Baker Tilly Staples Rodway Numbers Magazine Autumn 2020

Numbers ISSUE 53 AUTUMN 2020

Be prepared, not alarmed

“ We're here to support you.”

David Searle

National Chair Baker Tilly Staples Rodway

Inside Government to the rescue Tax options in times of crisis Building business resistance Remote access in a disaster Provisional tax relief

BAKER TILLY STAPLES RODWAY MAGAZINE

A look inside this issue of Numbers...

04 Government to the rescue!

22 Recruitment Foolproof your hiring process

What the COVID-19 rescue package means for you

25 The need for strategic thinking in today’s leaders

07 Small business or all business?

28 Insolvency Practitioners Regulation Act

Our response to the Government's COVID-19 rescue package

A level playing field for practitioners and enhanced

08 Tax options in times of crisis

protection for creditors

32 Ask an expert 12 Building business resilience to coronavirus What are your options?

GST and ADLS

34 Contract milking Thinking about signing

15 Cashflow on tap

a contract?

Provisional tax relief in the wake of COVID-19 and drought

18 Remote access in a disaster

37 Great conversations, great relationships, great futures Take a look at what we’ve

Is your business prepared

been up to recently

for the unthinkable?

DIRECTORS Auckland

David Searle

(09) 373 1128

Hamilton

David Heald

(07) 834 6801

Tauranga

Lisa Stirling

(07) 578 2989

Hawkes Bay

Dave Sawers

(06) 878 7004

Taranaki

Daimon Stewart (06) 757 3155

Wellington

David Hulston

(04) 472 7919

Christchurch

Dave McCone

(03) 343 0599

DISCLAIMER No liability is assumed by Baker Tilly Staples Rodway for any losses suffered by any person relying directly or indirectly upon any article within this document. It is recommended that you consult your advisor before acting on this information.

Chairperson's Message

This “Business Preparedness� Autumn edition of Numbers magazine began production long before COVID-19 was an issue and it is clear now that the virus will have a significant effect on New Zealand and global economies. Many of the articles in this magazine have been adapted or written taking into consideration recent changes but given shifting events, all businesses need to be agile and adapt to the rapidly changing situation in a timely basis.

Some of the information in this issue of Numbers has changed since publication. In light of this everchanging environment we will be regularly updating our website (bakertillysr.nz/news-hub/covid-19) with relevant articles and business information.

We are here to support you. If you need help, please contact your advisor and we will assist you in developing a plan.

At this time, we are especially proud to be part of both a national and an international network. Being able to draw on the expertise of 34,000 professionals worldwide allows us to provide you with the tools that you need to navigate global uncertainties.

Kia kaha, David Searle National Chairperson Baker Tilly Staples Rodway

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Since publishing this article, extra support has been announced by the government. For up-to-date commentary, please visit bakertillysr.nz/news-hub/covid-19/

Government to the rescue!

The government has released a $12.1 billion relief package in an attempt to mitigate the worst economic impacts of COVID-19. This is the largest package released by the present government and as a percentage of GDP is larger than packages introduced in Australia, the United Kingdom and Singapore.

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Numbers ¡ Autumn 2020

WHAT YOU SHOULD DO There are a few steps you should take now:

General components of the package The main component of the relief package is a wage subsidy scheme. Under this scheme, eligible businesses will be provided a lump sum payment of $585 per week per full-time employee and $350 per week per part time employee for 12 weeks up to a cap of $150,000. Additionally, those who are either self-isolating or contract coronavirus will receive a payment of $585 per week, which can be applied for by their employer. This will not be available to those who can work from home and will only be in place for an initial 8-week period. In order to be eligible for the lump sum payment, a business will need to have suffered a 30% decline in revenue month on month for any month between January and June this year and have spoken to their bank about relief. The government expects this will cost $5.1 billion.

Other key components of the package are: • Benefits will be increased by $25 per week • The Winter Energy Payment for main beneficiaries and superannuitants will be doubled from $450 to $900 for singles and $700 to $1,400 for couples • A $100 million funding package to support worker redeployment and training • A $500 million funding package to support the health sector • Further packages for the aviation sector and large employers will be announced in coming weeks. The wage subsidy scheme is available as of right now.

Numbers · Autumn 2020

• Review your business' forecast cash flows for the next few months and in particular consider how much headroom you have if cash receipts fall. If you can foresee difficulties, start the conversation with your bank, your landlord and other stakeholders as appropriate, to put contingency plans in place.

You may also need to review capital expenditure plans and make short term cost savings to help you through.

• Speak with your bank. In order to have access to the wage subsidy scheme, you need to have evidence of discussions with your bank.

This is also sound commercial practice as it provides some room should economic conditions stay bad for longer than anticipated.

• Keep an eye on turnover.

Again, in order to have access to the wage subsidy scheme, you need to have a 30% decline in revenue for any month between January and June compared with the same month in last year.

Our team can help you with cashflow forecasting, reviewing your position and communicating with your key stakeholders.

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Tax components of the package The relief package has also been used as an opportunity to tweak tax settings in a manner consistent with the Tax Working Group’s proposals from last year as well as implementing measures that businesses have been seeking for some time. Key tax components of the package are: • Depreciation deductions for commercial and industrial buildings are being restored as of the 2021 year • The threshold at which taxpayers become subject to provisional tax will increase from $2,500 to $5,000 as of the 2021 year • The definition of low value assets will increase from $500 to $5,000 for the 2021 year before settling back to $1,000 from the 2022 year onward • Inland Revenue will be given more discretion to remit use of money interest if taxpayers cannot pay their tax due to COVID-19 Inland Revenue have announced they will remit use of money interest for payments due on or after 14 February 2020 where payment was not made on time due to COVID-19. This could apply for up to two years.

We welcome the relief package and its targeting of those who will be most affected.

It means businesses can continue to keep workers employed without putting too much strain on their cash balances and it means workers have some certainty that income will still come in – even if they need to self-isolate and have run out of sick and annual leave.

Beyond the relief package, it is fortunate many of the natural circuit breakers have kicked in. The falling dollar will give exporters a boost once supply chains return to normal.

Falling interest rates will give business and households reduced costs of borrowing, freeing up funds.

The Minister of Finance urged everyone to look after themselves, look after their families and look after our elderly. We agree with these sentiments and are doing what is necessary to keep people safe.

New Zealand has been through challenges over the years and we have come through the other side. This is but another one of those challenges.

The full impact of these proposals will not be seen for several months; however, it is hoped this will encourage investment by the commercial sector and also ensure microbusinesses do not face cashflow constraints.

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Numbers · Autumn 2020

Small business or all business?

