s the time to start planning your exit strategy, so you have a business that delivers the ROI and capital you need to fund your retirement.

You may love running your business. But in the back of every owner’s mind is the knowledge that one day you’ll need to sell the company and retire.

But with global markets in upheaval and the future less certain than ever before, how can you guarantee that your business will be worth enough on the open market for you to retire?

Creating a business that will fund your retirement plans

Your business has to be the nest egg that provides the equity for you to retire. But how do you secure that nest egg, the value of the business and your retirement plans?

We’ve highlighted five strategies that will add to the value of your business – so, when you come to sell, you’ll get the return on investment (ROI) needed to retire comfortably.

Build a business that can run without you

You may be the boss, but your business needs to function independently of you to hold its value at sale. One way to do this is to systematize your operations, so the day-to-day procedures exist outside your own head and are scalable as the company grows.

It’s vital to train up a strong management team that can keep the business trading when you’re no longer in the picture. This autonomy significantly boosts the value of the company, as potential buyers want businesses that won't collapse when the founder leaves.

Focus on recurring revenue streams

Recurring revenues give your business more stability. Think about focusing on subscription services and other predictable income sources to help build up value in the company.

Recurring revenue dramatically increases business valuation multiples (often 2-3 times higher than transaction-based models). By creating a stable, valuable business, you can sell the company for a premium price, providing the equity you’ll need to fund your retirement.

Invest in intellectual property and licensing

Having valuable assets in the business boosts the potential price of the company. Your intellectual property (IP) and brand equity are two intangible assets that can have a significant impact on the value and asking price when the company is put up for sale.

Think about developing products, processes or technologies that can be patented and then licensed to other third parties. This is a great way to use your IP effectively, boost your brand and create passive income – something that will appeal strongly to any potential buyers.

Keep detailed records and keep finances healthy

A viable business with a good financial health score is the holy grail for buyers. So keeping your financial health, company credit score and cashflow position under control is vital.

It’s important to have rigorous financial tracking in place and to keep a close eye on your key financial metrics. Clean books with 3-5 years of strong profitability make your business significantly more attractive to buyers and can justify higher valuations and better ROI.

Create a strategic exit plan well in advance of retirement

The key to a successful exit is having an exit plan in place as early as possible. Work with your advisors to add value to the business, identify ideal buyers and find the most tax-efficient exit structures that will deliver the funds you need on retirement.

Ideally, you should start this exit strategy at least 3-5 years before you intend to retire. This gives you time to think about succession planning, boosting the underlying value of the business and making sure you’ll have sufficient capital for your retirement needs.

You deserve a restful and comfortable retirement after many years of leading and growing your business. But to do this, it’s important to start planning now and getting your exit strategy ready.

Come and have a chat about your retirement plans and exit strategy.

Need a hand managing cash flow? You’re not alone. The key is getting your invoicing right, by invoicing customers as soon as possible and using tools like Xero’s invoice reminders to move payments along.

That said, there are a few other simple rules you can apply to manage your cash flow and get your invoices paid even faster:

1. Keep your books accurate and up to date - so you can see your financial state at a glance.

2. Don’t be too lenient with your customers - you can be direct and still polite. Keep a close watch on your accounts receivable turnover at all times and act sooner rather than later.

3. Keep your accounting simple - so you have a good handle on these business metrics. We can help with this.

4. Keep your business and your professional finances separate - this is essential to understanding your true cash flow position. Mixing your business and personal finances can leave you uncertain about business performance.

5. Build a cash reserve - so you are prepared for unexpected events and can take advantage of opportunities when they pop up.

First you want to get your invoicing right. Get into a habit of sending invoices quickly. Then follow the steps above to collect revenue and keep your finances organised.

Get in touch for guidance on your invoicing and business cash flow.

A further cut in the Reserve Banks’ Official Cash Rate sounds like good news. But what’s the real impact of this drop in the OCR? We’ve got the pros and cons for your small business.

On 6 April 2025, the Monetary Policy Committee agreed to [reduce the Official Cash Rate] (https://www.rbnz.govt.nz/hub/news/2025/04/ocr-3-50-further-reduction-in-ocr-appropriate#) (OCR) by 25 basis points to 3.5%. This planned cut to the official Reserve Bank of New Zealand (RBNZ) rate is aimed at stabilising economic conditions in Aotearoa.

But what is the OCR? And how will a drop to a 3.5% rate affect your small business?

