Members Newsletter November 2021

Update from the Chair

While most of NZ has enjoyed the relative freedoms that come under Level 2, we feel for our northern members who are still very restricted in both movements, activities and the operation of their businesses. Not only do these members have the stress that comes from within their own families and businesses or jobs, most of these members are also taking care of their clients who need even more support than usual. We are thinking of you! We certainly hope that by the end of the year, all of our members will be able to enjoy a well earned break.

We continue to work with Inland Revenue regarding the many changes that have been taking place within myIR. We are certainly enjoying some of the new features including the very basic ability of being able to search by name!! Game changer. We have also been working with IR on a range of topics including the new reporting requirements for domestic trusts and also guidelines and Interpretation Statements like IS 21/06.

If you enjoyed reading IS 21/06 “Income tax and GST -Treatment of meal expenses” then you are a genuine accounting nerd. 36 pages of commentary and examples which in our view should of have been condensed into a one or two page summary which would be easier to understand and also to explain to our clients. The good news is that the IR took onboard our feedback and have produced a Fact Sheet to go alongside IS 21/06 which clearly explains the tax treatment of meal expenses. This will be released in a few weeks and for those of us that like simple, clear and concise guidelines we think this is a big win!

Another very exciting development is our new Mentoring Program which is starting this month. We see this is as a very important part of our long-term Strategic Plan and know that both our Mentors and our Mentees will benefit greatly from this.

Thank you all for your support. We appreciate you being a member of ATAINZ and we will continue to make sure that you get the support you need from other members, our regional meetings, webinars and conference (whether these are in person or online).

Best,

Richard Abel

How to thrive, not just survive in this changed world

Lockdowns, closed borders and uncertainty mean small businesses are still struggling with the effects of COVID-19. Our thoughts and hearts go out to parts of our country still stuck in lockdown - especially the small business owners trying to balance working - lockdown - family and their own mental health.

Unfortunately, for many business owners, lockdown has meant long hours, plenty of stress, and so many restrictions your brain wants to implode! What are you doing to find the balance during these hard times?

A survey (completed prior to Covid-19) done by Statistics NZ found that:

- 21% of employers work 60 hours per week or more

- Only 45% of employers said they were satisfied with their work-life balance, compared with 76% overall

If those were our stats a couple of years ago, imagine what they are now! Staying motivated, retaining work-life balance and video conference etiquette are just some of the challenges. We've researched what are the best ways to manage a balance during this challenging and Covid time. Our top tips are:

1. Structure your day like normal - Without steady schedules, the lines between work and personal time can get blurred and be stressful to get right. Follow your normal sleep and work patterns if you can, and stay consistent.
2. Protect your mental health - as they say "put your own oxygen mask on first" - the same applies when working from home in a pandemic. A UN report in 2019 found that remote workers are more like to experience high stress levels than if you were in the office. Most importantly, when your workday stops, stop working. Shut down, stop checking emails and focus on your home life. And at the end of the day, try to get to bed at your usual time.
3. Create boundaries - Do what you can to physically separate your working space from your living space, especially if you have kids at home. Even the shortest distraction can kill your productivity. Research at Michigan State University found that a three-second interruption can double the number of mistakes you make in your work as your attention gets dragged away to something else.
4. Planning for the future - Projecting your cashflow pipeline forwards during a crisis is vital. To be able to navigate the future path of your cashflow, you need to start forecasting – so you can map out your financial position over the coming months and can take the appropriate action to safeguard your cash position. According to a 2021 report, 32% of small businesses only have a month or less in cash reserves. Even more distressing, more than 15% don't have any cash reserves at all. 
5. Stay connected - In and out of work, human interaction matters so schedule video calls and pick up the phone instead of emailing. If you are struggling with working at home, speak to your colleagues or manager about your concerns or reach out to us - we are here to listen. You can also join our ATAINZ closed Facebook Members Group and LinkedIn to connect with others in your industry.

And most importantly - be kind to yourself. Remember this is not a normal situation and things will not feel normal. Be kind to yourself and acknowledge you might not be as productive as you usually would be. Be realistic about what you can achieve given circumstances and relax when your work is done. 

New COVID-19 Framework and Business Support

Disclaimer: By the time this newsletter goes to issue this could have all changed! So keep up with the latest through www.beehive.govt.nz

The Government’s announcement on the next stage in the COVID-19 response plan introduces a new framework of measures that will commence when 90% of eligible New Zealanders are fully vaccinated. What does that mean for you, your practice and your clients?