Since publishing this article, extra support has been announced by the government, removing the $150,000 limit. For up-to-date commentary, please visit bakertillysr.nz/news-hub/covid-19/

STORY David Searle National Chairperson Baker Tilly Staples Rodway Auckland

We were pleased to see the government move quickly with relief measures for the COVID-19 pandemic.

Globally New Zealand’s $12.1 billion package is one of the largest as a percentage of GDP, and for this the government is to be commended.

At first glance, this looks like a very generous package, with each employee covered by $585 per week.

The wage subsidy package as it stands gives businesses up to a maximum of $150,000 for up to 12 weeks. This equates to 21 employees.

According to Statistics New Zealand 97% of New Zealand businesses have nineteen or fewer employees. For them, this package fits.

When you start diving into the numbers, the wheels start to come off. The 3% of businesses employing 20 or more people are responsible for almost 72% of all employees in New Zealand.

For a business with 100 or more employees (less than 0.5%), $150,000 is a drop in the bucket and those businesses are responsible for employing over 48% of New Zealanders.

As the National Chairperson for New Zealand’s sixth largest accounting firm, businesses employing twenty or more people are our main clients. They are understandably concerned.

Numbers · Autumn 2020

While the New Zealand economy will be affected by the collapse of small to medium businesses, it is the medium to large businesses that will have the greatest impact on the economy and employees, if they find themselves in trouble. Already we are seeing hiring freezes and cutting back of non-essential and uncommitted spend.

With Tuesday’s announcement, the government stated that further packages for the aviation sector and large employers will be announced in coming weeks.

This pandemic does not discriminate and will impact everyone. Therefore, government support needs to be relevant to all businesses, big or small, should they need it.

Although the headline figure of $12.1 billion is significant, 72% of employees are being left unsupported. The large employers that the government has alluded to need to know the details of their support package before it is too late. The sooner that we can start helping these businesses, the more confidence we can give them to ensure that the New Zealand economy does not come to a grinding halt.

The UK’s package, while loan-based, supports all businesses and we need to follow suit. david.searle@bakertillysr.nz

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Tax options in times of crisis 08

In the last couple of months several events have pushed some businesses to their financial limit. Drought throughout much of the country. Floods in Southland. The COVID-19 virus and resulting disruption to imports, exports and tourism.

Numbers ¡ Autumn 2020

Since publishing this article, support has been announced by the government to help you and your business through the COVID-19 State of Emergency. For up-to-date commentary, please visit bakertillysr.nz/news-hub/covid-19/

When these events occur, cash reserves are stretched as suppliers and staff need to be paid while customers may not necessarily be coming through the door, or are struggling to pay your invoices. Where the event results in destruction of property, business assets need to be replaced and trading stock needs to be replaced in order to keep business operations going.

Tax can be one of the largest costs to a business and while a company still needs to pay 28% of its taxable income to the government, there are ways this liability can be managed during a time of crisis. Specifics will depend on whether it is your business suffering alone or where there is a wider crisis.

Business crises When a crisis hits that impacts your business in isolation, there are some tools available to help manage your tax obligations.

STORY Jodi Johnston Tax Manager Baker Tilly Staples Rodway Auckland

Numbers ¡ Autumn 2020

If you expect your business is going to have a reduced profit as a result, it might be worth filing a provisional tax estimate to reflect the reduced tax payable. This way, your provisional tax obligation reduces and if you have made a payment of excessive provisional tax previously, it can be refunded. This would require the filing of an interim imputation return.

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If your business lacks the funds to meet its tax obligations, Inland Revenue may agree to an instalment payment arrangement. This allows a business to pay off their tax obligation without incurring any extra late payment penalties. Note, Inland Revenue continues to charge use of money interest. Use of money interest is viewed as an opportunity cost as opposed to a penalty, even if it feels like a penalty. Inland Revenue need to be satisfied a reasonable effort is being made to pay the tax bill, so some financial information needs to be provided with an instalment arrangement application.

If you use a tax pooling intermediary, a far wider range of tools are available to your business should a crisis hit. Refer to the following article by Tax Management New Zealand for more information.

Inland Revenue have discretion to remit late payment and late filing penalties if there is a valid reason for the payment being late or the return not being filed on time. While extreme examples such as a factory fire spring to mind, Inland Revenue’s discretion is wide and if a business crisis results in a late payment or late filed return, it is always worth getting in touch.

Regional and national crises When a regional or national crisis hits, government regularly intervenes to provide relief in the tax sphere.

One area much appreciated by the primary sector is the short term relaxation of the income equalisation scheme.

While under normal circumstances, deposits under this scheme need to be held with Inland Revenue for more than a year before being withdrawn and the deposit made within a specified time period, Inland Revenue have discretion to allow late deposits and early withdrawals from the scheme where adverse events have been declared. Examples at the time of writing include: • Flooding in Southland and Otago • Drought in Northland and northern Auckland Inland Revenue has discretion in other areas as well. Where government has declared an event to be an emergency event by Order in Council, Inland Revenue can remit use of money interest where payments are late due to the inability of taxpayers to physically make payment on time. This might be due to records being destroyed or premises not being accessible.

Examples of times where this discretion have been invoked include: • The Christchurch earthquake of 2011 • The Kaikoura earthquake of 2016 As before, Inland Revenue also have discretion to remit late payment and late filing penalties. It is usually easier to obtain remission when a regional or national crisis hits as Inland Revenue does not need to confirm the validity of the request.

Inland Revenue will be keeping their website updated with developments as events continue to unfold: www.ird.govt.nz/updates/news-folder/tax-relief-coronavirus

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Numbers · Autumn 2020

International Crises

Conclusion

The last major international crisis to hit these shores was the 2008 Global Financial Crisis; although at the time of writing (early March 2020) it appears the COVID-19 virus will become one.

If your business faces a crisis, whether it is limited to your business or is caused by a regional, national or international event, there are some tools available to help manage your tax obligations.

At this point, the tools available to taxpayers have not been broadened and are generally a combination of situations described earlier.

However, we expect there will be more specific measures introduced and we update our clients on these with our Tax Talk newsletter.

Most importantly, get in touch with relevant people early. Inland Revenue can help business provided you get in contact with them early. Your Baker Tilly Staples Rodway advisor can also discuss options available for your business should a crisis hit. jodi.johnston@bakertillysr.nz

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Since publishing this article, the world economy has shifted significantly. For up-to-date commentary, please visit bakertillysr.nz/news-hub/covid-19/

Building business resilience to coronavirus What are your options?

Amid the uncertainty created by the coronavirus (COVID-19), including how long the effects will be felt, it’s worthwhile understanding what your options are.

