December 2019

Congratulations to Blue Sky Pastures, FI Innovations and Blue River Dairy on their recent awards Here at McCulloch + Partners, we enjoy

watching businesses continue to reach

their goals and would like to congratulate

Blue Sky Pastures, FI Innovations and Blue

River Dairy LP on their recent successes.

These businesses have had a successful year taking

out awards at the Westpac Southland Business

Excellence Awards with Blue River Dairy also being

successful at Deloitte’s Fast 50 awards.

Blue Sky Pastures have over 30 years’ experience

exporting New Zealand’s grass-fed lamb to over 40

countries and were the recipients of the Supreme

Award and the Findex (NZ) Ltd Primary & Primary

Services Sector Award.

FI Innovations are leading specialists in fibreglass

and carbon fibre manufacturing and were the

recipients of the ACC Workplace Safety Award.

Blue River Dairy, who were the first manufacturing

plant in the world to export sheep milk nutritional

infant formula, were the recipients of the Healthy

Families Invercargill Workplace Wellbeing Award

and at the Deloitte’s Fast 50 Awards were named

the 5th Fastest Growing Business, Fastest Growing

Manufacturing Business and Fastest Growing

Exporter. Also, at the Deloitte’s Fast 50 Awards;

Robert Boekhout, Blue River Dairy’s General

Manager was invited onto the discussion panel for

“When should you make the leap to export”.

Top: Blue Sky Pastures

Middle: FI Innovations

Bottom: Blue River Dairy

What the new GST rules mean for your online shopping bill

From the 1st December your online purchases through overseas retailers will be subject to GST, also goods that are valued at under $1000 will be classed by the Inland Revenue and NZ Customs as a low value good. For example, books, small electronics and clothes that are low valued goods and purchased online from overseas retailers are now taxed as if you were buying them from a local retailer.

Previously this was not the case; goods valued under

$1000 had duty, GST and cost recovery charges

added but they were waived by NZ Customs if the

GST and duty were under $60.

In a statement by the Revenue Minister Stuart Nash,

“we want to enable New Zealand small businesses

to be able to compete with foreign firms who sell

the same products into New Zealand, therefore

being fair to New Zealand businesses. Also, with

the steady growth of online shopping there has

been a significant portion of tax income loss to the

government”.

The new rules mean that:

+ All online purchases will now be subject to GST

+ Some customers will pay less on goods valued

between $400 and $1000

The exception is alcohol and tobacco which will be

stopped at the border and regardless of the value;

customs will charge excise duty and GST.

Below is a pricing example of how the new rules will change your online

shopping experience.

$50 shirt

+ Previously: $50 + 10% duty + GST = $63.25 but since the duty and

GST is less than $60 at $13.25; it is waived.

+ December: $50 + GST = $57.50

+ Increased cost of $7.50

$400 jacket

+ Previously: $400 + 10% duty + GST + $55.71 cost recovery

charges = $561.71

+ Now: $400 + GST = $460

+ Reduced cost of $101.71

Overseas retailers, redelivery agents and online marketplaces will be

tasked with collecting the GST if they earn more than $60,000 a year

from New Zealand shoppers. Consequently, as you will have paid GST

there will no longer be unexpected charges at the border.

Please call us if you have any queries.

Southland CEO ForumIn October, McCulloch + Partners hosted the eighth

Southland CEO Forum at our offices at 20 Don Street,

Invercargill which was facilitated by Andrew Barnes

and Charlotte Lockhart.

Andrew is the director of Coulthard Barnes; chair of New Zealand

payroll provider PaySauce; and chair of Regional Facilities Auckland.

He was chairman of realestate.com.au at the time of its IPO on the ASX. Later he became CEO of Bestinvest, a US$5.7 billion, UK-based

investment management and advisory company, leading the sale to private capital in 2007. He was also managing director of Australian

Wealth Management Limited, a major Australian wealth management and trustee business that he led to IPO in 2005. Andrew pioneered

the four-day working week, giving his 240 staff at Perpetual Guardian one day off per week, on full pay, in exchange for their maintaining

their usual levels of output.

Charlotte is a business advocate, investor and philanthropist with more than 25 years’ experience in multiple industries locally and offshore.

