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2015 Budget - Highlights that Affect You!

Now that the 2015 Budget's first Bill was introduced on Tuesday, I have gone through and picked out the changes that relate to you and business.


Budget 2015 sees some tax measures announced:

  • Selling residential property within two years of purchase
  • An increase in R&D growth grants to support business innovation
  • Repeal of the $1,000 KiwiSaver incentive payment
  • Reductions in ACC levies
  • An increase of the Working for Families in-work tax credit for lower income earners
  • More flexibility in dealing with penalties for child support debt
  • Christchurch rebuild support

 


Residential Property

Two-year window for sales of residential property


Sales of residential property will be subject to tax if bought and sold within two years. Exemptions apply for:

  • taxpayers selling their family home,
    • applies to one home only, so the exemption does not include the holiday home
    • the exemption excludes Trusts
    • the exemption does not apply if you already used the exemption twice within three years
  • inherited property, and
  • property that is being transferred as part of a relationship property settlement.

An issues paper with more detail on the measures will be released in July. The new rules will apply to properties bought on or after 1 October 2015.

IRD numbers required for land transactions

Anyone buying or selling land - both New Zealand residents and non-residents - will have to provide an IRD number as part of the land registration process. All sales of land - other than sales of the main family home - will be subject to this requirement.

In addition to providing a New Zealand IRD number, non-residents will also have to:

  • provide their country's equivalent of an IRD number, and
  • open a New Zealand bank account

These measures will apply from 1 October 2015.

Inland Revenue's compliance budget bolstered

Inland Revenue receives an additional $74 million for compliance and enforcement.  $29 million is earmarked for focusing on property investment.


 
R&D

The Budget gives an $80 million boost over 4 years to R&D growth grants to support business innovation. This is in addition to the R&D cash out provisions introduced by the Governments in the recent Tax bill introduced in February 2015.



Reductions in ACC Levies

ACC levy cuts of $375 million are forecast for 2016 and an additional $120 million in 2017. If cut as forecast, the average ACC motor vehicle levy could fall to around $120 in 2016.



Repeal of $1,000 KiwiSaver Incentive

Effective immediately, the $1,000 kick-start incentive for people newly enrolling in KiwiSaver has been removed.

 



Working for Families Scheme

Both the Working for Families (WFF) in-work tax credit and the WFF tax credit abatement rate will be increased:

  • Low-income working families earning $36,350 or less a year, before tax, will get $12.50 extra a week from WFF, and some very low-income families will get $24.50 extra.
  • Working families earning more than $36,350 will get extra from WFF, but it will be less than $12.50 a week, with the exact amount dependent on their family income.
  • Families earning more than $88,000 a year will get slightly lower WFF payments, with the average reduction being around $3 a week.

These changes take effect from 1 April 2016.


More Flexibility for Child Support Debt

Inland Revenue is adopting a more flexible approach to liable parents with child support debt - with the aim of ultimately achieving greater compliance. From 1 April 2016:

  • the ability to write off monthly incremental penalties will be extended to more parents, and
  • the test for writing off penalties will be changed to a more pragmatic "fair and reasonable" test.

 



Christchurch Rebuild

As expected, rebuilding Christchurch is still a priority for the Government with the total costs of the rebuild expected to be $40 billion. The 2015 Budget contained additional funding of $108 million over 4 years to ensure the rebuild remains on track.




Forestry Grant Scheme

A new grant scheme has been established to encourage the planting of new forests, and the Budget provides $22 million for this scheme over the next six years.

 



How's Our Government Performing

The Government has not managed to achieve its promised fiscal surplus in 2014/2015, instead posting a $684 million deficit. However, the Government's operating position has continued to improve, with the fiscal deficit down by $2.2 billion from last year and a forecast surplus of $1.5 billion in 2016/2017. The economic outlook is promising, with the annual real GDP growth expected to average 2.8% over the next four years.

Budget 2015 is a mixture of relatively low-key business and social policy measures with no weighting in favour of any particular sector. Budget 2015 may be regarded as a "steady as we go" document.

If you have any queries or would like to discuss how any of these changes will affect you, please give me a call on 374 9393.

Louise Neville


The Companies Amendment Act 2014 has introduced a number of significant changes for New Zealand companies. While some changes are already in place, others are being phased in throughout the year to give everyone time to prepare.

