Services
Every organisation faces unique challenges throughout the business lifecycle. We understand the factors that govern growth and profitability and can tailor our...
We deliver full advisory service capability to navigate the array of opportunities, complex challenges and risks to help dynamic organisations achieve their...
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Business valuations
We offer expert valuation advice in transactions, regulatory and administrative matters, and matters subject to dispute – valuing businesses, shares and intangible assets in a wide range of industries.
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Capital markets
You need corporate finance specialists experienced in international capital markets on your side if you’re buying or selling financial securities.
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Complex and international services
Our experience of multi-jurisdictional insolvencies coupled with our international reputation allows us to deliver the best possible outcome for all stakeholders.
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Corporate insolvency
Our corporate investigation and recovery teams can help you manage insolvency situations and facilitate the best outcome.
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Debt advisory
An optimal funding structure for your organisation presents unprecedented opportunities, but achieving this can be difficult without a trusted advisor.
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Expert witness
Our expert witnesses analyse, interpret, summarise and present complex financial and business-related issues which are understandable and properly supported.
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Financial models
A sound financial model will help you understand the impact of your decisions before you make them. Talk to us about our user-friendly models.
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Forensic and investigation services
We provide investigative accounting and litigation support services for commercial, matrimonial, criminal, business valuation and insurance disputes.
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Independent business review
Is your business viable? Will it remain viable in the future? A thorough independent business review can help your organisation answer these fundamental questions.
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IT forensics
Effective ESI analysis is integral to the success of your business. Our IT forensics experts have the technical expertise to identify, preserve and interrogate electronic data.
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Mergers and acquisitions
Grant Thornton provides strategic and execution support for mergers, acquisitions, sales and fundraising.
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Raising finance
Raising finance - funders value partners who can deliver a robust financial model, a sound business strategy and rigorous planning. We can guide you through the challenges that these transactions can pose and help you build a foundation for long term success once the deal is done.
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Relationship property services
Grant Thornton offers high quality independent advice on the many financial issues associated with relationship property from considering an individual financial issue to all aspects of a complex settlement.
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Restructuring and turnaround
Grant Thornton’s restructuring and turnaround service capabilities include cash flow, liquidity management and forecasting; crisis and interim management; financial advisory services to companies and parties in transition and distress
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Transaction advisory
Our depth of market knowledge will steer you through the transaction process. Grant Thornton’s dynamic teams offer range of financial, commercial and operational expertise.
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Virtual asset advisory
Helping you navigate the world of virtual currencies and decentralised financial systems.
Does your tax bill get the same attention as your cost of sales or salaries and wages? Tax rates might be fixed but the rules and the risks aren't.
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Corporate tax
Grant Thornton can identify tax issues, risks and opportunities in your organisation and implement strategies to improve your bottom line.
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Employment tax
Grant Thornton’s advisers can help you with PAYE (payroll tax), Kiwisaver, fringe benefits tax (FBT), student loans, global mobility services, international tax
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Global mobility services
Our team can help expatriates and their employers deal with tax and employment matters both in New Zealand and overseas. With the correct planning advice, employee allowances and benefits may be structured to avoid double taxation and achieve tax savings.
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GST
GST has the potential to become a minefield and can be expensive when it goes wrong. Our technical knowledge can help you minimise the negative impact of GST
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International tax
International tax rules are undergoing their biggest change in a generation. Tax authorities around the world are increasingly vigilant, especially when it comes to global operations.
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Research and Development
R&D tax incentives are often underused and misunderstood – is your business maximising opportunities for making claims?
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Tax compliance
Our advisers help clients manage the critical issue of compliance across accountancy regulations, corporation law and tax. We also offer business and wealth advisory services, which means we can provide a seamless and tax-effective offering to our clients.
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Tax governance
Mitigate tax risks and implement best practice governance that will stand up to IRD scrutiny and audits.
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Transfer pricing
Tax authorities are demanding transparency in international arrangements. We businesses comply with regulations and use transfer pricing as a strategic planning tool.
Our experts have extensive experience in audit and assurance and produce outstanding work for leading New Zealand organisations in both the public and private...
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Audit methodology
Our five step audit methodology offers a high quality service wherever you are in the world and includes planning, risk assessment, testing internal controls, substantive testing, and concluding and reporting
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Audit technology
We apply our audit methodology with an integrated set of software tools known as the Voyager suite. Our technology has been developed to produce quality audits that are effective and efficient.
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Financial reporting advisory
Our financial reporting advisers have the expertise to help you deal with the constantly evolving regulatory environment.
Consulting is a multi-disciplinary team, delivering a range of expertise including internal audit, risk management, IT advisory, project assurance, and...
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Business architecture
Our business architects help businesses with disruptive conditions, business expansion and competitive challenges; the deployment of your strategy is critical to success.
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Cloud services
Leverage the cloud to keep your data safe, operate more efficiently, reduce costs and create a better experience for your employees and clients.
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Internal audit
Our internal audits deliver independent assurance over key controls within your riskiest processes, proving what works and what doesn’t and recommending improvements.