STORY Tony Maginness Director Baker Tilly Staples Rodway Auckland

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Numbers ¡ Autumn 2020

“ Last week, I would have told you nothing had changed. This week, it has all gone to hell.”

NEW YORK TIMES

If your business is being severely impacted, is it better to restructure now rather than continue to lose money for an unspecified amount of time? Even if your business isn’t directly impacted, there are still likely to be implications from the economic fallout coronavirus has created across the globe.

The broader picture Travel bans. Sporting events cancelled.

Large gatherings prohibited. Stock markets in freefall, OCR slashed. Get ready for the COVID-19 global recession.

Up until a month ago this seemed farfetched. It was assumed that the Coronavirus outbreak would be a localised problem for China and that any spill over effects to the rest of the world could be managed by a bit of policy easing by central banks.

When it became clear that COVID-19 was not confined to China and that the economic effects would be more widespread, forecasts started to be revised down. But central banks, finance ministries and independent economists took comfort from the fact that there would be a sharp but short hit to activity followed by a rapid return to business as usual.

This is similar to what people thought in 2007, when it was initially assumed that the Numbers · Autumn 2020

sub prime mortgage crisis was a minor and manageable problem affecting only the US – that ended well!

The scary thing about COVID-19 from a business perspective is it affects both sides of the economy: supply and demand. The supply of goods and services is impaired because factories and offices are shut and output falls. But demand also falls because consumers stay at home and stop spending, and businesses stop investing.

Despite globalisation, much economic activity remains local but here, too, there will be an impact as people cancel appointments at the dentist, put off having their hair cut and wait to put their house on the market.

In a service-sector dominated economy much of the lost output is never going to be recovered. If people do not go out to their weekly meal at their favourite local restaurant for the next six months they are not going to eat out four times a week when the fear of infection has been lifted.

It also seems likely that the economic pain will go on for longer than originally estimated.

Having imposed bans and restrictions, governments and private-sector bodies will be cautious about removing them. Countries such as Italy will be wary of opening their borders while there is a fear of reinfection.

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What can you do?

There are several proactive steps you can take to give your business a stronger chance of recovery: Speak to creditors Don’t suffer in silence. Speak to your bank to investigate options for an overdraft or revised payment terms. You will likely find them more receptive given the nature of the issue, which is beyond any business owner’s control.

Likewise, ask your landlord about concessions on your rent and discuss repayment options with creditors to provide some relief during the disrupted trading period. The IRD may also be willing to discuss options.

Voluntary administration There’s certainly hope that the situation can be resolved without taking drastic measures.

However, should the need arise there are a number of restructuring options such as voluntary administration and formal creditor compromises that can ensure a business survives. These are alternatives to liquidation and provide companies with breathing space to organise and deliver a recovery plan for the business and its creditors.

An ounce of prevention is better than cure Unlike the situation in the wake of the Christchurch earthquakes, there will be no vast rebuild programme to stimulate the economy again once the coronavirus outbreak has abated. Whatever the future holds, it’s up to business owners to be proactive about managing their cashflow and seeking assistance before it becomes too late.

Taking preventive measures early will give your business the best chance of making a full recovery. We will continue to provide material on how your business can weather the storm. tony.maginness@bakertillysr.nz 14

Numbers · Autumn 2020

Since publishing this article, the COVID-19 situation has evolved significantly. For up-to-date commentary, please visit bakertillysr.nz/news-hub/covid-19/

Cashflow on tap Provisional tax relief in the wake of COVID-19 and drought Managing cashflow becomes paramount in an uncertain environment. Right now, a few folks will be trying to keep as much money as possible in their business following droughts, floods and the early impact of the COVID-19 virus.

STORY Clyden Manikkam National Business Development Manager Tax Management NZ

Tax pooling can be an effective tool in helping businesses conserve cash when they need to. It is an IRD-approved service that provides someone with more time to pay their provisional tax, without the risk of facing IRD interest and late payment penalties.

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DISCOUNTED RATE FOR FORESTRY AND TOURISM INDUSTRY Tax Management NZ is offering a highly concessionary rate of 3.95 percent for businesses in the forestry and tourism industries impacted by coronavirus who do not qualify to have IRD interest waived on tax payments. The offer applies for 2020 provisional tax, as well as terminal tax payments relating to the 2019 tax year.

Someone with a provisional tax obligation due on 7 May 2020 would have until mid-June next year to pay if they entered an arrangement with a commercial tax pooling provider such as Tax Management NZ.

Where tax pooling might be useful For most businesses, provisional tax is generally calculated on an uplift of the preceding year’s income tax liability.

However, when something like coronavirus, drought or flooding strikes, profitability can nosedive and cashflow can dry up. As such, paying based on this calculation may no longer be suitable. This is likely the case for those making a living in the forestry, tourism, meat and crayfish industries. The economic ramifications brought upon by the situation in China – one of their key markets – will significantly hurt projected earnings – as well as the regions which rely upon these industries.

Some will simply want to hold onto funds until their financial position improves, while others may need to use that money elsewhere. For instance, businesses impacted by flooding will have repairs and the cost of the clean-up at the forefront of their minds; farmers affected by drought may wish to purchase feed for their cows if the situation worsens.

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Although the Government has now come to the table with a package that will assist businesses who qualify, many will still be hurting.

Tax pooling can offer some respite from having to meet Inland Revenue’s requirement to pay provisional tax during a tough and difficult time.

You only pay what you owe when using the service – not some amount calculated by reference to prior years which may well be in excess of your actual 2020 liability – and can pay once this amount is known.

There is some interest to pay when you settle with the tax pooling provider, but this is cheaper than the 8.35 percent IRD charges if you fail to pay on time or underpay and there is no exposure to late payment penalties. clyden.manikkam@tmnz.co.nz Clyden Manikkam is the National Business Development Manager of New Zealand’s first and largest tax pooling provider, Tax Management NZ. Numbers · Autumn 2020

HOW TAX POOLING WORKS Say you have a provisional tax payment of $15,000 due on 7 May 2020. With the uncertainty given recent events, you would rather not pay this right now if it can be avoided.

If you let a tax pooling provider know about your position, they can make a tax deposit of $15,000 into its IRD account on 7 May 2020 on your behalf. This deposit is date stamped as at the date that it is made.

The tax pooling provider will also tell IRD you are using tax pooling to pay your tax and IRD will enter a note in its system telling its debt collection team not to pursue the outstanding payment.

Once you file your tax return and know the liability for the year, you pay the tax pooling provider. This payment must be made no later than mid-June 2021. Your payment includes the core tax of $15,000, plus the provider’s interest cost.

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The interest cost to pay the $15,000 in mid-June 2021 is $978. That is a saving of $1,140 in interest and late payment penalties if you settled this with IRD at the same date – and ensures your compliance record is not negatively impacted.

