December 2025 Update
- Apr 15
- 2 min read
Hi all,
Less than 2 weeks until Christmas!
The economy and interest rates are showing signs of cautious optimism, and we have some sunny weather to enjoy as well. We have covered off some reminders and items that might be of interest:
Investment Boost
Since 22 May 2025, businesses can claim 20% of the cost of new assets as an expense. The remaining 80% of the cost is then depreciated as usual.
Investment Boost is a form of accelerated depreciation - it doesn’t change the total value of deductions you can claim, however you can claim a greater deduction in the 1st year and therefore pay less tax in that year. Xero has a feature in the fixed assets module that allows this to be recorded correctly.
Small Business Cashflow (SBC) Loan Scheme - expiry
The Small Business Cashflow (SBC) Loan Scheme is expiring for customers who have a 5-year loan. Any unpaid loan balance (plus interest) that is not on arrangement at the end of the loan's term, will automatically default.
The IRD will treat this as overdue debt and may also charge default interest on overdue loans.
Employer and GST debt older than 12 months
In October the IRD shared their focus on collecting overdue debt and returns, particularly GST and employer (EMP) debt through a targeted campaign and direct marketing.
Where the IRD has contacted you directly about any outstanding debt, we would encourage you to contact us to assist with any negotiations with the IRD.
Reminder – GST and provisional taxes due 15th January 2026
We are in the process of sending out the 2nd instalment of 2026 provisional tax reminders, for provisional tax payers with March balance dates.
The due date for payment is 15th January 2026. Please review the tax notice and, if your income has changed dramatically (up or down), please contact us as this could impact the tax payment calculation. If you file monthly, or two-monthly November GST returns, then the GST due-date is extended to 15th January 2026.
Office Close-down
The office will close Friday 19th December and re-open on Wednesday 14th January. Michael and Anna are available throughout this time should you need assistance.
Wishing you happy holidays,
Michael, Anna, Nicki, Pavel, Georgie & Amy
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