12/06/15 - Wellsford cheapest Auckland deal but it's all on near Gore for $81k

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Those wanting to stay a bit closer to home could look to Wellsford - Auckland region's cheapest spot.

First-home hunters sick of missing out because of Auckland's raging prices should consider a move south.

The deep south, that is - to Mataura, just outside Gore, the country's cheapest town where the average home will set you back just $81,250.

However, those wanting to stay a bit closer to home could look to Wellsford - Auckland region's cheapest spot - with an average value of $360,700 - or the central city where you can still pick up properties for under $400,000.

Residents of Herne Bay now need $2 million to buy a standard home, after the suburb tipped over the dizzying threshold this week.

A 20 per cent deposit on an average Herne Bay house could buy you five freehold homes in Mataura, known for its meat industry, world-renowned trout fishing river and favourite son Justin Marshall.

Local Ray White agent Alan Byrne said an Auckland homeowner who cashed in their chips and headed for provincial Southland could live like a king on their new-found liquidity.

"You'd virtually get the whole town for $2 million. You'd pick up a lot of property here. You'd kill it."

Latest Real Estate Institute figures show Auckland house prices surged by 20 per cent in the past year to a median of $749,000 - an increase of $340 each day. It was fuelled by immigration pressure, a severe housing shortage and falling home-loan interest rates.

Mr Byrne is marketing a "tidy" 120sq m house with an asking price of $85,000. It has been on the market for 12 months without a single offer.

"There's nothing wrong with it. It's a three-bedroom house, it's got a wet-floor shower, it's warm and dry."

If the ex-state house were on the North Shore it would probably fetch $1.2 million. Mr Byrne said locals were amazed at Auckland property prices, which were on another planet. The firm's Remuera branch had turned over $63 million in sales in a single month, he said.

CoreLogic data ranks Wellsford with the cheapest real estate, then Auckland central reflecting its apartment market, Parakai in Rodney, Orere Point in Manukau and Clendon Park in Manukau.

CoreLogic senior analyst Nick Goodall said growth had been modest in many provincial towns as small populations and limited job opportunities kept demand in check.

Cheapest Auckland localities

• Wellsford, Rodney: $360,700
• Auckland Central: $366,950
• Parakai, Rodney: $391,550
• Orere Point, Manukau: $394,400
• Clendon Park, Manukau: $409,150
• Grafton, Auckland CBD: $410,450
• Manukau, Manukau : $411,550
• Wiri, Manukau: $418,150
• Awhitu, Franklin: $426,400
• Red Hill, Papakura: $426,750

Source: CoreLogic

(Source NZ Herald)

09/06/15 - Funds Transfer from China to meet Migrant Investment Category

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China  currently has strict currency restrictions in place that make it difficult for  individuals to transfer funds out of China without gaining the approval of SAFE  (State Administration of Foreign Exchange). Immigration NZ has been working  with several organisations who have gained approval from the Chinese  authorities to transfer funds out of China in a way that may meet the  requirements of the Migrant Investor Category instructions.
Immigration NZ does not explicitly endorse individual investment products or offer any guarantees of acceptance or approval of any applications made using the below companies. Immigration NZ have an understanding of the products used by Harvest Wealth Management and Guosen Securities Co Limited and will be happy to assess any applications received using these organisations.
 
Applicants wishing to use the listed organisations should make contact directly to conduct their own due diligence and seek professional and independent advice to ascertain if these products will meet an applicant’s individual requirements.
 
Applicants are reminded that it is their responsibility to ensure they can transfer funds to New Zealand that meet Immigration Instructions once an approval in principal is given by Immigration NZ. Advice concerning immigration policy must be through a licensed immigration advisor or by contacting the Immigration NZ Contact Centre in the first instance.
 
Harvest Wealth Management (Beijing)
Overseas Direct Investment (ODI) Product
www.jsfund.cn
Contact - Ms Yin Xin
This email address is being protected from spambots. You need JavaScript enabled to view it.
 
Guosen Securities Co Limited (Shenzhen)
Jin Hui Bao QDII fund
www.guosen.com.cn
Conatct Mr Luke Lu
This email address is being protected from spambots. You need JavaScript enabled to view it.
This email address is being protected from spambots. You need JavaScript enabled to view it.

(Source INZ)

14/05/15 - Budget 2015: $33m boost for Immigration

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Budget 2015 will invest $33 million of new operating expenditure over the next four years to boost the number of immigration officers at a time of record-breaking visitor numbers, Immigration Minister Michael Woodhouse says.