If it turns out the actual liability for the year is less than the date-stamped deposit made on your behalf, don’t worry. You only pay for the tax you require, and the tax pooling provider’s interest will be recalculated to reflect this.

Upon receiving your payment, the tax pooling provider transfers the deposit it is holding on your behalf from its IRD account to your IRD account. IRD will treat it as a $15,000 payment made on 7 May 2020 by you and will wipe any interest and late payment penalties they may have put on your account.

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Remote access in a disaster Is your business prepared for the unthinkable?

The COVID-19 virus has caused a real threat to business operations throughout the world, showing that the need for contingency planning is essential.

STORY Rob McEwan Business Computing Services Director Baker Tilly Staples Rodway Taranaki

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Numbers ¡ Autumn 2020

Since publishing this article, the COVID-19 situation has evolved significantly. For up-to-date commentary, please visit bakertillysr.nz/news-hub/covid-19/

Understandably, there’s only so much preparation that can be done for organisations who rely on others to maintain their workflow.

However, businesses that can continue operations from anywhere can be unstoppable with the right software and planning in place.

Choosing the software that works best for your team in a remote situation is key. In order to do this, you must first understand the needs of your employees. The way managers work with employees in an office situation is very different when they’re not face to face with them. Here are some tools to use to help with preparing your team for remote working:

Maintaining face-to-face contact Using apps that enable managers to have ongoing direct communications with their team is essential to keep operations on track. When working in an office environment it’s relatively easy to gauge team morale by

assessing the mood of individuals, however when face to face communication isn’t possible there are some great apps that allow quick video meetings.

Some companies in China that were affected by the COVID-19 virus began a huge workfrom-home exercise and experienced these apps first-hand. During this time, the enterprise app DingTalk jumped 37 spots to the 3rd most downloaded app in China, according to metrics research firm App Annie. There was also a 50% increase in users of cloud service supplier Welink with 120,000 meetings being conducted on the platform in one day. It’s clear from these statistics that remote software is a real game changer in the face of disaster.

The enterprise app DingTalk has jumped 37 spots to become the 3rd most downloaded app in China.

OVERALL APP STORE RANK IN CHINA BY DOWNLOADS (POSITION) 1

500

1,000

1,500 Jan 27 Ding

Feb 03 Lark

Feb 10 Tencent Meeting

Feb 16 Huawei Cloud WeLink

SOURCE: App Annie

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Utilising workflow software Keeping jobs on track is another common concern when working remotely. You can’t show up at an employee’s desk to check if a job has been completed, so this is where software packages such as Microsoft Office 365 come in.

Within the Office 365 system, apps like SharePoint and Planner allow everyone in a team to keep track of projects, capture tasks and monitor who is assigned to what. With a few quick clicks, projects can be marked as ‘in progress’, be tagged as urgent, assigned to a new person(s) or completed and saved.

It makes remote management and oversight really simple.

Utilising the MyAnalytics tool on Microsoft is also another great way to keep employees on track and help to measure their productivity. Automated emails are sent to your

people to show their work habits based on feedback generated from their computer activity. It is designed to help team members stay focussed and highlights the importance of building a positive work pattern especially when working from home.

Preparing your business for teleworking The rollout of ultrafast fibre to homes across the country has enabled a range of improved teleworking options for businesses to consider.

Your reasons for encouraging teleworking can range from planning for pandemic isolation events, wanting to reduce the carbon footprint of your workplace, to being a family friendly employer. Whatever the reason, the technologies now exist that enable the modern office worker to operate from practically anywhere.

Microsoft Office 365 has a number of apps to help keep employees and projects on track

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Numbers · Autumn 2020

Personal computer remote access options There is a broad range of technologies available for people to use. The most common and widely adopted personal computer remote access solutions include Team Viewer, GoToMyPC, VNC or Microsoft’s Remote Desktop services. Larger enterprises implement more advanced remote access solutions which add additional features for printing, performance and security using products like Citrix Virtual Apps and Desktops.

You will also need to consider security when choosing a remote access solution. This may include a virtual private network which extends the business network to the PC or tablet at home, certificate-based authentication, and multi factor authentication to ensure unauthorised parties are not able to access your company information.

Remote access software options each have different advantages and disadvantages, so do your research and make an informed decision. Some questions to consider before choosing the right software include: • Where will your employees be remotely logging in from e.g. cafés, home, library?

• How many employees will be working remotely simultaneously?

• What are your requirements for privacy and security?

• What applications will need to be remotely accessible?

The important thing to consider is that there is no “one size fits all” solution. Every business is different and the applications they use, the locations they want to operate those applications from, the number of people who will be working remotely simultaneously and the

Numbers · Autumn 2020

requirements for privacy, security and availability will be determining factors for designing the appropriate solution for you.

Helping larger organisations adapt It can be much harder for large organisations to adapt to remote working. They also have more to lose and security may be a much bigger concern.

However, an area that becomes easier for larger companies once they’ve made the switch to remote working is recruitment.

With employees working from home, there is no longer a requirement to be based in one area, so hiring locally isn't essential. There are many apps available to help with hiring top quality employees internationally such as YouTeam, a talent pool app for finding software development professionals.

What next?

With the vast array of technologies available there is no reason for the modern office worker to operate in one place. The more prepared your business is now, the more flexible you can be in the face of crisis. What’s more, the rollout of ultrafast fibre across the country means we have faster download/upload speeds, reliable connections, access to high definition video conferencing and improved voice communications capabilities. rob.mcewan@bakertillysr.nz If you need support with rolling out a remote software package or an online workflow app, get in touch with Rob McEwan on 06 757 3155 or your local Baker Tilly Staples Rodway advisor.

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Recruitment Foolproof your hiring process Hiring new employees can be one of the most time-consuming processes that a business can go through. Advertising, collating/ filtering responses, background checks, interviews… it’s no surprise that by the time the process is coming to an end, recruitment decisions can be forced and rushed. All that time spent on the recruiting process, to end up with an average employee who doesn’t quite tick all the boxes. Sound familiar?

STORY Glenny Lewis Recruitment Specialist Baker Tilly Staples Rodway Taranaki 22

Numbers · Autumn 2020

“ Hiring people is a form of investment, you must do your research and make sure you’re spending your resources on the right candidate.”

GLENNY LEWIS, RECRUITMENT CONSULTANT

Every day across New Zealand many businesses are making poor recruitment decisions. Ensure you’re not one of them by putting some thought into the hiring process in advance.

Getting it right from the start means fully understanding your business culture, the needs of the business and the role that you need to fill.

