Advice and Tax Updates

A quick reminder to check your entitlements for Covid -19 (Covid) Resurgence Support Payments:

The Leave Support Scheme helps businesses to help pay workers (including self-employed) who are instructed to self-isolate because of Covid-19.

The Short-Term Absence Payment provides support to pay eligible workers needing to stay at home while awaiting a Covid test result.

The Business Finance Guarantee Scheme provides a term loan or credit facility to support business cashflow or capital investments to help with their response to Covid impacts.

The Wage Subsidy Scheme is available for qualifying businesses and employers affected by the rise in Alert Levels on 28 February 2021.

Note that close-off dates apply to all CRSP applications. If unsure of your entitlements, ask Cleaver Partners. We are authorised to apply on your behalf as your Tax Agent.

Other Economic News:

Net migration shortfall:  Businesses needing to employ migrant or seasonal workers may struggle to fill vacancies as Immigration Minister Kris Faafoi announced a drop of more than 87% in immigration in the last quarter of 2020 compared to the same period 2019. Although larger numbers of New Zealander’s are returning home in 2020 these people are not generally suited to filling seasonal roles. Faafoi advised that businesses will need to draw on limited NZ-based workers as there is no clear date in view for increasing seasonal migration numbers.

New Tax rates – in brief:

Cleaver partners are being kept very busy reviewing and working on the best way to deal with a number of changes being introduced to high-end Tax Rates. These include a new 39% marginal rate that will apply to all employment income over $180,000; New fringe benefit rates on all-inclusive pay over $129,681 will be 63.93%; Employer’s superannuation contribution tax rates will rise to 39% for an employee whose ESCT rate threshold exceeds $216,000; Residential land withholding tax will increase to 39% (except where the vendor is a company); There will also be a new tax code for secondary income earners whose total PAYE exceeds $180,000. Other personal income tax thresholds and rates ‘thankfully’ remain unchanged.

If any of these changes sound like they may affect your business – please contact us to discuss available Tax management or deferment strategies.

Nāku noa, nā, Yours Sincerely,
Cleaver Partners