ASB-Kiwi-Dollar-Barometer-September-2015.pdf
Dollar drop an opportunity and a threat
See the attached PDF for more information.
The Health and Safety Reform Bill represents a major change to New Zealand’s health and safety system.
The new legislation is expected to come into effect in early 2016 and there are a number of key changes that all businesses should be aware of...
Vehicle Mileage Rates
The mileage rate has been set at 74 cents per km for both petrol and diesel vehicles from 1 April 2014 (previously 77cents). This rate doesn't apply to motor cycles, hybrid and/or electric motor vehicles.
The Global Dairy trade auction overnight saw prices of Fonterra's products lift by 10.9% to $US2,226 a tonne. While volumes were down slightly (1,039 to 35,865 tonnes), this is a ray of light for struggling Dairy Farmers.
A NZ Dollar buys only $US0.6334. This compares to a peak of $US0.8822 in July 2014. How does this help?
Land leasing for market gardening is a tricky proposition. You are leasing someone elses land, endeavouring to improve it beyond the condition you took it over in by adding fertiliser and treating it with sprays to drive out pests and disease. You are paying for the privilege of doing this, on the intention to turn a profit from the crop you will hopefully extract at some stage (weather and crop dependent) in the future.
Rotation and rest mean the appropriate properties to lease can be difficult to come by, and some of us may jump in before doing a full due diligence on the property in question. As an Accountant I can't give you the detailed critique around soil acidity, nitrogen levels, disease presence. But something I can talk about is the average spend per effective acre.
Tax
Contractors can be great help around agricultural, horticultural and viticultural businesses. Labour can be switched on and switched off as required, you don't need to worry about their ACC, Kiwisaver, Sick and Annual Leave, and you normally only pay for the work they do.
BUT. You still need to deduct withholding tax from what you pay them.