GAL 
   
 

Welcome to Grange Associates Ltd

 

5 Franklin Rd

 

We are a small, relaxed chartered accountancy firm located at 5 Franklin Road, Freemans Bay. 

 

Budget 2020 Summary

Level 2 Update

With the move to Alert Level 2, we are now back in the office during normal business hours.  We will continue to arrange virtual meetings where possible, but can also accommodate in person meetings at our office. 

Covid-19 Tax Changes Announced 15 May 2020

Covid-19 Small Business Cash Flow Loan Scheme (SBCS)  

Organisations and small to medium businesses, including sole traders and the self-employed, may be eligible for a one-off loan with a term of 5 years if they have been adversely affected by COVID-19. 

Applications are open from 12 May to 12 June 2020 and will be processed via Inland Revenue’s MyIR website under the “I want to” section, and selecting “Apply for a Small Business Loan”.   

Businesses are eligible to apply for the SBCS in the following circumstances: 

  • Has 50 or fewer full time equivalent employees, and  
  • Has received the wage subsidy for some or all employees, or  
  • Did not apply for the wage subsidy but is eligible for the subsidy  

The maximum amount of the loan is $10,000 plus $1,800 per full time equivalent employee. 

Businesses will have 5 years to pay off the loan. Inland Revenue’s usual repayment options will be available. Later this will include the ability to set up instalments. 

Loans will be subject to an annual interest rate of 3% from the date it is provided. During the loan period, the following general rules apply: 

  • If you repay the loan in full within 1 year you won’t be charged any interest. 
  • If you do not repay the loan in full within one year, you will be charged interest for the entire term of the loan. 
  • Repayments are not compulsory in the first 24 months. 
  • Voluntary payments can still be made over this period. 
  • After 24 months, you will be required to make regular payments for both the principal and interest.

Wage Subsidy Scheme Extension 

The Government yesterday announced and extension to the Wage Subsidy Scheme.  The scheme will run for a further eight weeks, for businesses which have suffered a 50% reduction in turnover over the 30 days before application, compared to the same period last year. 

Covid-19 Tax Changes Announced 15 April 2020 

Today the Government announced a further set of tax proposals to help businesses manage the impacts of COVID-19. Over the coming weeks, legislation will be drafted to make these proposed tax measures law.

Temporary loss carry-back scheme

This temporary change should be introduced in a bill in the week beginning 27 April.

Businesses expecting to make a loss in either the 2019/20 year or the 2020/21 year would be able to estimate the loss and use it to offset profits in the past year. In other words, they could carry the loss back one year.

This change means there could be a refund of some or all of the tax already paid for the year they were in profit. It means firms could cash out all or some of their losses in 2019/20 or 2020/21. Without this change, firms would have to carry forward any loss to a year when they make a profit.

Taxpayers do not need to rush to re-estimate their provisional tax before 7 May. Part of the proposed law change would make it possible for them to re-estimate it after the date of the final instalment. This will give them more time to work out any estimated loss for the 2020/21 income year.

Permanent loss carry-back scheme

The Government proposes a permanent loss carry-back scheme, applying to the 2021/22 and later income years.

There will be public consultation about this measure in the second half of 2020.

Changes to the tax loss continuity rules

The Government proposes relaxing the tax loss continuity rules. It intends passing legislation before the end of March 2021, and for it to apply to the 2020/21 and later income years.

Currently, if a company has more than a 51% change in ownership it cannot keep its tax losses.

The introduction of a ‘same or similar business’ test, means a business could carry forward losses. To meet the test, the business must continue in the same or a similar way it did before ownership changed. This test is modelled on Australia’s rules.

This may make it easier for some companies to raise capital that will result in a change to the existing shareholder structure. Relaxing the rules will ensure such companies could carry losses forward to offset income when they return to profit.

Inland Revenue say there will be time taken to work how these changes so they can be made without creating an environment where tax losses can be traded.

Allowing Inland Revenue to change due dates

The Government proposes giving Inland Revenue discretion to temporarily change dates, timeframes and procedural requirements outline in a number of Acts administered by them.  This provision will apply to businesses and individuals affected by COVID-19.

 

IRD Covid-19 Update - 25 March 2020

We have been provided an update from the Inland Revenue Department regarding their response to Covid-19 and their ongoing transformation project.  The main points are listed below:

  • All front office services in all localities are now closed and all staff will be working from home. 
  • The most effective way to contact them is online and through MyIR.  Phone services are severely limited. 
  • IRD remains committed to implementing the latest round of transformation changes in April.  
  • Up to date information will be provided here 

 

Covid-19 Update and Information - 24 March 2020

 

For Government Covid-19 information for business here is your link. 


Application forms for wages subsidies can be found by following these links:  

  • NZBN. All companies are automatically issued with a NZBN and can tell you what yours is. If you do not have a company you may not have been issued with one but can apply with  here    
  • Employer -  here    
  • Self-employed -  here    

If you're not sure how to calculate your revenue, have further questions or need assistance applying, then please let us know and we can assist you.

 

WE'VE MOVED!

We have relocated to new premises!
We are now situated at 5 Franklin Road, Freemans Bay, just off Ponsonby Road.
Our new postal address is:
PO Box 147044
Ponsonby Auckland 1144
Our phone & fax numbers remain unchanged.

 

 

 

Back to Top 



We invite you to:

 

 Join our mailing list

 Bookmark us (hit Ctrl+D)

 Phone us on 09 6233144


NZICA

We are proud members of the New Zealand Institute of Chartered Accountants. We adhere to their ethics, standards and practices.

ARHT

We make an annual donation to Auckland Rescue Helicopter Trust in the name of our clients and are recognised as a corporate supporter.