... there could be some surprises!

Whether you like it or not, you will probably need to fund your farming operations with borrowing from one of New Zealand's main trading banks.

The main terms that borrowers look at when signing loan facility documentation relate to the cost of the borrowing: interest rate, the amount of the repayment sums and the term of the lending. The security required is usually a mortgage over the farm land and, more often than not, a general security agreement which is effectively a mortgage over all of the farming entity's assets that are not land such as stock, crops, machinery, receivables and so on. Read more…

Can it be fair for everyone?

Making sure everyone you care about gets a fair share of your property after you die is an issue most of us grapple with. This may also have additional complications when you have a blended family.

It's not always as easy as just writing your Will and specifying who gets what. There are several statutes that give family members and/or your new partner's family, a right to contest your Will. The two main statutes are the Family Protection Act 1955 (FPA) and the Property (Relationships) Act 1976 (PRA).  Read more…

A new (uncertain) dawn for farmers

One of the hot issues in the recent election campaign was raising the water standards in our rivers and lakes. Regional authorities are the bodies that are charged with implementing the government's water standards policy.

All regional authorities have implemented, or are in the process of implementing, plan changes that are designed to enable them to achieve the minimum water standards set by government. Read more…

What's yours is mine?

In a world where technology is becoming more prevalent, it's easy to feel that privacy rights are a thing of the past.  Read more…

Late last year we noted that the first sentencing under the Health and Safety at Work Act 2015 was about to be released. The decision in WorkSafe New Zealand v Budget Plastics (New Zealand) Ltd [2017] NZDC 17395 saw the court impose hefty penalties for breaches of the new health and safety legislation.

The case involved an employee who had his hand amputated after it was caught in a plastic extrusion machine. Budget Plastics was found to have failed to comply with a number of industry standards and guidelines. Recommendations made from an earlier health and safety audit had not all been implemented. The case was not considered so serious that the company should be fined so heavily it could have been put out of business (although in some cases that may be appropriate). The court imposed a fine of $100,000, reparation of $37,500 and costs of $1,000.

If you haven't yet reviewed your health and safety compliance since the new regime came into force on 4 April 2016, we recommend you do this immediately. It's essential for your farming operation and all who work on it.

From 1 April 2018, small businesses with a turnover of less than $5 million a year will not need to be exposed to use-of-money interest when calculating their provisional tax. Tax payments do need to be made in full and on time.

Using the accounting income method (AIM) which is included in approved accounting software such as MYOB and Xero, small businesses will only pay provisional tax when their business makes a profit. If your business makes a loss, you can get your refund immediately rather than waiting until the end of the tax year.

To use AIM, you must opt-in at the beginning of the tax year before your first payment would be due.

To find out more, go to the IRD's website and/or talk with your chartered accountant.