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Lost’ Australian Super – first steps to change legislation so that this can be transferred to a New Zealand KiwiSaver (thanks to Chapman Tripp)

Australian ‘unclaimed super’ money gap to be plugged (10th June 2020 – Brief Counsel) The Taxation (Annual Rates for 2020/21, Feasibility Expenditure, and Remedial Matters) Bill, introduced to Parliament on 4 June 2020, includes amendments which would enable the direct transfer of New Zealanders’ unclaimed Australian superannuation money (USM) from the Australian Tax Office (ATO) to a KiwiSaver scheme. A significant change to close a long unresolved issue The proposed changes, to the Inc...

June 15, 2020

Changes to KiwiSaver this year

There have been a number of changes to KiwiSaver this year.  Some of these changes took effect on 1 April 2020: · All members aged 65 years or over can make a retirement withdrawal ·  KiwiSaver providers will be notified of prescribed investor rate (PIR) changes from Inland Revenue (IR).  The KiwiSaver provider is required to update your PIR with the information provided to them from IRD.  You can provide your provider with a different PIR if you believe that it is incorrec...

June 15, 2020

Things you may not know about KiwiSaver

1.    Get regular withdrawals from your KiwiSaver to fund your retirement spending When you reach the age of eligibility for New Zealand Superannuation (currently 65), you can access your KiwiSaver. You can withdraw a lump sum, but many of Moneyworks clients find it useful to set up a regular withdrawal to be paid to them (fortnightly, monthly, quarterly), to top up their New Zealand Superannuation income.  It helps smooth out your income and cashflow. 2.    AN...

June 15, 2020

What does the ‘KiwiSaver Retirement Projection’ on your KiwiSaver Statement mean?

If you are aged between 18 & 64, from this year, you will receive some more information on your annual KiwiSaver Statement.  This ‘Retirement Projection’ information is a legislative requirement, and is prescribed by the regulators. It is important to note that this is only for your KiwiSaver. To get a proper analysis of how much money you will have available in retirement, and how you could draw that down and more importantly – how long your money will last, contact us at Moneyworks ...

June 15, 2020

It really isn’t possible to ‘time’ the markets – investors with $1.4 billion in KiwiSaver funds learned this in March

When we meet with our Membership Fee clients on an annual basis, we consider the risk profile that their investments are invested in.  As your life changes, this may change.  We encourage our non Membership Fee clients to engage with us to discuss your risk profile and whether it is appropriate for you, at any time, just email us on advice@moneyworks.co.nz. We work with our clients to help them understand the value of staying where they are when there are major changes to investment ma...

June 15, 2020

Coronavirus world, economic outlook and investments

This is a newsletter that was sent out on Monday May 11th 2020, to Moneyworks Financial Planning and Investment Clients that we work with on an ongoing basis.  It has quite a lot of interesting information, so we thought we would share it with you this month.The fancy free days of attending the Melbourne Tennis Open at the end of January and our annual Portfolio Construction Summit and Finology Conference in Sydney at the end of February seem like a dream right now.  It is amazing how ...

May 11, 2020

FIF/FDR Tax Regime on Overseas Investments

If you are liable to this tax regime (Your adviser will have told you, and your tax report will have a section with calculations on it as shown below), it is IMPORTANT that you read this guidance. How does FIF/FDR and the exemption work? If you have less than $50,000 per person cost price of overseas investments (for Moneyworks clients this is generally Australian Dollar denominated investments, like Magellan, Platinum etc), then you have an exemption from the FIF/FDR tax regime and you pay tax ...

April 23, 2020

PIE Tax

Your KiwiSaver and some other investments may be liable to PIE Tax. A PIE is a Portfolio Investment Entity. PIE Tax calculations are quite complicated – the important thing that you need to know is that PIE tax is FULL AND FINAL. Your PIE tax rate is your PIR (Prescribed Investor Rate).  This is different to your Marginal Tax Rate – which is based on your earned income.  For more information on how to calculate your PIR (the rules are not straight forward) can be found here. https:...

April 23, 2020

Tax Adjustments/Package available for indviduals and businesses under the Covid-19 Crisis Environment

The NZ Government has been using the tax system to provide assistance to people and businesses to deal with the Covid-19 Lockdown.  We have outlined the benefits announced to date below. There is a full summary of the initiatives in the file below as of 23/04/2020. To get updated information, check out https://www.ird.govt.nz/roles/tax-agents/covid-19. 27th March 2020 Legislation ▪ The COVID-19 Response (Taxation and Social Assistance Urgent Measures) Bill was passed on 27th March 2020, a...

April 23, 2020

Questions about your KiwiSaver and Insurance under the Covid-19 environment?

Insurance policiesAll of the insurers that we work with and that our clients have insurance in place with (Life, Trauma, Income Protection/Mortgage Repayment and Health/Medical insurance) have confirmed to us that there are NO EXCLUSIONS for existing policies if you become unwell from Covid-19. This is a different situation to the travel insurance, where most of the policies DO exclude any claims relating to pandemics. If you are in a situation where you have severely reduced income, some of the...

March 26, 2020

It is time in the market - NOT timing the market - the role of Finology in investing

It is tempting to stop making regular investments into markets when there is volatility and you hear the media pronouncing that the markets have 'crashed', 'plummeted', 'plunged', or even when they breathlessly talk about the markets falling - the biggest fall in 10 years. As financial planners, we do many things that are valuable to our clients, develop a retirement savings analysis so that our clients can see how long their money will last in retirement, make sure that they have well diversifi...

