COVID-19 Business loan scheme

Life is somewhat unpredictable, and you never really know what to expect. You may have a serious accident or suffer a serious illness, or have to travel overseas at short notice or just want someone else to look after your affairs as you get older. An Enduring Power of Attorney (or EPA) can ensure that someone you trust will be able to look after your affairs for you.What is an EPA?Unlike a Will, an EPA operates whilst you are alive. It is a legal document appointing someone to act as you [...]

Prior to KiwiSaver, it wasn’t exactly a significant issue if a person who didn’t own a home died without a Will because there often weren’t any other significant assets. Therefore, obtaining a Grant of Administration may not always be necessary. This is because many young people often did not have sufficient assets to warrant a formal Grant of Administration.Following an individual’s death, a Grant of Administration is required when they have an asset worth over $1 [...]

Contracting Out Agreements, which are more commonly known as prenups or prenuptial agreements, are becoming increasingly popular given the nature of relationships today. A correctly executed Contracting Out Agreement can be legally binding, however holes can often start to appear if the agreement is not reviewed regularly. Contracting Out Agreements are live documents and a “set it and forget it” approach is not always going to work. As most people are aware, the Property [...]

Whilst some businesses have been signing electronically for some time, the current environment has a number of businesses seeking a little bit of clarity as to what can and cannot be signed electronically.The Contract and Commercial Law Act 2017, more specifically Part 4, which was previously know as the Electronic Transactions Act 2002, clarifies the legal requirements regarding electronic signatures.Subject to a few exceptions, the general position under the Contact and Commercial Law A [...]

The current unprecedented circumstances we find ourselves living in make for stressful time for both employers and employees alike. There is considerable confusion regarding the obligations of employers, the rights of employees, the rules pertaining to the subsidy (and the guidance around that), and employment law.The contradiction or confusion is based around the premise that on receipt of the subsidy the employer is undertaking that they will make best effort to pay the employee 80% of [...]

Purchasers have the right to inspect the house they are purchasing prior to the settlement date. This is one of the steps in buying a house that tends to be more contentious. The purpose of this inspection is to ensure that the house is as it was when the agreement was confirmed as being unconditional.There are several issues that arise following the vendors vacating a property including: pieces of furniture hiding stained carpets or damaged walls, appliances not working, or vendors remov [...]

For most of us, buying a property will be one of the most expensive transactions undertaken. Therefore, the Sale and Purchase Agreement is one of the most important documents that you will sign. It is important that you do not sign the Agreement before obtaining legal advice; otherwise, you may find you have signed a legally binding Agreement without the correct legal advice. By adding conditions to your offer, you will still enter into a legally binding agreement, but the purchase will not be confirmed until you have satisfied all the conditions. A list of the most common conditions which are recommended for residential property purchases are: Finance condition: Even if you have a pre-approval from your bank, you still need to get an unconditional finance approval for the particular property you are purchasing. You may find the bank are not prepared to lend the amount of money that you require because of issues with the title, the location or value of the property. Land Information Memorandum (LIM): The LIM contains all the information Council hold on the property, such as the property valuation, information regarding building permits and consents, code compliance certificates, any resource consents issued in the immediate adjacent area, special land features including flooding, erosion, falling debris, slippages, and other land features. Building Inspection Report A building inspection attempts to identify any significant defects, overdue maintenance, future maintenance issues, gradual deterioration and inferior building work. The inspector will also carry out an moisture test which will identify any structural problems or a leaky building. Depending on what a building inspection finds, you may be able to use a report to help you negotiate with the vendor over price or repairs. Even if a report only finds minor issues, you can still use it as a road map for future maintenance. If you are purchasing a house that is being built, or a subdivision that is not yet completed, a Sunset Clause may be appropriate. This would give you the option to get out of the Agreement should the work not be completed and settlement not have occurred within a specified time frame. If you are an overseas person wishing to purchase sensitive land in New Zealand, then an OIA consent condition would be required Other common conditions that can be included in the Agreement is Registered Valuation, Solicitors Approval, the Sale of an existing property and Due Diligence. It is essential that conditions are appropriately worded so that their meaning is clear and they are not disputed at a later date. Do not rely on verbal agreements with the vendor or agent. Please ensure all agreed terms are contained in writings in the Agreement.

Selling your property at auction is popular with vendors, but the auction process can be daunting and overwhelming for purchasers. Remember, it is your responsibility as the purchaser to make sure you have done all the checks, and you will need to complete your due diligence before the auction. So, what do you need to check?Title and Auction Agreement: It is essential to request the Real Estate Agent to provide you with a copy of the auction agreement. You should check to ensure the [...]