What’s the Official Cash Rate?

The Official Cash Rate (OCR) is the interest rate set by the Reserve Bank of New Zealand.

The OCR is a key economic tool that’s used to influence the overall level of interest rates in the economy. The OCR sets the rate of interest when New Zealand banks borrow from the Reserve Bank. This, in turn, affects the interest rates that banks charge on loans to their customers.

The key business pros and cons of the OCR cut

A cut to the OCR has both potential benefits and drawbacks for New Zealand-based small business owners. Here's our breakdown of the possible implications for your business:

Potential benefits

Reduced borrowing costs – a cut to the OCR means lower interest rates on loans, including business loans and mortgages. This could mean easier, and potentially cheaper, access to capital for your small business, helping you finance your planned growth initiatives, equipment purchases or operational costs.

Increased investment – with borrowing costs now dropping, it’s a good time to look for business funding and finance. With repayments lower, you could look to invest in expansion, innovation or hiring new employees (all key elements of growth for 2025).

Improved cashflow – with your loan repayments now smaller and more manageable, you free up cash for the business. This liquid cash can be used to reinvest in the business, cover your increasing operating expenses or build a financial buffer.

Boosted consumer confidence – a lower OCR can sometimes lead to higher consumer spending, with customers feeling they have more cash in their pocket. If you’re a B2C business, this can lead to boosted sales and increased revenue.

Potential drawbacks

Slower economic recovery – the OCR is often used to stimulate economic activity, but, paradoxically, in certain circumstances, it can actually slow down recovery. A cut could benefit businesses in the long run, but a slower economic recovery may mean lower sales in the short to medium term.

Inflationary risk – cuts to the OCR could lead to future inflation spikes. Lower interest rates lead to cheaper borrowing and more spending. As prices and spending rise, so will the rate of inflation. Potentially, this could increase operating costs for your businesses.

Uncertain impact on interest rates – the high street banks won’t always pass on the full OCR reduction to borrowers. It's important for you to shop around and compare interest rates between business banks, to ensure you're getting the best deal.

The impact of the OCR cut on your business will vary, depending on factors like the industry you trade in, access to capital, and your reliance on consumer spending.

A further cut is possible in May, especially given recent global economic instability.

Talk to our team about how the OCR cut may affect your business plans for 2025 and beyond.

We’ll help you:

- Review your loan options and whether refinancing makes sense.

- Plan for growth and extra investment, using the potential cashflow boost

- Keep an eye on inflation rates and how to adjust your pricing

- Keep up to date with the OCR and the major NZ economic situation.

Have you updated your payroll systems and processes for the new minimum wage?

Does the minimum wage increase affect you? See what you need to know to make sure your payroll systems are up to date.

Check your payroll systems have been updated.

- The adult minimum wage increased to $23.50 per hour on 1 April.

- The starting-out and training minimum wage rates have also gone up to $18.80 per hour.

Employers who pay their employees by the day, week, or fortnight need to make sure workers are paid at least the minimum wage appropriate to the basis on which they are paid. Additional hours worked in excess of an 8-hour day, or 40-hour week or 80-hour fortnight (as applicable) must be paid at least the minimum hourly rate.

If an employee’s income has fluctuated with irregular overtime, bonuses, or other additional payments (such as time and a half), their average weekly earnings may be higher than their ordinary pay. You must make sure that you pay the highest of the two calculations.

Keep systematic records

Check hours worked for each pay period to make sure employees are paid at least the minimum wage appropriate to the basis on which they are paid. (The fortnightly rate applies to salaried employees.)

You are required to keep records for wages and holidays to meet your requirements under the Holidays Act 2003 and the Employment Relations Act 2000.

Records should be accurate, up-to-date, and easily accessible. The law requires detailed wages and time records, and you must keep records in sufficient detail to show compliance with minimum entitlements such as minimum wage.

Keep in mind

To stay compliant with employment law and avoid potential issues:

- Monitor hours worked – Ensure employees receive at least the minimum wage based on their employment type (such as weekly, fortnightly).

- Keep accurate records – Maintain detailed records of wages, holiday pay, overtime, and additional payments for the entire year.

- Keep written employment agreements – All employees must have a written employment agreement that complies with current employment law.

Regular review of these areas can help prevent legal risks and ensure fair treatment of employees.

Coping with the skyrocketing cost of living

Household living costs have skyrocketed and seem set to keep rising this year. Here are our 12 top tips for coping with the rapidly increasing cost of living – ways to earn more, spend less, and invest in your future.

