Menu
September 2015                                                                                                            Issue No 18

 

KIWISAVER

Many of the "giveaways" have been ceased or reduced. However it is still a very attractive savings scheme for most people as the Government still contributes $520 each year for the first $1,040 contributed by the member to their scheme.

KIWISAVER AND FIRST HOME

For younger people in particular there is another hugely attractive feature of Kiwisaver and that is the financial assistance available for buying a first home.

  • There are grants available of up to $5,000 per person for an existing house or up to $10,000 per person for a new home or land to build a new home.
  • Most of the funds in the Kiwisaver fund can be withdrawn to help pay for the house.

There are income and house value limitations but if you or your children could be looking to buy a first home make sure you are up to speed with the financial help available. If you need any assistance with this please contact us and talk to Bev.           

           

RESIDENTIAL PROPERTY

Although not all enacted into law the new residential property taxation rules have effect from 1 October 2015!!

The "Brightline Test" means that any residential property apart from the "main home" that is sold within two years of purchase is a taxable sale. Any gain will be taxable, (any loss will only be deductible against future residential property sale gains).

The main home can be a property owned by a Trust if it is the main home of a beneficiary of the Trust, (however if the settlor of a trust has a main home outside the Trust the Trust cannot own a main home for anyone else).

Land used predominantly as farmland or a business premises will be exempt however farmland must be capable of operation as an economic unit. This may mean that small or "lifestyle" Orchards and farms are subject to the new rules.

All buyers and sellers of residential property excluding the "Main Home" will have to supply IRD Numbers. Non residents will in addition have to supply their home country tax identification number and have a NZ bank account.

This all gives support to the strongest growth industry in the country, that of bureaucracy and legal complexity, unfortunately it is an industry that reduces growth and increases costs.

 

HOW TO MANAGE RISK IN BUSINESS

ANZ are presenting a free workshop aimed at helping local business. This is open to all not just ANZ clients. If you are interested in attending please RSVP www.bizhub@anz.co.nz or ring Tracey 07 557 7195 or Sam 07 557 7196