Why the Worst Time Feels Like the Best Time to Invest
By Matt Edwards
Spring is here, and with it comes the usual talk of growth — of grass, of the economy, and hopefully, of Kiwi businesses.
But beneath the chatter lies a sobering truth: New Zealand’s productivity problem is as stubborn as ever. For decades, our output per hour worked has lagged behind nearly every other developed economy, leaving us close to last in the OECD rankings. If we want to maintain our standard of living and the social services we value, we can’t afford to carry on like this.
We’ve been here before. Decade after decade, we’ve prided ourselves on hard work while watching other countries outpace us in output per hour. That’s not a reflection of our people — it’s a reflection of how we invest (or don’t) in the assets, technology, and skills that drive long-term productivity.
The problem is becoming more acute now. Over the coming decades, New Zealand faces growing unfunded liabilities as our population ages, people retire, and healthcare and superannuation costs rise. The obvious lever to address this is taxation, and ideas like the introduction of a capital gains tax to raise more revenue continue to be debated.
The degree to which increased taxation has a negative impact on a country’s overall productivity is a hotly contested question. There are certainly strong arguments that taxes on capital gains can disincentivise investment and entrepreneurship — two things critical to lifting productivity. These are concerns that smart tax policy can overcome. What most people can agree on is that higher productivity will drive economic growth, which in turn drives higher tax receipts.
Higher productivity will lift the standard of living in New Zealand and help fund social obligations into the future. The crux of the problem is: how do we do it?
The Bottom of the Cycle Is the Best Time to Invest
It may sound counterintuitive when many businesses are feeling the squeeze, but the bottom of the economic cycle is the right time for businesses to invest in the future. Adversity and tough conditions create the perfect environment for thinking about how to drive efficiency, deliver more value, and create a more productive operation.
Businesses that are forward-thinking and playing a long game will emerge from the current downturn leaner, faster, and better prepared to capitalise on the inevitable economic upswing.
This isn’t blue-sky thinking. We can look to one of New Zealand’s most successful and important industries — dairy — as an illustration. Investment in technology as well as improvements in breeding, pasture management, and herd practices have driven continuous increases in yield and farm productivity over many decades.
A forward-thinking dairy operation does not stop investing because milk solid prices are low. They continue to make sustainable investments with a long-term view that when prices rise, they will reap the reward — as we are currently seeing in the dairy industry.
Waiting for ’certainty’ before investing is a trap. By the time certainty arrives, opportunities are gone and the market has already moved. The real winners are the ones who keep moving forward when everyone else freezes. There is arguably more opportunity in a tough market for businesses that have a long-term view.
Investment Boost: Good, but Not Enough
The Government is acutely aware of New Zealand’s productivity issue and the challenges it creates. The Investment Boost scheme, designed to lift productivity by encouraging investment in new technology, machinery, and equipment, is a clear indicator of this.
The scheme, which allows quicker depreciation of capital investments, is essentially a cashflow tool — lowering tax obligations and increasing cash available for investment. It’s a great idea, but the immediate impact requires a business to be operating profitably. If a business is in losses or at an early stage, the benefit is not immediate.
Policy nudges are good, but to really yield a productivity lift there needs to be a direct, multi-decade, and non-partisan push for higher productivity that touches many more areas than just tax policy.
Finland is a good example of this, where productivity gains have become central to Government policy and, arguably, part of the national culture. The Finnish Government’s productivity strategy combines high R&D spending, skills development, digital adoption, labour force participation policies, and the ‘green transition’. Their approach is not just about cutting costs but about raising value-added per worker and per firm through innovation, education, and sustainable competitiveness.
The Long Game Matters
Investing in plant, machinery, technology, or staff training isn’t about quick wins. It’s about building the foundation for sustained, consistent growth over 10 years or more. It’s about breaking free from New Zealand’s addiction to short-termism — an addiction that keeps us underperforming while our competitors surge ahead.
Yes, it’s uncomfortable to spend when your P&L is bleeding. But the alternative is worse: stagnation, the slow road to decline.
Access to affordable working capital is often said to be the main barrier to small and medium businesses investing to increase capacity or productivity.
