Numbers
BAKER TILLY STAPLES RODWAY MAGAZINE
AUTUMN 2019
The issue of change
Inside Introducing Baker Tilly Staples Rodway Budgeting in changing times Managing radical change A model for leading change Capital gains tax - myth or reality? Giltrap Group’s new experience Coming from behind to win
DIRECTORS Auckland
David Searle
(09) 373 1128
Hamilton
David Heald
(07) 834 6801
Tauranga
Chris Downey (07) 578 2989
Hawkes Bay
Dave Sawers
(06) 878 7004
Taranaki
Chris Lynch
(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
02 upon any article within this document. It is recommended that you consult your advisor before acting on this information. Numbers ¡ Autumn 2019
A look inside this issue of Numbers... 04 Staples Rodway takes its next step to become Baker Tilly Staples Rodway 06 Budgeting and reforecasting in changing times Are you keeping up?
09 Coming from behind to win A motorcycle enthusiast’s great comeback
12 Open to experience Giltrap Group’s new showroom
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Ask an expert Capital gains tax - myth or reality?
20 When change is on the menu Vetro Mediterranean Foods
24 Leading change A model for transformational change
28 A substantial tax benefit for migrant Kiwis living in Australia 32 Accounting standards The latest changes
36 Introducing FANZ Private Wealth 38 “I had a stroke at 40” Managing radical change
41 Great conversations, great relationships, great futures
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Staples Rodway takes its next step to become Baker Tilly Staples Rodway STORY M ike Rudd Baker Tilly Staples Rodway Auckland
After 70 years providing accounting and business advice to New Zealand businesses, Staples Rodway is reflecting the trend for greater global connections by taking on a new name.
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“ Creating conversations that matter.“
From 1 April, 2019, the firm will be known as Baker Tilly Staples Rodway, acknowledging its long-standing relationship with the international Baker Tilly network, which has members in 147 territories around the world.
Why change now? High interest from overseas investors and rising demand for international services has created many more opportunities for Kiwi businesses looking to go global. Chairman of the Baker Tilly Staples Rodway network, David Searle, said that Staples Rodway had been the only one of the top 10 New Zealand accounting firms that didn’t operate under a global brand. “With international business opportunities increasing, connections are more important than ever. We felt it was time to formally recognise and celebrate our global relationships,” he said. “With the change of name to Baker Tilly Staples Rodway, our clients should feel reassured that we can help grow their business both here in New Zealand and almost anywhere in the world. We also believe that the rebrand will further enhance our strong relationships with our international referral network, as we will now formally share a name with them.”
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In late 2018/early 2019 the Baker Tilly network has had a major brand refresh and it seemed the perfect time to bring Baker Tilly into our brand. You will see a lot of changes to the design of this magazine and to our other publications and branding. Staples Rodway New Zealand has been part of the Baker Tilly International network for three decades, and remains a network of seven independent, New Zealand-owned firms. Chief executive of Baker Tilly International, Ted Verkade, said he was delighted to see Staples Rodway adopt the Baker Tilly name in its brand. “Knowing your client by name, knowing their community and above all a commitment to making a difference for them – those are the things we look for, and that is why Staples Rodway has always been a high-performing member of our global family.”
What does it mean for our clients? Nothing, apart from the branding we will use going forward. We still operate as the same teams in each Staples Rodway local office, providing the same high standard of personal service our clients expect.
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Budgeting and reforecasting in changing times STORY K ylie Hollard Baker Tilly Staples Rodway Taranaki
Technology is changing, products are changing, customers are changing, banks are changing, but is your business changing to keep up?
You may think there is little you can do, but how do you take back control? How do you prepare a budget in an ever-changing business climate and economy? From start-up businesses to businesses that have been operating for 20-30 years, we should all budget. In addition, we need to constantly monitor our budget against our actuals and reforecast on a regular basis as internal and external forces change. How many times have you prepared a budget with the best of intentions or because the bank asked you to, but it is filed away in the
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top drawer and not looked at until next year due to other demands of the business? Without a budget, it will be hard to have a successful action plan. It will be harder to look at what changes you need to make to the fundamentals of your business or even identify the key drivers of your business. Once a budget is set, it is important to not set it in concrete. Businesses need to move away from a “once a year� traditional budget and use their budget as a basis to make more accurate predictions and reforecast it regularly.
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Why Budget? • Helps with the planning and control of your finances. • Gives you the ability to monitor the performance of your business. • Makes you think about the important drivers of your business. • You can look at the growth of the business and set sales targets. It makes you consider whether the targets are achievable and whether you have the product or staff to reach them. • Gives you the opportunity to look at your operating costs in depth and decide if the costs are necessary or whether you are getting the best deals for the business.
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• Allows you to revisit the goals of the business. Is the business heading in the direction that you want it to be? • All business owners have different reasons for going into business. By completing a budget, you can measure whether the business and your own goals are aligned. • It provides you with early warnings of any problems the business may face and whether you need funding for capital purchases, expansion or changes in the business. • Key performance indicators, which can also be non-financial, are an important part of your budgeting process. Set these at the same time as the financial budget. 07
THE KEY POINTS FOR BUDGETING: • Plan early • Update it regularly • Budget for contingencies • Make sure you monitor it • Be able to explain variances between budget and actual • Keep everyone informed and accountable
Why Reforecast? • Provides up to date measures for the business. Any aspect of the business can change at any time, and one change will usually have a knock-on effect on other aspects of the business. e.g. Increased sales could mean increases in raw materials required, and therefore the cash to fund those materials. • A reforecast keeps you in line with current business operations. It helps you analyse the decisions you made in the original budget. • You should set your budget knowing that a reforecast will happen. With the current rate of change your business cannot be without one. It helps you keep your eye on the bigger picture. • It gets the team involved in thinking about the expenses of the business and not spending for the sake of spending if they have a fixed budget. • A business can introduce new income streams, and there can be changes in product demands, so this enables you to identify what is important and how to manage these changes. • Staff productivity may alter or, if you are a service business, there may be changes in the ability to bill all your staff’s time. What figures do you need to adjust to get the results you need out of the reforecast? 08
Never throw your original budget away; it is as important as you reforecast. Things may change, but it reminds you where you want your organisation to be. You may not have achieved your goals this year due to factors that may or may not have been out of your control. This budget can be the basis for the new year forecast, with business and financial changes incorporated. Remember a reforecast is still a projection based on the best information available at one time, so you don’t need to update it for every little change. It doesn’t all have to be bad. You need to plan for the good, the bad and the ugly. The year may start off rough, but it may end better than anticipated. A budget or reforecast is only as good as the drivers used to create it. Make sure you build it based on the business as it is, the environment the business operates in, and the business owners’ goals. If you can budget and reforecast successfully, you will have more oversight and control of your business, and better quality information to enable you to succeed. kylie.hollard@bakertillysr.nz Numbers · Autumn 2019
It is human nature to focus on how well we have done and to gloss over our failures. This article celebrates both. But mostly how to proceed when things are going tough in business, or in life.
