CG Update March 2025

End of Financial Year:

• Businesses with a March balance date will be sent a green questionnaire.
• Whilst providing a checklist for you, this questionnaire is also your instructions for us to compile your financial statements and tax returns.
• We are required to keep your questionnaire on file, please sign this and send it to us.

Year end tips:

Do your stock take, dispose of obsolete stock.

Write off any bad debts.

Bonuses and holiday pay amounts payable to staff can be claimed as a deduction for the 2025 tax year if the full amount is paid to the employee by 2 June 2025.

Staff News:

Since our last newsletter, we have welcomed Brathan Balsom to the firm. Brathan is a local lad and is working part-time while studying to be an accountant. Brathan is a long-distance swimmer and spends hours in the pool, lake and ocean. It’s great to have Brathan on board and to be able to support local school leavers with their career progression.

The Big News:

As many of our clients will know, 31 March 2025 also marks the beginning of a new chapter for Keith Earl. Keith has been with Candy Gillespie for 30 years. In that time, he has contributed to our community and clients beyond measure. Since Keith’s retirement was announced there has been an influx of messages from his clients who have appreciated Keith’s support, expertise and friendship over the years.

Keith has been a pillar of Candy Gillespie since 1995. We are incredibly grateful for his contribution. Keith’s retirement has been in the works for a few years. We are fortunate to have had an extended handover period to ensure all his clients continue to receive the level of service they have had from Keith.

With Keith hanging up the proverbial boots, Glen Jenkins will step into a Director role and Keith’s office. Glen shifted to Matamata in early 2024 with his young family. He has enjoyed settling into the community and meeting many of Keith’s clients over the last 12 months.

Unusual Emails & Scams:

Scammers are more active around the end of financial year, often imitating IRD and tempting recipients with the promise of a tax refund. Remain cautious when opening emails and if you are unsure don’t click on links embedded in the email. A call to us to check could prevent bigger issues.

Project Play:

We’re excited to let you know that Candy Gillespie is supporting Project Play to build Matamata’s new destination playground. We believe that having a destination playground will be a great asset for our community. It’s something that we hope Matamata families and visitors to the town will be able to enjoy for years to come.

If you would like to make a donation to this cause, go to the Matamata Futures website. https://matamatafutures.co.nz/project/project-play/

Project Play are also hosting a fun run on Sunday 30 March at Pohlen Park to raise funds.

Dairy Farmers:

• With the high payout this season, it is likely your year-end profit will be significantly higher than last year. This means you will be required to pay more tax.
• Most dairy farmers will need to pay this additional tax on 28 June 2025 (or 7 May for dairy farmers with a March balance date).
• We will review your tax payment due closer to these dates.
• For Fonterra farmers, under the current payout schedule, the payout is already at $8.50 and won’t be increasing until August. This means milk receipts will be minimal for May, June and July which could put a strain on cashflow.
• If required, there are options available to finance the 28 June tax payment and defer the payment. The cost of deferring is around a 5.5% interest cost.
• Drought – Parts of the country have been declared a drought. The main tax relief for this is a more generous opportunity to use Income Equalisation Deposits to spread income between years. We can discuss this with you.

IRD Activity:

In the 2024 budget, IRD was allocated additional funding over four years to increase tax compliance and debt recovery. In the 2024/25 year, specific areas targeted were the hidden economy (cash jobs), GST integrity and increasing audit activity. For every dollar IRD is spending on this activity the expectation is they will recover $8. The bottom line is IRD activity continues to increase and tax compliance is as important as it’s always been.

Employment News:

• Minimum wage is increasing to $23.50 on 1 April. Please contact us if you would like updated wage calculations or any further information.
• The minimum wage applies to all employees 16 and over, including those paid by salary, piece rates or commission.
• For those employees on a salary, please ensure that their hours worked are at or above minimum wage in each pay period.
• Give our wages team a call if you need more information.

Working on Public Holidays:

• Over Easter, the public holidays are Good Friday and Easter Monday.
• Easter Sunday is not a public holiday.
• If staff work on a public holiday which would normally be a workday (e.g. Good Friday), they are entitled to receive time & a half plus a day in lieu. Talk to us if you’re unsure.

On the Horizon:

The Dairy Women’s Network “Success Through Inspiration” Conference is your opportunity to dream big, unlock your potential, take meaningful action, and make a difference. This conference features world-class speakers, engaging sessions, networking, and a gala dinner. Connect with passionate, like-minded people, and grow within a supportive dairy industry community.

Conference Details 

When: Thurs, 1 May – Friday, 2 May 2025 

Time: 11:00am Thursday - 12:30pm Friday

Where: Claudelands Event Centre, Hamilton 

Go to the Dairy Women’s Network website for more information.

https://www.dwn.co.nz/dwn2025conference/