The Changes

From 1 July 2015:

When filing the Annual Return with the Companies Office, all existing New Zealand companies incorporated prior to 1 May 2015 must provide:

  • Date and place of birth of all directors (this information won't be publicly available)
  • Details of any Ultimate Holding Company (if applicable)

An Annual return will not be able to be filed for a company if this information isn't provided. If we file your Annual Return for you then we will contact you one month prior to the due date to obtain the information required.



From 1 May 2015:

All new companies incorporated from 1 May 2015 must:

  • Provide the dates and places of birth for all directors (this information won't be publicly available)
  • Have at least one director that either:
    • lives in New Zealand, OR
    • lives in Australia and is a director of a company incorporated in Australia and provide details of the company (name, ACN, registered office address)
  • Details of any Ultimate Holding Company (UHC, if applicable)

These new rules also apply when adding a director to any existing New Zealand company.

 

From 28 October 2015

All New Zealand companies must have at least one director that lives in New Zealand or Australia. If the director lives in Australia, they must be director of a company incorporated in Australia and will be required to supply details of the company's name, ACN and registered office address.

 

If you have any queries about the changes please do not hesitate to contact us on 374 9393.

Louise Neville
Director, Chartered Accountant


 


Important Changes from 1 April 2015

Minimum Wage Increase

The adult minimum wage is increasing to $14.75 per hour effective 1 April 2015 ($0.50 increase per hour). The starting out and training minimum wage also increases on 1 April 2015 to $11.80 an hour.

The Adult Minimum Wage

The adult minimum wage applies to all workers aged 16 and over who are not starting-out workers or trainees, and all workers who are involved in supervising or training other employees.

The Starting-Out and Training Minimum Wages

The starting out wage is focused on:

  • 16 and 17 year olds starting out in the workforce;
  • 18 and 19 year olds who have been on a benefit for six months or more;
  • 16 to 19 year olds in training in a recognised industry-training course involving at least 40 credits a year.

The training minimum wage applies to employees aged 20 years or over who are doing recognised industry training involving at least 60 credits a year in order to become qualified.



Easter Wages

This year, the Easter period is between Friday 3 April and Monday 6 April 2015.

Good Friday and Easter Monday ARE Public Holidays
Easter Saturday and Easter Sunday are NOT Public Holidays.

If an employee works on a public holiday they are entitled to be paid time and a half for the hours they work and if it is an otherwise working day for the employee they are also entitled to a day in lieu.

We provide a wages service at Accounting Solutions Ltd and can do these for you, just give us a call on 03 374 9393 to discuss this further.

 


 
Employment Law Changes - Effective NOW

The changes below became effective from 6 March 2015:

Flexible Working Arrangements

Up until 6 March 2015, flexible working arrangements were only available to caregivers who had been employed at their work place for six months or more. Now, all employees will have the right to request flexible working arrangements. There's no limit on the number of requests an employee can make in a year. When employers receive requests for flexible work arrangements, they must respond within one month, rather than three as before. The response must be in writing, and if refused, must explain why.

Rest and Meal Breaks

Previously, rest and meal breaks were quite strict. The new changes mean that your employees are still entitled to breaks, and if it's not possible for you to ensure breaks for your employees, you must offer reasonable compensation. Employees and employers can't contract out of the right to rest and meal breaks though under some circumstances you might be exempt from giving breaks to your employees when it is reasonable. Basically, the new requirements are that both the employer and employees agree on whatever arrangements are put in place and that the arrangements are reasonable. For more information on this click HERE.

Continuity of Employment

This relates to employers in situations where they are restructuring or selling a business and employees are being transferred to the new employer.
The changes include set time frames for employees to elect to move to a new employer; the outgoing employer's obligation to provide the new employer with detailed information on employees and their entitlements; protection for employers from unjustified increases in employment costs; and provision for SMEs to be exempt.

Good Faith Provisions and Confidential Information

Changes have been made to the good faith provisions on what confidential information an employer has to give an employee. The employer must give the employee confidential information where it relates directly to them but does not have to provide confidential information on anyone else.  Employers are not required to give confidential information to employees that must legally stay confidential or if there is good reason to keep the information confidential (ie. to protect the business' commercial position).

Collective Bargaining

Employers will now be able to opt out of multi-employer bargaining from the start. New employees who are non-union members are no longer covered by terms and conditions of a collective agreement for the first 30 days of their employment. Employers may respond to partial strikes by imposing proportionate pay reductions and unions must provide advanced written notice of any proposed strikes and lockouts.

Employment Relations Authority Determinations

There are also changes to when and how the Employment Relations Authority must give preliminary findings and determinations following an investigation.