Coming from behind to win STORY S ybrand van Schalkwyk Baker Tilly Staples Rodway Tauranga
A classic example of this is a client of mine – Malcolm Brown. The first time I met Malcolm the thing that struck me most was how friendly he was to everyone. A true extrovert and optimist in every sense of the word. He was my bus driver when I lived out of town for a while, and he knew each of his passengers by name. He would wave a friendly ‘hello’ to all and sundry as he drove his route through the suburbs of the beach town Omokoroa, north of Tauranga. Numbers · Autumn 2019
I could never have guessed what was going on beneath the surface. Malcolm was an undischarged bankrupt at this point, and the ruins of his financial empire were still smouldering. He had started a café just outside Tauranga. The café’s theme was antique motorcycles, which is his life’s passion. However, things just did not work out. The business went under, pulling Malcolm into bankruptcy in the wake of its failure.
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A few months after I met Malcolm it was time for me to move into town. On my last bus trip, I gave Malcolm my business card and told him the first hour was on me if he ever needed any business advice. With that started a professional and friendly relationship that is still going strong. Over the next three years, I helped Malcolm manage his interactions with the Official Assignee and various other matters. This was an absolute rollercoaster, with Malcolm emotionally very low at times. Though the clouds came thick and fast, and hope was scarcely to be seen, Malcolm held on. Even at the lowest points, he was always friendly, and I saw the spring in his step strengthen and return as the sun indeed did come out again. A testimony to his character is shown by one of the first things he did. When he became able to, he put an article in the local newspaper asking for two people, who had missed out as a result of his bankruptcy, to come forward so that Malcolm could make right what he owed them. There was absolutely no obligation on him to do so, but he did it anyway. In the end, and as the result of an inheritance, he managed to pay everyone back whatever they were owed from the failed business. Now, five years later, the tides have turned in Malcolm’s favour. Although he gets NZ Superannuation, he spends the rest of his time restoring old motorcycles, as a hobby, and sometimes selling them on. Another fantastic development in his life is that he is being sponsored by friends of his to compete in the Isle of Man motorcycle race later this year. At 69 years of age, he hopes to be one of the oldest, if not the oldest, to win the open motorcycle race. Those familiar with motorsport will know that the Isle of Man track is notorious for being one of the most dangerous tracks in the world to race on. It will be the second time he will have raced on this track. He achieved a decent placing last 10
Malcolm Brown is (left) setwill to compete in the Isle of Man motorcycle race in 2019
year, which makes him think he can take the whole thing out this year. With his positive outlook, the race is already half won. So, what are the lessons for us from this snapshot of someone’s life? Business can be hard, and life can be hard. It takes its toll, but no matter what, it is important to keep a positive outlook on things, embrace the truth and hold on. I usually tell others to focus on what they have, their relationships with family and friends, faith-based or cultural organisations, and to draw on this to help pull them through. Numbers ¡ Autumn 2019
Remember that it is your attitude, abilities and your character that determines whether you will be successful in the long run. If you are experiencing a blip at the moment, possibly through no fault of your own, then know that it happens to everyone, and there is no price worth paying for losing your integrity. And finally, ask your accountant for help. The best way to make things worse is just to ignore them and hope they will go away. Look those problems clearly in the face. Accept the remedy, even though it may be bitter or painful, hang in there and don’t give up. Numbers · Autumn 2019
“ You can lose your empire, but if you keep your integrity intact, you will always be able to build another.“ Then dream again. Who knows, maybe you too will end up on a motorbike on the Isle of Man, revving to go. sybrand.vanschalkwyk@bakertillysr.nz 11
Open to experience PHOTOS Simon Devitt
The Giltrap Group’s recently completed building at 119 Great North Road in Grey Lynn, Auckland is a stunning showcase for the equally compelling automotive brands within.
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Composed of three large glass-enclosed display areas, each offering recognisable links and identifiers with the marques on display, the building also incorporates offices above, while below lie four levels of dedicated car storage and servicing. “At ground level, the Giltrap Group building utterly breaks the mold for what is expected from an automotive dealership,” says Warren and Mahoney Project Principal, Jonathan Hewlett. “When you arrive, as a customer you drive into the building itself, which creates immediate engagement with the products you’re there to see or discuss. This generally isn’t the norm in the automotive industry; it’s usually more akin to a storefront retail environment. Michael Giltrap, Group Joint Managing Director, says the completed design was way beyond what the company had ever anticipated. “We had high expectations, but we were blown away by it,” he says. “It’s a great place for customers. Warren and Mahoney has produced a design which perfectly showcases some of the world’s most beautiful cars. At the same time, it is the most technologically impressive and environmentally friendly building of its type in the country.” The Giltrap Group brief to architectural firm Warren and Mahoney was for a spectacular new building to showcase three premium brands – Aston Martin, Bentley and Lamborghini – and to reinforce its positioning at the forefront of the end-to-end car sales experience. The design process was guided by Giltrap’s premise of “investment in enhanced engineering and innovation through better design”, and as such a number of innovative design solutions were realised.
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The 119 Great North Road building is the first building of its type to achieve a 5-star Green Star Design rating. The Giltrap Group has worked closely with the New Zealand Green Building Council to develop a custom tool tailored to the mix of uses within the project. At the core of the structure is a double-storey in-situ concrete truss that was developed to ensure a completely free glazed street frontage. Resisting both gravity and lateral loading, the truss visually connects the mixed-use building’s nine floors.
