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There’s a Fraction….

10 Aug

The speculation is over.  The rate of GST will be increased from 12.5% to 15% as of 1 October 2010.

The GST rate increase is consistent with Government’s commitment to a fairer tax system and a move away from personal and company tax rates that it considers harmful to economic growth.

Over the next three months (and beyond) we’ll be working hard to guide our clients through the various changes that need to be implemented as a result of the GST rate increase, some of them complex.

As always, taxation changes do present opportunities along with the usual challenges, so now is the time to consider those opportunities along with the raft of administrative changes you’ll need to consider.

New Tax Fraction
At the moment, with a GST rate of 12.5%, calculating the GST component of a GST inclusive price is as simple as dividing by 9.

Not so simple after 1 October.  When GST increases to 15% you’ll need to multiply by 3 then divide by 23.

For example: Let’s assume the price of an item is $1,000 plus GST, so that’s $1,150 including GST.  The GST component is $1,150 x 3 ÷ 23 = $150.

Have a practice and enjoy!

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Mixed Messages

12 Jul

There is no doubt that this economic blip has felt long winded and fairly drastic.  By all accounts folks are tired of the talk and keen to look on the bright side at this point.

There has been lots of talk about the easing of the recession and this has spurred hope for some positive economic indicators.  In actual fact, the expectation of this imminent recovery has made it difficult for our small to medium enterprises because while waiting for it to actually show up, energy and fund reserves dry up; in turn business confidence drops.

However, the Quarterly Survey of Business Opinion by the New Zealand Institute of Economic Research (NZIER) shows that optimists still outnumber pessimists, with a net 18% expecting the economy to improve. That figure is down from 22% in March.

Research has also shown that Kiwis are a strong and an innovative bunch who choose to work longer hours and introduce new products and services into their business.  Expect some wee gems to be born of these hard times; the concept of pressure producing diamonds is not to be sniffed at.

Another positive sign is that Trade Me Jobs has had a 29%increase in jobs listed.  After serious down-sizing, businesses are now gearing up to take advantage of the proposed growing market.  Historically, welcoming contractors and part time staff back on board is an indication of improvement of the  economic state of play.  Hear, hear.

The only thing we’ll comb over is your books

8 Jun

We are currently running an ad campaign that is cracking us up. Comb overs are funny and that’s a fact. Another fact is that accountants are not as fun as comb overs!

Never the less the campaign we are running includes a tasty little discount off what we to consider to ALREADY be a pretty sharp pencil. Zap through to crunch to check it out and enter this secret code to see the discount appear 33550…..enjoy!

Brass Monkey Special

8 Jun

For a 20% reduction in your accounting fees enter this smart code 33549 at icrunch.co.nz

Take 2 minutes to check it out…you might be pleasantly surprised!

Below Xero

8 Jun

Did we tell you we won an award?

Our friend at Xero awarded us Partner Innovation Award for 2009 and we are stoked.

Crunch for Property Investors

8 Jun

We are speaking to the good folks down at Otago Property Investors Association about the budget changes and how that might effect them as investors. On June 24th at The Wanaka Hotel our team will be giving the low down, please feel free to join us!

Date: Thursday June 24th

Time: 7pm to start at 7.30

Place: Wanaka Hotel