Changes to Employee Allowance Laws from 1 April 2015

Accommodation

Generally, when an employer provides accommodation or pays an accommodation allowance to an employee it is a benefit allowance for the employee and is taxable.

The definition of "accommodation" has been clarified. Certain accommodation or accommodation payments may be tax exempt if:

  • For out of town secondments for up to two years or capital projects for up to three years in distant work locations
  • In connection with the Canterbury earthquake reconstruction projects
  • An employee is required to work in multiple locations on an ongoing basis
  • An employee is required to stay overnight to attend a meeting, training  course or conference.

Some new rules have been added, including a special transitional rule for Canterbury earthquake recovery projects. You might need to prove the value of the accommodation, and there is a time limit on how long the allowances for some accommodation will be non-taxable.

Meal Allowances

If an employee works away from the normal office for up to 3 months and the employer pays meal allowances, this is exempt from tax for the employee under the new rules.

There are no changes to meal allowances for working overtime, ie. not taxable to the employee.

Clothing Allowances

This is tax free to the employee for distinct work uniforms only.



Kiwisaver

From 1 April 2015, the KiwiSaver HomeStart Grant replaces the KiwiSaver first home deposit subsidy. Under the HomeStart grant, member tax credits will now be able to be withdrawn from KiwiSaver savings, which will now mean first home buyers are able to withdraw amounts from their KiwiSaver savings (except for the $1,000 kick start). It should also be easier for more people to buy a newly built home as the grant for newly built homes has increased from the previous level of the First Home Deposit Subsidy. House price caps which determine the eligibility for HomeStart grants and Welcome Home loans have also increased.




Child Support

From 1 April 2015, the amount of child support some parents pay or receive may change. The Inland Revenue has a new formula for calculating child support which now includes both parents' incomes and circumstances, and recognises a wider range of care.


Student Loan Living Cost and Allowances

From 1 April 2015 the student loan living cost available will increase to a maximum of $176.86 per week.

To obtain the maximum allowance you must not earn more than $211.96 a week before tax (and you must meet all the other eligibility criteria).

If you are aged 18-23 and don't have children, the combined taxable income of both your parents in the last financial year must be under:

  • $84,163.86 before tax (if you are living at home while studying)
  • $91,448.30 before tax (if you are living away from home to study)

If you have a partner and children, your own and your partner's combined taxable income needs to be under $882.98 a week before tax. The allowance will reduce for every cent earned above this.

 


ACC Levy Reductions

ACC levies will reduce from 1 April 2015.

The average levy paid by employers and self-employed people in Work Account levies will fall from 95 cents to 90 cents per $100 of liable earnings.

 


Vehicle Licensing Changes from 1 July 2015


On 1 July 2015, the ACC vehicle licensing levy is being reduced. The cost of relicensing most vehicles will drop by around $130 a year. If you need to renew your vehicle's registration before then, you can save money by renewing your registration so that it expires in July 2015.

The reduced levies will apply to commercial and private light passenger vehicles, cars, utes and vans less than 40 years old and weighing less than 3,500kg. They will not apply to motorcycles or mopeds.




Changes to Parental Leave and to Parental Tax Credits

Paid Parental Leave

The current 14 weeks of paid parental leave will increase to 16 weeks for babies expected or born on or after 1 April 2015.

Parental Tax Credits

The Government will increase the paid parental tax credit from $150 a week to $220 a week, and extend the payment period from 8 weeks to 10 weeks.

The amount you receive also depends on the total family income before tax, the number of dependent children in your care and how old they are.

There are some other provisions with this too. If you would like further information on this please do not hesitate to give us a call.




Christchurch Rebuild


Construction in the Canterbury area reached record levels in 2014 with the peak yet to come! Nearly $4 billion worth of construction work was done in the region last year, a record high and 38% more than in 2013.

The figures include more than $2.5 billion worth of home building, up $1.6 billion from the previous year!

34,000 jobs were created in Canterbury in 2014 and unemployment is running at 2.5%.

It is estimated that Canterbury will need to find 8,000 more construction workers for the peak of the rebuild in December 2016. It is predicted that the additions to the current workforce will mostly work on commercial projects or infrastructure.




