Episode 14 of our Rethink webinar series saw BDO’s Eyes on Tax Partner Iain Craig and Tax Partner Mark Lodder take us through the latest round of COVID-19 Government support, as well as providing a detailed look at the new tax rules for property and trusts.
COVID-19 support as we move into the traffic light system
Iain Craig started the webinar by providing a refresh on all the COVID-19 support available for businesses, including the packages available when we move to the new COVID-19 traffic light system. There is now $3,000 available as resurgence support payment for full time employees and $800 for part time, this applies from 12 November with a maximum payment of $43,000 - $50,000 depending on your employment – the application deadline for this is 1 December 2021.
Iain noted that the wage subsidy continues when operating under the red setting of the traffic light system and then discussed the $50 million package that has been allocated for business support in Auckland. This includes $3,000 for professional business advice and $4,000 for implementation of that advice through the regional business partner programme (BDO is a member of this). A further $10 million has been allocated for mental health and wellbeing support for Auckland businesses.
Iain then provided advice around record keeping and business continuity testing when taking the impact of COVID-19 into account.
The bright-line test and interest deductibility
Mark Lodder spoke about the new tax rules for residential property. This included information on the bright-line test, with Mark noting how the date that someone has acquired land impacts the bright-line test outcome. He then discussed some of the key bright line issues, including short-stay accommodation and the application of the main home exclusion.
Mark then went on to discuss the new interest deductibility rules and some of the proposed legislation around new builds, as well as some of the finer details around main home occupancy and exclusions.
Ensuring your trusts adhere to the new Trusts Act rules
Next, Iain discussed some of the new trust rules imposed by the Trusts Act 2019. He took us through the ins and outs of the new trust rules and reporting requirements and powers of Inland Revenue, noting that it’s a good time to review your trusts if you haven’t already to ensure they are all in accordance with the new trusts legislation.
This was the final webinar in our Rethink series for 2021. Thank you to all who have attended these webinars, we hope they have provided support and a sense of community through what has been an incredibly challenging time for business owners.
We will be sharing further insights in the new year as we move into the next phase of our COVID-19 response, we will continue to keep the COVID-19 business support hub up to date, as well as providing fresh articles and content on our Insights page.
If you have any questions about this webinar or any of the topics we have discussed up until now, please reach out to your local BDO adviser, we’d be happy to help you in any way we can.