December 2020 – Take Note

Merry Christmas!

Thank goodness this challenging year is nearly over. I hope you are preparing for a relaxing summer break.
We will be closed for Christmas from 22nd December and re-open on 5th January 2021. Janet’s last day in Amberley will be 16th December and she’ll be back in Amberley on 13th January 2021.

Team Changes
Diane has decided to retire and spend more time playing with her grandchildren. She is finishing up on 18th of December. We wish her all the best for the future and hope to still get to see photos of the grandchildren growing up.

Xmas Dates
We will be closing our offices on 22 December and will re-open on 6 January.

New Tax Rate for Individuals

There is a new 39% personal income tax rate on income over $180,000 from 1 April next year (the 2021-22 income year).

A new Fringe Benefit Tax (FBT) rate of 63.93% for all-inclusive pay above $129,681
A 39% Resident Withholding Tax (RWT) rate for individuals on interest income.
An (ESCT) rate of 39% on superannuation contributions for employees whose ESCT rate threshold amount exceeds $216,000.

All but the RWT rate change will also apply from 1 April 2021. There is no change to PIE tax rates for individual investors or to RWT on dividends.
Both the company tax rate of 28% and the trust tax rate of 33% haven’t changed for now.


As all the banks are stopping issuing cheques, we have decided to introduce the BNZ Payclip into our office. This will enable us to take payment in the office using a debit or credit card.

The Payclip will be heading to Amberley on Wednesdays for those clients who would prefer to pay at our Amberley office. We will still accept cash but we can’t accept cash above $1,000 due to our Anti-Money Laundering rules.

Small Business Cashflow loans

Some changes were made to the Small Business Cashflow Loan scheme in November. If you qualified for the initial Covid Wage Subsidy, you should qualify for the Small Business Cashflow Loan.

No interest will be charged if the loan is repaid within 2 years. Previously it was 1 year.
Restrictions on how the loan can be used have eased. As well as spending on core operating costs, businesses will be able to choose to use the loan to invest in their business, helping it to adapt to the impact of COVID-19.

Applications for the loan can now be made until 31 December 2023, an extension of 3 years.

Loan Scheme details

It is for businesses with 50 or fewer full-time-equivalent employees.
They must have been in business on 1 April 2020 and have experienced a 30% decline in revenue as a result of COVID-19 restrictions.

The maximum amount that can be borrowed is $10,000 plus $1,800 per full-time-equivalent employee and only one amount can be drawn down.

The loan period is for 5 years and interest rate is 3% from the date of the loan being provided.

Minimum Wage

Just a reminder that the minimum wage is $18.90 for employees that are 16 or over.
If filing PAYE returns every payday is becoming a problem for you, contact us to discuss using Smart Payroll or getting us to prepare and file your PAYE returns.

Xero App Part Payments

You can now allocate part payments to debtor invoices on your Xero App if you are using an IPhone or IPad and have the latest version of the Xero App. This is a function that’s been requested for some time, so should make reconciling your bank statements using your phone a little easier.

Thank you for your business this year and we look forward to helping you again next year.

Merry Christmas! – Rachel Liddell

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