Whether it’s refilling your petrol tank or paying at the supermarket checkout, the higher cost of living is hitting every household hard.

Across the world, everyday essentials have surged in price across the OECD. What can you do to try to keep up with the increasing cost of living? Here are our 12 top tips:

Look for ways to earn more

- Grow your business’s profitability (talk to us about improving your profits) or ask for a pay rise.

- Take in a boarder or flatmate.

- Sell your unwanted items online.

Cut back where you can

- Prepare more meals at home and spend less at cafés and restaurants.

- Create a budget and keep your spending under control.

- Reduce the amount of meat you buy.

- Find ways to use your car less.

- Cancel your credit cards and your buy now pay later accounts.

- Review all your ongoing expenses like utilities, insurance and subscriptions – cancel, switch providers or get better deals.

Invest in your future

- Think about investing in ways that are likely to outperform inflation – both shares and the property market have historically provided returns higher than inflation.

- Start a new business, launch a new product or service, or try a side hustle.

- Teach yourself about money and finances using free tools online and books from the library. Better money management helps you make the most of what you’ve got.

While inflation has slowed, it is still estimated to be in the 2 - 3% range this year on top of the recent increases. By increasing your income by 4%, and making up additional through savings, while also investing for the future, you can come out on top of inflation.

Worried about money? Talk to us. We have years of experience through many economic cycles, including previous periods of high inflation – and we’re always here to help.

Payroll, taxes and trading rules: What you need to know right now

1. New income tax brackets are now in full effect

Last year’s income tax adjustments are now fully in place for the 2024–25 tax year.

That means employees may see slight changes to their take-home pay, impacting payroll calculations.

The consequential changes on fringe benefit tax brackets for attributed benefits such as company cars apply from the 2025-2026 year so now’s the time to double-check your payroll settings to ensure compliance and plan for any FBT adjustments.

2. Have you adjusted pay for the minimum wage increase?

From 1 April 2025, the adult minimum wage increases to $23.50 per hour. Make sure you review payroll settings and budget plans in line with this change.

3. Get your head around Easter trading rules

Easter Sunday falls on 20 April 2025. Trading laws vary by region, and employees have the right to refuse to work — make sure you’re across your local rules.

When managing farm operations, deciding how much to pay family members engaged in farm work can be a challenge.

The hours are probably more flexible, but remuneration is often salaried and the hours long. Unfortunately, the family work schedule is more aligned to being self-employed, rather than a 40 - 50 hour week. Because they are family, there can be more of an expectation that you work until the job is done. Weekends and public holidays are worked, especially as family don’t typically get paid time and a half. This becomes difficult when working out how much to pay family. This becomes even more complicated when there are unspoken expectations regarding farm succession. Those working on the farm may accept below market remuneration on the implied basis that they will inherit the family farm. Sometimes this works, but with high farm values relative to economic returns, non-farming siblings are less willing to accept a significantly reduced inheritance because another sibling worked on the farm at a reduced wage, or to make the succession stack up financially. It becomes difficult to bridge this chasm between the farming and non-farming siblings. Understandably farming siblings may believe they have should receive a greater entitlement to the farming business, but has this been discussed with the parents or their off-farm siblings?. It may not be considered if the remuneration package is at fair value, and hours worked or leave taken are not recorded.

Farming profitability and debt can make it difficult to pay a fair market wage, and this is often encouraged by professional advisors who recommend that drawings and family wages are kept down for the ‘greater good’ of the family business. Reduced wages and drawings means more money is available for debt servicing, maintenance, development and business expansion. There can also be challenges encouraging farmowners to pay a fair market wage to their adult children when this results in wages greater than the parents’ drawings. This becomes a good package when you include a house at a below market rent, home kill meat, the farm ute, power, telephone, insurance, farm clothing and access to the Farmsource or Farmlands card.

However the remuneration returned to IRD based on cash wages and accommodation will seem below the market average, and the additional perks of the job on the family farm can be taken for granted. Sometimes there is also pressure to keep wages low to ensure eligibility to WFFTC and other government support.

If lower wages are paid, the amount of family assistance received can be significant. Federated Farmers publish an annual farming remuneration survey that is a great reference document for establishing what fair pay looks like. It looks at national and regional remuneration (cash and non-cash), hours worked and job roles.

