Christmas 2025

As 2025 draws to a close, we want to extend our appreciation for your continued trust and support. This time of year is an opportunity to pause, reflect on the highs and lows, and look ahead with clarity and intention.

Below we have outlined upcoming key tax dates, shared some thoughts on the year ahead, and reflected on the past year. We have also included an update on our team and the ways we have given back to our community.

KEY TAX DATES  -  JANUARY 2026

Category	Description	Date
GST (2 monthly)	Payment and Return for October-November 2025 is due	15 January 2026
Provisional Tax	The second instalment of Provisional tax is due for those with 31 March balance dates	15 January 2026
Fringe Benefit Tax	Payment and Return for the quarter ended 31 December 2025 is due	20 January 2026
GST (1 monthly)	Payment and Return for December 2025 is due	28 January 2026
Provisional Tax	The third instalment of Provisional tax is due for those with 31 December balance dates	28 January 2026

LOOKING AHEAD TO 2026

The Economy, Expectations & What it Really Means for Our Businesses

You may have heard former Finance Minister Steven Joyce on Newstalk ZB yesterday morning describing the New Zealand economy as having had a “pretty average year”, with improvement expected next year, but no return to a so-called “rockstar economy” any time soon. That tone lines up closely with Treasury’s Half Year Economic and Fiscal Update (HYEFU) released yesterday afternoon.

 From a business perspective, the key takeaway isn’t whether the economy is “average” or “better”, but what kind of business environment we are realistically heading into in 2026.

No quick rebound, but more stability

Treasury’s update reinforces a message we’ve been giving clients for a while now. This is a slow repair phase, not a bounce back phase.

 Government finances remain under pressure, and fiscal repair is expected to take several years, not one Budget cycle. Joyce’s point that it took years after the GFC and Canterbury earthquakes to get the books back into shape is historically accurate because it means government stimulus is unlikely to be the growth engine for the private sector over the next couple of years.

 For business, that suggests:

   • Demand will recover gradually, not suddenly

   • Cost pressures won’t disappear overnight

   • Planning needs to assume steady conditions, not a surge

What “better next year” probably looks like for businesses

When commentators talk about things being “better” in 2026, they are not talking about booming margins or effortless growth. More realistically, “better” means:

   • Less volatility than the last 2–3 years

   • A more predictable trading environment

   • Fewer policy shocks (although we are entering into election year), but also fewer tailwinds

In other words, execution will matter more than timing. Businesses that know their numbers, manage cash flow tightly, and price properly for risk will be better placed than those waiting for macro conditions to do the work for them.

 Government spending restraint cuts both ways

Joyce referenced the long-term aim of bringing government spending back below 30% of GDP. Whether or not that exact number is reached soon, the direction of travel is clear. It is restraint, not expansion.

For business, that has two practical implications:

   1. Public-sector-driven demand (directly or indirectly) is unlikely to accelerate quickly

   2. Pressure will continue to shift onto the private sector to drive productivity and growth

That puts a premium on:

   • Automation and systems

   • Pricing discipline

   • Focusing on higher margin work, not just higher turnover

What we’d encourage you to focus on heading into 2026

Based on yesterday’s HYEFU and the broader commentary, our advice to you is consistent and practical:

   • Plan conservatively, but don’t freeze

   • Stress-test cash flow for “okay” trading, not best case scenarios

   • Review cost structures now, before margins are squeezed again

   • Invest where it improves efficiency or reduces dependency on labour

The businesses that perform best in a “slow improvement” economy are usually not the most optimistic ones. They are the most prepared.

Final thoughts

Steven Joyce’s comments weren’t pessimistic. They were realistic. Treasury’s update supports that realism. For businesses, 2026 looks less like a comeback tour and more like a year where good management beats good luck.

 If you’d like to talk through what this outlook means specifically for your business, including cash flow, structure, investment timing, or risk, we are happy to help.

A Note on Rest and Resilience

The past few years have required a lot from business owners, including adaptability, patience, and plenty of late nights. With another steady but demanding year ahead, taking time over the summer break to genuinely rest and recharge isn’t a luxury, it’s good business practice. 

Stepping away allows you to return with clearer thinking, better judgement, and the energy needed to lead well in 2026. 

Your business will benefit from a rested owner just as much as from a well-planned strategy.

WHAT WE'VE BEEN UP TO

Team Updates

Early this year we were delighted to welcome Kent and Rowena to the Chung Associates team.

Quinn and Emily are currently completing their final university papers, a significant milestone as they prepare to begin their CA pathway in 2026.

In addition, Kent and Rowena have enrolled as provisional members with CAANZ and will commence their first module in the CA Programme in January.

We would also like to acknowledge Kaiah, who has now completed his first year of his accounting degree at Wintec.

Throughout the year, our Associates, Alex, Chui and Morgan, along with our Senior team members, Som, Sokunthy and Sabine, have continued to develop their skills and take on greater responsibility, both within the team and in their work with clients.

Our team focus this year has also been to reflect on the culture instilled by our founder, Ken Chung, whose philosophy continues to guide the way we work. It is hard to believe that this year marked ten years since his passing.

Community Support

Supporting our community continues to be a core part of who we are. This year we were proud to support:   

• Gumboot Friday   

• Special Children's Christmas Party   

• Food Fairies through The Aunties Charity   

• NZ Police Managers Guild Trust 

• Nourish

We have seen first-hand how much these organisations rely on community funding during difficult economic periods, and we are grateful to be able to help.

A Final Note of Thanks

Thank you for your support throughout 2025. It has been a privilege to work with you and your business, and we are excited for what 2026 will bring.

We wish you and your family a safe, restful, and joyful holiday season.

We look forward to working with you again in the new year. Our office will reopen on 12 January 2026, however Kirstyn will be available via email from the 5th January should you require urgent assistance.