An additional $25.1 million of operating funding from the crown will be accompanied by $7.9 million of cost recovery from immigration fees, to total $33 million of new expenditure on the Immigration frontline.

In addition to this new operating expenditure Budget 2015 also includes a $6.6 million capital investment in strengthened border security systems. Passenger arrival numbers are expected to continue rising over the next few years, with the growth mainly in emerging markets.

Passenger arrivals have already risen by nearly 1.3 million over the past 10 years to nearly 5.2 million.

“Positive growth in our tourism and export education sectors has seen the need for additional resources and investment to manage the increased number of passengers and the changing nature of global risk,” Mr Woodhouse says.

“The $33 million allows for an extra 36 Immigration New Zealand staff, including border officers at Auckland, Christchurch and Queenstown airports, as well as specialist officers to manage emerging risk in offshore markets.

“Inbound tourism is one of our most important industries, worth more than $10 billion a year.

But with increasing arrivals from a more diverse range of countries, we have to ensure we have the systems and resources on the ground to deal with those who pose an unacceptable risk to New Zealand.

“The extra resources will further strengthen Immigration New Zealand’s ability to identify and manage immigration risk offshore through advance information and risk profiling.

“I’m confident that as a result more high-risk people will be prevented from boarding a flight to New Zealand in the first place, resulting in fewer people being intercepted at the border.”

This announcement is part of a range of measures in Budget 2015 to improve security and services at the border, involving immigration, customs and biosecurity.

(Source Beehive, MWoodhouse)

12/05/15 - Immigration changes to support rebuild

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Immigration Minister Michael Woodhouse today announced changes to immigration policy which will make it easier to recruit and retain migrant workers for the Canterbury rebuild.

The Ministry of Business, Innovation and Employment estimates that an additional 5000 construction workers will be needed between December 2014 and the peak of the rebuild in December 2016.

Mr Woodhouse says that while the government is committed to ensuring kiwis are at the front of the queue for jobs in the rebuild, there is no doubt that migrant workers have, and will continue to play an important role in meeting the demand for labour.

“Supporting the Canterbury rebuild is one of the Government’s four main priorities and we need to remove barriers to employers recruiting migrant workers when New Zealanders are not available to do the work,” Mr Woodhouse says.

“The Government has agreed three immigration policy changes to streamline visa processes and increase labour market flexibility in Canterbury, while reducing the incidence of exploitation of migrant workers.”

The changes will:

• Extend the maximum duration of Essential Skills visas for lower-skilled occupations from one year to three years for applications received between July 2015 and December 2016.
• Allow holders of Essential Skills visas (issued from 1 July) working in Canterbury to change employers (within the same occupation) without having to go through the process of applying for a Variation of Conditions on their visa.
• Introduce an accreditation scheme for labour hire companies that recruit and employ migrant workers on Essential Skills visas for work in the construction sector in Canterbury.

“Employers who want to retain good migrant workers for lower-skilled jobs will no longer have to go through the uncertainty of applying annually to renew their visa and migrant workers will have the flexibility to move between jobs more easily.

“These changes will also help reduce occurrences of migrant exploitation by ensuring that labour hire companies seeking accreditation will have to prove they have a demonstrable commitment to training and employing New Zealanders and good workplace practices.”

(Source Beehive, MWoodhouse)

31/03/15 - PAYE in for biggest proposed shake-up since 1957

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The Government is floating the idea of businesses paying their tax on a pay-as-you-go (PAYE) basis, like individual taxpayers, in the biggest proposed shake-up of one of the building blocks of the income tax system since its introduction in 1957.

Revenue Minister Todd McClay announced the proposal to introduce a form of "business PAYE" among a raft of other possible reforms contained in a green paper seeking public submissions by May 29 ahead of a rolling maul of public consultation documents he plans to publish over the next three years to modernise and simplify the tax system, while improving the rate and accuracy of tax collection.

Greater use of digital technology could see income tax obligations integrated into everyday business processes, although McClay acknowledged this had to be done in ways that minimised cost for small businesses and individuals who still rely on paper-based tax compliance.

Also up for review is the exemption in place since the 1990's that allows large numbers of individual taxpayers not to file a tax return at all if their circumstances are simple or they do not have tax to pay.

"Over time, this approach has created tension in the tax administration system between taxpayers who are not required to file, and those who are or who chose to do so in favourable circumstances (for example, to claim a refund)," the green paper says.

"This creates fairness concerns for those who have to file and have tax to pay.

"Significant numbers of individuals are now either required to file returns or are choosing to do so.

"It is therefore timely to consider whether it is still desirable to keep as many individuals as possible from actively interacting with the tax system."