Facts from the 2014 Small Business Report


The Small Business Sector Report for 2014 is developed jointly between the Ministry of Business, Innovation and Employment and Statistics New Zealand. Some interesting facts from this report are:

  • 97% of enterprises in the country have fewer than 20 employees
  • 30% of the workforce is employed in small business
  • Small businesses contribute to 28% of New Zealand's GDP
  • On average, 50% of enterprises with 10-19 workers are still operating after 10 years
  • Small businesses have higher staff turnover than larger firms
  • Over the last 10 years, the number of self-employed aged 20-39 has steadily decreased, whereas this number increased for over-50s
  • Limited experience in expanding overseas is the most common barrier to small businesses wanting to export

Generating Wealth

Progress your wealth accumulation by investing outside the business

After the earthquake, we all saw too many of our friends walk away from their businesses with nothing – it vanished overnight and insurance does not cover goodwill. They had put their heart and soul into their businesses, had kept reinvesting all its profits back into the business, as well as often having a large mortgage over the family home.

The lesson we learnt from this is, rather than leaving all your money in the business, it's important you invest outside of the business and in appreciating assets - assets that go up in value. Keep these in a different entity structure for segregation and protection. But the most important part is to do this regularly. Businesses perform better when there's a reason to perform more profitably. We can get complacent with what we have and not push ourselves to do better and there needs to be a driving force, one of these could be investing for retirement.

Think of what your burn rate in cash is on an annual basis, in other words, what you live on. Is this going to alter in retirement? Divide your annual burn rate by 5% and this is what your investments/assets should be worth upon retirement to support you with the lifestyle you choose. Do not include your house in this calculation because you still need somewhere to live.

So in summary, on a regular basis some of the money earned in the business should be invested outside of the business in appreciating assets. For many of you, this is something we continuously work on and you're doing brilliantly – for others it's something we are working towards by building the business to a sustainable cash flow level first. Please ring or email me if you would like to sit down to discuss your situation. We can work out how to progress your wealth accumulation and at the same time, look at tax reduction.

Louise Neville
03 374 9393

Spaces are limited!

We will be holding a special tailor made ACC and Health & Safety seminar specifically for you in our new offices (at 77 Gasson Street, Sydenham) on Tuesday 24 March 2015 at 4pm.

We have hand picked two speakers to explain in plain English what the Health & Safety Act is all about, the upcoming changes and how this affects you. You will also find out what needs to be done to claim the 10% discount on ACC levies. At the end of the seminar there will be a question and answer session for any questions you may have.

You will walk away with specific knowledge for your business with regards to the major changes in the Health & Safety Act and you will be provided with the appropriate forms, templates and procedures relevant to your business to get you on track for Health & Safety and the 10% ACC levy discount.

This seminar will be FREE for all our clients and will be $250.00 (including GST) for any non-clients.

Please register by emailing elyse@asl.co.nz or phone Elyse on 03 374 9393.

Drinks and nibbles will be provided.

Spaces are limited so please register ASAP, we don't want you missing out!

Creating a Better Future

Happy New Year! Hopefully everyone is feeling refreshed and ready for a great 2015! This year we will be sending out monthly business tips, sharing wisdom of the last 18 years.

As it's January, let's look at creating an even better future with goal setting, planning and recreating your vision:

  1. As you know, it all starts with a dream, so start dreaming!
  2. Work out where you want to be in 5 years.
  3. Now bring it back to where you want to see yourself by Christmas 2015. 
  4. Once you have created this vision and 1 year goal, work out what the key drivers are to get you there. It is likely there will be 3 key drivers. 
  5. These drivers need to be tangible so you can work out on a monthly basis if you are on track.
  6. Put in your diary every month to look at your overall vision and your December 2015 goal.
  7. See how you went for the month with the results of your key drivers and look to see what is required for next month. 
  8. Remember the saying "Aim for the moon, even if you miss, you'll land among the stars". It is likely this is a better outcome than if you had done no planning or thinking around a bigger, brighter future!

The next 3 months is a great time to come in for a meeting with Louise to help recreate your vision and put it into reality with easy manageable steps. This should take around 3 or 4 hours and has a money-back guarantee. To have a vision, know the steps and be focused creates such a different result, so please give us a call, come in and see Louise.

Next month's blog -"Generating Wealth"

Christmas Pays, Bonuses and Health & Safety

Calculating Christmas Pays

The public holidays over Christmas and New Year are:

  • Thursday 25 December 2014
  • Friday 26 December 2014
  • Thursday 1 January 2015
  • Friday 2 January 2015

Calculating Holiday Pay

Holiday pay is pay for an employee's annual leave and pay for statutory holidays. Payment for annual leave must be made before the annual leave is taken, unless it is agreed that it can be paid in the pay period it relates to.

