Stay informed about recent legislative updates affecting small businesses with our comprehensive summary:
1. Expansion of 90-Day Trial Periods
Effective Date: From December 23, 2023
Details: Previously limited to employers with fewer than 20 employees, 90-day trial periods are now accessible to all employers in New Zealand.
Purpose: Enhances employer confidence in new hires.
Action Required: Ensure mutual agreement in writing between employer and employee before commencement of employment.
2. Repeal of Fair Pay Agreements Legislation
Effective Date: From December 20, 2023
Details: The Fair Pay Agreements (FPA) Act has been revoked, while rights and obligations under other employment legislation remain intact. Collaboration between employers, unions, and employees is encouraged for determining suitable employment terms.
Action Required: Dispose of any personal information collected for Fair Pay Agreement activities in compliance with privacy laws.
3. Potential Tax Changes on the Horizon
Expected Implementation: Starting June 2024
Details: Anticipated tax plan adjustments include:
- Increasing income tax thresholds
- Expanding eligibility for the Independent Earner Tax Credit (IETC)
- Introducing the FamilyBoost childcare tax credit
- Expanding Working for Families tax credits
- Reinstating mortgage interest deductibility for rental properties
- Exempting higher CO2-emitting vehicles from fees
- Reversing the app tax
- Repealing the foreign buyers tax.
Purpose: Addressing inflation and cost-of-living concerns in New Zealand.
Stay vigilant and proactive in adapting to these legislative changes to ensure compliance and optimal business performance.