If digital technology could deliver an annual tax return that already contained the information received from employers, banks and other income sources for a taxpayer to check, compliance costs could be kept low while avoiding the potential for some taxpayers not to realise they should be filing tax returns.

"The only action required for the vast majority of customers would be to check and confirm their details.

"Where applicable, certain individuals would also need to report other income received - such as overseas income where there was no deduction of tax at source."

International initiatives on the exchange of income information may also provide opportunities to provide overseas income details in the individual's tax statement.
PwC tax and private business leader Geof Nightingale described the proposed changes as fundamental and ambitious.

"The direction of travel is a positive one.

"The tax system touches nearly every New Zealander and redesigning the tax system is a huge challenge.

"It is crucial any changes are well considered and implemented as seamlessly as possible.

"Small businesses in particular would feel compliance costs in coping with the changes falling on them disproportionately in the shorter term.

"However, New Zealand businesses will be better off in the longer term, with the changes set to save them costs and time," Nightingale said.

KPMG's national managing partner for tax Paul Dunne said he welcomed the release of the green paper.

Businesses played a significant role in the tax system - not only paying significant amounts of tax, but also collecting tax for the Government from employees, investors and consumers.

"The changes will put much more focus on how business does this.

"It will also increase the demand for business to provide Inland Revenue with real time information."

"It is often easy for business to ignore tax proposals until there are concrete changes to the law," Dunne said.

"With this latest discussion document, businesses need to sit up and take note now.

"Once the future direction is set, it will be too late to complain that desirable and achievable benefits for business have not been met."

The green paper also proposes major changes to the way provisional tax might be paid and to the calculation of withholding taxes on investment income, which will become an increasingly important source of revenue and tax obligations as taxpayers in an ageing population rely increasingly on investments rather than wages and salaries.

Using withholding taxes as a way to collect unpaid tax is also proposed, as is the potential to simplify compliance with fringe benefit tax through more real-time provision of information by employers to the Inland Revenue Department, which might allow tax obligations arising from fringe benefits, employer superannuation contributions and employee share schemes to be incorporated in the PAYE system.

Withholding taxes might also be applied to a wider range of industries, given that the range of activities covered by had not been reviewed since 1957, when both the PAYE and withholding tax systems were first put in place.

Also in the frame for reform is the complex array of tax obligations created for beneficiaries and recipients of government assistance through such programmes as Working for Families.

On business taxation, the green paper says the current system of requiring businesses to pay provisional tax, based on an estimate of current profitability, "can present cash flow difficulties for businesses, in particular, because of the nature of the current rules for new businesses."

New businesses effectively face a double-whammy of provisional and final tax obligations in their first two years of operation, which do not recur once the firm has established its record as a taxpayer.

"The calculation and payment of business income tax could be done more 'on-account' as income is earned during the year - much like a PAYE system for businesses," the green paper says.

"One idea is by considering whether accounting profits with a few key adjustments, for example, reversing out capital gains and losses and excluding non-taxable income, could effectively be used as a better proxy for a business's end-of-year tax obligation.

"This has the potential to simplify the calculation of provisional tax and create more certainty for taxpayers and reflect cash flow."

Alternatives could include using a "a bespoke percentage of a business's turnover".

"Any review of the provisional tax rules would also have to consider changes to the standard uplift method of calculating provisional tax, together with the current safe harbour limits and use of money interest rules.

"A review of the tax pooling rules should also be undertaken to see if they can be improved and/or made available to more taxpayers," the green paper says.

On withholding taxes, the paper suggests that instead of reporting annually to their customers on tax obligations created by interest and dividends, banks and companies could provide the information straight to the IRD for inclusion in online documentation provided for taxpayers directly by the tax authority.

"Although there may be short-term costs for financial institutions and other businesses in order to provide this information, there are longer term benefits to those businesses and their customers - for example, more accurate and automatic withholding and increasing levels of compliance," the green paper says.

"There will also be long-term benefits to financial institutions as tax is integrated into business processes."

McClay said the government plans to deal with tax administration and PAYE/GST rules, and withholding taxes on labour income this year, followed by initiatives in 2016 on investment income information, individuals' interactions with the IRD, and business taxation.

Social policy interaction with the tax system would be tackled in 2017.

Public consultation documents will be released for each area of initiatives.

Read the full Green Paper here

(Source NZ Herald, Business desk)

25/03/15 - ACC levy changes from 1 April

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The first levy reduction of 2015/16 takes effect on 1 April, the start of the new financial year. From then, the average work levy paid by employers and those who are self-employed falls from 95c to 90c on every liable $100 earned. This is an average decrease of 5%.

