September 2012 E Newsletter

Welcome

Welcome to the September issue of Focus. With the official cash rate staying low, the exchange rates staying high, the IRD carrying out more reviews and the motor vehicle mileage reimbursement rates increasing, it seems to be a time of contradictions. At least the sun is shining and our daylight hours are longer! For some weekend fun, have a look at what’s happening around Auckland in the attached link.

Events

Do you need heating or cooling in your house or workplace? Do you need plumbing services? Our client profile this month is on Airtrade Services Ltd, who can help you sort out what you need in regards to air conditioning, refrigeration and plumbing. Check out the article below.

Trusts and rest home subsidy implications

With gift duty having been abolished, and there has been much commentary on the merits or otherwise of accelerating trust gifting programmes, it is now appropriate to examine, as a separate issue, trusts as they relate to rest home subsidy eligibility and means testing.

Although it should never have been the prime motivator in establishing a family trust, it was generally considered that all things being equal, if a person or couple formed a trust to hold the family home and other assets and conducted a gifting programme within allowable gift duty limits, they could avoid being means tested by WINZ when entering into rest home care.

It's business time - cracking down on cash

It’s no secret that the IRD are cracking down on the hidden cash economy. Cash trade jobs, under-the-table wages and online trading cost the Government an estimated $7 billion a year in lost tax and last year the government set aside $120 million in government funds to help the IRD combat tax avoidance.

The benefits and pitfalls of trial periods

The trial period regime was labelled a success for its apparent increase in employment and was designed to make our job market more flexible. But you need a robust process. A number of cases have shown where poor process can come back to bite the employer.

Is your succession plan viable?

Succession will affect every business at some point. It is completely inevitable, and yet so many businesses don’t have adequate plans in place. As our baby boomers reach retirement age and the mass exodus of skilled young workers continues, succession will remain an important issue.

Standard mileage rate increases

The IRD standard mileage rate for motor vehicles is now 77 cents per km. This rate applies to the 2012 income year.
The standard mileage rate may not be acceptable where an employee’s business travel exceeds 5,000km. The reimbursement should be based on actual expenditure or a reasonable estimate of the expenditure likely to be incurred by the employee.

Client Profile - Air Trade Services

Airtrade Services Ltd (incorporating King Plumbing) is an Auckland based Airconditioning company offering top quality Sales, Service and Maintenance in Airconditioning and Refrigeration along with plumbing services. Whatever your heating, cooling or plumbing requirements may be, nothing is too small or too big for our experienced team to handle. Living and working in a comfortable environment is desirable to most, especially in a changeable climate like we have in New Zealand.

Please contact our office on +64 9 627-5716 or email office@airtrade.co.nz to find out more about our services and to provide you with a quote.