The recent change in government has meant changes to laws. The Ministry of Business has indicated some of the most important changes for small businesses to be aware of.
Adjustments have been made for 90-day trial periods, which began on the 23rd of December, 2023. All employers in New Zealand, no matter their size, will now be eligible to use 90-day trial periods, where previously only employers with fewer than 20 employees could qualify. This will provide employers with greater confidence when hiring new employees.
A trial period must be agreed to by the employer and the employee in writing and in good faith before the employee starts work as part of their employment agreement.
The extension of 90-day trials will not affect other aspects of employment relations, such as the requirement to act in good faith, or worker protections regarding pay, conditions, leave, and health and safety. Employers hiring staff on certain work visas will need to consider any immigration requirements relating to the use of trial periods.
There has been a repeal of fair pay agreements legislation. Rights and obligations under other employment legislation still apply. Employers, unions, and employees are encouraged to work together to agree on suitable employment terms. If an organisation currently holds any personal information collected for the purpose of the Fair Pay Agreement activities, including bargaining, it must now be disposed of in line with the privacy laws. The Office of the Privacy Commissioner has explained this process.
The new government has disclosed its upcoming tax plan. There have yet to be any policies passed that will impact you today. However, it can be helpful to be aware of what might be around the corner. The proposed changes include:
- increasing income tax thresholds
- increasing eligibility for the Independent Earner Tax Credit (IETC)
- the FamilyBoost childcare tax credit
- increasing Working for Families tax credits
- mortgage interest deductibility reintroduced for rental properties
- higher CO2-emitting vehicles will no longer be subject to fees
- reversal on app tax reversal
- repeal of the foreign buyers tax.
New Zealand has been managing inflation and the cost-of-living crisis. The proposed changes are aiming to tackle these financial strains for the country.
The Ministry of Business has pledged to keep the public updated on any further changes.
