Spring 2025 Newsletter
Updated: Aug 20
Spring is here, bringing fresh energy, warmer weather, and a chance to look at new ideas for how we work and grow.
In this issue, Alex shares updates from Xero, Chui brings you the latest on the Investment Boost and FBT changes, Kirstyn takes a look at our economy, and Morgan reflects on leadership insights. We’ve also included a couple of book recommendations from our team library that have sparked conversation in the office.
We hope you find these pieces useful and thought-provoking, and as always, we’re here if you’d like to chat further about anything that sparks your interest.
IN THE NEWS
Tech Talk with Alex
Practical tips & updates for staying ahead in a digital business world
Xero Update - Enhancements using AI
Like most businesses in the technology space, Xero are introducing more AI into their site, aimed at simplifying processing and providing timely data at your fingertips. Alex recently tuned in to the 2025 XeroCon Showcase, where he heard about several updates Xero are rolling out from now until Christmas.
Here are the highlights:
New Home Page: The dashboard is being replaced with a customisable Home page, so you can choose what information you see first. Menus are also being simplified, with reporting and tax separated from the Accounting section.
Bank Reconciliation: A new Reconciled page will let you view all reconciled transactions at once, check the codes applied, and make changes directly—no extra clicks required.
Just Ask Xero (JAX): Xero’s AI tool is becoming a true business assistant. JAX will help reconcile transactions, create invoices and emails, and even generate reports with insights and graphs.
Pricing Update: Subscription prices have changed from 1 September 2025 – the updated pricing plans can be viewed here.
As AI features become more embedded in systems like Xero, the real opportunity is in learning how to use them to enhance, rather than replace the way you already work.
If you need help navigating the new layout or understanding how these updates affect you, please feel free to reach out for support.
Tax Tips with Chui
Updates on tax changes and incentives that may affect your business
Investment Boost - Upgrades to Existing Assets
Earlier this year, the Government announced the Investment Boost incentive to encourage businesses to reinvest in their operations. While much of the focus has been on deductions for new assets, further details have now confirmed that the scheme also applies to enhancements or upgrades to assets you already own.
If you spend money improving a depreciable asset, like plant, machinery, or office equipment, you may be able to claim an extra 20% tax deduction on top of normal depreciation. This only applies to capital improvements that increase productivity, efficiency, or the lifespan of your asset. Usual repairs and maintenance remain deductible as normal.
Here are some examples of what this might look like for you below:
Bob upgrades his truck with a more fuel-efficient engine in July 2025. The new asset would be capitalised, and a 20% IB deduction would be claimed in his 2026 tax return.
ABC Manufacturing Ltd spends $40,000 in September 2025 upgrading its printing machine with new automation. The company can claim the additional deduction in their 2026 tax return, reducing its taxable profit for the year, while reinvesting in growth.
FBT Updates
In August, the Government introduced the Taxation (Annual Rates for 2025-26, Compliance Simplification and Remedial Measures) Bill. The Bill makes a few tidy-ups to the Fringe Benefit Tax (FBT) rules, including:
Confirming that open-loop gift cards (e.g. Visa or Prezzy cards) are subject to FBT (if more than $300 p/quarter or $1,200 p/year, per employee).
Clarifying the cost-price rules for low-value asset calculations, which means the 20% IB reduction does not factor into the value of the vehicle when calculating FBT.
However, the bigger FBT reforms that were discussed earlier this year, such as changes to motor vehicle rules, entertainment expenses and unclassified benefits, have been put on hold for now.
If you’d like to discuss either of these further, or have any other tax queries, please feel free to contact Chui on 07 838 2593 or email.
Economic Snapshot with Kirstyn
What's happening in the economy and what it means for business
NZ Economy Update
Kirstyn has been attending a number of economic briefings lately to try and get some level of understanding of where we are tracking in the economy with the general feeling that business is still tough out there, but the worst may be behind us.
Here is a summary of her key takeaways:
The Economy Has Hit a Weak Patch
Latest GDP numbers (covering April–Jun 2025) showed the economy shrank more than expected. That means overall business activity has been sluggish — with construction, manufacturing, and services all under pressure. Many businesses are still feeling the pinch from high costs and cautious customers.
A Turning Point May Be Coming, But Not Yet
Economists expect things to slowly improve towards the end of 2025, with clearer signs of recovery in 2026. Lower interest rates are on the way, which should help reduce borrowing costs and support household spending. Exporters may also benefit from stronger demand for some Kiwi products overseas.
Recovery Will Be Slow and Uneven
The bounce-back won’t be quick. Consumer spending is still weak, building activity is subdued, and global risks remain. For most businesses, the next few months will still feel challenging, but conditions should gradually improve.
So, what does this mean for our businesses right now?
Plan for a slow recovery — don’t expect a big upswing yet but do expect a more stable year of growth for 2026.
Keep an eye on interest rates — cuts should bring some relief on loans and mortgages.
Look after cashflow — customer demand may stay patchy until well into 2026.
Watch export opportunities — if you sell overseas, there may be openings as global markets rebalance.
Beyond the Numbers with Morgan
Ideas and insights on leadership, communication, and personal growth
“The Best Leaders Edit What They Say Before They Say It”
Morgan recently read an article which explores how great leaders strengthen their communication, not by saying more, but by editing their words before they speak.
Here are the key takeaways:
Thoughtful communication builds trust and credibility. Before speaking, pause to consider how the message will land.
It’s not about filtering too much, but about being aware of the context, your tone, clarity and any unintended implications.
Having this kind of pre-flight check helps avoid misunderstandings, reduces conflict and ensures alignment within your team.
Why it matters for you / your team:
Encourages more intentional conversation in meetings, feedback sessions or announcements.
Helps reduce “backtrack moments” when something said in haste causes confusion or issues later.
Builds a reputation for clarity and reliability, so people know what to expect.
The way we communicate as leaders shapes both outcomes and culture. This article resonated strongly, reminding us that sometimes pausing and editing before we speak can be one of the simplest, yet most powerful, leadership tools. If you’re keen to read more, you can find the full article here.
On Our Bookshelf
We’re always looking for ways to keep learning and growing, both professionally and personally. Here are two books we’re currently enjoying:
Become Unstoppable by Gilbert Enoka
Written by New Zealand’s renowned mental skills coach, this book explores how to build resilience, strengthen your mindset and perform at your best - whether in sport, business or everyday life.
Time Magic by Melissa Ambrosini & Nick Broadhurst
A practical guide to mastering your schedule and reclaiming balance. This book provides tools and strategies to free up time, focus on what matters and create space for both productivity and joy.
We hope the above leaves you with a few practical tips, fresh ideas, and maybe even a new book to explore.
If any of these topics spark questions or feels relevant to your own business, please reach out — we’re here to help.
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