The new framework has three levels: Red, Orange and Green. Each has different levels of restrictions. At all levels businesses will be able to operate, in some form, for vaccinated people.

The advice states:

If a business, organisation or service does not wish to request proof of vaccine, they will have to operate with strict limits on capacity and space requirements. They may need to close in Orange and/or Red levels.

Resurgence Support Payment doubles

From 12 November 2021, the Resurgence Support Payment will be paid fortnightly instead of three weekly.

- Businesses can receive $3000 per business plus $800 per full-time employee (FTE), up to 50 FTE (up from$1500 plus $400 per full-time employee)

- The maximum fortnightly payment is $43,000

- If you are self employed, or a sole trader you can receive a payment of $3,800

- The eligibility criteria remains the same.

The Resurgence Support Payment will continue to be available to businesses anywhere in New Zealand until Auckland moves to the new COVID-19 Protection Framework.

Additional support for Auckland businesses

Businesses in Auckland will be able to apply for up to $3,000 worth of advice and planning support, and then receive up to $4,000 to implement that advice. This will no longer require a matching contribution and will be delivered through the established Regional Business Partner Network.

There will also be funding available for businesses to apply for mental health support for their employees.

ATAINZ Mentoring Program

As you will be aware from previous correspondence ATAINZ has developed a mentoring program aimed at assisting ATAINZ Members to grow and develop.

To ease the pressure of making changes, navigating a new career or direction it's helpful to have someone to talk to who has the independence of an outsider, and will act as a professional sounding board to help you focus and enhance your business ideas and strategy.

Mentees & Mentors

Would you benefit from being a mentee? If interested please take this self assessment below - it will take you 2 minutes.

Click here to read the Mentor Self-Assessment Pre Training (Mentor)

Click here to read the Mentor Self-Assessment Pre Training (Mentee)

Need something to look forward to in 2022?

Join us and help celebrate our 45th birthday / annual conference

 Don't miss out - register online here. 

In Person Attendance: (limited to 160 attendees)

Register to attend the Workshop in person and be eligible for 8 CE Hours per day of attendance. Registration Fee is $685+GST. This fee includes registration to the Friday & Saturday evening functions.

LiveStream Attendance:

For those Members who are unable to attend in person you can register to watch the Conference via LiveStream and be eligible for 5 CE Hours per day. Please note that CE Hours are only available for those Members who have registered to watch the LiveStream feed. If you are viewing another member's feed you will not be eligible for CE Hours. Registration Fee is $485+GST and includes a copy of the Delegates Handbook couriered to you.

How To Register:

Registration is via the ATAINZ website.

Click Here and Make your Conference Booking, enter your Member login and then select "In Person Attendance" or "LiveStream Attendance".

Coping Strategies for your business

As we confront our shared new reality of living through a global pandemic, we are also faced with a new business reality. An existential question arises, namely: What we are we going to do as leaders to ensure our businesses come through this global health crisis as strong as possible? The business ramifications of this crisis are only beginning so what strategies can you to do help protect your business and your client's businesses? We have listed some of our top recommendations below.

1 - Go Digital  

Can your business sell online? Can consultations be offered over video conference (ZOOM, Teams)? Is there a way for customers to financially support you online? If there’s any way to move your business over to digital, do it. The same applies for your desktop software. Give more freedom and flexibility around tools and online software for both your team and your clients. Experts project the in-person economy will take years to revert to pre-coronavirus levels. In the meantime, customers are living more of their lives and doing more of their shopping on the internet. 

2 - Sharpen Your Value Proposition

What is our value proposition, and how do we best articulate and communicate it to the marketplace? Given our suddenly changed world, this question needs to be vigorously explored in this new paradigm. How does the marketplace view your core value proposition? Why is it even more important today than yesterday, and why will it be even more important once an end to the pandemic is in sight? Ask yourself these questions with your key leadership team. Use the answers to define and communicate what you deliver and the differences you can make.

3 - Make your plan including establishing a routine if life has been disrupted

Looking at all your circumstances develop your plan to move you forward. If you are coping with a loss of income it might mean making choices on how to reduce expenditure and where you can make savings. Remember just because you do not like a choice does not mean it is not worthwhile looking at it. From the choices make an informed decision as to how to move forward. You need to work out from the choices what is the best one for you. Does it solve the problem? If it doesn’t completely solve the problem does it move you forward? Always aim to select the choice which moves you forward the most effectively.