Annual Leave

Holiday pay must be paid at the greater of:

  • "Ordinary weekly pay" (the amount an employee receives under their employment agreement for an ordinary working week), or
  • "Average weekly earnings" (an employee's average weekly earnings for the 12 months immediately before the end of the last pay period).

If it isn't possible to determine an employee's ordinary weekly pay, the Holidays Act 2003 provides a formula to use. Click HERE to see the formulas or give us a call and we can help you.

If you have employees working or on call over public holidays, please contact us and we'll help you with the extra requirements.

Pay as You Go

In limited cases, you can pay your employee's holiday pay as part of their regular pay. The holiday pay must not be less than 8% of the employee's gross earnings and be an identifiable component of your employee's pay. You may include holiday pay in the regular pay of employees who:

  • Are employed on a fixed-term employment agreement for less than 12 months, or
  • Casual employees whose work is so intermittent or irregular that it isn't practical for the employer to provide four weeks annual holidays.

Paying Bonuses and Deducting the Right Amount of Tax

If you are thinking of rewarding one of your staff members with a bonus, it's important to work out how much PAYE to deduct. It can sometimes be tricky choosing the right PAYE rate.

Bonus and lump sum payments can be things like annual or special bonuses, cashed-in annual leave, back-pay and retirement or redundancy payments. Overtime or any regular payments aren't considered lump sum payments. Contact us and we'll help you with the correct formula.

 

 

Health & Safety

With the upcoming changes in the Health & Safety At Work Act, we will send out a more detailed newsletter with the new requirements in the New Year. We will be arranging a free seminar for our clients, run by ACC, that assists on a practical level with reducing ACC levies and better compliance with Heath & Safety.


Accounting Solutions Ltd Christmas Break

We will be closing down over Christmas and New Year for 3 weeks. Our last day in the office will be Friday 19 December 2014 returning on Monday 12 January 2015.

We hope that you have a lovely Christmas break and may the sun shine wherever you are!

Louise Neville

Director, Chartered Accountant

Inland Revenue Payments & The Local Economy

Important Information on Payments to the Inland Revenue

From 1 October 2014 you need to make sure that the Inland Revenue receives your cheque payment on or before the due date to avoid penalties. You can no longer send the cheque on the due date.

To ensure you don't get charged late penalties, make sure you have paid the Inland Revenue electronically by or on the due date, or posted your cheque to the IRD at least 3 days prior to the date payment is due.

 

Economic Highlights – Christchurch Rebuild

Recently I attended a great seminar by Dominick Stephens, Chief Economist at Westpac regarding the current economy in New Zealand.

It was interesting to see that the level of immigration into New Zealand is predicted to be up with the same level of immigration as the 1950's West Coast gold rush.

It's expected annual immigration to reach just below 50,000 people by early next year. The impact this will have on our infrastructure is huge. The graph below, provided by Westpac, shows the net migration to New Zealand from 1993 to date and forecasted to 2018. 

 

 The graph below shows the earthquake-related construction for residential, commercial and infrastructure. It shows the value of quake-related building work to peak by the end of 2015 but amongst the Christchurch business owners who were at the seminar, their prediction for the peak is another year beyond that.

 

Housing and House Prices

Canterbury accounts for just over a third of the nationwide lift in new home construction over the last couple of years.

Westpac expects that house prices will rise 4.5% this year and to plateau by late 2015. They also suspect to see a period of falling house prices around 2016 or 2017.

If you would like to see Westpac's full overview or get advice on your business in this economic environment please give me a call.

 

Improving Cashflow

Debtor days are the number of days your customers are taking to pay invoices. This can have a huge impact on cashflow. If it takes on average 50 days for invoices to get paid, and you can get this down to 37 days, you could have an extra 26% of cashflow from your accounts receivable in your bank account, this could potentially be thousands of dollars.

Debt collection is a service we have been providing our clients with or training on better systems, and this has dramatically transformed negative or tight cashflow into surplus cashflow and has helped with better decision making.

Please give us a call on 03 374 9393 for further information around this.

 

Changes and Reminder...


REMINDER: Both are due 28th August

GST & Provisional Tax

GST & Provisional Tax are both due 28 August.

Remember that we let you know your provisional tax based on how you're actually going, rather than the standard method of 5% on last year. We give you a choice which you would prefer to pay, but at the least the bare minimum that needs to be paid is the standard method and voluntary payments when funds come available. This avoids big tax surprises and ridiculous amounts you may not be able to afford.  So you're paying tax while you earn which will help with cash flow.


Changes to Financial Reporting

There have been changes to the financial reporting legislation and many people are finding it a bit hard to work out how the changes affect them.

