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Since conception, KiwiSaver has gone from strength to strength. Any initial hesitation has been replaced, on the most part, with acceptance. The latest figures show two million New Zealanders are now signed up – a fantastic uptake.

Growing signs of an economic turnaround are highlighted by the attitude of New Zealand businesses in the latest Grant Thornton International Business Report (IBR) for the second quarter of 2012.

Indicators are currently accumulating that point to a recession. The most alarming warning sign is the US yield curve which plots the yields of Treasury maturities.

Global accounting body CPA Australia continues on its growth track in New Zealand with the announcement that Grant Thornton New Zealand has become the newest ‘employer of choice’ partner in CPA Australia’s Recognised Employer Program.

New Zealand’s business optimism levels are back to where they were 12 months ago, ranking the country 5th out of 36 countries surveyed in Grant Thornton’s latest International Business Report (IBR).

With nearly 150,000 small to medium businesses operating in New Zealand, an ownership interest in a family business features in many relationship property settlements. The interest held in that business can represent a significant proportion of the relationship property, and in some cases it can make settlement proceedings considerably more complicated.

Jay Shaw

| 15 Mar 2015

Looking to set up a business in New Zealand? You’ve come to the right place.

Grant Thornton New Zealand is delighted to announce its partnership with FBNZ.

The latest Grant Thornton International Business Report, which surveys 12,500 business leaders in 45 economies, shows that 27% of New Zealand businesses anticipate a change of ownership by 2016 - more than double the global average of 11%.

The compromises of the Labour-led government’s first budget was a sign of the consultation required in a coalition, says Grant Thornton’s Greg Thompson.

At the recent Cyber Security Summit in Auckland, new measures including a national Computer Emergency Response Team (CERT) and a credentials scheme for business were announced. Like most new endeavours, the implementation will present a number of challenges and even more opportunities to build on these positive steps.

Just how will the Government claw back the $2 billion of extra revenue it was hoping to pick up from its asset sell-down programme? The upcoming Budget is likely to give a good indication, as the Government remains resolute in its resolve to return to surplus in 2015.

The compromises of the Labour-led government’s first budget was a sign of the consultation required in a coalition, says Grant Thornton’s Greg Thompson.

Greg Thompson

| 24 May 2018

The question is no longer whether blockchain will disrupt the tax system, but how far, how fast and how can you make sure your business is up to speed.

Most Kiwi businesses are keen to reduce their carbon footprint – but the cost can be prohibitive. Unfortunately, the environmentally-friendly option isn’t always the cheapest. It would be wonderful to see the Government step in and provide affordable financing for decarbonising the business sector, because we know this could work. There is the GIDI fund, but this is typically for large projects ($300,000 plus) being undertaken by major manufacturers and processors. There isn’t much available for the vast number of small and medium enterprises that make up the majority of Kiwi businesses. Our major banks, though, have stepped up to provide some options. There are now sustainable lending products available to qualifying business borrowers of all sizes, with lower interest rates for projects that will improve your company’s sustainability and/or carbon footprint. These can be a win-win-win: they help your business cut emissions, support the bank’s own sustainability targets, and they improve national energy efficiency. 8 types of projects that are likely to qualify The major banks all offer sustainability-linked loans and while their criteria differ, these are typically the eight types of projects that will meet the eligibility criteria at some or all of those lenders: Energy efficiency improvements. Investment in products and technology that will reduce energy consumption, such as switching from incandescent or halogen lighting to LEDs. Green buildings. This might include installing a digital energy management system or retrofitting a more efficient heating and ventilation system. Waste minimisation. Adhering to the principals of a circular economy by designing out waste at every stage of a product’s life cycle. This might mean using more recycled materials in packaging for instance, or making the product more recyclable at end of life. A loan could fund new equipment or materials, or go towards changing the manufacturing process. Process heat. Typically converting boilers from coal or natural gas to a cleaner energy source such as biomass or electricity. Renewable energy. Generating green energy; usually installing solar panels. Clean transportation. Switching from internal combustion engine vehicles to fully electric vehicles (EVs). This could also include resources to make the change such as installing EV chargers. Sustainable land use. Restorative agriculture, forestry and fisheries. Sustainable water. Investing in ways to reduce the use of water in manufacturing processes or reducing contaminants reaching our waterways. Much like with mortgage lending, every bank has a slightly different approach, so it pays to research each lender’s criteria and terms before you apply for a loan. Set yourself up for borrowing success All the major banks have certain conditions for sustainable loans that go beyond the basic box-ticking. Again, this varies widely. But to give you the best chance of a ‘yes’ on your loan application, you should be ready for two additional homework projects. First, several banks want to see the impact the project will have on your company’s carbon emissions. Unless your business is sizeable, they won’t expect an independent audit of your emissions – this is not only expensive but there aren’t many people qualified to carry out this type of work. However, you can use a free calculator like Climate Toolbox and Cogo to give you a baseline carbon footprint, and then recalculate it to demonstrate to the bank how much difference your project will make. While not official, banks also understand frameworks like B Corp which shows you have done your homework and are making a serious attempt. The Climate Action Toolbox may also be helpful. These calculators won’t be perfect, but they will be enough to provide an estimate of the impact. Second, the bank may also want to see how your proposed project fits into your wider business strategy. What is the long-term vision for the business and how will improving sustainability help this? Are you aiming to attract new customers, retain market share, or boost the company’s resilience? If you’re applying for a loan, being able to show the bank how the project fits into your wider strategy will make you a much better lending proposition. How much could you save with a sustainable loan? Is it worth jumping through a few hoops at the bank to secure a sustainable loan? It might be. The typical saving could be between 0.5% and 1.5% on what your interest rate would otherwise be. That rate will be determined by your quality as a borrower. Let’s say you’re planning to borrow $800,000 to buy new EVs to replace your company cars, and you’re expecting to keep the EVs for three years. If the standard business loan you can secure is 12%, here’s how much difference a 1% interest rate discount could make: Loan amount Interest rate Total payment Total interest Difference $800,000 12% $956,572.12 $156,572 0 $800,000 11% $942,875.05 $142,875 -$13,697 That saving of roughly $13,700 is already significant, but if you then replace the EVs again on another loan, after 12 years you’ll have saved nearly $55,000. On a much smaller project, the savings are lower but still helpful. Say your standard loan rate is 13%, and you want to borrow $50,000 to install solar panels on your building. These last a while, so your term might be 5 years. Loan amount Interest rate Total payment Total interest Difference $50,000 13% $89,586.44 $16,733 0 $50,000 12% $86,082.57 $15,227 -$1,506 Once you add that $1,506 to the savings you’ll make on energy costs, the solar panels start to look like a better investment. Run the numbers and talk to someone who knows the market Sustainable loans are relatively new, so banks are still finding their feet on how to lend and who can borrow. Run the numbers and start thinking about whether your current bank is going to be on board with your project. For example, a push to electrify your fleet of company cars will meet the sustainability criteria for most banks. However, what about replacing older EVs with new EVs? This will not reduce your company’s carbon footprint, so is it an eligible project for a loan? Some major banks say yes, others say no. Talking to someone who understands the sustainable loan market will help you match your project to the best-fit lender. The more affordable funding available, the more quickly we can help decarbonise Aotearoa and reach our climate change targets – which is good news for everyone in New Zealand.

