ABC Business Solutions Limited

18/06/2026

The following were included in the budget for 2026:

Charities and Not-for-profit organisations

• Donation Credits: from 1 April 2027 the maximum donation credit will be $100,000. From 1 April 2028 refunds can be claimed throughout the year.

• Not-for-Profit: the law is to be changed to ensure members' subscriptions remain non-taxable. The tax free threshold will rise to $10,000 from April 20, 2027.

• Volunteer Honoraria: from 1 April 2028 organisations can optionally process honoraria as standard salary/wages instead of schedular payments.

10/06/2026

New tax rules on crypto trading

From 1 April 2026, the “off the radar” era of
cryptocurrency ends with the Crypto-Asset Reporting Framework (CARF). Local and global exchanges must now report your transaction data directly to Inland Revenue, who will share this with
international tax authorities.

Taxing your profits
In New Zealand, crypto gains (and losses) are generally treated as taxable income/loss, not tax- free capital gains. Because crypto doesn’t provide a “yield” (like rent), IRD assumes it was bought with the dominant purpose of
resale. Consequently, most traders are liable for income tax on realised gains at their personal marginal rate.

Handling losses
If your crypto activity is taxable, your losses are generally deductible.

• Offsetting income: Realised losses can often reduce your total taxable income,
potentially leading to a tax refund.

• The realisation rule: You can only claim a loss once you actually sell or swap the asset – a “dip” in portfolio value doesn’t count unless you are transacting to such a high level you are actually in business as
a “trader”, and can then treat the crypto as trading stock that is now worth less than costs.
• Evidence: Keep meticulous records, as IRD will scrutinise your original intent for buying.

The “swap” trap. Swapping one coin for another ( e.g., Bitcoin for Ethereum) is viewed by IRD as a sale. You may owe tax on that trade even if you haven’t converted back to New Zealand dollars

03/06/2026

The Income Tax (Kilometre Rates for the Business Use of Vehicles for the 2025-26 income year)

01/06/2026

Check subscriptions to contain costs

Rising costs are prompting many businesses to take a closer look at their online subscriptions – and the savings can be significant.

From software platforms to media services, monthly charges can quietly add up, especially when tools are no longer being fully used. A quick audit of subscriptions is a simple way to cut unnecessary spending and improve cashflow.

Start by listing all active subscriptions and their monthly costs. Identify which ones are essential, which are underused, and which can be cancelled or downgraded. It’s also worth checking for duplicate tools that perform similar functions, and even multiple subscriptions for the same service.

Setting calendar reminders before renewal dates can help avoid unwanted charges, while switching to annual plans might offer discounts for services you rely on.

Regularly reviewing subscriptions – ideally
every three to six months – keeps spending aligned with business needs. In a tight economic climate, small savings across multiple services can make a
meaningful difference to the bottom line, and support long-term financial stability and smarter budgeting decisions.

29/05/2026

Cash Transactions: A Cautionary Tale for Business Owners

A Stuff news story making headlines today serves as a stark reminder of the risks that can come with accepting large cash payments in business.

Mike Wheeler, a 70-year-old property owner, accepted around $20,000 cash upfront — a full year’s rent, from a tenant who turned out to be connected to organised crime. He consulted his accountant at the time, banked the money correctly, and followed the contract to the letter. But police are now using civil asset recovery laws to try to seize his entire $580,000 property, far more than the $70,200 in cash rent he ever received.

The key lessons for business owners:

• Large cash payments should always raise a red flag, regardless of how legitimate a client appears
• Under proceeds of crime legislation, authorities can pursue asset forfeiture on the balance of probabilities — a much lower bar than a criminal conviction
• “I banked it and declared it” may not be enough protection if the source of the cash was tainted
• The risk isn’t just financial penalties — it can mean losing assets worth many times the original transaction

As one legal expert noted in the article, cash-heavy dealings are increasingly viewed with suspicion by authorities. The expectation today is that legitimate business flows through traceable bank accounts.

If a client or customer insists on paying large amounts in cash, talk to us before you accept it. Understanding your obligations — and your exposure — could save you far more than you’d ever make from the transaction.