Most employers will agree that recruiting people is a difficult task and often underestimate the time needed and skill involved in the steps from start to finish. Whilst there is no guaranteed process for successful recruitment, understanding the obstacles and potential issues that you as an

Numbers · Autumn 2020

QUESTIONS TO THINK ABOUT BEFORE YOU MOVE INTO THE HIRING PROCESS: • What does the business need to move forward with its strategic goals?

• What competencies will enable this person to be successful?

• What key accountabilities does this role have?

• How do they need to fit into your business?

• What does it feel like being in the team?

• Are you replacing an existing employee as is, or re-allocating existing team work functions?

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employer might face will help you to prepare for the hiring process. Here is a list of some of the most common hiring pitfalls and some ways to overcome them: Making a quick decision on ‘gut feel’ only In some cases, working on instinct can be a great thing, but if this is all you have, then you’re not being strategic in your decision making. To avoid this being your only filter, ensure you have asked yourself the above questions and that you understand your organisation’s strategic plan to give you a better checklist to work from.

Choosing candidates who don’t fit the company culture Interviews alone can be very subjective and open to the biases of the interviewer. In order to decide if the interviewee would fit with your culture you need to dig a little deeper. The process should expand well beyond a quick chat and could include additional processes such as behavioural/competency-based interviews, informal meetings with various managers, psychometric testing, coffee outside the workspace, meeting the team, presentations and robust reference checks.

These are all potential ways to ensure that you have as much information as possible to make an informed decision. Look at each step in the process as being a piece of a complete puzzle that needs to be assembled.

The more you know about the person, the more confident you will be that they are the right fit for your company.

Ineffective job advertisements The time you have to engage with the right candidate through your advertisement is very limited. People spend an average of 76 seconds with a job advertisement that matches their skill set and 14.6 seconds reading a position description. You must

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make sure your advertisement is catchy and to the point, with enough information to help the person visualise themselves working within your business. You should be using your job advertisements to talk about why smart people want to work for your company.

Describing what a day or a week in the job will be like can let the candidate imagine themselves in the role and get excited about it.

Not knowing where your target audience is Understanding the demographic of the person you want to attract to the role is the first step towards knowing where to find them when advertising. Also consider other avenues than just recruitment websites as you might want to attract someone who is currently employed and not actively looking for a job. Social media, online advertising and magazine advertising are all great marketing platforms to reach a wider audience.

Managing the hiring process yourself?

Taking care of the hiring yourself can seem like the most cost-effective solution but it can be a time-consuming process. Not only will it be costly in terms of your time, it may take longer to fill the role, which can be detrimental to your team’s workloads and business culture.

Using a recruitment expert instantly gives you access to a talent pool of candidates and a range of tried and tested resources.

Your business is always about the people within. Why, who and how you employ can have the greatest impact on your business success now and in the future. Most businesses would say their greatest pain point is their people and their culture so don’t be afraid to invest in making sure you have a foolproof recruitment process to attract the right kind of talent. glenny.lewis@bakertillysr.nz

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The need for strategic thinking in today’s leaders You don’t have to work in strategy to think strategically. In fact, studies confirm that the most valued skill in leaders today is strategic thinking. No matter what industry you work in, uncertainty is a key part of a work environment, so to remain competitive in such a volatile space, the need for forward thinking leaders is essential.

STORY Lindie Meintjes Business Development Manager Baker Tilly Staples Rodway Taranaki Numbers ¡ Autumn 2020

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Strategic thinking involves forward looking, with emphasis on long-term goals and identifying ways to achieve those goals. Thinking is strategic when it focuses on a bigger picture, a greater purpose, and a positive plan. We often lose out on future opportunities and possibilities when we fail to think strategically today.

Practicing strategic thinking Strategic thinking starts with a goal. On a personal level, it involves identifying and defining the kind of person you want to become within a certain timeframe and setting in motion the actions and mindset that are required to get you there. It involves the uncomfortable process of getting rid of habits, behaviours and attitudes that hold you back, no matter how deep-seated they are.

If this sounds like an impossible mind shift, then start with a strategic planning session.

Why a strategic planning session is key In the business realm, strategic planning is the process of defining an organisation’s direction or strategy with systematic steps to pursue this strategy and achieve goals. The problem however is that many leaders think their strategic plan needs to be lengthy and complex to qualify as a “good” plan. The truth is your plan needs to be short and simple so that every employee in your business can understand and execute it – one full page can be too long! This could be something you revisit weekly, monthly or yearly, depending on what works best for you.

It is important to kick off a strategic planning session by understanding and articulating

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your personal values. This helps to ensure you are emotionally invested in the purpose of your business and allows you to align the business goals. This is especially important when you have multiple business owners, making sure you all set out your personal values and purpose in order to ensure they align. You can then move forward in defining a business purpose (mission) and core values for the organisation with personal values in mind. This creates the platform on which the vision and strategy is built on.

Another thing to consider is whether your employees are thinking strategically too, especially if they’re contributing to the goals of your business. In this case, having a strategic plan that everyone in the organisation can read, understand and execute is key.

Usually this would be a one-page document with a clear vision and mission statement, complimented by a few critical financial and non-financial objectives that will deliver the company’s success.

Next steps There is no point in developing a strategic plan if you don’t communicate and implement it successfully.

A critical success factor for implementing your strategic plan is putting processes in place to deliver the plan and regularly monitor, manage and review the plan to ensure it is agile enough to adapt to ever changing circumstances.

By thinking and living strategically today, we define what the successes of tomorrow could look like, no matter how that success is defined. lindie.meintjes@bakertillysr.nz

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THE STRATEGIC PLANNING PROCESS An effective strategic planning process gets to the heart and soul of your business.

By working through key elements, you can create a coherent plan and present it in a way that immediately creates focus and provides direction to daily activities.

There are 7 basic elements of a strategic plan: 1. Mission Statement This should describe the purpose as to why your business exists. Care should be taken as not to make the statement generic; it should really articulate the company’s purpose, goal, product or services offered and its primary customers or market.

2. Vision Statement A vision statement can also be called an ambition statement, as it articulates the way you see the future of your business. The declaration of the organisations objectives serves as a guide for internal decision making.

3. Core Values It is essential to have alignment of personal values to set the corporate values for the organisation. The core values are the fundamental beliefs upon which your business and its behaviour are based. It “sets the tone at the top” and guides the external and internal affairs of the company.

4. SWOT Analysis It is important to fully understand both internal and external factors that affect your business.

This will require a critical analysis of your operating environment. A thorough understanding will allow you to identify your clear advantages and focus on those to be successful.

Identify your unique capabilities, differentiating factors and understand how to use these to your advantage to achieve long-term goals.