Regan Butler

| 11 min read | 11 Dec 2023

Grant Thornton New Zealand’s bi-annual business survey has revealed 41% of business owners, leaders and decision makers undertake specific planning for fraud risk – a number that should be a lot higher according to business advisory services and tax partner, Greg Thompson.

Greg Thompson

| 4 min read | 26 Jul 2023

With hopes Covid is now somewhat in the rearview mirror, the pace of change in the transfer pricing space has not slowed down. The OECD continues to drive the base erosion profit shifting (BEPS) programme to minimise tax competition among jurisdictions and ensure multinationals pay their fair share. However, the effectiveness of the programme’s final stages depends on the willingness of countries to implement and enforce these rules consistently. It remains to be seen how tax authorities worldwide will adapt to these changes and if a new era of cooperation will indeed emerge in the global tax landscape. However, with economies around the world still in or coming out of recession, there are questions around whether the 142 countries that have signed up to the BEPS framework remain committed to such a unified approach, or if there will be a shift to a ‘every jurisdiction for themselves’ mentality. As some economists have indicated, there are signs certain economies are shifting away from a focus on globalisation to looking inward and more national economic protectionism. What does this mean for New Zealand-based multinationals? There seems to be a stand-off between countries waiting to see who will jump first. In the meantime, some have implemented the needed regulations, while others – like New Zealand - have also hedged their bets and have legislation waiting as a backup, as demonstrated by the introduction of the digital services tax laws brought in by the Labour Government. The current National-led Government is yet to confirm if this will remain, be repealed, changed or trumpeted, but it has increased resources for Inland Revenue to expand its audit capacity, minimise taxation losses and ensure greater integrity and fairness in our tax system. And it’s likely there will be heightened proactivity in this space so the Government can collect the extra revenue needed to deliver on its election policies. This means change for multinationals could be on the way, and transfer pricing rules may be an area in which Inland Revenue increases audit activity; this may also not be limited to the tax authority of New Zealand but others around the world. The key for potentially affected Kiwi businesses will be to: · review their New Zealand and global transfer pricing policies to ensure they remain fit for purpose · establish suitable governance to implement these policies appropriately · keep management up to date with changes in the transfer pricing space. Countries will be weighing up the benefits of a unified approach against the temptation of self-interest, while businesses grapple with economic uncertainties and transfer pricing rules which will continue to change. As New Zealand and other countries await international unification, internal pressures will continue to mount, setting the stage for a complex interplay between economic recovery, taxation, and the delicate dance of international relations.

Sam O'Connor

| 3 min read | 21 Dec 2023

The standard establishes high-level requirements for entities to determine how best to ‘tell their story’. The requirements are flexible and provide scope for entities to identify appropriate and meaningful service performance information for users of general purpose financial reports.

Brayden Smith

| 09 Mar 2018

A global survey by Grant Thornton reveals that the Asia-Pacific (APAC) region continues to make slow progress in getting women into senior roles within companies.