Sometimes you’d rather have a friend in your property than a stranger. And you’re happy to charge them less than market rent. Done right, this can also mean paying $0 tax on your rental income. Inland Revenue consistently refers to this scenario as renting at “mates’ rates”. Th...

Renting a holiday home to a family member can mean the income is Exempt, resulting in $0 tax to Inland Revenue. What is Exempt income? Exempt income is income you do not have to pay tax on. If you qualify, you can: What is the IRD Rule? The rule is called the Associated Person Exempti...

New Zealand tax law offers a little-known way to simplify your obligations, by simply opting-out of the standard tax rules. This is applicable for owners of properties that are used for both private and rental purposes (known as “mixed-use assets”), such as holiday homes. This means you ...

New Zealand business owners can claim back 2 years of petrol tax. Here’s how: You’re eligible for a cash refund if the petrol is used off-road commercially. How does it work? The logic is simple. Fuel tax is meant to pay for public roads. So if you’re not using public roads, you shouldn’...

The Government has announced a fuel support package by increasing the In-Work Tax Credit (IWTC) by up to $50 per week. Sounds like a good thing. And for many families, it will be. But there’s something important that isn’t being explained clearly. For a lot of people, this “support” won’t ...

Cashflow is the number one reason small businesses in New Zealand struggle. In most cases it comes down to timing, pricing, mindset or planning. The good news is that improving cashflow does not require dramatic changes. Small, consistent actions can make a noticeable difference within weeks. Here a...

Ever shouted a client lunch, hosted a team party, or sent a gift hamper, and wondered how much of it you can actually claim back? You ask yourself: “Is this 100% deductible, just 50%, or none at all?” Most business owners get entertainment expenses wrong. That’s because entertainment i...