4 - Treat communication as a two-way street

Clear communication is essential to provide transparency during these fast-changing times. Establish protocols and guidelines to communicate information to employees and business partners on your infectious disease outbreak response plans. An intranet site can serve as a way for employees to access any information they are seeking about COVID-19 workplace policies and updates. Just as important, avoid miscommunication by ensuring the appropriate dissemination of information and avoiding “fake news” or “infodemics.” (An “infodemic” is an overabundance of information—some accurate and some not—that makes it hard for people to find trustworthy sources and reliable guidance when they need it.)

5 - Get the right resource onboard - hire for fit and purpose

By making constructive use of forecasting, you’ll be able to see the most viable path for your business. From here, you can make a decision on whether scaling up, or scaling down, is the most appropriate action for the long-term health of the company. If you're looking for a staff member that can really add value to your business, and is an asset, not a liability, then check out this helpful article from our friends at Accountests. Their article talks about how to keep your selection standards high in a candidate-scare labour market. They also have a "Bad Hire" calculator - it definitely gives you food for thought. If you are looking to hire your first employee, take a moment to read about Employsure and find out more about you can unlock your business potential, starting with an efficient workplace. 

November Inland Revenue Webinars

With the recent myIR updates, we wanted to share some webinars tax intermediaries can use to familiarise themselves with the updated myIR platform. 

Link to landing page for all BT webinars:

Business Transformation webinars

Webinars for intermediaries:

Introduction for intermediaries

Introduction to myIR version upgrade

Navigating myIR for intermediaries

Alerts in the new version of myIR for tax intermediaries

Filing, viewing and amending returns in myIR

Subscriptions and correspondence in myIR for tax intermediaries

General:

Managing profiles and logons in myIR

Cultivate the seven “C” attributes shared by effective coronavirus leaders

Calm. Your folks, your employees, your customers, your suppliers, are going to be looking to you as a leader to project a sense of calm through this difficult, uncertain situation.

Confidence. You have to be calm, but not still-water calm. You have to project confidence that you’re going to be able to see this through successfully, with a minimum amount of hurt to the company, but also to all of the stakeholders who are relying on your leadership to get them through the difficult days and months ahead.

Communication. You have to relentlessly communicate, communicate, communicate. This is to avoid rumors developing that muddy the waters.

Collaboration. This is a time for you to call on the resources, the capabilities of all of your employees, all of your team members, and bring them together in taskforces, sub-taskforces, and potentially have a role for everyone in which they feel they can contribute to overcoming the uncertainty, overcoming the crisis.

Community. All of us live in communities. so it’s extremely important that we set an example, model behaviors that are community friendly and supportive.

Compassion is extremely important at this time. We may rise to the occasion if we’re fortunate to have a good team around us, but there are many people in our organizations who are depending upon us, who are not necessarily that resilient. Compassion at a time of crisis is a very important manifestation of leadership.

Cash. The most obvious commercial C of the 7 Cs is Cash. Whatever you can do to conserve cash is going to be critical, because that’s what’s going to determine whether your employees are going to be paid next week.

AML Update

ATAINZ have been working with Inland Revenue on a range of topics, including new reporting requirements for domestic trusts and guidelines - interpretation statements, like 15 21/6, as well as being busy preparing a submission to the draft AML/CFT Statutory Review Consultation Document.

Want to know more about our AML/CFT strategic partner Strategi? Visit their website by clicking here.

ATAINZ Submission on Interest Limitation Rules - Update

We would love to be able to update you on the new rules to be enacted on the 1st October 2021, however, the government are still working through the process and are yet to pass the legislation.

This dilemma being that the Government has made a fundamental change to a decades-old tax policy so that owners cannot deduct interest expenses from their mortgages on residential properties. What we can do is keep a watchful eye and keep an eye on the specialists. The new rules – renamed the Interest Limitation Rules – will come into force on 1 October, yet an explanation as to how they would work in practice has only vaguely been provided just days beforehand. We would recommend that you follow our very own member, Terry Baucher’s news releases in the interim which he will undoubtedly be a happy to share in the member's Facebook group.

ATAINZ Website Update

Lastly, we have been working on a website face-lift. We had hoped at our workshop we could have taken a load of "fresh" profile photos and large group photos, but alas, this has been delayed until our next get together in Queenstown March 2022.

We could have released it sooner but with all the changes in "look and feel" on our accounting software's and recently myIR, we've come to the executive decision you have had a lot of change on your screen and I didn't want it to be yet another change albeit welcome. So we are holding off until after Christmas to see who has been naughty or nice and actively wants it.

Best, 

Your ATAINZ Board

ATAINZ wish to thank the following sponsors