In our spring newsletter, we’re covering some key topics in the not-for-profit, business and regulatory space. We're also excited to support the launch of the PKF Stewart Russell Scholarship! 

Read on for insights into these developments and what they could mean for you and your business:

Applications are open for the PKF Stewart Russell Scholarship, administered by the PKF New Zealand Foundation.

This scholarship honours the legacy of a dearly missed director and community champion, Stewart Russell, by supporting the next generation of business leaders in our region.

If you know of anyone with connections to the Far North (north of Mangonui) who is interested in studying Business or Accounting, make sure to share the link below.

This is a fantastic opportunity to receive financial support while working towards a future!

Earlier this year, Inland Revenue opened the door to significant tax changes for charities and not-for-profits.

More than 800 submissions later, the message was clear: reform must be approached with caution to avoid undermining the vital role these organisations play in our communities.

While the government has now confirmed reforms won’t proceed, the feedback provides a fascinating snapshot of the sector’s voice. 

Being contacted by Inland Revenue for an audit or review can feel a bit like being asked, “Were you speeding?” when your speedo is broken, you’re not entirely sure.

While it’s a normal part of doing business, it can be stressful if not handled well. The good news is, with the right approach (and the right support from your accountant), the process can be far smoother than you might expect. 

In the following article, we outline the key steps to managing an IRD audit effectively. 

As part of Budget 2025, the Government introduced a new tax incentive called the Investment Boost, designed to encourage businesses to invest in capital assets.

The incentive allows an immediate upfront deduction of 20% of the cost of eligible assets. From tools and machinery through to commercial buildings, on top of standard depreciation.

While the measure is largely a timing benefit, it has been welcomed by businesses and could provide a meaningful push toward greater investment. In the following article, we outline how the Investment Boost works in practice and what businesses need to consider when applying it.

The big and the beautiful

Over the past few months President Donald Trump’s “One Big Beautiful Bill Act” received quite a bit of attention before it was passed on 4 July 2025 - but why the fuss?

The key business facing elements included:

The legislation also adds roughly US$150 billion for defence modernisation and US$75 billion for border security and immigration enforcement.

The favourable capital related deductions may steer multinational manufacturing, AI infrastructure and chip-fabrication projects toward America, potentially altering supply-chain geography and competition over the next decade. 

A good PIE

A Portfolio Investment Entity (PIE) is a type of investment vehicle that is able to pay tax on behalf of its investors, and depending on the ‘prescribed investor rate’ chosen, the tax liability on the income is able to be capped at 28%. This can be a material benefit to investing in a PIE - depending on the circumstances of a specific investor.

When the top personal marginal tax rate increased to 39% and the income tax rate for trusts subsequently increased to 39%, there was a natural expectation that the income tax rate for PIEs would also increase. It became a common topic of conversation.

To date, there has been no indication that the top tax rate applying to investors in PIEs will change and hence investments into PIEs continue to receive a comparative tax benefit of potentially 11%, being the difference between the capped rate of 28% and the top rates of 39%. That has also given rise to an increase in the number of banks and fund managers that provide PIE investment products.

It is worth bearing this in mind the next time consideration is being given to making a passive investment and comparing the post-tax yields between the various options.

Islay - Leader in the making

This month, Islay presented to a panel of PKF Board members a presentation from her recent learnings from the Dare to Aspire programme. She nailed it - well done Islay! 

Put it in the calendar - Breast Cancer awareness

The team are hitting the streets on Friday, 17th October to share awareness and raise funds for a great course. 

You will like us outside the Paihia Pharmacy between 10.30am  - 12.30pm, come say hi and make your our contribution!

Go the Taniwhas!

This month, both of Janine’s sons had the awesome honour of running the ball out to kick off the match — what a moment!