Mike Wheeler stands to lose his property after being paid cash by a tenant who later turned out to be a criminal.

25/05/2026

Making it right - When you make a business mistake act quickly.

Don't assume it won't be noticed.
Avoid excuses; honesty and a straightforward apology demonstrate professionalism and preserve your credibility.

Communicate with care
Explain what happened in clear, simple terms. Transparency builds trust when a client understands the cause and the remedy. However, be mindful of your language - focus on the fact that a standard wasn't met and how you will fix it, rather than making broad legal admissions of negligence that could complicate insurance or indemnity claims.

Offer a meaningful solution
When a mistake occurs, your priority should be to make it right, even if the cost of the remedy is high. Suggest a practical solution. Listen to the client's needs and be prepared to go the extra mile to ensure they are not disadvantaged by your mistake. Putting things right, even when it hurts the bottom line, is an investment in your integrity and the goodwill of your business.

Close the loop
Once a solution is agreed, confirm it in writing. A brief email outlining the agreed fix "closes the loop" and prevents future misunderstandings about whether the issue was fully resolved.

Fix the process, not just the problem Identify gaps in your systems or communication. Improve the process rather than blaming personnel.
A mistake is an opportunity to strengthen a relationship. Customers remember the quality of your recovery more than the original problem.

17/05/2026

Maintain the integrity of a family trust - Managing a family trust requires a clear
distinction between your role as a trustee and your status as a beneficiary.
To maintain the trust’s integrity, follow these essential practices:

• Governance and independence: Trustees must manage the trust as a separate legal entity. Decisions should generally be unanimous and must be formally recorded
in signed minutes.
• Separation of funds: It’s critical to keep trust assets strictly separate from personal finances. Even if you’re a beneficiary, you can’t access funds at will.
• Documenting distributions: When withdrawing funds, the minutes must specify the nature of the payment.

Common classifications include:
o a distribution of trust income
o a distribution of trust capital
o a reduction of debt owed to the beneficiary or the creation of an interest free loan.

• Fiduciary duty: Before making any distribution, trustees must demonstrate they have considered the interests of all beneficiaries. While you must record that this consideration has occurred, you’re not required to document your specific reasoning.

The bottom line: While beneficiaries can certainly receive income from a trust, they must always act through the formal authority of the trustees to ensure the entity remains compliant and protected.

16/05/2026

📊 Is your business ready to grow?
At ABC Business Solutions Limited, we’re more than just accountants — we’re your trusted partner in building a stronger, smarter business. Whether you need help with tax, accounting, or business consulting, our friendly team is here to make it simple.

✅ Expert accounting & business advice
✅ Two convenient Auckland locations
✅ Personalised service for businesses of all sizes
👉 Visit us at www.abcsolutions.co.nz to find out how we can help you thrive.

📍 Flat Bush | Papatoetoe
Get in touch today — your first consultation could change everything.

We aim to provide our clients with a highly personalised service which is cost-effective, efficient and professional, allowing clients to develop and grow their business to its full potential.

11/05/2026

Asbestos removal repairs

The cost of removing asbestos from a building, in the opinion of Inland Revenue, is capital in nature.

There is a special provision which allows you to depreciate this cost over 35 years in equal amounts each year.
The costs of investigating and testing for asbestos are tax deductible costs similarly, expenditure related to monitoring the discharge of asbestos and of cleaning up or soil removal are tax deductible.

If you are removing asbestos from machinery, piping and lagging etcetera the cost has to be added to the cost of the asset and depreciated at the same rate as the asset. If you’re trying to clean up contaminated land, there is no tax deduction or depreciation.

07/05/2026

Failure to pay PAYE deductions to Inland Revenue

An employer must pay PAYE and other amounts deducted from an employee's salary or wages to Inland Revenue by the due date. Making deductions and failing to pay them to Inland Revenue is a serious offence carrying a maximum sentence of up to 5 years in prison.
The Commissioner will consider, where appropriate, the possibility of prosecution action where this behaviour is identified.