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“ The challenge for the Warren and Mahoney team was balancing the practical with the beautiful, as well as keeping overriding corporate identity firmly in mind.“ “The Giltrap Group was our client on this project, but each vehicle brand on show has its own identity. The cars are on show, but the environment is interactive and welcoming,” says Jonathan. Beyond the obvious details, 119 Great North Road is a cleverly designed building underneath the surface too. As Barrington Gohns, Project Team Lead for the Great North Road building, explains, the idea that exotic and prestige cars would be moving about in what is a relatively confined space, was also a major consideration. “There is a pretty intense logistical ballet at work within the building on any given day. You have the movements of vehicles for display, customer vehicles arriving and departing, as well as other vehicles moving between customer parking and, say, the service area. “All of these interactions had to be taken into account. The idea is that a vehicle can potentially go through all of these different phases or movements without once having to leave the actual building,” he says. Internally, the building faced another issue – the very low height clearance of the cars and the practical length of the site to provide adequate vertical ramp transitions. To address this, a curved ramp, set out to align with a sine wave curve, was designed to connect each floor. Continuing the theme of innovation through better design, and to respond to Giltrap’s intention to maximise the space for their star-cars. Warren and Mahoney worked with the Giltrap Group and lighting experts Targetti New Zealand to engineer a unique, all-in-
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A curved ramp, set out to align with a sine wave curve, is designed in order to connect each floor
one service fixture – reticulating the primary lighting, sprinkler and electrical systems. This bespoke feature, coined the ‘X1’, was designed to mirror the beauty and simplicity of services reticulation seen in that of the service engineering underneath the hood of a car. “The customer experience continues right through to the service areas too,” continues Jonathan. “These areas are on-show to visitors, brightly lit and look more like surgical theatres than what many might expect a workshop environment
to look like. There are more private spaces for discussion and hand-over within the building, but for the most part, everything is open, and visitors are encouraged to explore. “The customer journey was a primary focus though,” he concludes. “The entire experience at 119 Great North Road is all about servicing the customer’s needs. It has been designed in part as a very neutral space, but also as an entrée into the world of those car brands and the Giltrap Group itself.”
Service bays are designed to be on show, underlining the surgical precision with which vehicles are treated by technicians.
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A READER ASKS:
“ There has been a huge amount of publicity and commentary about the Tax Working Group and the recommendations about tax changes and a possible Capital Gains Tax. What does Baker Tilly Staples Rodway think about this?“
ASK AN EXPERT
Capital gains tax Myth or reality? STORY M ike Rudd Baker Tilly Staples Rodway Auckland
Later this month the government will be announcing to what extent they would be adopting the recommendations of the Tax Working Group. There has been significant media discussion about the proposals of the Tax Working Group since the report was released on 21 February.
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To Recap As a quick recap, we outline the key proposals in the report: • A broad-based capital gains tax, excluding the family home and personal assets • Some tax relief for lower income earners
Business Owners Business owners would be impacted when it comes time to sell their business. Apart from the obvious tax obligation, being tax on the proceeds less business value at 1 April 2021, key issues include:
• Limited KiwiSaver sweeteners
• Valuation of the business on 1 April 2021 – several options are proposed
• Potential restoration of depreciation deductions on buildings
• Maintenance of excellent records over the entire lifetime of a business (for valuation)
Who would be Affected? If implemented as per the recommendations, everyone who has an asset that isn’t their personal home or a personal asset (boat, car, art, etc.) would be affected. The groups impacted by the recommendations of the Tax Working Group include: Numbers · Autumn 2019
• Limited rollover relief (small businesses, defined as turnover of less than $5 million per annum have some relief proposed) • Complexity where the family home is used for business purposes Farmers The impact on farmers would be similar to business owners above, with the added 17
impact of the farm land being subject to capital gains tax. Apart from this, other impacts may include: • Limited rollover relief making farm size trading up difficult (farmers often grow their business by ‘trading up’ to larger farms) • Farms are long-term multi-generational businesses and planning has been based on the tax rules that have been in place for years. • Potential tax when passed to the next generation, although would be likely to be concessions. Landlords (Residential and Commercial) Residential landlords have accepted lower yields in the expectations of a tax-free capital gain on exist. Renters may feel the squeeze as landlords run the ruler over their overall profit. For landlords, this may be the last straw having already faced proposals to toughen up the Residential Tenancies Act and the planned introduction of residential rental loss ring fencing from the 2020 year. Counteracting the cost may be the potential reintroduction of depreciation on buildings. Succession Planners and Procrastinators In some respects, this would be the group potentially worst impacted by the recommendations of the Tax Working Group. This is because capital gains tax events may inadvertently be triggered when engaging in restructuring. Tax rules around restructurings are already complex including debt forgiveness rules and shareholder continuity rules for losses and imputation credits. In the absence of robust rollover relief for estates, trusts would become even more attractive. Lower rates of tax on the first $500,000 are proposed where a business is being sold because the owner is retiring.
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Bach Owners The only residential property to be exempt from a capital gains tax would be the family home, whether owned personally or in a trust. This excludes the family bach, with the result any capital gain arising after 1 April 2021 on the family bach would be subject to tax. Low Income Earners The key sweeteners focus on low income earners, and are: • Extension of the lowest tax bracket • Reduction of PIE rates for KiwiSaver funds by 5% on the lowest two brackets (to 5.5% and 12.5%) • Increasing the KiwiSaver member tax credit to 75 cents for every dollar saved up to the current contribution cap • Refund of employer superannuation contribution tax for KiwiSavers earning less than $48,000 per annum
Crystal Ball Gazing With three parties in government, all of whom have differing objectives, it is unlikely all the recommendations of the Tax Working Group would pass into law. What is more likely is more that palatable (from a political point of view) pieces of the proposals will be implemented with more difficult pieces being shelved until a future date. While three out of eleven members of the Tax Working Group disagreed with the breadth of a proposed capital gains tax, all members of the Tax Working Group agreed with a broad capital gains tax on land. The minority group is of the view a capital gains tax on land should represent a further step in the incremental expansion of the tax system which could then be expanded gradually if it was felt appropriate, and the tax collectable was worth it.
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2018 Report | Septem ber Future of Tax: Inte rim
If you are interested in reading the report, it is available at www.taxworkinggroup.govt.nz/resources/future-tax-final-report
Future of
Interim Re
port
Tax
‘Nāu te
rourou, Nāku te rourou, ‘With your ka ora ai contribut te iwi’ ion and prosper’ mine, the people will
A broad capital gains tax on land appears to be accepted by many quarters and we would be surprised if this piece did not progress. The concerns of business and the agricultural community appear to have been around the limited scope of rollover relief and the potential negative impact on the farming sector. We anticipate broader rollover relief and farm specific relief, with Winston Peters likely leading the charge in this area. The government has effectively promised a fiscally neutral package where they take with one hand and give with the other and we anticipate that would be the position adopted. It is interesting to note that 43% of capital gains tax revenue under a broadbased regime is expected to be derived from residential land transactions after 10 years, so even a residential land-only capital gains tax would provide the government scope to provide other concessions. Looking further, it seems likely environmental taxes will be reviewed at some point in the future. The New Zealand government faces pressure both at home and abroad to do something about greenhouse emissions and given New Zealand’s unique emissions profile, it is going to be difficult to meet our international obligations without some form of environmental taxation. The government would also be looking very carefully with one eye to the 2020 election. Overseas experience shows election campaigns fought on tax issues are often not favourable to parties advocating for new or increased taxes.