5. Key Performance Indicators (KPI’s) Having a clear understanding of the key drivers of your business will make resource allocation and performance management more effective. Focus on the key drivers that will have the most impact on your business when managed properly.

6. Goals and Objectives Goals describe how you plan to achieve the vision you set out and aligns with the mission statement. Long-term goals are broken down into one-year objectives that will push you forward to achieve the forward-looking vision.

Yearly objectives are further broken down into short-term goals, defined by tangible action plans over the next three months to push you to the yearly goals.

Each objective should be SMART; Specific, Measurable, Achievable, Realistic and Time-based.

7. Action Plans A strategic plan should have clear activities assigned to individual employees with intended outcomes to provide clear direction and immediate focus areas to achieve goals and objectives.

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Insolvency Practitioners Regulation Act A level playing field for practitioners and enhanced protection for creditors The Insolvency Practitioners Regulation Act (the Act) was passed into law in mid-June 2019, bringing with it tighter regulations and standards to help ensure that insolvency practitioners act in the best interests of creditors.

STORY Tony Maginness, Jared Booth & Nicola Hankinson Baker Tilly Staples Rodway Auckland

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The Act, which is effective from June 2020, will introduce transitional licenses for practitioners who have been accredited through the CA ANZ and RITANZ insolvency practitioner regime. Baker Tilly Staples Rodway has five accredited insolvency practitioners across New Zealand, including two in Auckland, one in the Hawkes Bay and a further two in Taranaki.

While further details, including the regulations themselves, are still being finalised, some of the key changes introduced by the Act include: Establishment of a public register This register of licensed insolvency practitioners will be maintained by the Registrar of Companies, much like the Auditors Register.

Licensing and minimum standards Insolvency practitioners will be required to hold a licence with an accredited body or be a lawyer, accountant or member of a recognised professional body and to meet prescribed minimum standards, including a “fit and proper person” test. Practitioners will need to undertake on-going professional development in order to retain their licences, and to formally apply for their license to be renewed every five years, to ensure they remain fit to carry out liquidations. This is very similar to the current licensed auditor regime.

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Solvent liquidations These must be administered by certain professionals, such as qualified lawyers or accountants.

Penalties Strict penalties will be introduced, with unlicensed individuals acting as insolvency practitioners being liable to a fine of up to $75,000.

Voidable dispositions and administration of company money Additional powers for insolvency practitioners in relation to voidable dispositions and additional duties in relation to administration of company money, with practitioners being liable to a fine of $50,000 or up to two years imprisonment if these duties are not complied with.

Disclosure and reporting Disclosure and reporting requirements will be more rigid to effectively manage liquidation proceedings and practitioner appointments, ensuring all interests are disclosed and managed and “serious problems” are reported. Interest statements, disclosing any actual or perceived conflicts of interest and how these will be managed, are required to be prepared and updated every six months to capture new information.

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“ Insolvency practitioners play an essential role in New Zealand’s business environment. One of the main aims of corporate insolvency law is for businesses to be turned around if they are viable but if they are not, they should be wound up, the assets realised and distributed to creditors in accordance with clear rules and with a minimum of harm to both the insolvent party and their creditors.”

H ON KRIS FAAFOI, MINISTER OF COMMERCE AND CONSUMER AFFAIRS

Creditors' rights These have been strengthened under the Act. Companies will no longer be able to appoint their own liquidator following service of liquidation proceedings. Creditor’s consent will now be required if shareholders or the board wish to appoint a liquidator. Until now, companies facing liquidation have been able to choose their own liquidator. In some cases, this has led to the appointment of a so-called ‘friendly’ liquidator, who has not always pursued available claims against directors and shareholders.

Related parties There will be a tightened focus on related party transactions and voting rights. Related party voting at creditor meetings must now be disregarded unless the Court orders otherwise. Related party voting has often enabled director and shareholder interests to keep a friendly liquidator in office, instead of having that liquidator replaced with an appointee of the creditors’ choice at the first creditors’ meeting. In addition, Cabinet has agreed to a number of additional insolvency law reforms, which will be included in the 30

Insolvency Law Reform Bill. These reforms include increasing the clawback period for related party transactions to four years (six months for unrelated parties).

Solvent liquidations: additional requirements Directors will now need to formally declare that the company will be able to pay its debts in full within twelve months after the appointment of a liquidator in order to confirm that the company in liquidation is solvent. A fine of up to $10,000 will be payable if this declaration is not made or is not based on ‘reasonable grounds’.

A 12-month deadline will be introduced for solvent liquidations to become insolvent liquidations (or be concluded). This is intended to ensure that solvent liquidations are dealt with on a timely basis.

Reporting to regulatory authorities It is worth highlighting the additional responsibilities placed on directors to formally confirm the solvency of the business. This is a big responsibility, which needs to be taken seriously particularly given the requirement Numbers · Autumn 2020

for insolvency practitioners to report any ‘serious problems’, including any material breach of directors’ duties, to the Registrar of Companies and other appropriate authorities. The definition of a ‘serious problem’ is wide and includes: • Any offence committed by the company, or a past or present director, officer or shareholder of the company; • Any misappropriation of company money or property, or any act of negligence, default, breach of duty or trust committed by any person who has taken part in the formation, administration, management, liquidation, or receivership of the company; • Any material breach of director’s duties; or • Where the management of the company has materially contributed to it being unable to pay its debts as they fall due.

Overall, we consider the Act will help further protect creditors and result in a more regulated, professional insolvency sector in New Zealand, with greater transparency.

What won’t change with the introduction of the Act is the need to ensure businesses are well-managed, well-funded, and have adequate cashflows to meet their debts as they fall due. As they say, prevention is better than the cure, so it is worth working closely with your business advisor (or securing a business advisor if you don’t already have one) to keep your business on track and well-positioned to ride out any inevitable waves. tony.maginness@bakertillysr.nz jared.booth@bakertillysr.nz nicola.hankinson@bakertillysr.nz If you find yourself in hot water, our accredited insolvency practitioners can work with your business to help oversee a smooth exit process, whether this be administration, receivership, or a solvent or insolvent liquidation. Our licensed insolvency practitioners are Tony Maginness and Jared Booth in Auckland and Philip Macey and Greg Eden in Taranaki.

“ We strongly support the Government’s move to raise the bar and create a more robust process for regulating and monitoring insolvency practitioners. We consider the Insolvency Practitioners Regulation Act and related amendments to the Companies Act will help to protect the interests of creditors and safeguard the integrity of the insolvency profession in New Zealand.”