Tax Pooling as a Productivity Driver
A tool that is still grossly underutilised by New Zealand businesses is tax pooling. Although it doesn’t have a catchy name like Investment Boost, tax pooling is a fantastic example of innovative tax policy that can drive long-term benefits for business and productivity.
The policy allows businesses to defer or smooth out provisional tax payments for up to 22 months without incurring penalties or interest. It supports tax compliance but also frees up working capital.
That capital can instead be directed into new equipment, technology, or staff training — exactly the kind of investments that can lead to productivity uplift.
Additionally, unlike bank loans, tax pooling requires no security, doesn’t affect bank covenants, and avoids lengthy approval processes. It’s effectively hidden-in-plain-sight access to capital, and the cost is often materially cheaper than other funding sources.
The Ball Is in Our Court
Ultimately, Government policy alone will not solve New Zealand’s productivity challenge. It is an important catalyst, but business leaders need to adopt a long-term view, and mediocrity needs to be consigned to the history books.
The decisions we make now as business leaders — in what feels like the worst of times — will decide which businesses thrive when the cycle turns.
So, ask yourself: are you positioning your business to be ready for the upswing, or are you waiting on the sidelines while others quietly invest and get ahead?
Because here’s the reality: if we don’t change how we invest, we don’t change our productivity. And if we don’t change our productivity, we don’t secure our future.
Matt Edwards is CEO of TMNZ and has grown successful FinTech business in the UK.
Why smart CFOs are turning tax into competitive advantage: 10 game-changing benefits for larger businesses
With the 28 November provisional tax deadline approaching, corporate businesses with June balance dates have a choice to make. Pay Inland Revenue directly and lock your funds away. Or turn that tax obligation into a strategic financial tool.
Over 25,000 businesses have chosen the smarter path with TMNZ, saving more than $520 million through our flexible tax payment solutions.
Tax pooling with TMNZ isn’t just about avoiding penalties anymore. It’s a strategic tax management approach that turns a fixed obligation into a flexible financial instrument that gives your company a real competitive advantage.
The Strategic Shift: From Tax Burden to Financial Asset
As the originators of tax pooling, approved by Inland Revenue since 2003, we’ve watched it evolve from a compliance tool to a sophisticated financial strategy suitable for any large business with complex tax obligations.
Here’s how smart CFOs are using TMNZ’s tax pooling solutions to outmanoeuvre their competition:
1. Save significant costs
Large businesses often carry substantial tax liabilities. With TMNZ, these obligations become opportunities for considerable savings on Inland Revenue interest and penalties.
But here’s where it gets interesting: your company can earn more on overpaid tax.
While your competitors tie up funds with IR, earning minimal credit interest, you’re generating higher returns that flow directly to your bottom line.
The numbers speak for themselves; some of our larger clients save hundreds of thousands of dollars annually. That’s real money that can fund growth initiatives, acquisitions, or shareholder returns.
2. Retain working capital
TMNZ lets you retain large sums of working capital for longer periods. Instead of sending substantial payments to Inland Revenue months before they’re actually due, you keep that capital actively working in your business.
You can use that money to fund high-return investments and acquisitions, or maintain liquidity to capitalise on market opportunities.
Your working capital becomes strategic ammunition, rather than locked-away tax payments.
3. Manage risks
Large businesses can face complex tax risks that can challenge even the most prepared finance teams. Unexpected liabilities, reassessments, and penalties can hit at the worst possible times.
TMNZ can help as a valuable part of your company’s corporate tax management strategy. Get protection against financial curveballs and the flexibility to respond quickly when circumstances change.
4. Simplify compliance
Managing compliance across complex tax structures can feel like juggling flaming torches. TMNZ helps alleviate wasted time by simplifying tax management processes across your company.
No more scrambling to meet multiple tax deadlines or managing cash across various entities. One strategic tax management approach that covers all your bases.
5. Improve financial reporting
TMNZ provides more predictable tax expenses, which enhance key financial ratios that matter to stakeholders, lenders, and potential acquirers.
When your business tax management strategy contributes to stronger financial metrics, you’re building value that extends far beyond simple compliance.
6. Protect against market volatility
For businesses heavily impacted by fluctuating markets, TMNZ offers protection against interest rate volatility by allowing you to lock in rates in advance, removing another variable from your financial planning equation.