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Conclusion The big question is what happens with the coalition partners, New Zealand First, in particular. The next eighteen months may see much debate on the shape of a capital gains tax with the 2020 election likely being fought over it if the government decides to proceed, even in limited form. Political calculations will play a big part but if even half the proposals proceed, this would represent the biggest change in the tax landscape since the introduction of GST in 1986. We should emphasise none of these proposals are even in bill form at the moment and so there is no need to panic! However, now is a good opportunity to consider your affairs more generally, including structuring and succession planning. If you have any concerns about how the proposals may impact on your affairs, would like to consider structuring or succession planning issues in general or would like to submit on any legislation proposed by Parliament in this regard, contact your Baker Tilly Staples Rodway advisor. mike.rudd@bakertillysr.nz Take advantage of our expertise and send your question about finance, accounting, audit, tax, and other business-related areas to askanexpert@bakertillysr.nz and one of our specialists may answer it in a forthcoming issue of Numbers.
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When change is on the menu STORY S arah Ellem and Bryce Gordon Baker Tilly Staples Rodway Taranaki
Vetro is a specialty food store – there’s five in the North Island of New Zealand, and the bulk of their stock is imported from Europe. They focus on quality ingredients, sourcing them at a good price and making those items available and accessible to more people.
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Working hard behind tins of Italian tomatoes, packets of pastrami and bags of borlotti beans is Gavin Hayes, the owner of the New Plymouth branch of Vetro Mediterranean Foods. With a large amount of stock, Gavin and his team are always busy – filling the shelves, finding unique items for the gourmet home cook, discussing the best way to use ingredients or sharing recipe ideas. The store is popular, and the customers always leave with big smiles and heavy bags. Although business was going great, keeping their accounting systems up to date was a very time-consuming task, and not always producing accurate results. “We were double handling everything and re-keying so much data – using Infusion for invoices and payments, SwiftPOS for point of sale and also BankLink for coding expenses, Numbers · Autumn 2019
sorting GST and providing financial information for the accountants,” explains Gavin. Gavin had been using BankLink for over eight years. He was comfortable with it but knew that they were taking the long way around to get things done. He also liked SwiftPOS and wanted to continue to use it where they could. Changing to something else was a concern but working through these problems with Baker Tilly Staples Rodway Business Information Systems (BIS) Manager Bryce Gordon it became apparent there was an easier way – and a change for the better was in the pipeline. Bryce and the BIS team worked closely with Gavin to upgrade and install Xero Standard with a SwiftPOS integration, enabling a more seamless flow of information.
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Bryce Gordon from Baker Tilly Staples Rodway’s BIS team & Vetro owner Gavin Hayes
“The key thing from the BIS team perspective is to not reinvent the wheel if we don’t have to. While we need to get the right information for the accountants the business is driven from the sale and purchase of stock, so the SwiftPOS software had to be the number one priority. It was then looking at what can hook into this that can assist with the processing without double handling. If we get this right then the financials should naturally fall out of the process,” says Bryce. The BIS team did a bit of research and were able to find a third party who had developed an interface between SwiftPOS and a range of other products. After discussions with them and understanding how each interface worked and some further discussions with Gavin, Xero was the preferred option. “The interface is not without its quirks, and we have worked closely with one of our Xero experts Julia Kelly to get the right processes and reconciliations in place,” clarifies Bryce.
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The change for Gavin has been noticeable. It sped up his processes and provided more freedom. “I’m a busy family man; I have to pick up the kids from school and work from home sometimes – this upgrade has given me a lot more freedom and peace of mind. The new system is also easy on the eye, with a user-friendly interface – so much easier to work with! I’m not missing invoices or payments, and my suppliers are happy,” states Gavin. Changing accounting software systems wasn’t a quick decision for Gavin. It took him a while to mull over the decision, and it took about a year before he made the decision to invest the money and upgrade. “I wish I’d done it sooner. I was stuck in my comfort zone, but now I’m really pleased I consulted with Bryce and the BIS team. The investment and this change was a good one for my business and for me.”
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Gavin’s previous frustrations are now gone. What was time-consuming is now far more fluid, and the data is much more accurate. Accounting software is one of the many aspects of running a business that often confuses and frustrates business owners.
With their new software system in place, Gavin and the Vetro team can get back to their core business of delighting the foodies among us and encouraging us to try something new. sarah.ellem@bakertillysr.nz bryce.gordon@bakertillysr.nz Numbers · Autumn 2019
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Photo by Jasmine Waheed on Unsplash
“Gavin is by no means the exception. There are many people who are comfortable with old software and outdated processes and they couple this with spreadsheets and other re-keying. It’s unnecessary and time-consuming, and there’s usually a much better way. Yes, there is a cost to making these changes but, as Gavin says, he now has peace of mind and more freedom, and what price do we put on these?” says Bryce.
Leading change STORY A ndrea Stevenson Baker Tilly Staples Rodway Hawkes Bay
Change in the modern world is all around us. Be it transition to a new organisational framework, strategy or structure, implementing new tools or processes, increased competition or simply shifting business goals. Even where an organisation might be resisting change, things still change around it.
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Business is increasingly operating in a VUCA environment (volatile, uncertain, complex and ambiguous) and with the shift to AI (artificial intelligence) and new digital technologies, business now operates in an increasingly disrupted environment. The world is progressing so fast that there is now a risk that those left behind can no longer catch up. Remaining abreast of the game requires organisations and their leaders to embrace change and lead through it. Most business leaders today would agree the organisational change is constant and must become a top priority. However, leading change is one of the more difficult aspects of a leader’s job description and the reality of leading it is somewhat different. What we see in business is a level of comfort in acknowledging change and the need for it, but there is a failure to execute and a failure to execute well. Much of the time businesses and leaders are winging it rather than taking a conscious approach. This is evidenced in the fact that two out of three transformation initiatives fail. Change is good. But change is also hard. Transformational change is easier said than done. At a very simple level, successful change initiatives start at the top. The CEO and Senior Leadership Team need to be the change champions. It is them who will create a sense of urgency and ensure the vision is set, focus is maintained, and that change is aligned with strategy. Naturally, some people will be more resilient than others and some more resistant. Further, certain people have the ability to pick up and learn change better than others, and this can now be measured at the selection stage. Typically, senior leaders will often see change differently than employees. For many employees, change may be neither sought after nor welcomed.
