March 2015 Newsletter

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Easter Holiday Hours

The office will be closed from 5pm on Thursday, 2 April 2015 and will reopen at 8.30am on Wednesday, 8 April 2015.

 

Team News

Exam success - Congratulations to Troy Hallett and Kate Wade who have graduated with a  Bachelor of Business Studies. Their graduation ceremony is at the end of March.

New members - Deirdre Robertson, Angela Cossill and Ryan Stoner have all joined our Morrinsville accounting team 

Baby news - Congratulations to Karleen and Ashley on the birth of their baby boy Harrison Blake Sutton-Dewhurst.

Wedding news - Congratulations to Rebecca Lingard on her marriage to Andrew Pritchard on 7 February at Bowentown Beach, followed by a reception at their home in Morrinsville. Rebecca said, 'We had the best day, everything was just perfect and we wouldn’t have changed a thing.’

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thames News - Farewell to Barrie and Sue….

Many clients joined us in December to farewell Barrie Price; to thank him for all the support and advice he has given over the years, and to wish him well in his retirement.

As Barrie and Sue have left to start their new adventures our team in Thames of Kelly Ash (branch manager), Chloe Hunter, Alan Bloom, Damien Waitai, Angela Duncan, Elizabeth Young, Selma Olsen and Leeann Harris are looking forward to assisting you. 

The team are very keen to provide accounting excellence to our rural, commercial and family clients, to find the best solutions for you.  Why don’t you call in and have a chat.

 

 

 

 

 

 

 

 

 

 

 

 

Gavin Haddon – Sabbatical

Gavin Haddon, director, will be on sabbatical leave from 20 March  to 29 April 2015. In Gavin’s absence please contact either Associate, Teresa Phillips or his Client Manager, Deborah Hollands.

 

 

 

 

 

Community support… Herd of Cows

CooperAitken is delighted to announce that we are the naming sponsor and founding member of the Herd of Cows? Morrinsville Street Art.

We are working with the Herd of Cows? project team to bring together this community-driven initiative which will see life-sized fibreglass cows produced, painted by artists and sponsored by local businesses and individuals. This unique, permanent art attraction is to create a point of difference for Morrinsville, to demonstrate its innovation, vibrancy and dairying heritage, while adding some flare and character to the town.

Maree Munro, CEO of CooperAitken said, “We wanted to support this project as a thank you to the community, as we celebrated our 100 years in the town last year."

Many local businesses are getting behind the venture and purchasing the fibreglass cows, which will be artistically painted by various artists and managed through the Wallace Art Gallery.

If you would like to be part of this new venture and sponsor a cow please contact Nicki Robb, email  thecowproject@mail.com  or phone  021 343 170.

Photo by TERESA RAMSEY/PIAKO POST  L –R   Nicki Robb, project lead, Heather Olesen, local artist, Maree Munro, CEO, CooperAitken and Grant Eddy, Director, CooperAitken

 

Child Support changes

From 1 April 2015 changes will be made to the Child Support calculation formula and to income definitions.

New formula

1. Child Support will be based on the costs of raising children, including the additional costs of raising teenagers.

2. The direct care a parent provides for their child will be included in the Child Support calculation if it is 28% or more of the time.

3. New allowances will be allocated to both parents own living costs and any other children they have.

Income definitions

1. Both parents income will be used to calculate Child Support.

2. Both parents will be able to estimate their income if it reduces by 15% - refer new rules for estimations.

Further changes are expected in 2016, with more types of income being included in the definition of income, and eligibility to Child Support will cease when a child turns 18, unless attending school.

The Inland Revenue will contact you with information about the changes. They will check your information and calculate your new Child Support under the new formula.

For more information http://www.ird.govt.nz/childsupport-changes/ or call our tax team

 

More than meets the eye ....talk to us first if thinking of buying a property

When considering the purchase of a property, there are many issues which need to be addressed. Talk to us at the beginning of the process and make sure your new venture starts off on the right foot.

Getting the business structure right is important. Ensure 'or nominee' is included in your Sale and Purchase Agreement to give flexibility of ownership until the date of settlement. Whether the  property is purchased by  a ‘company’, ‘trust’ or ‘partnership’ these  all have major and different implications for tax, succession planning and protection of assets, and consideration of these aspects  is needed prior to purchase.

Beware of GST technicalities. The financial implications of one party not being GST registered, or the wording of the agreement, can drastically change the actual price of the deal. Hobby blocks can be a trap with GST.  It is often better not to become GST registered at the time of purchase, just because the vendor is GST registered.  Talk to your accountant about this before signing up.

We can also help with the financing by preparing a budget and liaising with your bank to ensure you achieve the best loan structure and finance rates. Helping you with preparation of an annual cashflow budget will indicate the amount of any overdraft required and the months it is needed.  

Transactions with associated parties can create other nuances. Beware of capital profit on sale becoming taxable when it is between family members. The tax laws are complicated and what appears to be a friendly loan between family can have other hidden and possibly costly affects.