ONY MAGINNESS, DIRECTOR, T BAKER TILLY STAPLES RODWAY CORPORATE ADVISORY SERVICES AND ACCREDITED INSOLVENCY PRACTITIONER

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A READER ASKS:

“ I have heard that there have been GST changes to Sale and Purchase of Land Agreements. What are the implications?“

Ask an expert GST and ADLS STORY Sybrand van Schalkwyk Director Baker Tilly Staples Rodway Tauranga

The GST rules changed in April 2011 to bring in compulsory zero-rating in many cases where supplies of land are concerned. The changes intended to protect the tax coffers.

Prior to the change, land transactions were subject to GST at 15%. The supplier would charge GST, and the purchaser would claim back the GST. The only problem is – the system was prone to fraud.

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Phoenix fraud What clever operators did was to set up phoenix companies – ones that would appear, then disappear as it suited the owners. Usually, these nefarious operators would already have a company that owned land, but the company either had no other assets or was already in trouble. The company would then sell the land. The Numbers · Autumn 2020

purchaser (also a nefarious operator) would claim 15% on the cost of the land, and the IRD would pay out on this. However, the vendor would not return the GST, and when the IRD came knocking, they could not find anyone or any cash. No-one knows how much money the IRD missed out on, but it could have been a lot.

The Government, therefore, changed the rules in April 2011. From that date, most sales of land between registered persons have been zero-rated. There is some confusion about what this means. Most people think that it means that GST does not apply to the sale.

That is not right. GST does actually apply to the sale, but only at 0%.

Builders caught out One problem with the rule change was the way the standard ADLS/REINZ sale and purchase agreement (which documents virtually all land sales) was written. The problem with the form was that it allowed the purchaser to change the price that was agreed after the vendor was locked in. And yes, you guessed right, the purchaser would reduce the price by doing some very quick manoeuvring.

For example, a builder decides to buy some sections off the developer for some spec homes. From the developer’s point of view, they have two types of customers – the builder and also some mums and dads buying sections for themselves.

Now, the developer does not want to worry mums and dads about GST. All the developer wants is for them to turn up with the cash on the day. The developer, therefore, sells it to them on an inclusive GST basis. What the developer is saying is, look, mums and dads, I will take care of the GST, don’t you worry about it at all.

The price may be, say $350,000 including GST. If the developer sells to mum and dad, then the developer returns GST on the sale Numbers · Autumn 2020

price, they end up with $304,307 with the rest being paid to the IRD. However, if the builder goes and signs one of these deals, i.e. on an inclusive of GST basis, thinking their building company can claim back the GST, then the transaction will actually be zero-rated, because the building company and the developer are both GST registered, and the developer will get to keep the entire $350,000. Not a good outcome for the builder and this is where the manoeuvring came in.

What the builder may do in that situation is quickly nominate themselves individually in their own name, an unregistered person, to complete the transaction. This would mean the developer has to charge GST at 15% and ends up only keeping $304,307 out of the deal. The builder then sells the land to the building company at $350,000 on the same day, and the building company can claim the GST back because it has been purchased from an unregistered person.

In November, however, the ADLS/REINZ brought out a new standard sale and purchase agreement form. What that now says is that in a situation where you nominate someone with a different GST character than the named purchaser, GST will be charged on top of the price, and it will no longer be GST inclusive. In other words, in the above example, after the builder’s manoeuvring, instead of paying $350,000 and claiming back the GST, they will pay $402,500. This means the developer still ends up with the $350,000. The builder can still sell in its own name to their building company and claim this GST back but is in the same position as if they did not do any manoeuvring, with a cost of $350,000 exclusive of GST. The moral of the story Get someone to review the contract before signing it. Not doing so can be costly. sybrand.vanschalkwyk@bakertillysr.nz 33

Contract milking Thinking about signing a contract?

According to Dairy NZ data from 2015 to 2017, 38% of contract milkers earned less taxable income than the average farm manager.

STORY Amanda Burling Agri-Accountant Baker Tilly Staples Rodway Taranaki

Baker Tilly Staples Rodway Taranaki Agri-Accountant, Amanda Burling recently teamed up with representatives from local Federated Farmers, Rural Support Trust and legal firm, Auld Brewer Mazengarb and McEwan to run a workshop to explore ways to avoid finding yourself in this situation.

What should you consider when considering a contract milking opportunity?

Your worth, goals, career ambitions and your obligations Do you know what you are worth? Are you looking for a role that provides full time work for one person or as a couple? The net income that is produced as a couple 34

needs to be greater than you would expect on a management wage, plus earnings as a full-time employee.

Growth looks different for different people.

For some this means getting bigger,

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employing staff, milking more cows. For others this means staying in a role that can be managed by a couple and investing off farm.

An agri-accountant can talk you through the many and varied farming specific considerations – including taxes, debt repayment, living expenses, wages and leave obligations.

Size and scope When you know what you are worth, think about size. How many cows do you want to milk? Do you want to be an employer? What are your obligations as a good employer? If you need to employ will you be the landlord?

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Spending a bit of time and money now can potentially save you a whole lot of money and heartache down the line. Read the contract thoroughly and get it checked over by someone that knows how to read legal documents.

Fact checking and budgets Be diligent. Do you have recent (actual) production figures and estimated costs? There are so many things to think about. Who pays for power, new rubber ware or detergents?

Getting accurate prices and detailed information will make a budget as realistic as possible.

Create an annual budget. Does it look good?

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Start building a team of trusted business advisors who can help you to review it and test your assumptions. If the budget looks good, push it out to the next 12-month period.

If it doesn’t, walk away.

Clarify and negotiate any points that you are unsure of. Never assume. Get everything documented and then talk to your agri-accountant about options for spreading income evenly or production as earned. Ensure you’ve factored in dried-off periods and you understand the realities of relying on an overdraft.

Serious considerations Ask yourself, are you going to be better off than if you were on wages? Remember that being self-employed means no more rostered weekends off, no holiday pay and no sick leave. Make sure you factor your 4-weeks holiday into your required surplus. If you don’t take it that’s your perk, but you need to make sure you aren’t being penalised as well.

Business structure and planning now, for tomorrow You need to be completely open with your key advisors about your future plans and aspirations. Knowing more about you and your goals allows us to form a structure for your business and a plan for the future; and this includes planning software selection and ongoing support. There are products that will meet your needs now but will struggle to grow with your business as it expands. These can incur additional costs down the line.

Additional support Will you need support from a bank? i.e. a loan or overdraft facility. Ensure your account etiquette is good as banks will look at the previous three years ‘behaviour’ in your account. Make sure you pay your bills on time!

Nitty gritty Do you understand all the facets of business?

Do you understand GST, PAYE, ACC and 36

Never assume.

Seek advice.

Always review before signing. income tax? There are compliance costs associated with this, find out what they are likely to be. Seek help early.