Three months later, the ACC Motor Vehicle levy will also fall. At present, vehicle owners pay an average of $331 a year through licensing fees and petrol levies to cover the cost of injuries on roads involving motor vehicles. From 1 July the average levy will fall to $195. This includes an average decrease of 41% on the ACC levy which you pay through your licensing fee (your vehicle registration) and 3c a litre off your petrol levy.

You’ll receive your 2015/16 ACC invoice in the post after you file your earnings for the year with Inland Revenue.

What you need to do:

• Update your calculations and make sure you’re putting the right amount of money aside. Find out more about the new rates on  ACC’s website. 
• Check your budget. You may pay less for ACC levies, but you may need to pay your staff more when minimum wage rates rise on 1 April.
• Review how you pay levies to stay compliant – and avoid penalties. See the tax and levies section of our Compliance Matters tool.

For more information, call ACC’s Business Helpline on 0800 222 776 or email This email address is being protected from spambots. You need JavaScript enabled to view it.
For tips on how to further reduce your levies, see  Workplace Safety Discounts on the ACC website.

(Source Business.govt.nz)

25/03/15 - Minimum wage increasing

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Minimum wage rates are going up. The new minimum wage rates take effect on 1 April 2015.

The adult minimum wage rate (before tax) that applies to employees aged 16 or over will increase to $14.75 an hour, which is:

• $118.00 for an 8-hour day, or
• $590.00 for a 40-hour week.

The Starting-out wage and the training minimum wage rates (before tax) will increase to $11.80 an hour, which is:

• $94.40 for an 8-hour day or
• $472.00 for a 40-hour week.

The Starting-out wage applies to:

• 16- and 17-year-olds in their first six months of work with a new employer (or until they are training or supervising others)
• 18- and 19-year-olds who have been paid a benefit for six months or longer, and who have not completed six months of continuous work with any employer since starting on benefit (or until they are training or supervising others)
• 16- to 19-year-old workers in a recognised industry training course involving at least 40 credits a year.

The training minimum wage applies to employees aged 20 years or over who are doing recognised industry training involving at least 60 credits a year as part of their employment agreement, in order to become qualified.

For more information on minimum wage rates or call 0800 20 90 20.

Changes to Paid Parental Leave

Changes to Paid Parental Leave will come into effect on 1 April 2015.

These changes extend the maximum amount payable from 14 to 16 weeks. The changes apply to an employee or self-employed person if:

• the expected date of delivery of their child is on or after 1 April 2015, but the child is born before that date or;
• the child is born on or after 1 April 2015; or
• in the case of adoption, if the date on which the carer assumes the care of the child is on or after 1 April 2015.

More information on Paid Parental Leave available on our website or call 0800 20 90 20.

(Source Ministery of Business, Innovation & Employment)

12/03/15 - Woodhouse welcomes skilled migrants

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Immigration Minister Michael Woodhouse welcomes new figures out today showing an increasing number of skilled migrants coming to New Zealand as a sign of the country’s strong economic outlook.

The 14th annual Migration Trends and Outlook report shows that the number of Skilled Migrant Category (SMC) residence approvals increased by 12 per cent in the 2013/14 financial year after showing decreases for the previous four years.

More than 20,000 people were approved residence under the SMC last year and there was also an 18 per cent increase in the number of Essential Skills workers – the second consecutive increase since the start of the global financial crisis.

“These figures clearly show that New Zealand is a favoured destination for skilled migrants and that the Government’s policies are attracting the right people here,” Mr Woodhouse says.

“The figures suggest that New Zealand’s economic outlook is strong with the Canterbury rebuild bolstering the underlying recovery.

“It is also encouraging to see a 15 per cent increase in the number of international students approved to study in New Zealand.  This is a big boost for the international education industry. In 2014, international education contributed $2.85 billion to the New Zealand economy. It is our fifth largest export industry and supports more than 30,000 jobs.

“International students help to build our country’s links with our trading partners and they enrich the communities in which they live and study.”

The Migration Trends Key Indicators report – December 2014, which is also published today, shows that the increase in skilled migrants and international students is continuing.

The number of SMC approvals between July and December last year was up six per cent from the same period in 2013 while there was a nine per cent rise in the number of Essential Skills workers approved. The number of international students approved to study was up 22 per cent.

“New Zealand is in an extremely competitive international market and these two reports show that more people are choosing to come here and take advantage of the country’s booming economy and everything we have to offer,” Mr Woodhouse says.

