George's Words

It is my pleasure to fill in for Hugh while he settles back into work after a well earned break in Europe.

For those of you who haven’t heard Hugh passed a milestone just recently by turning 60, and what better way to celebrate than to leave the cold winter behind for awhile.  We wish Hugh many happy returns and hope that he can look forward to many more milestones.

It is unbelievable how fast the year is going, I personally don’t know where the last seven months of the year have gone to.  We have been pretty busy with getting your  compliance work done and maybe that is what is making the weeks just fly by.  For those of you who haven’t yet sent in your information please contact us so we can get things underway.

A lot of talk recently has centred around Bill English’s May budget and those of you who were lucky enough to attend our post budget seminar will now have an understanding of the tax changes that are going to affect your business.

The biggest change facing your business in the short term is the increase in the GST rate from 12.5% to 15% from 1 October 2010.     It is our aim to make this change as painless for you, as possible so we will be sending out information to assist you.   We will also be holding a client seminar towards the end of August which you are welcome to attend.

Another major development which will impact many of you is the proposed changes to the rules around LAQC companies.  Again we will be taking the lead on this once the legislation is enacted and we know the full extent, probably closer to the end of the year.

Of course we were all very interested in the proposed cuts to personal and company tax rates and some pretty good cuts are going to come into play from 1 October.   Included in this newsletter is a table showing the new individual rates but note that the current 2011 financial year rates are composite rates and you will reap the full benefits of the tax cuts from the 2012 year onward.

The company tax rate is also being lowered from 33% to 28% from 1 April 2011.  I think this will create some tax planning opportunities for many of you going forward.

Upcoming Events

•  Late August (date to be confirmed) – Client Seminar “Employment Matters”
•  Late August/Early September (date to be confirmed) – Client Seminar “GST Changes”
•  28 August – GST payment and 1^st Provisional tax payment for many of you.

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The Emissions Trading Scheme (ETS)

From 1 July many participants in the NZ Emissions Trading Scheme are obliged to account for their emissions, and some are eligible for free NZ Units to compensate them for the additional costs they will incur under the new scheme.

Those involved in the forestry and fishing industries are affected early by the new scheme.

Those involved in the agriculture sector are not scheduled to enter the ETS until 2013 or 2015,  however it would pay to get yourself informed early so that you understand how the scheme will affect you when implemented.

For further information on the “ETS” try this website:  http://www.climatechange.govt.nz/

Employment Law Changes Announced for Next Year

Trial Periods
90 day trial periods for new employees to be extended to all businesses regardless of size.

Employment Relations Authority
Several changes announced aimed at making ERA proceedings fairer for employers and the whole process more efficient.

Unions
Unions will need to obtain an employer’s prior consent if they wish to visit the workplace.

Holidays
A number of changes were announced to add flexibility to the employment laws.

• Employees may request to “cash up” one of their four weeks of annual holiday.
• New concept to be introduced of average daily pay for “variable” workers entitlements.
• Employers may request at their cost, proof of sickness/injury from employees if they take a days sick leave.
• Employers and employees may agree to observe a public holiday on another working day.

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Online Payroll Processing

At M&A we are currently trialing “Smart  Payroll” an online payroll processing system designed for small NZ businesses.  If you are interested in finding out how onlinepayroll processing can work for your business contact your client advisor for details.

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Benchmarking for your Business

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5 Ways to "Add Value" & Win More Customers

Adding value is the best way to gain a competitive advantage without sacrificing your profits.

Here are five quick tips for adding value to your customers business experience:

1. Routinely, ask your clients how you could better service their needs, find out what they want and respond to their suggestions.

2. Publish a newsletter to keep past and current clients informed of your offerings.   Include valuable information that will keep it interesting.

3. “Try before you buy”.  Offer your customers samples of your products or services to give them a taste of what is available.

4. After sales follow up.  Find out if the customer is happy with their purchase.  Offer additional training or a maintenance warranty.

5. Let your customers or clients share their skills, tips, experiences with one another.  Host a monthly forum and feature a guest speaker.

 Don’t compete on price.  Work to add value to your customers in other ways.

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Remember Me?

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• I’m the person who calls you and holds on forever while you eventually decide to answer the phone.

• I’m the person who waits patiently for you to arrive when you’re late for our     meeting.

• I’m the person who doesn’t complain when the promised information never arrives. 

• Many would say I’m a very nice person 

• But that’s not all I am… 

• I’m also the person who never comes back to your business. 

• And I’m the person who laughs out loud when you spend hundreds of dollars every year trying to win my business when you had it in the first place
  
  
  Has this ever happened to you?  Could it have happened to your customers?  We can help you develop a customer service strategy that makes sure it does not.

Budget 2010 Tax Cuts

About Our Consulting Services

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Tax Calendar

August 28
1st Provisional tax for 2011 year for March balance dates
GST - 2 monthly and 6 monthly to September 2010

October 28
Provisional tax for those on ratio method

November 28
1st Provisional Tax for 2011 year for June balance dates

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We don’t claim to know it all, so with that in mind here’s what we’re obliged to say; this newsletter has had input from a variety of sources, people and publications. For all input we are grateful. Grateful and careful. Whenever we can, we do our very best to ensure all the information contained in this newsletter is accurate and timely. If there's something here you plan to place some considerable reliance on and we haven't made the implications totally clear to you, get in touch and we will clarify it for you.