The requirements are changing for some businesses that used to have to file financial statements based on the New Zealand version of International Financial Reporting Standards (NZ IFRS).  For example, your requirements have changed if your business:

  • has less than $30m in turnover or less than $60m in assets, or
  • is a subsidiary of a multi-national company and your annual revenue is $10m or less, your assets $20m or less

Inland Revenue has said businesses like this won't have to file financial statements based on NZ IFRS, but do have to prepare financial accounts to the standard of IRD's minimum reporting requirements. 

Your bank will still be interested in seeing financial statements, as will any investors.  And business owners, boards and shareholders will still need enough information to see how the business is progressing against key financial targets.

If you have any queries on how the financial reporting changes will affect you, give Louise a call on 03 374 9393. As we are preparing your financial statements this is getting reviewed for you.

2014 Budget Highlights that will affect you!

The 2014 Budget was released on Thursday 15 May.

Reading through the budget, I've picked out what I think are the main points that may affect you and your business.

 

Highlights

Tax changes to research and development (R&D)

Two "new" tax measures that were signalled in last year's Budget are explained in further detail in the 2014 Budget:

Loss-making start-up companies will be able to "cash out" up to $500,000 of their tax losses from R&D expenditure (ie instead of carrying forward the losses, they will receive a cash payment). This cap of $500,000 will eventually rise to a maximum of $2 million.

Business will be allowed tax deductibility for R&D "black hole" expenditure that is currently neither deductible nor depreciable:

These measures take effect from the 2015/16 income year.

 

Changes to parental tax credit, parental leave, and doctor's visits for children

From 1 April 2015, the Government will increase the parental tax credit from $150 a week to $220 a week, and the payment period will be extended from eight weeks to 10 weeks. This increases the total credit from $1,200 to $2,200.

The abatement rules will also be changed to better target the parental tax credit towards low- to middle-income families.

Paid parental leave will be extended from 14 weeks to 16 weeks on 1 April 2015 and to 18 weeks on 1 April 2016.

Eligibility for paid parental leave is extended to "home for life" caregivers and to people in less regular jobs, including seasonal and casual workers.

Doctor's visits for under 13 year olds will be free.

 

ACC levy reductions signalled

No definitive decision has been made as to the exact rate of reduction, but the Minister of Finance has signalled that the average ACC levy for a private motor vehicle could fall by $130 a year from 1 July 2015.

 

Inland Revenue $48 million boost for tax compliance

Inland Revenue is given an additional $48 million in funding to bolster its tax compliance activities. This will mean more businesses will be audited.

 

Grants

The introduction of another $14m worth of repayable grants for start-up businesses is a boost for Kiwi entrepreneurs.

 

Cheque duty abolished

Cheque duty will be abolished from 1 July 2014.

 

The Government is putting funds into these seven areas over the next four years:

1.    $83m for tuition subsidies in science, agriculture and health sciences.

2.    $69m for New Zealand Trade and Enterprise.

3.    $20m for 6,000 extra places for apprentices.

4.    $53m to set up another three centres of research.

5.    $57m for contestable research in science and innovation.

6.    Roll out another $14m for repayable grants for start-up businesses.

7.    New tax measures to save businesses $58m over four years.

 

Specific to Canterbury

The Canterbury Earthquake Recovery Authority (Cera) will receive an extra $50 million over the next two years.

The Budget has also promised $75 million from the Future Investment Fund for Canterbury housing development and $13.5 million over four years to continue the Earthquake Co-ordination Service, including the Canterbury 0800 support phone line.

Moves to freeze taxes on imported building materials were also announced, reducing the cost of constructing a standard home by about $3,500.

 

Tax Cuts

"Modest" tax cuts are signalled as a future option to the Government, provided economic conditions permit.

 

Should you have any queries on how the 2014 Budget is going to affect you or your business, please give me a call on 03 374 9393.

  • "With our previous accountant, I had all this information but didn't really get a grasp of what it meant. Now with Accounting Solutions I understand my overall business and where we are going."
    -Richard Allin, Managing Director, Push Bikes Ltd
  • Accounting Solutions has surpassed my previous experience of a large international accounting firm. An experienced accounting team who can manage complex financial tasks."
    -Phil Bryant, Channel X
  • "We have been clients of Accounting Solutions for over 13 years now. Their proactive approach has helped our business to continue to grow and helped make business simple, profitable and enjoyable."
    -Bernie Hunt, Managing Director, Sydenham Joinery Limited
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