December Newsletter

Sasha Curin
14 minutes ago
3 min read

OCR Reduction, IRD Compliance Push & SBC Loan Expiry Alerts

Christmas is almost here, and the start of December brings several developments that could influence planning and cash flow for small businesses. With a fresh OCR cut decision, more active follow-up from IRD on overdue obligations, and the Small Business Cashflow Loan Scheme reaching a critical stage for many borrowers, it’s a good time to take stock before the year ends.

Below are the key updates to be aware of.

Summary of Recent Updates

OCR Cut to 2.25% - Lower Borrowing Costs Ahead?

The Reserve Bank has reduced the Official Cash Rate (OCR) to 2.25%, the final rate decision for 2025. Inflation reached 3% in the September quarter, the top of the RBNZ’s target band - but is forecast to fall to around 2% by mid-2026. Continued OCR cuts since August 2024 are aimed at supporting economic recovery.

Major banks quickly responded with reductions to home loan rates, and while business lending doesn’t always move in lockstep, many SMEs may see improved borrowing conditions in the months ahead.

Bank Response

Overdue Employer & GST Obligations

IRD has stepped up its activity around overdue employer filings and GST returns. Businesses with outstanding PAYE, GST or late returns are being contacted more frequently, with a stronger emphasis on bringing accounts up to date.

If you’ve fallen behind, checking your myIR account and filing any missed returns early can help avoid penalties or debt collection escalation.

Learn More

Small Business Cashflow (SBC) Loan Scheme – Loan Expiries Begin

SBC loans issued in 2020 are now reaching the five-year expiry point. Any unpaid balance at the end of the term will automatically default, and IRD will treat the remaining amount as overdue debt. Default interest may also be added.

IRD will contact customers who:

are behind on repayments,
have defaulted under the loan terms, or
have loans expiring before 30 June 2026.

Reminder letters will be sent directly to customers in myIR (not redirected to tax agents), though agents can still view them.

If you have an SBC loan, it’s important to review your balance and repayment plan early to avoid default action.

Government Tax Policy Work Programme

The latest Tax Policy Work Programme outlines the government’s priorities over the next couple of years. It covers areas such as simplifying compliance for small businesses, improving digital systems, and strengthening tax integrity.

While these changes won’t affect your business immediately, the programme indicates where future adjustments may occur, such as reporting requirements, digital tools, and rules affecting small business tax settings.

See the Program

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: Persevere but Don't Perseverate

Success requires persistence with wisdom. As Edison said, "It's 99% perspiration and only 1% inspiration." Winners don't just persist – they adapt their approach based on experience and feedback.

Ask yourself:

Are you learning from each attempt?
How can you adapt while staying committed to your goals?

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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