Migration Trends and Outlook 2013/14 and Migration Trends Key Indicators report – December 2014:

http://dol.govt.nz/research/migration/monthly-migration-trends/index.asp

(Source Beehive)

20/02/15 - Improvements e-Medicals???

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One of the hot topics at the moment is the introduction of the e-medicals which INZ is promoting.

The panel doctors have been reduced in some countries and along with the number of G.P’s and Radiologists in New Zealand who may undertake the e-medicals.

The most important aspect regarding the changes in the medical process, is that Advisors/Lawyers and the applicant (health service consumer) no longer has access to the completed medical report before it is lodged with Immigration.

This has huge ramifications for our clients (applicants).

It means that an applicant could have an unknown health issue which could result in the application being declined after they have invested a considerable sum of money. By the applicant or their representative not seeing the medicals before lodgement we are unable to advise the client on possible next steps to take or withdraw the application.

Concerns about this lack of access and control have been raised with Immigration officials on several occasions. INZ relies on the intending applicant giving their written consent to the particular eMedical process in writing, prior to the medical practitioner commencing the process.

However, in our view that is not the end of it. The “Code of Health and Disability Services Consumers’ Rights” is a regulation under the Health and Disability Commissioner Act. It has the force of law and – in our view – it imposes relevant obligations on medical practitioners who provide INZ medical certificates (www.hdc.org.nz/the-act--code/the-code-of-rights)

• Right 5 (Right to Effective Communication) states:
  • “1) Every consumer has the right to effective communication in a form, language, and manner that enables the consumer to understand the information provided.”
• Right 6 (Right to be Fully Informed) states:
  • “1) Every consumer has the right to the information that a reasonable consumer, in that consumer’s circumstances, would expect to receive, including –
  • f) The results of tests; and
  • 2) Before making a choice or giving consent, every consumer has the right to the information that a reasonable consumer, in that consumer’s circumstances, needs to make an informed choice or give informed consent.
  • 4) Every consumer has the right to receive, on request, a written summary of information provided.” (My emphasis)

Our reading of this shows that the health services consumer, ie an intending immigration applicant who undertakes an immigration medical, is entitled to receive relevant information that they need to make an informed choice or give informed consent. In other words, they need a copy of the medical certificate itself to give “informed consent” before the medical practitioner forwards the INZ medical form to Immigration New Zealand.

In particular cases it may even be reasonable for a health services consumer to seek legal or immigration advice from an advisor, before consenting to their personal/ medical information being forwarded to INZ.

It cannot be correct, in our view, to seek to override the general legal entitlement of health consumers, by way of the specific consent required in the eMedical form.

Further discussions with INZ are being pursued, to ensure the process for obtaining eMedicals is fair and lawful.

(Source e-News NZAMI, Chairwoman NZAMI, JRanson)

16/02/15 - Improvements for immigration medicals

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Immigration New Zealand (INZ) has selected clinics from all over the country to be part of an onshore panel physician network that will complete immigration medical examinations for onshore New Zealand visa applicants. 

A total of 72 medical clinics, 54 radiology clinics and eight clinics that offer both services have been invited to join the onshore panel physician network and use a new system known as eMedical, which allows physicians to submit medical certificates and x-rays online. The selection of the panel physician network follows a procurement process, which began late last year. 

eMedical , which was developed by Australia’s Department of Immigration and Border Protection and Citizenship and Immigration Canada, has already been rolled out to more than 470 clinics in 121 countries.

INZ currently receives around 120,000 medical certificates a year. About half of those are onshore.

INZ General Manager Stephen Dunstan says that eMedical is expected to replace 100 per cent of paper-based medical certificates onshore. 

“eMedical is a significant change to the way we process health information for our applicants,” Mr Dunstan says. “eMedical supports INZ’s move to online applications and provides a more secure and efficient process for submitting immigration medicals.” 

Once the onshore panel physician network is established on 31 March visa applicants in New Zealand will need to visit a doctor or radiologist listed by INZ for their immigration medical examinations.

Clinics that are not on the panel will still be able to submit paper-based medicals until 30 June, giving them a three-month transition period to adjust their business models.

“We have ensured that clinics have been selected in the main centres as well as in regions where there are large migrant populations,” Mr Dunstan says. “But clinics not selected will have an opportunity to be appointed to the panel should further capacity be required.”

Mr Dunstan says that INZ will be constantly reviewing the number and location of immigration medicals throughout New Zealand and the world and will make any changes necessary to ensure that customers continue to receive the best service possible. 

There is no cost to clinics to be part of the onshore panel and to use eMedical, so there should be no increase to the cost of medical examinations.

(Source INZ)