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Don’t misjudge the significance of this gap. It can often be received as redefining what they signed up for. Essentially, the employment pact/engagement made is now shifting. However, change can be a learned behaviour that is developed and practised in business, and it can become a cultural norm where having a growth-mindset and openness to change is valued and expected. Having a growth mindset may well now be seen as more valuable than just the intellectual capacity to learn new things. Change should also be part of your leadership strategy. From there, strategy becomes rollout. It can require reallocating time, budget and resources from one area in order to invest in change in another. It also requires setting a clear time frame, involving the right people. Arguably real change cannot occur without a conscious and planned approach to it. Adopting a model to outline various key steps is an excellent way to drive change. A foremost expert on leadership and change is John Kotter who boasts a number of books to his name. His change model has been effectively utilised in a number of NZ businesses and public sector agencies. Known as Kotter’s Change Model, the model offers an eight-stage process. Each of the eight phases has specific guidelines and approaches to follow. This process involves a series of phases that, in total, require considerable time and energy. But failure to follow these key steps can contribute to failure. Further, skipping steps only creates the illusion of speed and will not produce the same effective outcome. Critical mistakes at any of the phases will have a significant impact, slowing momentum and negating hard-won gains.
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KOTTER’S CHANGE MODEL Step 1: Establish a sense of urgency/create a compelling reason! The message here is pump the urgency. Without motivation, people won’t help, and the effort goes nowhere. Leadership at this step is crucial and thought needs to be given as to how to ’manufacture’ and communicate this urgency. Step 2:Build a guiding team/coalition Set up a key group of people to come together to develop a shared commitment to the change. Without a powerful guiding coalition, apparent progress can happen for a while but not long term. Step 3: Create a vision for change. Get the vision right! The rule of thumb is if you can’t communicate the vision to someone in 5 minutes or less and get a reaction that signifies understanding and interest, you are not done with this phase. This vision should then translate out and mean we realign other strategies, e.g. Leadership, people practices and policies, structure, training and development, talent management. Step 4: Communicating the vision (for buy-in) Essentially, tell people what the ‘promised land’ looks like and why it’s worthwhile. The guiding principle is to use every possible communication channel with senior leaders ‘walking the talk’. Don’t be too soft or polite at this stage and establish regular updates on the action (gives a feeling of involvement). Treat it like an internal PR strategy. Step 5: Enable action - Empower people to act on the vision Communication isn’t sufficient by itself – it requires removal of obstacles and management of these issues. Step 6: Planning for and creating short term wins To keep momentum, have some short term goals to meet and celebrate. It makes for compelling evidence towards the long term goal. Step 7: Don’t let up Doing so kills momentum. This too needs leadership and persistence. Step 8:Make it stick In the final analysis, change sticks when it becomes ‘the way we do things around here’. A key point here is in ensuring a conscious attempt to actively show people how the change has helped improve performance and made a difference.
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Empathy the Key Building on the above, a recent Harvard Business Review article by Patti Sanchez overviewed the secret to leading organisational change as being empathy. Behind this is a recognition of really thinking about how employees feel about what’s ahead, how information is communicated, how understanding are they of the need for change, the change and the outcome. A lack of empathy when conveying news about organisational transformation and in undertaking the change transformation itself can be the pitfall for many businesses. Key to this is in ensuring you have an accurate gauge of the audience at every stage as to how they are feeling. Secondly, tell people what to expect. Be transparent where possible and keep people informed. Involve them in the process, so they feel like an active participant rather than just the recipient. In this world of constant change and digitalisation, real thought needs to be given as to incorporating change into your organisational culture. Once again, this requires leaders who role model this. However, it also involves recruiting and retaining top talent that are agile enough to embrace and drive change. Further, a core focus is in developing the next generation of leaders. If you don’t know where to begin, start here – looking at your talent attraction and development of talent into key leadership positions with the right competencies and mindsets to lead change. andrea.stevenson@bakertillysr.nz
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A substantial tax benefit for migrant Kiwis living in Australia STORY S pencer Smith Baker Tilly Staples Rodway Christchurch Denise Honey International Tax Partner, Pitcher Partners
It is a reality of the modern and mobile world we live in that many of our clients have adult children who are now living overseas and particularly in Australia. This article discusses a little-known tax advantage for Kiwis who have jumped the ditch.
First, some background: Kiwis arriving in Australia are issued with a Special Category Visa (SCV) which allows the visa holder to stay indefinitely. Until 26 February 2001, SCV holders were generally treated the same as permanent visa holders. However, in 2001, the Australian government made changes to the SCV and, since 26 February 2001, it has been technically classified as a ‘temporary visa’, despite its holders having the right to indefinite residence in Australia. The downside of this arrangement, as most New Zealanders are aware, is 28
that Kiwis with this visa are not entitled to most social security payments from the Australian Government, despite paying Australian taxes while living and working in Australia. However, there is also an upside which is not often mentioned by the media - as holders of temporary visas, most of their foreign income is not taxed in Australia under the temporary resident tax exemption. Kiwis who have subsequently married an Australian citizen or permanent resident will have a changed visa status and, with that, will also lose their temporary tax resident tax exemption.