Companies that provide goods or services on standard terms (including credit terms) should be regularly having a legal health check of their terms and their practices for ensuring the terms they are using accurately reflect their business practices, meet all of their requirements and cover off their key risks – as well as ensuring they are appropriately brought to the attention of customers or clients so that they are valid, enforceable or binding.Terms of trade (which may be called [...]

Mary: I’ll be honest, getting a Will sorted has never once crossed my mind. It’s not like I’ve got any assets, and I’m only 29! What would I do, leave my brother and sister the $300 in my savings account? Although what about my KiwiSaver? Roger: It was only when I started thinking about all the practical steps which need to be taken did it make me see the non-financial value of a Will. Like whether I wanted to be cremated or buried and where would I want my ashes scattered? I had never discussed any of this with my family. Kathy: I definitely want to make sure my family isn’t over-spending if they ever do have to say goodbye, so I should probably at least let them know the basics of what I want to happen. Janet: I don’t want to sting my family with a $10,000 burial cost. I want to be cremated! I never told them that. Maybe I need a life insurance as well. It’s all a bit grim isn’t it. Most of us cannot say when or how we’ll kick the bucket, but what we do know for sure in life is that it will end at some point, hopefully later rather than sooner. Despite this morbid certainty, an estimated 50% of Kiwis haven’t got a Will. Do you? Without a Will, section 77 of the Administration Act determines who gets what and how much – that can create a whole lot of trouble for those we leave behind. It’s not just about the assets you have but also whether you leave clear legally enforceable instructions or not. If you think about how you’d like to be buried and who should receive items of high sentimental value (even if they’re financially worthless) it will make the hard work of dealing with your death a little easier for your family. It is not a topic widely talked about so writing it down ensures everyone knows your wishes and does not have to second guess decisions they make. It is an individual choice whether you have a Will, but dying without a Will can heighten tensions between family members, especially after an unexpected death. Most people would be surprised by the amount of times families have an almighty argument after a tragedy because they can’t agree what the intention was. We are sure you would want people to come together in a moment of grief and do the right thing but sometimes the lack of Will is the last straw and just fuels the emotional turmoil at the time. ​Preparing and signing a Will is a pretty simple investment for most people and removes a whole lot of drama at time of death. So if you have just returned from overseas travel, about to embark on an OE, or living a settled life in Hawke’s Bay, despite being in your 20s or your 70s, maybe it’s time to think about planning ahead and taking the burden away for those left behind. Save your loved ones the hassle, call us today to discuss your Will. Don't feel comfortable talking about it? Use our online Will form instead to provide us with your instructions.

On the back of the Tax Working Group the government has unveiled a new tax incentive scheme aimed at small businesses and start-ups which looks to remove two barriers to expansion faced by businesses. The scheme looks to reduce the costs associated with looking into a potential business investment – such as buying a new asset or changing the way a company does business. Currently these costs are not tax deductible. The changes will allow businesses to deduct 'feasibility expenditure' from their tax bills, including for projects that don't end up going ahead. Under the current rules, there is no allowance for such a deduction which, has resulted in less innovation in the marketplace, particularly in the infrastructure sector. The proposed reform would ensure that a business would be able to claim a tax deduction for the costs involved in a project and therefore the cost of the investment is less, which makes the project more viable and encourages testing of innovation and ways to improve productivity. The government is proposing that qualifying expenditure totalling less than $10,000 would be deductible immediately. Deductions could be spread over five years. The new tax plan will be introduced into Parliament early next year, meaning the change can kick in from the start of the next tax year. The second proposal would make it easier for start-ups to attract investment and get off the ground by removing "loss continuity rules" – whether or not businesses' losses from a previous year are able to be applied to the current year. Currently a firm that suffered a loss one year could use that loss to reduce its taxable income in the future, but the rules did not work well for start-ups who were trying to attract new investment. As start-ups attracted new investment, they often breached the threshold under which they could continue to use these losses, and this has been a barrier to businesses taking risks. The changes are aimed at removing barriers that are currently holding back economic growth and are part of the government’s Economic Plan to build on initiatives already announced which include a $1 billion investment for R&D tax incentives, record transport infrastructure investment, boosts to apprenticeships and trades training, and changes to immigration settings to make it easier for businesses to access the workers they need. The details around how the two proposed changes will work would determine their effectiveness - business and tax experts will be consulted on the proposals later this year.