CG Update December 2024

2024 has been another busy year. The US & UK elections were held and have reminded the rest of the world that democracy is alive and well and also that age and prior convictions shouldn’t stop anyone from following their passions.

Closer to home we’ve seen plenty of road cones, political activism, interest rates starting to ease, and a defense of the America’s Cup title – a mixed bag.

While for 2024 the motto has been “Survive until 2025”, it seems that better times are ahead.

Xmas Closure: We will close on Friday 20th December and reopen on Monday 6^th January.

Our People: Since our last newsletter, we have had four new staff join the firm:

• Colin Tuson is a Chartered Accountant who has joined our Accounting Team. Colin comes to us with a wealth of accounting and taxation experience. Colin has been working in Hamilton and is looking forward to relocating to Matamata. 
• Wessel van den Berg has also joined our Accounting team having spent several years in public practice and commercial roles. Wessel and his wife have also moved into the area recently.
• Samara Theobold has recently joined our payroll processing team. Samara is quickly learning the ropes of our payroll processing function and will be able to help you with your payroll needs.
• Divya Sathyanarayana has recently joined us in our GST processing team. Divya and her family moved to Matamata a few years ago and Divya is pursuing her goal of becoming a Chartered Accountant.

We are also sadly saying farewell to a couple of staff:

• Sonia Hart has been with us for almost 18 years, and we thank her for her dedication and the work she has done across the office and with her clients. Sonia and her family are moving to the sunny Hawkes Bay and we wish them all the best.
• Lindi van Deventer and her family have received an opportunity in Australia and will be relocating in the New Year. Lindi has been a key member of the payroll team and we extend our thanks for her commitment. We wish Lindi and her family all the best for the move.

We have also celebrated some significant milestones during the year:

• Lynette Sclater has been working for Candy Gillespie for 20 years. Mrs Sclater began here in 2004 and has been taking care of our clients ever since. We’re looking forward to the next 20 years just as much as Lynette is.

• Earlier in the year we held our annual lunch to celebrate and thank all past and present staff members who have joined the 20-year club with our firm. We now have more than 15 members of this club who have dedicated over 20 years to Candy Gillespie clients.

Interest Rates: In their recent interest rate review, the Reserve Bank reduced the Official Cash Rate by 50 basis points to 4.25%. They also indicated that another 50-basis point cut is likely in February. Pundits are expecting the OCR to settle around 3% - 3.25% over the next 12-18mths.

This means mortgage rates are coming down, but the reductions may be limited. The RBNZ stated that mortgage rates may not decrease a huge amount in the year ahead, even if the OCR continues to fall. The OCR tends to impact short-term mortgage rates the most, while longer term rates are influenced by moves in the US rate markets.

Financial Health Check: As the end of the year rolls around, it’s a good time to review a few key decisions in your life and make sure your affairs are in order. We can’t help you with all of them, but we can remind you of some.

• Wills – Congratulations! If you’re reading this, you still have time to review your will. Is your Will up to date? Do you need to refresh it?
• Trusts – If you have a Family Trust, is it still fit for purpose? Do you still need a Trust? Have you made sure that only the people you want to benefit from your Trust are listed as beneficiaries?
• Memorandum of wishes - This sets out how you want your trust to be run when you’re not here to manage it. Just like your Will, this needs to be kept up to date.
• Insurance and ACC – Are you sufficiently covered? Are you over- or under-insured?
• Kiwisaver for self-employed – if you’re aged 18 – 65 years, make sure you’re investing at least $1,040 per year into your Kiwisaver scheme. That way, you’ll get $520 of free money from the government. You pay a lot of tax, so get some back.

Cyber-attacks/Spam: These are becoming more regular and sophisticated – bad grammar is now a thing of the past. There are a variety of ways hackers can attack, from locking files to sending emails to changing bank account numbers on invoices sent to customers. To help protect your business:

• Multi-factor authentication is said to protect businesses from 99.9% of cyber-attacks
• Watch out for strange emails, websites or links. DON’T OPEN THEM.
• Install software updates as soon as they are available
• If you suspect the worst, go offline immediately by unplugging your computer network cables and your router and contact your computer specialist.

Our Predictions for 2025

·       Interest Rates Heading south and we will see home loans settle at sub 5% and farm loans slightly higher than that.

·       Milk Payout $10 and holding strong

·       Inflation On the way south, but don’t expect the increase in rates and insurance to stop.   

·       Sport Chiefs to win the Super Rugby title, and Djokovic to win a 25th Grand Slam.

·       Travel More roadworks, but fewer road cones in 2025.

Make the most of the summer break to spend some time with your loved ones. We wish all our Candy Gillespie clients a Merry Christmas and a Happy New Year