August Newsletter

Sasha Curin
Aug 29, 2025
3 min read

Provisional Tax Reminder, OCR Drop & GST on Overseas Services

As we enter late August, there are a few timely updates that may help you keep your small business running smoothly. First up, your first 2026 provisional tax instalment is due this week. We’ve also included the latest economic shift with the OCR cut, and an important clarification from IRD on GST rules for international services like cloud tools or software subscriptions.

We’ve summarised this months key accounting points below.

Summary of Recent Updates

Provisional Tax Due – 28 August 2025

The first instalment of provisional tax for the 2026 tax year is due by 28 August 2025.

This applies if you pay provisional tax using the standard uplift method (based on last year’s tax bill plus uplift).

Staying up to date helps avoid punitive interest and penalties. If you’re unsure how much you should be paying, get in touch with us today.

OCR lowered to 3%

On 20 August 2025, the Reserve Bank cut the Official Cash Rate (OCR) from 3.25% to 3.0%.

This could lead to lower mortgage and loan interest rates soon - good news for borrowers.
Savers may see reduced term deposit returns.
The RBNZ signalled ongoing support while economic growth remains soft.

Read the full RBNZ release

GST on Overseas Services

Inland Revenue has issued guidance on the GST listed services rules, specifically addressing how services provided via digital and online platforms like ride-sharing, deliveries, or accommodation - are handled for GST purposes. While this is pretty technical, the key takeaway is: if you're using or supplying services through electronic marketplaces, the GST rules may apply differently, depending on whether the service counts as a “listed service” and how it’s packaged. It’s worth a quick read to ensure any GST is accurately accounted for or claimed back.

If the overseas supplier is required to charge NZ GST (15%), confirm whether it's included. You may be able to claim this back as an input tax deduction.
If GST is not charged when it should be, you may need to account for it yourself under the reverse-charge rules.
It’s worth double-checking your invoices to ensure everything is compliant.

13 Tactics for Winners: A Tip to Succeed

We’ve created a guide called “13 Tactics for Winners” to help you succeed in business and life. It’s packed with practical advice on setting goals, staying motivated, and overcoming challenges.

This month, we’re highlighting one tactic from the guide to get you started:

This Month's Tactic: Learn from Failure

Success comes from resilience. You haven't failed until you've stopped trying, and every setback is an opportunity to begin again more intelligently. Winners have the self-confidence to admit mistakes and learn from them.

Ask yourself:

What have your setbacks taught you?
How can you create a culture where it's safe to learn from mistakes?

We'll share another tactic next month to keep you inspired. If you'd like to explore all 13 tactics now, you can download the full guide below.

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