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KiwiSaver Changes

Thu, 19 Feb 2026 06:46:34 GMT

Kiwisaver default employer and employee contribution rates

The default KiwiSaver contribution rate will rise to 3.5% (from 3%) for employer and employee contributions. This change is effective 1 April 2026.

This is part of the government's larger plan to progressively increase contribution rates to 4%.

Employee Temporary Rate Reduction

Employees can apply to remain at a 3% contribution rate from 1 April 2026 if they choose.

Applications are made by employees through their MyIR
Temporary reductions can be for 3 to 12 months
Employees can reapply as many times as needed

Employers can choose to match the temporary rate reduction for the Employer Contribution. Once the employee moves from the temporary rate to a higher rate, the IRD will notify the employer.

Contributions for 16 and 17-year-olds

From 1 April 2026, compulsory employer KiwiSaver contributions will extend to eligible 16 and 17-year-olds (previously only compulsory for ages 18–65).

If your children are working, this may be a good opportunity to discuss joining KiwiSaver to access employer and government contributions.

Practical Things to Consider Ahead of the Change

Budgeting

When planning for the new financial year, factor in the minimum wage and KiwiSaver increases when calculating your wage and salary costs.

Communicating with employees.

We recommend advising employees of the KiwiSaver changes ahead of 1 April to reduce questions on payday.

Employees contributing to KiwiSaver will see a lower net pay due to higher deductions unless they apply for a temporary rate reduction.

Temporary rate reductions must be requested by the employee via their MyIR, and the IRD confirmation letter must be provided to the employer.

Payroll System Updates

Payroll software will need to be updated for the above changes. You will need to manage when these changes are processed so they kick in for the correct pay run.

Xero Payroll

If you are on Xero Payroll, Xero has announced that it will release a bulk update tool in March so you can update employee KiwiSaver contribution rates before the 1 April change.

Because the updated rates apply to any new pay runs, you'll need to choose the best time to run the update for your business so it takes effect for the first pay run in April.

If you have questions about any of these changes, please reach out to talk to us .

Six changes you need to know about going into the new financial year

Mon, 20 Mar 2023 22:47:25 GMT

Six changes you need to know about going into the new financial year

As the new financial year approaches, business owners should be aware of the tax and employment changes that could influence their operations. These changes can modify how businesses manage, the taxes they owe, and their overall financial standing. Whether you are a small business owner or a major corporation, these changes will affect you, making it necessary to stay ahead and ready for the forthcoming financial year. In this blog post, we will evaluate the six newest tax shifts and what they mean to your business.

1. Minimum wage increase

Starting from April 1st 2023, the minimum wage is going up from $21.20 to $22.70 per hour. That's great news for workers, but we understand it can be tough on businesses. The starting-out and training minimum wage also increases from $16.96 to $18.16 per hour. Remember to factor in these changes when planning your budget for the next financial year!

2. FBT Exemption for Public Transport

Starting April 1st, 2023, public transport fares paid or subsidised by an employer for employees travelling between their home and workplace will be exempt from FBT. This applies to various modes of transportation, including trains, buses, ferries, trams, and cable cars. Employers must pay the public transport provider directly rather than reimbursing employees for the cost. If reimbursement is made directly to employees, it will be subject to PAYE.

3. GST Tax Invoice Changes

Starting April 1st, 2023, new terminology will replace old tax-related terms.

• Taxable Supply Information will replace Tax Invoices,

• Supply Correction Information will replace Credit/Debit Notes, and

• Buyer-created Taxable Supply Information will replace Buyer-created Tax Invoices.

Previously, the term "tax invoice" was required to be prominently shown for validity, but this is no longer the case with taxable supply information.

However, for supplies over $200 , GST-registered buyers must receive taxable supply information within 28 days of the request. For supplies less than $200 , sellers must keep a record of the supply, but providing the information is optional.

A key point, IF your invoices meet the current definitions of a GST Tax Invoice, there is no change required. The new terminology and rules just allow greater flexibility, so keeping GST records is easier.

4. GST Apportionment and Adjustment Rule Changes

Registered individuals can choose to treat assets mainly used for private or exempt purposes as solely used for those purposes; this is only applicable for supplies made on or after April 1st 2011 and excludes cases where a deduction for those assets has been previously claimed.

