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Chartered Accountants

Trusted advisers of all tax compliance and annual accounting issues facing both individuals and small businesses.

Accessing KiwiSaver early

Posted on Mar 1, 2017 by editor

Although the main purpose of KiwiSaver is to prepare for retirement; New Zealanders can access their KiwiSaver early under certain circumstances. KiwiSavers may be able to withdraw all or part of their savings early if they are buying their first home, emigrating, suffering financial hardship or serious illness. Significant financial hardship and serious illness Inland Revenue considers significant financial hardship for those: – who are unable to meet minimum living expenses or mortgage repayments on the home they live in – modifying their home to meet special needs for themselves or a family member with a disability – paying for […]

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Taking a contributions holiday

Posted on Feb 1, 2017 by editor

Employees who have been a KiwiSaver member for 12 months are allowed to take a ‘break’ from saving or contributing their money to their KiwiSaver account. This is called a contributions holiday. A contributions holiday is for employees who want a break from making KiwiSaver contributions from their pay. Employees can only take a contributions holiday if they have been a member for 12 months or more. However, some employees can take an ‘early’ contributions holiday if they’ve been a member for less than 12 months. If you’ve been a member of KiwiSaver for 12 months or more, you can […]

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Contributing to KiwiSaver

Posted on Dec 6, 2016 by editor

Making contributions to KiwiSaver is quite easy, especially for those who are employed. When you are employed, your employer deducts contributions directly from your pay and sends them to Inland Revenue. Employees can choose to contribute either 3 per cent, 4 per cent or 8 per cent of their before-tax pay.  For those who don’t choose an amount, the default rate of 3 per cent will apply. KiwiSaver contributions are deducted from a person’s salary or wages. This includes allowances; bonuses; commission; extra salary; overtime; gratuities and any other remuneration of any kind before tax. Those who are unemployed can […]

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Three ways to boost your KiwiSaver savings

Posted on Nov 8, 2016 by editor

While there are many circumstances that can result in your KiwiSaver nest egg being a little smaller than you had anticipated, the good news is that there are actions that you can take to catch your Kiwisaver account up to where it should be: Take advantage of the member tax credit The member tax credit is an annual contribution the Government makes to your KiwiSaver account if you contribute $1042 each year. The contribution of $1042 must be in your account before 30 June each year for you to qualify for the tax credit. While some people may feel that […]

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KiwiSaver obligations for employers

Posted on Oct 12, 2016 by editor

Employers in New Zealand have a range of responsibilities and obligations when it comes to KiwiSaver. KiwiSaver is a voluntary savings initiative designed to make it easier for individuals to save for their future. Since the scheme is considered by most people as a ‘work-based savings plan’, employers also play an important role when it comes to helping their employees understand KiwiSaver and how they can save more for retirement. Here is a brief outline of three employer responsibilities when it comes to KiwiSaver: Employer contributions Employers must contribute to an employee’s KiwiSaver account or complying fund at 3 per […]

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KiwiSaver fees and returns

Posted on Sep 12, 2016 by editor

While KiwiSaver fees and returns are two of the biggest factors when determining how much a person has at retirement, almost half of New Zealanders don’t know how much they are paying for KiwiSaver or what returns they receive. A recent survey has revealed that: almost 47 per cent of people don’t know how much they are being charged to have their savings managed 20 per cent are unsure of how much they are being charged to have their savings managed, and; 33 per cent know roughly how much they are paying in fees Fees and returns can make a […]

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IRD targeting employers with unpaid KiwiSaver contributions

Posted on Aug 9, 2016 by editor

Inland Revenue is currently targeting employers with unpaid KiwiSaver contributions that are worth tens of millions of dollars. By the end of June 2016, 12,182 employers had not paid $24.9 million in contributions and penalties. The debt included $12.32 million in employee contributions that were taken from employee salaries but never passed on to Inland Revenue. Employee contributions are government-guaranteed, so workers eventually get the money back. However, $9.34 million in employer contributions are not guaranteed and are only paid to employees once Inland Revenue recovers the money from the employer. In the 12 months to 30 June 2016, Inland […]

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KiwiSavers want more useful annual statements

Posted on Jul 12, 2016 by editor

Following a survey of more than 1300 KiwiSaver members, the Financial Markets Authority (FMA) has found that KiwiSaver members want their annual statements to be more useful and more readable. Overall, only one in five people said that they thoroughly read their KiwiSaver scheme’s annual statement, with older individuals and men the most likely categories to do so. Females (who were also found to have more KiwiSaver accounts than males) between the ages of 18 and 29 years were the least likely to read their KiwiSaver scheme’s annual statement. Some of the reasons people gave for not reading their annual […]

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Changes to KiwiSaver will benefit home buyers

Posted on Jun 15, 2016 by editor

Plans have been announced to change the KiwiSaver HomeStart grant to make it easier for second-chance homeowners to use their KiwiSaver funds to purchase a new home. The current scheme is only available to first home buyers and those who have previously owned property but have low earnings and assets. The asset limit is 20 per cent of the house price caps of $350,000, $450,000 and $550,000. The income limit is $120,000 for a couple and $80,000 for an individual. From 1 July 2016, the income limits will be dropped so second-chance homeowners will be able to access their KiwiSaver […]

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Injured ACC earners miss out on KiwiSaver contributions

Posted on May 16, 2016 by editor

While it is possible to contribute to KiwiSaver while receiving ACC payments, it is not obligatory, even if an individual made contributions before they were injured. If an employee’s employer is accredited or has an ACC employer reimbursement agreement and is paying the employee’s weekly compensation, ACC will not be involved in managing the employee’s KiwiSaver contributions. For those who were KiwiSaver members before injuring themselves, the contributions continue at the percentage (three, four or eight) they have instructed their employer to deduct, unless they apply to the IRD for a contributions holiday. Those who are being paid by ACC […]

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Latest news

Business tax bill is now law

Posted on April 12, 2017 by BDS Hughes

The Taxation (Business Tax, Exchange of information, and Remedial Matters) Act 2017 received Royal assent on 21 February 2017. The new legislation focuses on changes to business taxation to make tax simpler. From 1 April 2017, the threshold for self-correction of errors under section 113A of the Tax Administration Act 1994 has increased from $500 to $1000; the use-of-money interest will be reduced or removed for the vast majority of business taxpayers; and most RWT exemption certificates can now be issued for more than one year. For the 2017-18 and later income years: The 63-day rule for employee remuneration has […]

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