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Writer's pictureChung Associates

Looking ahead to 2024

Updated: Oct 14

 This edition begins with an overview of significant tax policy changes on the horizon, as our new government prepares to unveil their mini-budget. We explore potential shifts in bright-line rules and interest deductibility and discuss the anticipated introduction of a 39% tax rate for trusts. We reflect on the inspiring lessons from the Xero Roadshow, led by executive coach Lou Kuegler, on building a high-performance culture within teams. Lastly, we offer practical strategies to help businesses thrive in challenging times and share some recommended reads to fuel your mind. Join us as we navigate these dynamic developments and provide guidance to help you succeed in the year ahead.



In this issue, we explore:


 

Tax Policy Updates


The end of November saw our new Government, comprised of National, Act and New Zealand First, set up shop in Parliament. While we await their first mini budget next week, there has already been movement in their 100-day plan and policy changes.


A significant area of focus we have been on the edge of our seats waiting on an announcement for are the changes to the bright-line and interest deductibility rules. While specific legislation details are yet to be confirmed, we are expecting the bright-line period to revert back to 2 years retrospectively from June 2022, and interest deductibility for residential rental investments to be phased back in over 3 years starting from the 23/24 financial year.


It is also now highly anticipated that the 39% tax rates for trusts will be introduced. If you have a trust, it is likely we have already spoken with you about what this could mean for you. We are expecting to have a complete update on all tax policy changes for you in the new year once the legislation has been confirmed. We will be in touch in February should we need to review your trust structure and declare any dividends for the 2024 financial year, ahead of the rate change from 1 April 2024.


 

Developing a High-Performance Culture


We recently attended the Xero Roadshow and this year's keynote speaker was Lou Kuegler. Lou is an Executive Coach who works with teams and individuals to inspire them to bring their best selves forward and realise their potential. We walked away feeling inspired and so wanted to share some of her wisdom with you.


In her session, she covered what separates the best from the rest and how to move from a team of champions to a champion team. A champion team is characterised by the self-awareness of its members, the harmony created through effective communication and shared values, and the momentum gained through continuous improvement, resilience, and the celebration of successes. These elements work together to create a high-performing and cohesive team that can achieve and sustain success.


We started by reflecting on 2023 to then plan for 2024. We did this by reviewing our own personal performance profile and looked at what areas we are currently majoring and minoring in, and then asked ourselves if these are reflective of our values and how we want to spend our time in 2024. If you'd like to give this activity try, we've found this helpful workbook which you may find beneficial.


Lou then did an exercise with us on how to have your best year yet. To do this we had to come up with a number from 1 - 10 that we felt represents how our overall performance has been over the last month (or year). Once we had our number, we then thought about how we can increase this number by 2 points in 2024 and what steps we needed to establish to implement the changes. The following prompts below were used to get us started:


What will you say yes to more?

  1. What will you not procrastinate on anymore?

  2. How will 2024 be different than every other year?

  3. I will spend more time doing ... and less time doing ...

  4. Who will benefit most from your increase in performance?

  5. What's your one word for 2024 to be your best year yet?


With these takeaways, we took some time out as a team to reflect and assess what areas we could address both collectively and personally to strengthen our performance moving forward.


 

Boosting your business in challenging times

While we're hoping the recent change in government will help tip the scales in favour of businesses, there's a lot of work needed before real change will reflect in our economy. Until we can get inflation under control, businesses will need to stay resilient to face the challenges 2024 may have in store.


In times of adversity, there are proactive steps you can take to ensure your business thrives. Here are ten key strategies to get you started:


We highly recommend taking some time over your holiday break to review how 2023 went for you and your team and establish what steps you want to take to make 2024 your best year yet, particularly when we are heading into another challenging year.


  1. Prioritise Existing Customers: Focus on delivering exceptional customer experiences and meeting their needs. Retaining your current customers is crucial, and negative word-of-mouth can be costly. Identify areas for improving your customer experience.

  2. Adopt an ROI Mindset: Scrutinise your costs and assess whether they provide the expected return on investment. Allocate your budget wisely to maximise efficiency.

  3. Manage Cash Flow: Create a cashflow forecast to gain insight into your financial health. Recognising potential cash issues ahead of time can motivate you to take corrective actions and avoid regrets later.

  4. Stay on top of your Debtors: When things are uncertain, cash is king. Ensure your invoicing is kept up to date and keep an eye on your debtors. Act fast on any that appear to be getting behind to minimise your risk for bad debts.

  5. Develop a Business Plan: Create a formal business plan each year to reduce stress, enhance accountability, engage your team, and provide strategic direction.

  6. Leadership Matters: Invest time in developing your leadership skills. Effective leadership is crucial during challenging times.

  7. Foster a Strong Culture: Cultivate a positive company culture rooted in core values. In difficult times, culture plays a vital role in retaining your top talent and ensuring employee satisfaction.

  8. Self-Care: Your personal well-being directly impacts your business and team. Prioritise your health, manage stress, and seek help if needed to face business challenges with energy and resilience.

  9. Proactive Risk Management: Anticipate potential risks and take proactive steps to mitigate their impact. Being prepared will give you an advantage over competitors.

  10. Embrace Long-Term Vision: Remember that success often takes time. Focus on initiatives that can positively impact your business in the long run, even during challenging times.


So, in the challenging times ahead, ensure that every single day, you engage in proactive actions that will elevate your performance. By implementing these strategies, you can navigate difficult periods with confidence and position your business for future success.


If you'd like a hand with cashflow forecasting and strategic planning for your business in 2024, please reach out for a discussion on how we can help.


 

Beyond The Boardroom: What's Fuelling Our Minds?


Looking for some further inspiration? Here are some recommendations based on what we've been consuming lately:


Have you got any recommendations you think we may like? We'd love to hear from you!








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