March 10, 2020

Investment Markets and Recent Fluctuations

You will have heard comments in the media recently that the stock-markets have ‘had their worst day since the Global Financial Crisis in 2008’.  You may have noticed that your KiwiSaver and other market linked investments have fallen in value as a result of these market falls. We thought it would be useful for you to have some context around these comments to help put this into perspective for you. For the last 12 years, the stock-markets have had the longest ‘bull run’ in recent hi...

March 10, 2020

Warning to DIY investors investing in foreign investments

New Zealand is a nation of Do It Yourselfers.  From the queues at Mitre 10 and Bunnings, to people managing their own investments because they can do it better than a professional. Although we DIY our gardening and some minor garden building projects, we do tend to disagree on the ability of most people to build a well diversified and well performing investment portfolio without professional help. A recent NZ Herald article highlighted the risks of DIY investing, when an investor had a $2,0...

February 13, 2020

Fast fashion and the impact on the environment

As our society becomes more socially aware, it is becoming clear that 'fast fashion' is a major contributor to not only landfill, but also as an intensive user of resources. As many of you will recall, when we were growing up - you would buy an item of clothing and expect it to last for a number of years.  Now, it appears that some items are only designed to be washed several times, before they are added to the landfill.  Personally, I have always preferred classic clothes made of good...

February 10, 2020

Building or Renovation insurance - who is responsible?

Is it you or is it me? Who covers what when it comes to renovating or building? Is it the Owner or the Builder? This is a question that is often raised late in the piece when considering building or renovating, however it should be one of the earliest points of discussion. Whilst undertaking a new build or renovating an existing house can be a pretty exciting time, it’s also a time to be seriously organised.  There’s the potential for things to go wrong in a project, starting right fr...

December 18, 2019

Airbnb Tax Crackdown

The shared use economy has seen a plethora of homes turned into Airbnb’s and of vehicles turned into ‘uber’ taxis.  While this has changed the way that many people travel, a number of the owners of the homes and vehicles have forgotten that they are generating an income. And that income is required to be declared and taxed in New Zealand.  ‘Cashies’ from tradespeople and the hospitality sector have been actively targeted by Inland Revenue in recent years. With the smart tech...

December 18, 2019

Dart Throwing Monkeys - can they do better than active investment managers?

In December 2019, Kiwi Wealth released a research report analyzing the actual returns of tracking ‘passive’ investment funds, versus random ‘dart throwing monkeys’ versus ‘active’ investment management. The research confirmed what we have known all along, which is why our preferred investment strategy is to select active investment managers, who make actual decisions on what stocks to include in your portfolio’s. Bernard Hickey wrote an excellent article on Newsroom, putting the re...

December 18, 2019

The Sky City Fire - who will pay the bill?

The Deconstruction of a Fire At 1:15pm, Tuesday 22nd October a fire broke out on the roof of the New Zealand International Convention Centre in Auckland. Close to 100  construction workers were on site at the time. What followed? -          Large scale disruption for over 48hours forcing areas of the central business district to be shut down, in part by the smoke that was deemed toxic.  -       &nbs...

December 18, 2019

Rental income - new ring-fencing rules

The rules for reporting rental income have changed from the 2019-2020 income year.  This means that you can’t offset losses on your rental properties against other income and new rules apply to deductions claimed for residential properties. Residential property deductions will now be ring-fenced, meaning that they can only be used to offset income from residential property. This means that the residential property deductions you claim for the year cannot exceed the amount of inc...

December 18, 2019

Enduring Power of Attorney - why you need to put them in place

These documents are often associated with ‘old’ people, who are losing their mental capacity.  And yes, we agree, having Enduring Powers of Attorney in place are very important at that stage of life. However, we recommend that all of our clients put the two Enduring Powers of Attorney in place from the start of their financial planning process, as you never know what might happen. I am working with a specific example right now, a 50 year old very active woman (skier, golfer) had a sever...

December 4, 2019

Using an adviser adds more than 5% to a client's portfolio

Research recently carried out in New Zealand by Russell Investments, recently confirmed the findings in the USA and Australia, that using an adviser can add 5.2% pa to a clients portfolio returns. There are three areas that advisers make a difference to their clients investment strategy: 1. Rebalancing (0.4% extra return) 2. Getting it Wrong (2.9% extra return) 3. Avoiding Behavioural Mistakes (1.9% extra return) In addition, there was the intangible benefit for making investing simpler, but als...

December 4, 2019

Online Relationship Break-Up Tool

The Ministry of Justice has released an online collection of information for people navigating a relationship break up.It says while it has had a lot of helpful information on its website, it has been told it could be overwhelming."We took a look at how we were presenting information to people navigating a relationship break up and came up with a more individualised approach."The new tool acts like a funnel. People select the topics that are important to them and can then delve deeper ...

November 20, 2019

Sole Trader vs Company?  What should I do? (with thanks to Beany)

Our support team at Beany are asked this question frequently so if you've ever wondered.......The short summary is that if you are a Beany client there is very little additional cost and 3 key advantages - read the  blog (I'm a Sole Trader, Should I restructure my business to a Company?) to find out what they are.What happens when the shareholding of your company changes This one catches out a lot of people as shareholdings are often altered in periods of major chan...

November 20, 2019

Changes to the Trust Law

Over the last 4 (or 17 depending on your source) years new legislation for Trusts has been working it’s way through the consultation and legislative process.It has now been passed into law as the Trusts Act 2019 and it comes into effect on January 30th 2021 and replaces two pieces of existing legislation – the Trustee Act 1956 and the Perpetuities Act 1964.  The goal is to make the trust law more accessible and to clarify and simplify the core trust principles and essential obligations ...

November 20, 2019

Renting a vehicle and insurance issues

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October 2, 2019 Posts 1-25 of 355 | Page next
 

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