CPR – Change, Plan, Resilience Keep life flowing into your business. Change is going to happen regardless of what you do; however, change presents opportunity. Planning is crucial, without a plan it is incredibly easy to get tied up in the day to day running of your business and lose sight of the big picture. Resiliency is your ability to ride out the volatility in the industry. You have to deal with environmental policy, drought, fluctuating milk and stock prices; if you don’t have the capacity for resilience it becomes very hard to survive and continue.

The hardest thing we have to assist with when working with contract milkers is trying to help after a contract has been signed… and there is often nothing we can do at that point!

Take the leap, but know your obligations and be ready to tackle them. Make sure you are running a profitable business, build and grow financial awareness and know your position and your vision.

Plan for the future, plan for change, plan for the unexpected. Monitor your plan closely and get the right people around you so you can utilise all of the tools available to you to achieve a successful outcome. Farming is something Baker Tilly Staples Rodway is passionate about, and we’re here to help you make your plans and vision reality. amanda.burling@bakertillysr.nz This article first published in Dairy Exporter Magazine, Jan 2020.

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Great conversations Great relationships Great futures Take a look at what we’ve been up to lately

75 years and counting!

1945

Baker Tilly Staples Rodway turns 75 this year.

From a small Queen Street firm to the sixth largest network in the country, part of one of the top ten global networks, we have grown with our clients. Thank you to those clients, some new and some who have been with us from the start. Here is to the next 75 years of Great Conversations, Great Relationships and Great Futures – now, for tomorrow.

Charles Staples establishes the firm and Frank joins

1970

John Wadams joins the firm

1986

Name changed to Staples Rodway, Charlie passes away

1987

Frank retires

1989

Staples Rodway joins Summit International (now Baker Tilly)

1999

National network formed with Waikato, Taranaki and Hawkes Bay firms joining

2003 Charlie St a

ples

y odwa R k n Fra

Christchurch and Tauranga join the network

2013

Wellington joins the group

2017

John Wadams passes away

2019

Name changed to Baker Tilly Staples Rodway 37

Meet our new Directors Reflecting strong growth across the business in recent years, we have appointed six new directors to boost our senior leadership team.

“The strength of our business is understanding our clients’ needs, goals and objectives, as well as the risks that need to be mitigated for them to succeed. Our six new directors excel at this approach in their respective sectors and have been instrumental in supporting the significant growth of our national network,” said David Searle, Chair of Baker Tilly Staples Rodway.

Audit specialist David Goodall becomes the Taranaki firm’s youngest Director. Goodall, a UK native, fell in love with New Zealand after completing a secondment via the global Baker Tilly network, officially joining the Taranaki office of Baker Tilly Staples Rodway in 2014. He is an expert in protecting businesses from theft and fraud as well as compliance with global reporting standards and works across a range of sectors including oil and gas, education, manufacturing and not-for-profit.

Bevan Condin and Michelle Valler have been promoted to Director, Business Advisory, in the Hawkes Bay firm. Both have more than a decade’s experience supporting clients across diverse industries and sectors from horticulture to construction, hospitality and health.

Condin has been with Baker Tilly Staples Rodway since 2007, while Valler joined in 2016 as an Associate.

Sybrand van Schalkwyk is Director, Tax in the Tauranga firm. During a varied career in tax spanning more than 20 years, he has contributed to tax policy for the IRD and the admissions programme for qualifying accountants, working as an examiner for a number of years.

He leads Baker Tilly Staples Rodway’s specialist taxation team in the Bay of Plenty.

Angela Dryden is now Director, Business Advisory in the Waikato firm after 19 years with the firm. She has particularly strong experience working with clients in the manufacturing and property development sectors.

In the Auckland firm, Kathryn Cropp has been promoted to Director, Business Advisory. Along with advising clients across a range of sectors, Cropp is Baker Tilly Staples Rodway’s resident expert in accounting and taxation of forestry in the Emissions Trading Scheme.

“I congratulate all our new directors on their appointment and look forward to seeing continued growth across our business in 2020,” said Searle.

PICTURED (top - bottom): David Goodall, Bevan Condin, Michelle Valler, Sybrand van Schalkwyk, Angela Dryden & Kathryn Cropp 38

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Women in Business Auckland Our Women in Business group celebrated the end of 2019 in style with A Night in Paris event, entertaining our guests with musicians & crêpières. We were delighted to have Tanya Abbott from L’Oréal as our keynote speaker, discussing how the company’s commitment to sustainability is a key part of their business. A chic Parisian evening was enjoyed by all.

Life Education Trust From April 1 Baker Tilly Staples Rodway becomes an official sponsor of Life Education Trust.

Life Education’s vision is to enable children to reach their full potential. New Zealand research in 2015 Financial Capability of Secondary Schools showed over half of students felt they learnt little or nothing from school around financial capability and only 14% felt they learned a lot. For this reason, Life Education is now going into secondary schools and our sponsorship involves participation at a secondary school level.

Access to: Auckland Hosted in conjunction with ANZ, Access to: Auckland brought political, transport and economic plans for the continued development of Auckland to our guests.

Speakers Nikki Kaye (MP Auckland Central), Karen Lyons (Ministry of Transport) and Pam Ford (ATEED) provided our guests with useful insights to carry into their own business planning.

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Auckland Level 9, 45 Queen St PO Box 3899 Auckland 1140 auckland@bakertillysr.nz T: +64 9 309 0463 Waikato Level 4, 354 Victoria Street PO Box 9159 Hamilton 3240 waikato@bakertillysr.nz T: +64 7 834 6800 Tauranga Level 1, 247 Cameron Road PO Box 743 Tauranga 3144 tauranga@bakertillysr.nz T: +64 7 578 2989 Hawkes Bay Cnr Hastings & Eastbourne Streets PO Box 46 Hastings 4156 hawkesbay@bakertillysr.nz T: +64 6 878 7004 New Plymouth 109-113 Powderham Street PO Box 146 New Plymouth 4340 taranaki@bakertillysr.nz T: +64 6 757 3155 Stratford 78 Miranda Street PO Box 82 Stratford 4352 stratford@bakertillysr.nz T: +64 6 765 6949

About Baker Tilly Staples Rodway Baker Tilly Staples Rodway is a national association of independent practices, with eight locations throughout New Zealand.

We are proud to be a member of Baker Tilly International, a top ten global network of independent accounting and business advisory firms, whose member firms share our dedication to exceptional client service.

Wellington Level 6, 95 Customhouse Quay PO Box 1208 Wellington 6140 wellington@bakertillysr.nz T: +64 4 472 7919 Christchurch Level 2, 329 Durham Street North PO Box 8039 Christchurch 8440 christchurch@bakertillysr.nz T: +64 3 343 0599 www.bakertillysr.nz