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Photo by Michael Amadeus on Unsplash
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So, how does the exemption work? Kiwis living in Australia will still be Australian residents for income tax purposes. They will still pay Australian tax on Australian sourced investment income (i.e. Australian dividends or Australian bank interest) and most employment-related remuneration (i.e. wages and income under employee share plans even if derived outside Australia). However, they do not have to pay Australian tax on passive income earned from sources outside Australia. So, if a Kiwi has kept a New Zealand bank account or receives dividends paid from a New Zealand company, they will have no Australian tax liability on that income. Assuming they are no longer New Zealand tax resident then New Zealand interest will be taxed in New Zealand at lower rates (10% for interest, or even 2% if the Approved Issuer Levy regime is used), and that will be a final tax. Similarly, if they receive a distribution of income from a New Zealand resident trust, they are not liable to Australian tax on that distribution so long as the underlying income/gain is not Australian sourced. This exclusion can be very helpful in situations
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where, for example, New Zealand resident parents wish to provide some financial assistance (via their family trust) to one of their children studying in Australia. Or they might want to gift or lend some funds to help a son or daughter living and working in Australia with the deposit on an apartment. The temporary resident tax exemption saves Kiwis living in Australia a world of pain when it comes to trust distributions. When living or doing business overseas, one should never assume that tax rules are generally the same everywhere, and this is particularly true when dealing with trusts. Unlike New Zealand trusts, most Australian resident trusts will typically distribute all trust income in the year of receipt. They do not retain capital gains or profits in the way New Zealand trusts do. The Australian tax rules actively discourage their domestic trusts from doing that. Similarly, when it comes to any foreign trust (whether resident in New Zealand or anywhere else), Australian tax rules are quite severe. It has ‘transferor trust’ rules that try to determine if an Australian has gifted or transferred assets to a foreign trust for consideration less than arm’s length. Australia also has a ‘retained profits’ rule which essentially means that most foreign trust distributions will be taxable. Therefore, where a New Zealand resident beneficiary would normally receive a tax-free distribution from a New Zealand trust’s capital gains reserves or post-tax retained earnings, that would almost certainly not happen for an Australian resident beneficiary, unless they have a temporary resident tax exemption. So, the tax exemption can be a significant advantage in situations where a New Zealand family trust wishes to provide financial support to a family member living in Australia. To sum up, yes there are many Kiwis living
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OTHER ADVANTAGES FOR THE EXPAT KIWI FROM THE EXEMPTION: Australian Capital Gains Tax (CGT) If a CGT event occurs while a temporary resident, that person is not liable to the CGT (nor treated as having made a capital loss) unless the asset is ‘taxable Australian property’ (generally direct and indirect interests in Australian real estate). Australian Withholding Tax Interest paid by a temporary resident to foreign residents (for example, a New Zealand bank) is not subject to withholding tax.
and working in Australia who may not be entitled to social security benefits. But a temporary resident visa also has some significant tax advantages, and for our many successful ‘exports’ I’d suggest that, rather than worrying about social security, an awareness of those tax advantages could be much more advantageous. Kiwis wishing to benefit pursuant to Australia’s temporary resident rules may wish to act quickly. Australia is in the process of reviewing its residency rules, and there is a real possibility that this review will result in greater restrictions on the use of the temporary resident rules in the future. spencer.smith@bakertillysr.nz This article has been co-written with Denise Honey, international tax partner in Melbourne at Pitcher Partners, our Baker Tilly affiliate firm in Australia who provide excellent care and advice to our clients doing business in Australia.
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Accounting standards: The latest (and greatest) changes STORY N icola Hankinson and Aniela Gregan National Technical Managers
There’s a first time for everything and that includes two new accounting standards which will soon affect many financial statements.
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The first transition period for IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments has now ended. How have you fared? Or do you still have scuffed knees from ducking for cover? In 2019 we will begin to see the results of the new standards on New Zealand’s largest companies. Certain industries are expected to see a greater impact, but the changes do not discriminate! In addition to financial reporting changes, there is likely to be an impact on dividends paid by companies and banking covenants as revenue and profits are impacted. For early adopters globally, very few have discussed their dividend policy. Banking covenants are either expected to be updated to reflect the changes to IFRS 15 or apply ‘frozen GAAP’ clauses for the purposes of calculation.
What common transition changes are being affected by these new standards? IFRS 15 Revenue from Contracts with Customers 1 ‘Unbundling’ of distinct performance obligations in contracts. 2 Recognising revenue either over time or at a point in time A separation between milestone billing and revenue recognition.
discretion in pricing, credit risk and how commission is charged. 5 Contract costs Qualifying costs to obtain a contract or costs to fulfil a contract are required to be capitalised as an asset and generally amortised over the life of the contract. In some cases, concessions can apply. 6 Onerous contracts Where costs to fulfil exceed the consideration expected to be received. There is no guidance under IFRS 15, but IAS 37 (Provisions, Contingent Liabilities and Contingent Assets) provides some assistance with application. IAS 37 is more prudent in its approach to recognising loss-making contracts than IAS 11 Construction Contracts. 7 Impairment testing of contract assets Is a provision matrix the best method? This is very similar to the requirements for impairment testing of trade receivables. IFRS 9 Financial Instruments 1 Changes to the classification of financial assets. Some instruments that were previously presented at amortised cost no longer satisfy the classification tests. Available for sale assets are being reclassed to fair value. 2 Significant rigour is involved in the calculation of expected credit losses. A provision matrix is the most effective way to calculate the simplified losses for trade receivables.
3 Accounting for variable consideration as a constraint to recognising revenue until certainty around payment is increased. For example, the shipping of goods, the price of which is dependent on a commodity price.
You can not wait until a loss is incurred to
4 Principal vs. agency Determining who controls the good or service before it is transferred to the customer. Indicators include: primary customer relationship, inventory risk,
ing which opens up the opportunity for more
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assess impairment of trade receivables. 3 Increased disclosures. 4 A risk-based approach to hedge accountentities to hedge account. Some entities are identifying increased volatility in hedges as the ‘bright-line test’ is no longer required.
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Year-end close is approaching, what should I focus on? IFRS 15 Revenue from Contracts with Customers • Ensure that explanations regarding the impact of the transition are comprehensive and linked to other relevant information in the annual report and accounts; • changes to revenue policies are clearly described and explained, reflecting company-specific information – as are any associated management judgements; • performance obligations are identified and explained, with a focus on how they have been determined and the timing of delivery to the customer; and • the impact of the standard on the balance sheet is also addressed, including accounting policies for contract assets and liabilities. IFRS 9 Financial Instruments • Ensure that explanations regarding the impact of the transition are comprehensive, and are linked to other information disclosed in the annual report; • changes made to accounting policies (including the reasons for these changes and associated judgements) are clearly articulated and convey company-specific information; • disclosures are sufficiently granular to enable users to understand the impact on the business and key portfolios; and • there is a clear linkage to the business model and risk management strategy which underpin the classification and hedging requirements of IFRS 9. There are three financial asset categories under IFRS 9: Amortised cost, fair value through other comprehensive income and fair value through profit and loss. IFRS 9 also
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introduced a business model and cash flow characteristics test to assess the appropriate classification of financial assets. Amortised cost is intended for ‘plain vanilla’ financial assets only where cash flows represent solely payments of principal and interest. In the past you may have separately accounted for an exit option, that was driven from a performance multiple, from the main portion of the principal and interest payments, but this is no longer an option. The financial asset must be assessed in its entirety. IFRS 9 has introduced further guidance on impairment. The key focus for some entities with ‘straight-forward’ financial instruments is ‘how do I calculate my expected credit loss on trade receivables?’. If there is no significant financing component, the lifetime expected credit losses can be calculated using a provision matrix. The default rates are weighted towards the more significantly aged trade debtor ‘buckets’, and an overlay is made for the expected future impact on receivables.
