ADO Newsletter

December 18 Newsletter


Introducing…

David Crossan, Director

Having joined the team recently David is based in our Cromwell branch, and has lived in the area for the past three years with his wife Christina and their three children.  

Prior to joining Affleck O’Meara, he held numerous senior finance positions in both Switzerland and the United Kingdom specialising in Joint Ventures for major Oil & Gas Companies.

Upon his return to New Zealand he joined one of Central Otago’s largest wine producers as their CFO, which he successfully facilitated the sale of.

Some of his areas of expertise include:

  • New Business Set Up
  • Management Reporting
  • Viticulture and Winery Management Accounting
  • Acquisition advice
  • System and Process Analysis
  • Joint Venture Accounting & Reporting
  • Xero/Moneyworks

Wanaka – our newest branch on the block

We’ve long seen Wanaka as being a key part of our vision to be the leading accountants across the Southern Lakes & Central Otago districts.

Whilst we already service a number of clients in Wanaka, to date this has generally been done from afar. Now, we’re excited to be operating from our new premises with Mighty Efficient Bookkeeping in Frederick St.

We don’t intend this to be a temporary remote office only occasionally manned – as we’ve done with Queenstown and Wanaka, we’re looking to invest into the right people to continue to grow our ability to service clients locally in the Wanaka area.

 

 


Meet Emma Kenny

Emma has recently become our first team member based at our new 3 Frederick Street, Wanaka office! She has a varied accounting background in commercial businesses throughout New Zealand and the United Kingdom.

A self-confessed people person, Emma takes the time to foster enduring relationships and develop a genuine understanding of client’s positions and goals. She enjoys providing a personalised range of services to clients as well as sharing her expertise in a range of accounting systems – having the right package can help make informed business decisions a lot easier.

Emma and her husband Willoughby enjoy living in the growing, dynamic community of Wanaka and extended areas.


Nathan Keil, Client Manager

Nathan has recently joined our Queenstown firm having spent the previous 6 years in a number of senior finance positions in multinational corporations in London. Prior to this he was a manager in a large Australasian accounting firm based in Dunedin.

A born and bred Southlander, now based in Queenstown, Nathan also likes to spend his time chasing deer around the hills or in the bush, fishing & diving down south in the Foveaux Strait, and spending time with his wife Abby and 1 year old son George.

Nathan provides a broad range of services across a wide range of clients and will speak to you in a language you understand to ensure you get exactly what you want and need.

Key skills include:

• Management reporting
• Profit improvement
• Cash flow and forecasting
• Accounting and taxation advice


2018 Tax Returns due 31 March 2019 … sorted?

2018 Year End Tax Returns are due now!

Just another reminder that time is running out for those clients who are yet to send their 2018 information to us. Please can you get your information to us ASAP! Unfortunately, the IRD will apply penalties, and your extension of time to file future tax returns will be revoked if these are not filed by their deadline of 31 March 2019.

To enable us to undertake your accounts our 2018 Compilation Agreement must be completed in full and all pages returned to us.

Below are links to our 2018 Questionnaires that offer guidelines on what supporting documentation we will also need depending on your taxable activity (for those with a financial year ending 31 March 2018)…

 

 

Unfortunately, the IRD will apply penalties, and your extension of time to file future tax returns will be revoked if these are not filed by their deadline of 31 March 2019. 


Calendar reminders

15 January 2019

Second Provisional tax due on 15 January if you have a March balance date.
GST return and payment are due for the taxable period ending 30 November.
Student loan interim payments are due.
The interim payments you make will be offset against your repayment

28 January 2019

GST return and payment are due for the taxable period ending December.

28 February 2019

GST return and payment are due for the taxable period ending January.

28 March 2019

GST return and payment are due for the taxable period ending February

31 March 2019

31 March 2018 Income Tax Return due for clients of tax agents
(with a valid extension of time).
Student loan repayments for overseas-based borrowers.

7 April 2019

Terminal Tax due for the year ending 31 March 2018 for clients of tax agents
(with a valid extension of time).

