Behind the scenes at ONLA
We’re excited to share some recent changes behind the scenes at ONLA. After many years of dedicated service, Bobbie O'Fee and Zoe Palmer made the personal decision to step back from the management responsibilities of running the ONLA firm, whilst remaining very much a part of the ONLA team, allowing them to focus more closely on their client relationships and professional interests. We fully support their choice and appreciate their continued presence and commitment.
Bobbie can usually be found in the office from Monday to Thursday, 8.00am to 1.00pm, providing the same high level of service and support you’ve come to expect.
Zoe continues to work between our Taupo and Palmerston North offices, providing the same knowledgeable and responsive service you know her for.
Katherine Ward and Nicole Baylis continue to manage the ONLA business. They have been an integral part of the ONLA journey for over 13 years and owners for the past 4 years. With a highly knowledgeable and experienced leadership team in place, our commitment to you remains unchanged: to provide you with excellent service, expert advice and a trusted partnership for all your accounting and advisory needs.
We're still the same friendly, forward-thinking team. As always, if you have any questions or would like to catch up, we’re only a call or coffee away!
The Wonderful World of FuseSign
Many of you will be familiar with FuseSign, the electronic signing tool we’ve been using to make signing documents quick and convenient. It’s been a great help for both us and our clients — no printing, scanning, or posting required.
That said, we do understand that at times you may receive multiple documents to read and sign. To make this easier, we recommend reviewing the documents on a computer or tablet rather than on your phone, so you can comfortably read through everything.
While FuseSign offers convenience, it’s not a replacement for personal conversations. If you have any questions about the documents — especially something like your financial report — please don’t hesitate to get in touch. We’re always happy to have a chat, answer your questions, or meet in person.
And of course, if you'd prefer to sign in the office, we’re more than happy to print everything out and arrange a time for you to come in.
Your understanding matters to us — so never hesitate to reach out.
Investment Boost
Investment Boost is a new tax deduction for all businesses. From 22 May 2025, businesses can claim 20% of the cost of new assets as an expense, then claim depreciation as usual on the remaining 80%.
What you can claim for
Businesses can claim 20% deductions for the costs of new (or new to New Zealand) business assets that they bought - or finished constructing - on or after 22 May 2025. The asset must be depreciable for tax purposes, including new commercial buildings, and mixed-use assets.
There is no limit to the value of new investments you can claim Investment Boost for.
What you cannot claim for
You cannot claim Investment Boost for:
second-hand assets from New Zealand
residential rental buildings
most fixed-life intangible assets (such as patents)
How to claim
You can claim Investment Boost in your income tax return for the year you buy a new asset so this will apply to your 2026 income tax return onwards.
If the asset is sold
If a business sells the new asset for more than its adjusted tax book value (its cost minus the deductions and depreciation), the gain is recorded as taxable income (except for primary sector land improvements).
Using a Company to Circumvent Paying Trust Tax at 39 percent
Inland Revenue has released GA 24/01, which says setting up a company to hold income-earning assets – mainly to take advantage of lower tax rates – is generally not considered tax avoidance, unless it involves artificial or contrived features.
Let’s say you inherit a large sum of money and decide to donate it to your family trust. Instead of putting it straight into the trust, you set up a company and have the trust own all its shares. The company would pay 28% tax on income earned from the money, compared to the trust’s 39% tax rate.
If that sounds good, there are still a few things to keep in mind:
The money would count as a loan to the company unless it’s used as share capital. If you later forgive the loan, the company would have to pay tax on it.
If you want to access the income from the company, you’d need to pay a dividend before the end of the tax year. That dividend would be taxed at 39% in the trust, but the company’s 28% tax already paid would count as a credit.
You could minimise the 39% trust tax by distributing the dividends declared to beneficiaries with lower tax rates.
You can’t backdate dividends. If you realise after the tax year ends that you want to pay out a dividend, it’s too late. You have to plan ahead. Setting up and running a company comes with extra admin costs. Depending on what kind of asset you’re transferring, there might be tax complications.
Be careful with Inland Revenue’s mention of “artificial or contrived features”. This isn’t a DIY project. If you’re thinking about using a company to hold income-earning assets for a trust, talk to us first.
There are other ways to manage the 39% tax on trusts:
If you have children aged over 16, you can distribute trust income to them, which could help cover things like university costs. For children aged under 16, you can distribute up to $1000 per child before triggering trust tax rates.
Adult beneficiaries with lower tax rates can also receive distributions to minimise overall tax.
Consider investing in Portfolio Investment Entities (PIEs), which are taxed at 28% with no extra tax owed. The bottom line? There are ways to reduce the 39% tax on trust income, but careful planning is essential. Get expert advice before making any big moves.
33% Rate
Tax is paid on any income that your trust does not distribute to beneficiaries. If your trust earns $10,000 or less “trustee income” in a tax year (after deductible expenses and before losses brought forward), you’ll pay at a 33% rate. If your trust earns more than $10,000, you’ll need to pay 39%, subject to a few exceptions.
If an estate of someone who has died continues to earn income while it’s being wound up, that income will be taxed at a 33% tax rate. This tax rate will apply for all the estate’s income during the tax year the person dies, and for the next 3 years. After that, any income will be taxed as if the estate were a trust.