“ I‘m caught in a trap, I can’t get out” WHAT IFRS 9 TRAPS HAVE WE SEEN? • Difficulty in determining whether it is still appropriate to measure financial assets at amortised cost; • Accounting for an unlisted equity investment previously recorded at cost; • Failing to apply a provision matrix approach to the impairment of trade receivables; and • Determining how to account for debt renegotiations
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For example, if recovery of trade debtors is impacted by unemployment rates and in the past, this had the effect of decreasing recoverability by 10%, this may be factored into your future assessment of recovery. The International Accounting Standards Board has acknowledged that this is likely to introduce increased volatility and estimates into the impairment of trade receivables. Have you renegotiated debt in the last year or the comparative period? Rather than spreading the gain or loss over the remaining contractual term, IFRS 9 requires an entity
to recognise this on inception of the change. Some exceptions are available; this is not expected to apply to the rollover or renewal of a loan on the same terms. So, the day is almost upon us. Every company, at a minimum, will be impacted by a change in disclosure and most require a review of the trade receivable provision. The devil is in the detail for both standards. Ensure customer contracts have been reviewed and if you have questions, we are always here to help. nicola.hankinson@bakertillysr.nz aniela.gregan@bakertillysr.nz
“ Faced with the choice between changing one’s mind and proving that there is no need to do so, almost everyone gets busy on the proof.“ JOHN KENNETH GALBRAITH
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Introducing FANZ Private Wealth Photo by Artur Rutkowski on Unsplash
STORY M ichelle Forster General Manager FANZ Private Wealth
The rebrand of Baker Tilly Staples Rodway isn’t the only change of name in our group. SRAM has rebranded to FANZ Private Wealth.
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When I was a child, I thought everything in my world was going to stay the same forever. For instance, our local shops, where my mother and I would visit the bakery regularly, felt as permanent as national monuments.
ownership and name changes, it will be business as usual. Your advisor will continue to oversee the investment of our members’ savings. In other words, we’ll be doing what we’ve always done.
But the baker eventually retired, and the business changed hands, taking on a new name. Indeed, I came to realise the whole neighbourhood was in a slow and constant state of flux. An older me saw that the impression of permanence I had was a childhood illusion – a comforting one for sure, but still an illusion.
In fact, the changeover will be far more seamless than it was for the baker, as the same people will remain. I will continue in my role as General Manager and Head of Advisory. It will remain the same with the excellent advisor team we have built here.
Change is all around us – it makes the world go around. It gives our lives go-forward energy and momentum. It’s undoubtedly the lifeblood of the commercial world. Which brings me to a change here at Staples Rodway Asset Management (SRAM). On 1 April 2019, we changed our name, with the SRAM brand giving way to the FANZ Private Wealth brand. This will hardly be news to most of you; it’s certainly not some step into the unknown. For the past three years, FANZ Private Wealth has had a 50% stake in SRAM, and we’ve maintained a shared identity. Over that time each organisation brought its ideas, methods and strengths to the joint project, and the relationship has flourished. A strong, unified business has been forged. When FANZ Private Wealth acquired the remaining 50% of SRAM last year, it further consolidated the business, creating a solid platform to meet the challenges of the future. So, changes to our ownership structure and name. What does that mean? Are these changes the prelude to a raft of further changes? No, apart from the usual day-to-day adjustments that occur in any enterprise. Just as it was when my local baker underwent Numbers · Autumn 2019
Other important things will not change with the transition. SRAM was always proud to be 100% New Zealand-owned. For new owners FANZ Private Wealth, that is equally important. FANZ Private Wealth is a subsidiary of SBS Bank, a financial institution that was established in Southland over 150 years ago and has been staunchly Kiwi-owned ever since. Then there is the similarity in the cultures and philosophy of both SRAM and FANZ Private Wealth. Both are boutique in scale, providing bespoke investment solutions with a personal touch. That has enabled the two of us to sing in harmony right from the start. The slight differences in timbre we’ve each brought to the business have only added to the richness of the whole. We all feel recharged and confident that we have a bigger, better organisation, one that is capable and ready to make the most of the opportunities that lie ahead. Change happens. It always has and always will. The key thing is to guide and shape it, so it works for you, rather than letting change happen to you. I feel confident that is what we have achieved. michelle.forster@sraminvest.co.nz FANZ Private Wealth is an operating division of Funds Administration New Zealand Limited (FANZ) so references to it in this document should be construed to mean FANZ where appropriate. FANZ is the funds management subsidiary of SBS Bank. SBS Bank is a registered bank, but neither FANZ nor FANZ Private Wealth is a registered bank.
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“I had a stroke at 40” Managing radical change STORY K athy Robb Baker Tilly Staples Rodway Tauranga
What do you do when your new life is nothing like your old life, and you can’t do things that you once took for granted? You need to manage change!
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New Zealand has a standard 40-hour working week, but for many working people this is a minimum, with real-world work requirements meaning they often exceed this. However, as life gets busier and social expectations on wellness increase, there has been a shift towards desiring a better work-life balance. The result being that some people choose to work less and have more flexibility. That can be great if an employee can make a conscious change with support from their employer, families, and others. But what if you don’t have a choice? What if something happened that forced you to make a change? How would you cope with that? These were questions I was suddenly confronted with when, four years ago, at the age of just 40, I suffered an infarct stroke. It came out of nowhere and turned my life upside down. Prior to this I worked long hours and focussed on developing my career. So, what was the result of the stroke? My brain suffered an enormous impact, which required me to spend five weeks in hospital and undergo months of rehabilitation, which is still on-going. I lost the ability to see, to walk and focus on everyday tasks. I spent every hour of every day doing exercises to “rewire” my brain so I could see again, balance myself enough to walk unaided and carry out cognitive tasks for focus and memory retention. All my senses were heightened, in particular, my hearing, so I now had “supersonic” hearing that would make me hear everything and I didn’t have the ability to block out any noise. Earplugs and headphones became my norm. Going back to work in an open plan environment was going to be extremely difficult. My emotions were all over the place, and it was not unusual for me to cry. To top it off, insomnia had set in, and fatigue was a constant battle.
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What do you do when your new life is nothing like your old life, and you can’t do things that you once took for granted? You need to manage change!
