With only a few weeks until 31 March, here are a few tactical moves you can make to help optimise your tax position:
#1 Prepayments: If you have the cash flow, consider prepaying some expenses (like insurance, rent, or professional subscriptions) before 31 March.
#2 Employee Bonuses: If you are planning to pay staff bonuses, ensure these are 'committed' to before 31 March to claim the deduction this year (you'll also need to ensure these are paid within 63 days of balance date).
#3 Stocktake: If you hold inventory, remember to schedule a stocktake for the close of business on the 31st.
#4 Bad Debts: Take a look at your aged receivables. If there are invoices you know won't be paid, ensure these are written off in your system before 31 March to claim the deduction.
2026 Questionnaires Now Available
2026 questionnaires are now available on our website. Please use these to assist you to identify all the information you need to provide us.
Our thanks in advance - having the right information available makes it easier and quicker for us to complete your year-end requirements.
Tax Updates: What You Need to Know
Key changes to be aware of as we head into a new financial year...
#1: Minimum Wage Increases
From 1 April 2026:
- The adult minimum wage goes up from $23.50 to $23.95 per hour.
- The starting-out and training minimum wage goes up from $18.80 to $19.16 per hour.
Please note these rates are before tax and lawful deductions, e.g. PAYE tax, student loan repayments, child support.
#2: Kiwisaver Increases
From 1 April 2026:
- The default Kiwisaver contribution rate lifts from 3% to 3.5%. All pay days made on or after this date must apply the new rate.
Please note the default rate is set to lift again to 4% from 1 April 2028.
- Employees can apply for a temporary rate reduction from 1 February 2026 if they want to carry on contributing at 3%.
- 16 and 17 year olds now qualify for Kiwisaver contributions (provided they meet all other qualifying criteria).
- Individuals earning more than $180,000 per annum will no longer qualify for the government contribution.
#3: ACC Levy Changes
From 1 April 2026:
- The ACC earners’ levy is increasing from $1.67 to $1.75 per $100 of earnings.
- ACC are removing the 10% No Claims Discount (or loading) on their invoices. Businesses will see this change on their 2026 invoices; for those who are self-employed this will show in their 2027 invoices.
- Interest will be applied to all new (or rolled-over) levy instalment plans. ACC are also applying changes to how the interest for late payments is calculated.
All these changes mean increased labour and payroll costs. Our advice is to check your 2026-2027 budget, cashflow forecasts and pricing strategy, or get in touch with us if you need assistance with this.
If you employ staff, you'll also want to check your payroll system has been updated to reflect the coming changes. We also advise you:
- review your Kiwisaver policies to consider whether you will match any employees temporary rate deduction or continue to contribute at the default rate during a temporary rate reduction period;
- think about how you'll keep records to track any opt in/out or temporary reduction periods; and
- review the wording about Kiwisaver rates in your employment contracts to determine whether they reference a 'default contribution' rate or a specific contribution % (if the latter, these will need to be updated).
Remember, if you have any questions or concerns about any of the coming changes, we're here to help.
