It has been a while since our last newsletter, which was released before Christmas. Since then, we have been very busy welcoming clients from Evans Accounting, following Russell Evans retirement. We also heartily welcome all our other new clients.
A significant milestone recently reached is the recognition by Xero that Rise has attained Platinum status. This has been a long time coming, and by one measure produced by Xero, Rise are in the top 15% of accounting firms by best fit. We could be described as the “Big, Little, Accounting Firm”. Thank you for journeying with us, and please continue to hold our feet to the fire, ensuring that we meet your needs.
Inland Revenue’s Increased Focus on Tax Compliance
Inland Revenue is ramping up efforts to ensure everyone is paying their fair share of taxes. They’ve allocated $29 million to chase tax cheats. Stay compliant and avoid penalties. For more details, read the full article here:
Taxation of Cryptocurrency Gains
Remember, gains from cryptocurrency and its derivatives are taxable. Any movement of crypto coins into or out of your wallet triggers a tax liability. On a brighter note, crypto losses are deductible, so make sure to keep accurate records of all transactions.
Surprise Visits by Inland Revenue
Inland Revenue is conducting surprise visits to construction sites and is keeping a close eye on tradies and the hospitality sector. They are also actively pursuing outstanding debts, including small-business cashflow scheme loans. Stay prepared and ensure your records are up-to-date.
Protect Yourself with Audit Shield
Undergoing an audit can be financially taxing. Our audit shield insurance product can help reduce this risk. It’s designed to cover the costs associated with an audit, giving you peace of mind and financial security.
Increased Interest Deductibility for Rental Properties
Good news for rental property investors! The percentage of interest that can be deducted from rental property investments for most investors will increase in the upcoming year. This change will help reduce your tax liability and increase your net returns.
Increased Information Requirements for Trust Tax Returns
Inland Revenue has significantly increased the amount of information required for trust tax returns. We expect even more disclosures to be mandated in the future. This additional data will help Inland Revenue ensure trustees are complying with tax laws. Be prepared for more detailed reporting requirements.
Increased Trust Tax Rates
For the 2025 year onwards, if a trust has a residual taxable income in excess of $10,000, tax will be payable at 39%. There are ways to reduce the taxable income, which over the long term requires income to be allocated to beneficiaries and paid out to them. If you have a trust and want to discuss the implications, contact us for a meeting.
Positive Economic News
The recent quarterly inflation rate has dropped, and all major banks are projecting that the Reserve Bank will lower the official cash rate in November. This is likely to boost consumer spending patterns, benefiting businesses across the board.
Xero Pricing and Plans Update
Starting in September 2024, Xero will introduce new pricing and plans. Many subscribers using multiple modules will see a decrease or no change in pricing. A few clients may experience a significant increase, but there are options available to mitigate the impact. We will contact all Xero subscribers who receive their subscription through Rise Accountants to discuss these changes.
We hope you find this information helpful. If you have any questions or need further assistance, please don’t hesitate to reach out to us.
Best regards,
The Rise Accountants Team