7 May 2019

GST return and payment are due for the taxable period ending 31 March.
Third Provisional Tax due for relelvant clients on a March balance date

20th of each month

PAYE Returns are due for the previous month, on the 20th of the following month
i.e. PAYE tax for December wages is due 20 January.

 Note

If a due date falls on a weekend, public holiday or provincial anniversary day,
IRD can receive your return and payment on the next working day without a penalty being applied.



Ring Fencing of Rental Property Losses

The government’s plans to put an end to the practice of using losses from rental properties to lower your overall tax bill has now been introduced into Parliament. Revenue Minister Stuart Nash this week released the dry-sounding Taxation (Annual Rates for 2019-20, GST Offshore Supplier Registration, and Remedial Matters) Bill.

One of the major tax policy changes contained in the Bill deals with the proposed ring-fencing of tax losses from rental properties, which the Government consulted on earlier this year. “The proposed change will mean residential property investors no longer get a tax break by using losses on rental properties to offset the tax payable on other sources of income such as salary and wages,” Nash says.

Currently investors with loss-making rental properties can subsidise part of the cost of their mortgages through reduced tax on other income. But the Government does not like this practice, saying it allows investors to make tax-free capital gains when they sell their properties. The Government also claims it helps investors to outbid owner-occupiers for properties. Nash says that, in conjunction with the extension to the bright-line test, ring-fencing losses from rental properties will make property speculation less attractive.

The new rules will not apply to a person’s main home or to a property that is rented out and used privately like a bach.

Many investor advocates are staunchly opposed to the proposed ring-fencing of rental losses. They say the change will deter many investors from going into the provision of rental property as when starting out many investors rely on losses to get by. Additionally, rental property providers already pay tax on the rental income generated by their properties.

Timing as to when this new Bill may be introduced as law is uncertain, but we are advising our clients to expect this from April 2019. We do emphasise that the actual losses from the rental property do not disappear, but are merely ring-fenced to be used once profits from rental properties are generated in the future.

Please contact your usual advisor if you have any specific queries around this legislation.


Strategies to Increase Revenue

4 Keys to Sustainable Growth

  • People
  • Strategy
  • Execution
  • Cash

The difference between a growth business and a stuck business is not luck…

In growing your business, you must get four decisions right or you risk leaving significant revenues, profits, and time on the table – or even getting stuck.

People
Everything rests on your people. If you don’t have the right people, your business will be consumed by personnel issues, making it difficult to focus on anything else. Your people may be right for your company now – but will they be right for a much bigger company in two, three or five years? Do your people align with your core ideology? Does the structure around them support them to do their best? Get your people right, and then you can focus on the next three decisions.

Strategy
When revenue is not growing as you would like, or is slowing, it is time to re-address your strategy. What are you selling, who are you selling it to and where are you selling it? What is your core ideology? Why do you do what you do? Are you spending money and resources being reactive, rather than doing things that move you closer to your goal?

Execution
If revenue is increasing, but profit isn’t following suit, you need to look at how you’re executing your strategy. Are you executing the right things to move your company forward as a company? Are you executing them on time? Execution drives profits and time. Good execution results in higher than industry average profits and more time for management to work on the business.

Cash
It may seem obvious, but too many would-be growth companies don’t have the cash they need. Growth sucks cash – will you have enough cash to grow? Cash is oxygen to a company; knowing your cash conversion cycles and improving them is vital to let your company breathe and grow.

In Summary
The difference between a growth business and a stuck business is not luck. The difference is the attention the growth business has paid to getting its four core decisions right, setting it up for the future it desires.



 

“New Year – a new chapter,

new verse, or just the same old story?

Ultimately we write it. The choice is ours.”

  – Alex Morritt

 

 

AFFLECK
O'MEARA

QUEENSTOWN
Level 2, 45 Camp St
PO Box 1010,
Queenstown 9300
New Zealand
+64 (0)3 441 3901
zqn@affleck.co.nz

ALEXANDRA
Level 1, 65 Centennial Ave
PO Box 199,
Alexandra 9320
New Zealand
+64 (0)3 448 6088
info@affleck.co.nz