IRD Mileage Rates09.9.2013

IRD has reviewed the motor vehicle mileage rate to reflect the average cost of running a motor vehicle, including the average fuel prices, and advises the mileage rate for the 2013 income year will remain at 77 cents per kilometre for both petrol and diesel fuel vehicles.

Self-employed taxpayers have the choice of using the IRD’s mileage rate, or using actual costs if they consider that the IRD’s mileage rate does not reflect their true costs. Those that choose to use actual costs must keep records to support the expenditure claimed.

Employers can use the 2013 vehicle mileage rate as a reasonable estimate of costs when they reimburse employees for the use of their private vehicle for business related travel. Alternatively employers can reimburse employees using a rate published by other reputable sources, for example the New Zealand Automobile Association Incorporated.

Note that the mileage rate does not apply in respect of motor cycles.

For more information please click here

Trans-Tasman Superannuation Portability08.22.2013

The trans-Tasman super portability scheme came into effect on 1 July 2013. The scheme allows New Zealander taxpayer to transfer their retirement savings from a complying Australian superannuation schemes to a NZ KiwiSaver scheme, and for Australian taxpayers to transfer their KiwiSaver funds to a complying Australian superannuation scheme, without adverse tax implications.

Refer to Policy Advice Fact Sheet

New Tax Rules for Holiday Homes08.5.2013

Inland Revenue has just released a factsheet setting out the new tax rules that apply to “mixed-use” asset holiday homes from the 2013/14 income year.

A holiday home will be a mixed use asset if the property is used both for private use and income-earning use, and it’s also unoccupied for 62 days or more.

Note that the new rules do not apply to residential properties used for long-term rental, or a home office and where the expense claim is based on floor area.

The factsheet details the two exemptions: income from income-earing use is less than $4,000 per year, or the property makes a loss and the income from the income-earning use is less than 2% of the rateable value of the property.

The factsheet contains a useful worked example of the new calculations required for a mixed-use holiday home.

Refer to IRD’s factsheet

ACC Cover Plus Extra06.24.2013

ACC levies are expensive for SMEs. Manage this cost and create more certainty by considering the ACC “Cover Plus Extra” product. In conjunction with a good quality income protection policy, you may get a better overall cover in the event of an accident or illness.