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IT advisory
Our hands on product experience, extensive functional knowledge and industry insights help clients solve complex IT and technology issues
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IT privacy and security
IT privacy and security should support your business strategy. Our pragmatic approach focuses on reducing cyber security risks specific to your organisation
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Payroll assurance
Our specialist payroll assurance team can conduct a review of your payroll system configuration and processes, and then help you and your team to implement any necessary recalculations.
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PCI DSS
Our information security specialists are approved Qualified Security Assessors (QSAs) that have been qualified by the PCI Security Standards Council to independently assess merchants and service providers.
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Process improvement
As your organisation grows in size and complexity, processes that were once enabling often become cumbersome and inefficient. To maintain growth, your business must remain flexible, agile and profitable
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Procurement/supply chain
Procurement and supply chain inputs will often dominate your balance sheet and constantly evolve for organisations to remain competitive and meet changing customer requirements
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Project assurance
Major programmes and projects expose you to significant financial and reputational risk throughout their life cycle. Don’t let these risks become a reality.
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Risk management
We understand that growing companies need to establish robust internal controls, and use information technology to effectively mitigate risk.
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Robotic process automation (RPA)
RPA is emerging as the most sophisticated form of automation used to help businesses become more agile and remain competitive in the face of today’s ongoing digital disruption.
If you're a Chinese investor wanting to explore business opportunities in New Zealand, or a Kiwi business keen to do business in China, our China Services team...
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Tax changes will hurt super payments; more compliance issues for employers
20 Mar 2012
Employer contributions to Kiwi Saver and other superannuation funds are about to take a hit, when financial measures first announced in last year’s Budget kick in on 1 April 2012.
Contributions, which were previously exempt from tax, will no longer have this immunity. The Government is also cutting down on its contribution to Kiwi Saver (previously $1 for $1 up to $1042 per annum) reducing to $0.50c for $1 to a maximum of $521.
Geordie Hooft, partner Tax and Privately Held Business for accountants Grant Thornton New Zealand Ltd, said that the Government has removed the exemption that was introduced as part of KiwiSaver, which now means that the employer’s minimum 2% contribution of an employee’s gross pay will be taxed.
“It was viewed as a partial tax exemption and was introduced as an incentive for joining KiwiSaver, but the Government’s fiscal responsibility stance in the 2011 Budget has seen the removal of the Employer Superannuation Contribution Tax (ESCT) exemption,” he said.
Employee contributions are not affected by these changes as they are paid from the after-tax earnings of the employee.
“The other sting to this change is the added compliance cost that falls on the employer, who now has to calculate and pay ESCT, on top of the existing ACC, PAYE, employer KiwiSaver, employee KiwiSaver, student loans, child support deductions and more.
“These are only some of a raft of tax changes that will be introduced on 1 April 2012, including changes to ACC, Student Loans and Working for families. A full summary of these changes includes:
KiwiSaver
- The 2% exemption from employer superannuation contribution tax (ESCT) is to be removed. Contributions by employers to an employee’s KiwiSaver scheme or a complying fund will now be liable for ESCT.
- Employers will need to check their employment contracts with employees in order to determine whether the ESCT costs fall on the employer or employee.
- The ESCT flat rate of 0.33 cents has been removed as a default rate.
- There are two ways to calculate the ESCT threshold amount depending on whether the employee was employed for the full 12 months of the previous tax year:
- where the employee was employed for the full 12 months, the annual salary or wages plus gross employer cash contributions paid to the employee in the previous standard tax year
- where the employee was not employed for all of the previous tax year, an estimate of the total amount of salary or wages plus gross employer cash contributions that the employee will earn in the year ahead
New ACC rates
- The earners’ levy is set at $1.70 (GST inclusive), down from $2.04 the previous year
- The minimum liable earnings for self-employed workers increases from $26,520 to $27,040
- The maximum liable earnings will increase for:
- self-employed people under the Work and Earners’ Account from $110,018 to $111,669
- employees, private domestic workers and earners other than self-employed under the Work and Earners’ Account from $111,669 to $113,768
- employees and private domestic workers for calculating the residual portion of the Work Account from $110,018 to $111,669.
Student loan
- New student loan repayment codes have been introduced and require employees to add “SL” to tax codes unless they are exempt
- Those repaying student loans will no longer be able to use a special tax code to change the amount of student loan repayment deductions from salary or wages. However there are some exceptions to this including:
- Student loan special deduction rates for secondary income
- Student loan repayment deduction exemption for full-time students
- Making extra repayments through salary or wages
- Employers may also need to use the new student loan repayment codes for extra deductions made on salary or wages:
- SLBOR - used to identify extra repayments made through employers
- SLCIR – used if significant under-deductions have been made and the employee is required to make catch-up deductions
Working for Families
The abatement rate will increase by 1.25 cents at every inflation adjustment round from 1 April 2012 until it reaches 0.25 cents in the dollar
The current abatement threshold of $36,827 will also be decreased by $477 to $36,350 (and will continue to reduce by $450 at subsequent inflation adjustment rounds until it reaches $35,000)
Further enquiries, please contact:
Geordie HooftPartner Tax & Privately Held Business
T +64 (0)3 379 9580
M +64 (0)21 670 330
E geordie.hooft@nz.gt.com
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