If goods or services are acquired for $10,000 or less, mainly for business purposes, the person can claim a full GST input tax credit deduction without applying apportionment rules. This only applies to supplies assessed after August 30th, 2022 . A new principal purpose test will also be implemented starting April 1st, 2023.

5. Build-to-rent exemption from interest limitation

Starting October 1st, 2021, residential rentals categorised as "build-to-rent" are indefinitely exempt from interest limitation rules, but they must meet specific criteria.

• The site must have at least 20 dwellings; each must be used or available for a residential tenancy.

• Tenants must have the option of a 10-year tenancy and be able to give 56 days' notice of termination.

• Also, a personalisation policy must be included in every tenancy agreement.

If the dwelling fails to meet the criteria, it permanently loses the "build-to-rent" classification.

6. Dual Resident Companies

In 2017, a court case in Australia put New Zealand subsidiaries of Australian companies at risk of being dual tax residents. The Australian government announced in October 2020 that they would change the law to limit the impact, but they still need to do so. To help, the New Zealand government has made changes that allow dual-resident companies to be part of a tax group, offset losses, and have an imputation account. These changes apply from March 15th 2017 , when the court case happened.

All this information we discussed today may seem overwhelming. So, feel free to reach out if you need further clarification or have any questions regarding the points covered. We're here to help you understand and navigate these changes.

The Power of Forecasting and Cash Flow Management

Tue, 04 Oct 2022 14:02:07 GMT

Forecasting and cash flow management may not seem that glamorous,

But they're two of the most potent weapons in the small business owner's arsenal. If you have them under control, you can remove the uncertainty and avoid worrying about debt or running out of cash. It will allow you to focus your energy on growing your business. However, they can spell disaster for your company and reputation if not handled properly.

Learn more about forecasting and cash flow management, including how to start forecasting and why forecasting is so important.

Forecasting: Why you should use it?

Forecasting is about more than making projections for the future. It's about developing a plan for handling whatever comes your way, building scenarios on different plans and alternatives you want to consider, which can help avoid unpleasant surprises.

Once you have your 12-month forecast in place, you can identify what your targets need to be over the year. Reporting on these will let you know you are on track or act as an early warning sign to focus your attention. It will enable you to take steps now that will make less costly fixes in the future.

Cash flow Management: Why it's so powerful for businesses?

In the worst of times, managing cash flow can be a full-time job. That's why forecasting and having ongoing cash flow management built into your business is so important. How often have you heard, "We are swamped but don't have any cash in the bank?" Cash flow management can remove this question and put key practices in place to have that cash in your bank. Simple process improvements can increase your weekly and monthly cash flow.

Our checklist can help you identify these important practices in your business.

What can you use it for?

Cash flow is the lifeblood of your business. As a business owner, you should always be aware of cash coming in and going out. The sooner you spot a cash crunch, the more power you'll have to avoid it or handle it proactively.

How simple does it need to be?

Forecasting and cash flow management can be complex tasks. Fortunately, they don't have to be.

For a simple cash flow forecast, start with what you have currently:

Use the simple cash flow forecast models available from Xero or your bank. These are a good starting point and introduction to a 12-month cash flow plan. A Xero example can be downloaded from here .
Determine your current income, expenses, and gross profit margins. Find these numbers on your last set of management accounts or financial statements.
Identify your regular term debt repayments, drawings and GST payments.
Review your last tax plan's income tax payments for the next 12 months.
Once you know how much money is coming in and how much money is going out over the next 12 months, it's time to make adjustments for things that you are planning to do. Are there equipment purchases required? Do you need to build up stock levels? Allow for these in the month you expect these to occur.
Make adjustments. – Does cash flow look each month? Does that capital item purchase need to be deferred a month? Understand the peak and low periods of your cash flow and adjust the plan to suit.
The next improvement would be to build this out to full projections with separate profit and loss, balance sheet, and cash flow reports. This is standard practice for businesses that have plans and report your monthly management accounts.

Cash flow management involves putting good cash flow practices into your standard business systems and processes. Use our checklist to identify what you can put in place.

Cash flow is the lifeblood of any business. Make sure you have an effective system for forecasting cash flows in your accounting records to ensure that your business will be able to grow sustainably. Don't let money management get in the way of profitability! Many small businesses can save time, reduce stress, and avoid pitfalls by getting a handle on their cash flow.

Talk to us if you want to learn more or need help with anything we’ve discussed today.