June Newsletter

Sasha Curin
Jun 30
3 min read

Investment Boosts, Pension Changes & GST Grouping Clarified

Now that we’re halfway through the year, a few important updates from Inland Revenue particularly if you're looking to invest in your business or reviewing how things are set up. A new tax incentive allows businesses to claim an immediate deduction on eligible new asset purchases, which could offer meaningful savings for those planning to upgrade or expand.

There’s also updated guidance on GST grouping and joint ventures, useful if your business involves multiple entities or shared ownership arrangements. Lastly, changes are coming from April 2026 around how overseas pension transfers are taxed, so now’s a good time to start planning if that applies to you.

As always, we’ve summarised the key points in a way that’s easy to digest, with links for those who want to dig deeper. Get in touch if you’d like to talk through how any of this might affect your business.

Recent Updates

Tax on Overseas Pension Transfers: What’s Changing?

The government announced last month that from 1 April 2026, a person transferring their overseas pension fund to certain New Zealand superannuation schemes can elect to have the scheme pay the tax due on the transfer on their behalf

Here’s what that means for you:

The scheme will deduct and pay the 28% tax directly to Inland Revenue.
This makes the process simpler and avoids any surprise tax bills down the track.
You’ll need to make the election at the time of transfer so forward planning is essential.

If you’re thinking about transferring an overseas pension within the next year or so, now’s a good time to chat.

Read Bill Commentary

Investment Boost – New 20% Deduction for Business Assets

From 22 May 2025, businesses can now claim a 20% tax deduction in the same year they purchase new or newly imported business assets on top of standard depreciation.

Eligible items include:

Machinery, vehicles, commercial software
Commercial buildings and land improvements

There’s no asset-value cap, and it applies across most industries. This is a great opportunity to bring forward investment in your business while benefiting from improved cashflow.

Excluded items: Second-hand NZ assets, residential property, trading stock, patents, or low-value items already covered by other rules.

If you’re planning to upgrade or expand your equipment, get in touch to see if your purchases qualify.

Read Fact Sheet

GST Grouping & Joint Ventures

Inland Revenue has released new guidance around GST grouping and joint ventures, which is especially relevant if your business operates across multiple entities or is involved in property, investment, or construction projects.

Key points:

GST groups (e.g. related companies or trusts) must meet specific ownership and operational tests to qualify. If they do, internal transactions can be GST-free.
Joint ventures aren’t automatically treated as single GST entities. Each structure needs to be reviewed to avoid incorrect GST treatment.
IRD is consulting on rule changes later this year so now’s a great time to check if your current setup meets the requirements.

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: Build Desire

Success requires hunger. Having strong desire enables you to overcome seemingly insurmountable obstacles. Winning organisations are in a constant state of change, adapting and evolving to meet new challenges.

Ask yourself:

Are you hungry enough to do whatever it takes (within ethical bounds)?
How can you help your team embrace necessary changes?

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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