ACC’s $3.5 billion surplus in 2010/11 will save small businesses an average of more than $1100 annually through levy reductions which came into effect last month.
ACC’s continuous improvements in rehabilitation rates, combined with its surplus, has enabled the levy cuts which will reduce the levy on employers and self employed by 22 per cent – a saving of $1120 annually for small businesses.
For wage and salary earners, the levy will be reduced by 17 per cent – $170 annually for someone on the average wage.
The Earners’ Account Levy, paid by wage and salary earners, will be reduced from $2.04 to $1.70, and the average Work Account Levy, paid by the self-employed and employers, will decrease from $1.47 to $1.15 per $100 of liable earnings from April 1 this year.
Work levies for individual companies are dependent on their industrial classification and experience rating.
Posted on 12 April '12 by editor, under News. No Comments.
Changes to the employer superannuation contribution tax (ESCT) exemption will be effective from next month.
If you are contributing to a KiwiSaver scheme or complying find, the two per cent exemption from ESCT will be removed from April 1, meaning all your contributions will be liable for ESCT.
You can find out more information at www.ird.govt.nz.
Posted on 12 April '12 by editor, under News. No Comments.
With the deadline for SuperStream projects looming, the ATO is urging superannuation funds to act now to ensure compliance before the June 2013 cut-off date.
SuperStream is a set of standards implemented by the government which intend to improve the process of everyday superannuation transactions.
Funds are urged to start bringing reform plans forward to ensure compliance with the June 2013 deadline.
The new measures would improve fund processes, including fund-to-fund rollovers which will be required in an electronic format.
Posted on 21 March '12 by editor, under News. No Comments.
From the beginning of the 2012-13 income year, the tax treatment of shares held in Guinness Peat Group plc may change.
Portfolio investments in offshore companies, including superannuation schemes, foreign unit trusts, and life insurance policies, are usually taxed under the foreign investment fund regulation (FIF).
However, there are some exceptions including, a five-year temporary exemption for off-shore investments with a significant New Zealand shareholder base.
The only company to be affected by the legislation which was introduced in 2007 was Guinness Peat Group plc.
The five-year exemption will expire at the beginning of the 2012-13 income year, which may mean shares in this company will be taxed under the FIF rules.
If all the shares you or your client have in offshore companies (including Guinness Peat Group plc) had an original cost of more than $50,000, or the holder is not a natural person or a trustee of an eligible trust, then this may apply to you.
Posted on 20 March '12 by editor, under News. No Comments.
Theft has risen to the top of the list as the number one economic crime impacting Australian businesses, a recent survey has revealed.
The theft of assets and funds was the largest economic crime committed against organisations, with cybercrime following closely behind.
In the last 12 months almost half of Australian businesses were the victim of at least one incident of economic crime.
Economic crime included asset misappropriation, employee expense fraud and fraudulent invoicing.
According to the Global Economic Crime Survey, conducted by PwC, cybercrime was emerging as the biggest growing threat to businesses with its low costs, high rewards and anonymity broadly appealing.
Posted on 20 March '12 by editor, under News. No Comments.
ACC’s $3.5 billion surplus in 2010/11 will save small businesses an average of more than $1100 annually through levy reductions which came into effect last month.
ACC’s continuous improvements in rehabilitation rates, combined with its surplus, has enabled the levy cuts which will reduce the levy on employers and self employed by 22 per cent – a saving of $1120 annually for small businesses.
For wage and salary earners, the levy will be reduced by 17 per cent – $170 annually for someone on the average wage.
The Earners’ Account Levy, paid by wage and salary earners, will be reduced from $2.04 to $1.70, and the average Work Account Levy, paid by the self-employed and employers, will decrease from $1.47 to $1.15 per $100 of liable earnings from April 1 this year.
Work levies for individual companies are dependent on their industrial classification and experience rating.
Posted on 8 March '12 by editor, under News. No Comments.
Changes to the employer superannuation contribution tax (ESCT) exemption will be effective from next month.
If you are contributing to a KiwiSaver scheme or complying find, the two per cent exemption from ESCT will be removed from April 1, meaning all your contributions will be liable for ESCT.
You can find out more information at www.ird.govt.nz.
Posted on 8 March '12 by editor, under News. No Comments.
Changes to the personal income tax system will make it more simple and transparent to use.
From July 1, the Government will serve tax cuts to low and middle-income individuals by increasing the tax-free threshold and modifying the initial two marginal tax rates over two phases.
The tax-free threshold will increase from $6000 to $18,200, with the maximum value of the low-income tax offset reduced from $1500 to $445.
The first marginal tax rate will be increased from 15 to 19 per cent and apply only to that part of taxable income which exceeds $18,200, but does not exceed $37,000.
The second marginal tax rate will increase from 30 to 32.5 per cent and apply to that part of taxable income which exceeds $37,000, but does not exceed $80,000.
Phase two of tax cuts will come into effect July 1, 2015.
Posted on 6 March '12 by editor, under News. No Comments.
New legislation drafted by the Government would allow the Australian Taxation Office to hold refunds which are pending verification checks.
The proposed law, which was released last month, would be introduced to avoid fraudulent refunds and provide the Commissioner of Taxation with legislative discretion to delay refunds to taxpayers until claim verifications are processed.
Under the drafted legislation, the ATO would withhold refunds, from both individuals and businesses, for at least 60 days for authentication.
Posted on 6 March '12 by editor, under News. No Comments.
Tax relief is available through the Inland Revenue Department for those affected by the Nelson floods in December last year.
If you are having difficulty making tax payments or if your income has been affected as a direct result of the disaster, then you may be eligible for tax relief and/or income assistance.
Contact IRD for further information.
Posted on 6 March '12 by editor, under News. No Comments.