How did I manage the major change in my life? I started with acceptance. I had to accept my new life and work out how it was going to look and work for me. It’s not easy but, it’s critical to allow yourself to be okay with the changes and start to embrace those changes. Social isolation was a big change, and I had to accept that I couldn’t be included like I was previously (I was a bit of a social butterfly), and have the confidence that it’s OK to miss out. I needed to prioritise. What was once important to me was no longer. Achievements became important. What appeared to be small achievements to others were huge achievements for me, and I needed to celebrate these. I was asked by my occupational therapist to list the five most important things to me. My initial answer was family, friends, work, social life, and sports. I was asked – why is your health and yourself not on that list? I then had to re-prioritise and make sure my health was high on that list. Managing change requires resilience. You need to remain positive and mentally tough to continue with the new journey and its obstacles. There are good and bad days, but you must keep soldiering on, as hard as that may be. Sometimes you have to put a smile on your face even though you are far from smiling on the inside! It is important to plan and find new ways to do things successfully. I can have moments of short-term memory lapses, so I have had to learn to write everything down…everything! I also utilise my diary/calendar to ensure I know what I am doing and when.
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Patience and tolerance are important, both towards others (as they don’t understand what you are going through and just want to help you) and towards yourself. I had to remember to be gentle on myself if mistakes were made or things didn’t work out on the first attempt. This was a big lesson as I am my own biggest critic. Once you have accepted, prioritised and planned it is important to set goals. This journey I was now on meant that my goals were now different, so I started small and made sure they were achievable. I started with walking to my letterbox and back. It seemed at the time like a marathon! Over the next 12 months, I reset my goals to a walk to the end of the road, around the block and eventually achieved my goal after two years of a 5km walk! I have now just completed the Generation Homes Women’s Triathlon held at Mount Maunganui. This goal took a lot of planning and resilience. Help and support are crucial when effectively managing change. It’s OK to ask for and to accept help. I was lucky to have great support from family, friends, work colleagues and from my employer, Baker Tilly Staples Rodway Tauranga. After six months of rehabilitation and sign off to be able to start back at work, they literally picked up my desk from work and set me up at home. Over the next year, I progressed from 1 hour a day at home to 3 hours a day in the office. I then moved over the next 2 years to 4 full days in the office. I love that I am able to keep my hours to what suits me best and that Baker Tilly Staples Rodway has the confidence in me to allow me still to be part of the team and resume all my responsibilities.
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Baker Tilly Staples Rodway played a HUGE part in my rehabilitation in the workplace and the ability to manage the change by continuing a healthy work-life balance. I found other support groups through the BOP Stroke Foundation, which helped me meet other survivors. I was fortunate enough to be involved in a “young stroke survivors” group research project and a Facebook group that meets up regularly.
“ I accepted the change, I prioritised my choices, toughened up my resilience, planned my activities, set lots of small achievable goals, and I embraced the help and support around me.“ Although the change was not by choice and was forced on me very suddenly, I now have a great work-life balance thanks to myself, my family and Baker Tilly Staples Rodway. Change can come in all different forms, whether it is a new working environment, a new role, changes to your family, living environment, etc. The principles of dealing with change remain consistent. kathy.robb@bakertillysr.nz
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Great conversations Great relationships Great futures Take a look at what we’ve been up to lately
Global Women Baker Tilly Staples Rodway Auckland are delighted to share that Business Advisory Services Director Annette Azuma (left) has been invited to join Global Women – an organisation that aims to accelerate New Zealand’s social and economic success by driving diversity in leadership. Global Women members are recognised for their ability to influence and advocate for diversity, equality and leadership at every level of New Zealand business. Annette’s invitation to join recognizes her accomplishments in business including founding and leading Baker Tilly Staples Rodway’s Team Japan; Women In Business and Sustain. Annette also serves as a vice chair of The Japan New Zealand Business Council and board member of Drive Electric New Zealand.
The women of our Christchurch and Auckland offices gather to celebrate International Women’s Day on 8 March
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Promotions Kylie Hollard Baker Tilly Staples Rodway Taranaki welcomes the appointment of Kylie Hollard (right) as a new Director, now the ninth Director in the firm. “Kylie comes into our Director team bringing a great deal of skill and experience, along with a huge passion for her clients and their interests. She joins a strong team that is focussed on creating enduring success for our clients,” says Managing Director Chris Lynch. Kylie started as a graduate accountant with Staples Rodway back in 1994. She spent her early years on secondment in the Taranaki energy sector and took a break from the CA environment to raise three children, run a family business, and work as a Management and Financial Accountant at McKechnie Metals for five years. Jo-Anne Randall Baker Tilly Staples Rodway Auckland celebrates the promotion of Jo-Anne Randall (left) to Director, Business Advisory Services. Jo-Anne has more than 20 years’ experience in both the UK and New Zealand, and has worked for the Auckland business since 2004. A key member of the Auckland team, she specialises in advising organisations, trusts and high net worth individuals on how to improve business performance and find new avenues for growth. “The energy Jo-Anne brings to her role deserves recognition. She is exactly the sort of advisor any business needs – both highly skilled and genuinely enthusiastic about solving problems for her clients to help them get the best from their organisations,” says Managing Director David Searle. Jo-Anne is particularly proud of her recent work to help empower women in business through her passion project ‘Her Thriving Business’, a business seminar series that aims to provide businesswomen with practical skills, while also raising funds for various charities such as Canteen and Cure Kids. 42
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Insights into Hospitality Baker Tilly Staples Rodway Auckland hosted a hospitality industry round-table with Three Sixty Capital Partners and ANZ. The group enjoyed great discussions around improving profitability and productivity in the industry through systems, processes and the use of technology.
Tax Working Group Final Report Baker Tilly Staples Rodway Auckland hosted a breakfast conference discussing capital gain tax with guest speaker Joanne Hodge, one of the dissenting members of the Tax Working Group. Over 130 attendees heard about the possible capital gains tax regime from a key figure. Tax Director Andrew Dickeson provided commentary from the Auckland tax team’s perspective.
Joanne Hodge of the Tax Working Group shared her insights
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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.
Wellington Level 6, 95 Customhouse Quay, PO Box 1208 Wellington 6140 wellington@bakertillysr.nz T: +64 4 472 7919
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.
Christchurch Level 2, 329 Durham Street North PO Box 8039 Christchurch 8440 christchurch@bakertillysr.nz T: +64 3 343 0599
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www.bakertillysr.nz Numbers ¡ Autumn 2019