Welcome to Grange
We are a small, relaxed chartered accountancy firm located at 5 Franklin Road, Freemans
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
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
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
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
Temporary loss carry-back scheme
This temporary change should be introduced in a bill in the week beginning 27
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
There will be public consultation about this measure in the second half of
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
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.
effective way to contact them is online and through MyIR.
Phone services are severely limited.
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
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
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 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.
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