Important information

Second Resurgence Support Payment

September 2021

On 10th September 2021, the Minister of Finance announced a second payment of the Resurgence Support Payment (RSP) for the alert level increase that started on 17th August. Businesses will need to show a 30% or more drop in revenue in a 7-day period from 8th September until immediately before all of New Zealand returns to Alert Level 1, compared to a typical 7-day period in the 6 weeks before 17th August.

The payment will stay as $1,500 plus $400 per full-time equivalent (FTE) employee up to a maximum of 50 FTEs, or 4 times the actual revenue decline experienced by the applicant, whichever is less.

Applications will open for the second payment at 8am on Friday 17th September, and will remain open until 1 month after the whole of New Zealand returns to alert level 1. Business & organisations will be able to apply for the second payment even if they have received the first payment.

You need to have a myIR account to apply for the Resurgence Support payment. If you don't already have a myIR account you can create one. Once you have logged in to your IR account, select "Apply for Resurgence Support" in "I want to…." And follow the instructions on screen to complete your application.

New rules for reporting income tax on rental properties

October 2019

From the 2019-20 year new ring-fencing rules apply to residential property deductions. Ring-fencing means residential property deductions can only be used to offset income from residential property. You cannot use rental losses to offset other income like salary and wages.

Under the rules, you can only claim deductions up to the amount of income you earn from the property for the year.

You must carry forward deductions over that amount. You can use these deductions to offset your rental income in future income years.

More information can be found on the IRD website or by contacting us.

Anti-Money Laundering and Countering Financing of Terrorism

October 2018

New Anti-Money Laundering and Countering Financing of Terrorism Act 2009 comes into effect for Accounting Practices

on the 1st of October 2018.

This legislation is designed to increase communication between accountants and the Financial Intelligence Unit of the New Zealand Police in order to detect money laundering activity.

Osborne Group may require more information from clients in order to comply with the new legislation.

If you have any questions regarding this please contact us.