Attention to wording in the Sale and Purchase Agreement is required to ensure that appropriate values are specified for items which may have tax effects in the future, such as plant and equipment, buildings or forestry

There are many more issues involved, so if you are thinking of purchasing a property please call us before you sign.

For more information contact Coral Phillips, Associate 07 889 8822

 

Important Changes to Incorporated Companies

Resident Directors

If you’re a director of a company, don’t be surprised when we ask you for your date and place of birth later this year.  It is now a legal requirement to assist with the prevention of misuse of New Zealand companies.

As of 1 May 2015 all New Zealand incorporated companies must have a director who lives in NZ, or lives in Australia and is also a director of an Australian incorporated company.  All directors will need to provide details of their place of birth and date of birth.

The changes will affect applications to incorporate a NZ limited liability company with the Companies Office.  Existing companies on the companies register will have 180 days to comply.

Limited Partnerships will also be subject to changes.

Further information is available on the website at http://www.business.govt.nz/companies/news-updates/news/article-22-august-2014.

New Zealand Business Numbers

All companies have now been assigned a New Zealand Business Number (NZBN).  This is the first step towards allocating a NZBN to all businesses in NZ, and creating a single searchable public register of businesses.  It is intended that the introduction will mean that in future companies will spend less time and effort on government forms and correspondence, and more time and effort on business.  We all like the sound of that!!

The NZBN is available from the company details page of every company on the register by going to the Companies Office website at http://www.business.govt.nz/companies.

If you would like further information on the introduction of New Zealand Business Numbers please go to the website at http://www.business.govt.nz/companies/learn-about/nzbn.

For more information contact Shirley Scherer 07 889 8859

 

ACC Changes to vehicle licensing fees in 2015

On 1 July 2015 the ACC levy portion of your vehicle licensing fee is going down by an average of 41% depending on your type of vehicle. If your license is due prior to this date it may be cost effective to opt for a shorter licensing renewal period.

This applies to: commercial and private light passenger vehicles, cars, utes and vans less than 40 years old and weighing less than 3500kg.

ACC levies will not be reduced for motorcycles or mopeds in 2015.

 

 

For more information go to                                                                                                       

www.nzta.govt.nz/vehicle/registration-licensing/fees.html

 

Farmers - National standard cost values for specified livestock 2015

Livestock

2014

2015

Dairy Cattle

 

 

Rising 1  year

$510.00

$486.10

Rising 2 year

$225.60

$273.90

Beef Cattle

 

 

Rising 1 year

$369.70

$329.10

Rising 2 year

$207.80

$183.40

 

 

 

As expected, the recent release of the 2015 National Standard Cost values has seen an increase in the Dairy Cattle Rising 2 Year rearing and growing cost value. This is in line with the Inland Revenue's earlier announcement that the method they use to set the values was to change, to more closely reflect the cost of rearing a two year old animal.

Perhaps, rather surprisingly, the Rising 1 Year value has decreased from $510 in 2014 to $486 in 2015. This will smooth out the increase in value for a 2 Year old animal in the 2015 year. We still expect that over the next three years the NSC value for a reared animal will increase substantially.

If there have not been any  cow purchases made , the NSC value for a cow will have increased from $592.50 in 2013 to $713.20 in 2014 to $760.00 in 2015. The increase this year could result in an increase in tax of up to $15.44 per animal on NSC.

 

BankLink Books Refresher Training

Book NOW for our BankLink Books training on Wednesday, 13 May 2015 at our Business Centre in Morrinsville. Learn more about coding, short cut keys, memorisations, reporting and much more ..

Email the team - Banklink@cooperaitken.co.nz to book your space now

 

Trusts and living abroad

When Settlors, Trustees or Beneficiaries no longer reside in New Zealand, consideration should be given to the implications for your Trust.  Read more

 

 

 

 

Inland Revenue Update

1. Using myIR to send documents

IRD over the next three to four months will be making statements, notices and some letters available to customers electronically in their myIR accounts. These will be known as 'eDocuments'. This means that correspondence, like your statements for employer deductions, will no longer be mailed to you. Emails to remind you to check your myIR account will be sent.

2. Email Scam

An email is being sent asking New Zealand taxpayers to complete an 'IR4T' and send it  back to the IRD to enable them to protect your New Zealand Tax exempt status.

THIS IS A SCAM ignore any such email

3. Paying on-line

Instructions as to how to pay the IRD on-line for each bank... read more

 

Specialist services

Human Resources - John Brosnan 07 889 8838

Business Coaching - Craig Purcell 027 2785404

ACC’s accident cover questions - Robyn Pickett 07 889 8864

Trust administration - Leanne Gordon 07 889 8842

Payroll administration - Michelle Weller 07 889 8860           

Triplejump - Joan Coffey  07 902 2890

TimeSmart - Mark Crarer 07 902 2880

 

 

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