ABC Business Solutions Limited

02/11/2026

🚘New Vehicle FBT Rules: What New Zealand Businesses Need to Know
The recently introduced tax bill brings significant changes to how business vehicles are treated for Fringe Benefit Tax (FBT). One of the biggest changes is the new vehicle branding requirement, which will affect many businesses from 1 April 2027.

Here's a simple guide to help you understand what these changes could mean for your business. Vehicles That Will Need Business Branding. Your vehicle will need prominent, permanent, non-removable business branding if it falls into one of the following categories:

✅ Category 2 – Partial Private Use
FBT Rate: 35%
Applies where the vehicle is used for both business and personal purposes.

✅ Category 4 – Minor Private Use (Commuting Only)
FBT Rate: 20%
Suitable for employees who primarily use the vehicle for work but commute between home and work.

✅ Category 5 – Itinerant Workers
FBT Rate: 0%
Applies when employees travel directly from home to multiple work sites and private use is limited to that travel.

Vehicles That Do Not Require Branding
❌ Vehicles Provided as a Perk
FBT Rate: 100%
❌ Vehicles Used Mainly for Farming Operations
FBT Rate: 35%
❌ Pool Vehicles
Vehicles with no private use that are kept at the employer's premises overnight.

Important Clarifications
The proposed legislation also confirms that:
Occasional private use, such as helping someone move house on a weekend, will not automatically change a vehicle's category.
Minor detours during a commute, such as dropping children at daycare, are permitted without triggering reclassification.
The previous concept of a "work-related vehicle" will no longer exist under the new rules.
Businesses with multiple vehicles will need to assess and categorize each vehicle individually.
Employment agreements may need updating to clearly define permitted and prohibited vehicle use.

What Counts as Vehicle Branding?
For vehicles requiring branding, businesses must display:

Business logo
Business name
Contact details

The branding must be:
Prominent
Permanent
Non-removable
Consistent with your existing business branding

Good News for Existing Vehicles
If your vehicle was purchased or leased before 10 September 2026, you won't need to add branding under these new rules.
The branding requirements only apply to vehicles purchased or leased on or after 10 September 2026, meaning businesses do not need to rush out and signwrite their existing fleet.

Changes to Vehicle Valuation Rates
The Government has also amended the proposed FBT valuation percentages for petrol and diesel vehicles:

Updated Rates
20% of Diminishing Value (DV)
36% of Tax Book Value (TBV)
These replace the higher rates initially announced in the Budget.
There are no changes to the rates for hybrid and electric vehicles.

Additional Changes
Shareholder-employees can continue choosing between expense apportionment and FBT treatment for newly acquired vehicles.
The gross vehicle mass threshold for motor vehicle FBT rules increases to 6,000 kg.

Once a vehicle's category has been determined, businesses can then select the appropriate valuation method.

What Should Businesses Do Now?
With the proposed rules expected to take effect from 1 April 2027, now is a good time to:
✔ Review your vehicle fleet
✔ Identify likely vehicle categories
✔ Check vehicle purchase dates
✔ Review employment agreements
✔ Plan for branding requirements on future vehicle purchases

At ABC Business Solutions, we're keeping a close eye on these developments and helping businesses prepare for the changes ahead. If you're unsure how these rules may affect your business or vehicle fleet, get in touch with our team for tailored advice.

23/10/2026

💜 ABC BUSINESS SOLUTIONS GOES PURPLE

It's Purple Friday, and our ABC Business Solutions team is proudly wearing purple to stand against domestic and family violence!

Because violence doesn't start with violence. It starts with attitudes, behaviours and silence that we can all help change.

As a business, we believe our responsibility goes beyond the workplace. We all have a role in building safer families and stronger communities.

💜 OUR COMMUNITY. OUR RESPONSIBILITY. OUR VOICE.

We challenge other businesses to join us! Get your teams wearing purple every Friday, start conversations and be part of the change.

🚶 Join us for the Community Walk on 28 November.
Prevention starts with us.

11/10/2026

Charities and not-for-profit organisations

From 1 April 2028 you will be able to claim refunds throughout the year for your donations to charity. You will also be allowed to instruct Inland Revenue to send your tax credit to that charity. The maximum donations claimable for a credit is going to be capped at $100,000 regardless of income.

Not-for-profit organisations
There was some discussion last year about members' subscriptions being taxable. That’s not going to happen – the law is to be changed to confirm subscriptions will not be treated as taxable income. From 1 April 2027 the tax-exempt threshold is to be lifted from the current first $1000 of income, to $10,000.

Volunteer honoraria have been taxed as Scheduled Payments. From 1 April 2028 organisations will be able to process honoraria as though they were salaries or wages, if they so choose.

09/10/2026

Don't Just Balance the Books. Build a Better Business. Smart business decisions today can make a real difference tomorrow.

As we move towards the end of the calendar year, now is the perfect time for business owners to take a closer look at their finances. Waiting until the last minute can mean missed opportunities, unnecessary stress, and unexpected tax bills.

At ABC Business Solutions Limited, we believe good accounting is about more than meeting deadlines. It is about helping you understand your numbers, plan ahead, and build a stronger business.

Here are five things every business owner should review before the year ends:

✅ 1. Review your cash flow
Are you collecting payments on time? Do you have enough cash available to cover wages, suppliers, GST, and other upcoming commitments? A profitable business can still experience cash flow problems if money is not managed carefully.

✅ 2. Get ahead of your tax obligations
Review your provisional tax position, upcoming GST returns, and other tax commitments. Planning early can help you avoid unpleasant surprises. Remember, tax decisions should reflect your individual circumstances and current IRD rules.