She is currently developing opportunities for New Zealand’s business sector through the Coulthard Barnes group of companies with a focus on

investments in innovation and philanthropy. She is also on the advisory board of the Commonwealth Enterprise and Investment Council. In her

earlier work with Perpetual Guardian, Charlotte was a prominent consumer advocate, speaking for the financial and estate planning interests

of New Zealanders and driving the company’s growth through innovative marketing and business development strategies.

We facilitated a round table open discussion which provided the opportunity for CEO’s from Southland to network and discuss topical

issues that are relevant to the CEO role within the context of our guest facilitators war stories, experiences and advice.

Eighteen invitees participated in a lively discussion on the four-day work and took away learnings which will assist them in building a

stronger and more effective organisation in their own companies.

McCulloch + Partners will be holding this Forum three times a year with a high-profile guest to initiate discussion on

topics that are of interest to the group.

Charlotte

Lock

hart

Andrew Barn

es

Chartered Accountants and Business Advisors

McCulloch + Partners are proud to be

Regional Sponsors of the New Zealand Dairy

Industry Awards

The Accident Compensation Corporation (ACC) and Inland Revenue Department (IRD) are No Longer Accepting ChequesFrom the 1st March 2020,

the IRD and ACC will no

longer accept payments by

cheque from customers who

are able to use alternative

payment methods. They will

also not be accepting post

dated cheques dated the

1st March or later.

The number of cheques that the

IRD has been receiving has been

dropping by around 20% annually

and at the end of the financial year

(June 2019) only 5% of payments

received by both the IRD and ACC

were by cheque. The change also

comes into effect as the IRD’s and

ACC’s technology used to process

cheques, comes to the end of its

working life next year.

Both organisations will be supporting customers to

transition to alternative payment methods and

below are payment options for the:

Inland Revenue:

+ Electronic via internet banking or direct

debit in MYIR.

+ Payment by debit/credit card over the

phone; through the unauthenticated

payment page on the Inland Revenue website

and through MYIR.

+ Cash or Eftpos at Westpac branches.

Accident Compensation Corporation:

+ Electronic payment via internet banking.

+ Direct debit payments and monthly instalments can be set up via MYACC for business.

+ Payment by debit/credit card over the phone; through the authenticated payment

page on the ACC website and through MYACC for business.

+ Cash or Eftpos at Westpac branches.

Please give us a call if you have any queries.

Southern Field DaysMcCulloch + Partners will again be attending the Southern Field Days at

Waimumu, Gore. This biannual event is being held over three days on the

12th, 13th, 14th February 2020 and we will be located at site number 229.

We enjoy being part of the Southern Field Days as it is an important event in the

farming calendar that attracts over 41,000 visitors and 800 exhibitors from around

the world and showcases the latest equipment, technology and knowledge available

to the primary and rural support sectors.

We look forward to welcoming our clients to the McCulloch + Partners site for a coffee and chat.

Key Dates: December - January 2020

December

20 December PAYE (All Employers)

January

5 January PAYE (Large Employers)

15 January GST Return and payment due for the period ended 30 November

15 January Provisional Tax

1st instalment (July balance date)

2nd instalment (March balance date)

3rd instalment (November balance date)

20 January PAYE (All Employers)

28 January GST Return and payment due for the period ended 31 December

28 January Provisional Tax

1st instalment (August balance date)

2nd instalment (April balance date)

3rd instalment (December balance date)

Christmas HoursThe Partners and Staff of McCulloch + Partners Invercargill

and Queenstown offices would like to wish everyone a safe

and happy Christmas and New Year.

We would also like to advise that McCulloch + Partners offices will close for the

Christmas break.

The Invercargill office will close from 4pm on Monday 23rd December 2019 and

will re-open on Monday 20th January 2020 at 8.30am.

The Queenstown office will close from 4pm on Monday 23rd December 2019 and

will re-open on Monday 13th January 2020 at 8.30am.

Seminars and WorkshopsThis year McCulloch

+ Partners have held

seminars and workshops

for clients providing

information, training and

solutions for Payday Filing,

Payroll and the software

programmes MYOB, XERO

and Cash Manager Rural.

As the feedback received from

our clients was overwhelmingly

positive; we have decided to hold

more seminars and workshops in

the New Year.

Keep a lookout for our Information Flyers when they are emailed.