It is also worth calculating and discussing the value of total remuneration package. By the time the additional perks are added such as meat, utilities and vehicles, there could easily be an additional $30,000 of benefits received. The remuneration process needs to become more transparent in the same way that it occurs with non-family employees. Siblings don’t want to discuss what they are paid, and it is difficult to compare wages between on farm and off farm employment.

Although these can sometimes be difficult topics to discuss and have a very personal element to them, the key is to make sure everyone is talking, and open discussions are being had by all involved.

Ensure you’re up to date before filing your EOFY returns.

#1: Income tax thresholds

Effective from 31 July 2024, personal income tax thresholds changed. Composite rates to account for this applied for the income year to 31 March 2025.

- 10.5% applies up to $15,600 (previously $14,000)

- 17.5% applies from $15,601 to $53,500 (previously up to $48,000)

- 30% applies from $53,501 to $78,100 (previously up to $70,000)

Check your payroll systems have reflected the composite rates applying from July, to ensure there are no surprises in terms of incorrect PAYE deducted. Double check your systems are set up for the new marginal tax rate thresholds applying from 1 April 2025.

#2: Fringe Benefit Tax (FBT)

With the changes to income tax thresholds, FBT rates also change, with effect from 1 April 2025. If you provide benefits to employees, review your FBT reporting processes and ensure you’re set up to account for the changes.

#3: Resident Withholding Tax (RWT)

RWT rates were also adjusted in line with the new personal tax thresholds as of 31 July 2024. If your business handles interest payments or other transactions requiring withholding tax, check you are using the correct rates.

#4: Independent Earner Tax Credit (IETC)

If you’re a sole trader earning between $24,000 and $70,000, you may qualify for the IETC, which could lower your overall tax liability. Check your eligibility before filing your tax return.

Get in touch if you have any questions - we’ll guide you through it.

Avoid these common mistakes to keep your tax season on track

Avoid these common mistakes and keep your tax season on track.

Mistake #1 – Neglecting your home office details

If you’re claiming home office expenses, accuracy is key. You might have started the year tracking everything diligently, but it’s easy to let those habits slide. Now’s the time to catch up — don’t leave it until the last minute. Gather your utility bills, rates, phone plans, and other relevant expenses, and plug them into your home office expense chart.

Mistake #2 – Forgetting asset invoices

Have you bought a new vehicle, tractor, or other equipment this year? Save those invoices! We need them to update your asset register and calculate accurate depreciation claims.

Mistake #3 – Skipping your odometer reading

Do you use a vehicle for work? Record your odometer reading on 31 March to track your total business and personal kilometres for the year. This is especially crucial if you’ve driven more than 14,000km, where Inland Revenue’s Tier 2 rates apply.

Mistake #4 – Not flagging Xero/MYOB uploads with your accountant

If you upload invoices into Xero or MYOB, let us know. This simple step can streamline the process and potentially reduce your accounting fees.

Mistake #5 – Confusing deductible expenses

Food, drinks, travel — what’s deductible and what’s not? The rules vary depending on whether you’re self-employed, a shareholder, or trading as a company. Check Inland Revenue’s guide on [entertainment expenses] (https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/types-of-business-expenses/entertainment-expenses) to avoid surprises.

It’s common for farmers and their employees to sit down with a cold beer or a drink at the end of the day or week and chew the fat. It’s when they can have a casual debrief and plan for the following day. This is normally done outside the farmhouse due to everyone still being in dirty work clothes. Its on the deck, at the workshop or in the garage. Essentially, it will be close to the beer fridge. After the problems of the world are solved, upcoming work is planned, jobs allocated, and everyone goes on their way.

When processing a client’s GST or annual accounts, the treatment of alcohol can be problematic. It could be a business or private expense. All clients are different, and how they choose to entertain varies. It’s a fact specific bit of coding, but we need to be careful about ringing clients to query every alcohol purchase they make as this isn’t a good look. We can’t just assume that every alcohol purchase from the local bottle store is business related. However, if it’s a genuine business-related expense, we should be claiming it. But how do we tell this as we do not know when the alcohol is being consumed, by whom, and in what circumstance. All we can see from the invoice is that a box of beer was purchased.

Are you keen to discuss your personal or small business queries in a face to face appointment with IRD?

 Franklin Family Support Services have representatives from IRD in their office in Pukekohe each second Wednesday of the month. If you think you or your business could benefit from an in person meeting you can contact with Franklin Family Support Services directly