✅ 3. Follow up outstanding debts
Unpaid invoices can put pressure on your business. Review overdue accounts, follow up with customers, and establish clear payment terms for future work.

✅ 4. Review your business performance
Look beyond your bank balance. Which products or services are performing well? Are your expenses increasing? Are your margins where they should be? Your financial reports can reveal opportunities to improve profitability.

✅ 5. Talk to your accountant before making major decisions
Whether you are considering a new investment, purchasing equipment, expanding your business, or managing debt, early advice can help you understand the financial and tax implications.

Remember: your accountant should be more than someone you contact at tax time. A good accounting partner helps you plan, identify risks, understand opportunities, and make informed decisions throughout the year.

At ABC Business Solutions Limited, we are here to support you with accounting, tax compliance, and practical business advice.

📞 Let’s talk about your business goals.

📍 Flat Bush: 27/2 Bishop Dunn Place
📍 Papatoetoe: Level 1, 185 Great South Road
☎️ 09 279 1234

ABC Business Solutions Limited
Your accounting & business consulting partner.

20/09/2026

Succession Planning: Securing the Future of Your Business

Every successful business eventually faces one critical question: what happens next? Succession planning ensures that when leadership or ownership changes, your business continues to thrive.

Without a clear plan, even profitable companies risk losing value, direction, and key people. A well‑structured succession plan protects what you’ve built, reduces conflict, and gives confidence to staff, clients, and investors.

It’s not just about retirement, it’s about continuity.
Effective succession planning identifies future leaders, prepares them for responsibility, and structures ownership and tax arrangements to safeguard your financial future.

At ABC Business Solutions, we help business owners design practical succession strategies that preserve value, protect relationships, and secure long‑term growth.

Start planning today, because the best time to prepare for tomorrow is now.

16/09/2026

Small businesses make up 97% of all NZ businesses, employ around 28-29% of the workforce, and contribute over a quarter of our GDP. But being busy and being financially healthy aren't the same thing.

Phones ringing, customers in, orders going out — it looks like success. But a business can be flat out and still losing money because:

✔️ Pricing doesn't cover the real cost of the job
✔️ Discounts and "mates' rates" eat the margin
✔️ Cashflow is stretched by slow invoicing or late payers
✔️ Owners work 60-70 hour weeks covering roles that should be paid staff
✔️ Rising costs quietly erode the bottom line
✔️ No time left to review the numbers or plan ahead

Busyness can hide financial stress — sometimes until it's too late.

Real strength comes from clarity: know your margins, understand your cashflow, price with confidence.

Busy is good. Profitable is better. Sustainable is best.

At ABC Business Solutions, we help you build the version that lasts.

14/09/2026

💰 CASHFLOW IS KING 👑
Every business owner has heard it before but it bears repeating: profit is an opinion, cash is a fact.
Here are a few simple habits that keep cashflow healthy:
✅ Invoice promptly — don't let paperwork delay your payday
✅ Follow up on overdue accounts early and often
✅ Forecast 90 days ahead, not just this month
✅ Build a buffer for the slow seasons
✅ Review your numbers monthly, not just at tax time
Cashflow problems rarely appear overnight, they build quietly until they're urgent. The businesses that thrive are the ones that stay ahead of it.

Need a hand getting on top of your numbers? Reach out, we're here to help you build a stronger, more resilient business.

06/09/2026

03/09/2026

Health and Safety - FBT Exclusion

"When does the fringe benefit tax exclusion for benefits relating to health or safety apply?" It focuses on why a benefit is provided rather than what the item is.

Answer: Workplace health and safety benefits including employee Assistance Programs (EAPs) are exempt from Fringe Benefit Tax (FBT) if they directly target and manage a specific workplace risk under the HSWA 2015, and either mimic an "on-premises" benefit or consist of personal protective equipment. General wellbeing benefits do not qualify. This position applies from 1 April 2026, Specifically Inland Revenue notes:

• The benefit must be for an employee.
• It must relate directly to health and safety.
• It must manage a specific workplace risk.
• The benefit does not apply to subsidised travel, accommodation or standard clothing unless they are specifically required to manage a distinct workplace health and safety hazard like protective clothing.

Applies
• Ergonomic desk and chair for employee who works from home to manage the risk of injury
• Counselling services - high-stress workplace affecting mental health
• Covid vaccinations
• Eye and hearing tests - risks relating to workplace
• First aid training to manage workplace injury risks
• Sunscreen for employees who work outside

Does not apply
• Corporate gym memberships, running or biking event to promote general health and well-being.
• Standard every day prescription glasses and hearing aids - because of personal benefit.
• Health insurance premium to manage general risks to an employee's health.

01/09/2026

Second-hand goods

Inland Revenue has more clearly defined the words “second-hand” and “paid”. “Second-hand” is fairly obvious, but you should note that for tax purposes the goods must have been bought in New Zealand.

Payment is of particular significance because it doesn’t matter if a person making the claim is on a payments or invoice basis for GST, they have to have actually paid for the goods to claim the whole amount of GST.

If you buy an asset and put down a deposit, the deposit is payment, but the balance has not yet been paid so you can’t claim second-hand goods GST input tax on this amount. But if you pay for the goods with arranged finance, you have then made payment and can claim the GST. Your loan repayments don’t contain GST.
Sometimes, the deposit will be made in one GST period, but the finance won’t be completed until the next GST period. If this happens, you have to delay your claim for GST on the amount financed until the second GST period.

Special rules apply where second-hand goods are bought from an associated person – such as your company buying a car owned by you.
There are also special rules about leasing.