This is especially valuable during periods of economic uncertainty when interest rate changes can significantly impact your cost structure.
7. Structure flexible payments
Standard Inland Revenue payment dates weren’t designed with your specific business rhythm in mind. TMNZ lets you structure tax payments around your unique cashflow patterns rather than arbitrary government deadlines.
This flexibility gives you real control over your funds. Earn higher interest on overpayments, access funds as a fee-free line of credit or carry them forward to future years. Our strategic tax management services work for your business, not against it.
8. Turn overpayments into assets
Paid too much? Don’t wait months for IRD to process refunds. Access overpaid amounts within 3-5 days without filing returns. Or earn above IR’s credit rate by on-selling surplus tax. Some corporates earn 2-3% above IR rates on excess deposits.
9. Provide scalable growth
As your business grows and evolves, your tax payment solutions scale with you. Whether you’re expanding into new markets, acquiring competitors, or adapting to changing tax landscapes, your tax strategy remains flexible and responsive.
This scalability means you’re not constantly rebuilding your tax approach as your business situation changes. Your foundation remains strong while adapting to new circumstances.
10. Gain expert support
Our expert team of Chartered Accountants, tax lawyers, and customer success specialists provide personal support when you need it most. They understand the complexities of larger business tax situations, and when hundreds of thousands of dollars are at stake, having direct access to expertise that matches the sophistication of your tax challenges makes all the difference.
The 28 November opportunity
Acting before 28 November gives you maximum flexibility and tax efficiency. Here are a few scenarios and outcomes we commonly see in our corporate clients:
- Scenario A: You’re confident about profitability – Deposit your tax payment into TMNZ’s pool to earn higher interest than IRD pays, maintain complete flexibility, and access funds within days if needed.
- Scenario B: Cashflow is tight or better deployed elsewhere – Use Tax Finance to defer payment. Our current rates are significantly cheaper than standard bank overdraft rates. No security required. Approval guaranteed.
- Scenario C: Uncertain about your final position? Swap tax across dates to minimise exposure. Buy tax retroactively if you’ve underpaid. Sell surplus if you’ve overpaid.
Turn tax obligation into tax efficiency
Whatever your current tax position, TMNZ offers more control and better financial outcomes than paying IRD directly. Whether you want to earn more interest on overpayments, need payment flexibility, or want to avoid expensive banking services, the opportunity is clear.
The 28 November deadline is approaching fast. Smart CFOs are already positioning their businesses to turn tax season into competitive advantage season.
Ready to transform your tax strategy?
Book a call to discuss how TMNZ’s solutions can help your specific business situation and develop a tailored arrangement before the provisional tax deadline.
Charting Our AI Course: TMNZ's Journey
By Eric Troebner
As Chief Technology Officer at TMNZ, I’ve had the privilege of being in the cockpit of our exciting artificial intelligence (AI) transformation. When we first started talking about AI around the time that ChatGPT was released, the conversations were filled with equal parts excitement and uncertainty. So, I’m thrilled to share how we’ve turned that initial curiosity into some real, measurable impact across our entire business.
Building Our Launch Pad: Getting the Fundamentals Right
The temptation with any new technology is to dive headfirst into the flashiest applications. But our approach has been different from day one. We knew that sustainable AI adoption required rock-solid foundations, so we spent our first year building what I like to call our “AI launch pad.”
This wasn’t glamorous work, but it was essential. We completely overhauled our security framework, implementing stronger role-based access controls that ensure every team member has exactly the right level of system access. We also improved data classification and governance protocols. Every piece of company and client data remains securely within our infrastructure, and no AI model ever touches our sensitive information for training purposes.
The technical infrastructure we built gives our teams access to a carefully curated ecosystem of AI models, from OpenAI and Azure OpenAI to Anthropic Claude, Gemini, and Mistral. But we took it one step further: we created an internal AI portal where every single employee can safely experiment with these powerful tools. Whether it’s document analysis, image generation, or building custom agents, our people can explore AI’s potential within secure, compliant boundaries.
Perhaps most importantly, we implemented modern agent orchestration using platforms like n8n. This means both our technical and non-technical staff can create sophisticated automations without writing code. This launch pad has democratised AI development across our organisation.
Pre-Flight Checks: Education and Experimentation
Once our technical foundation was solid, we moved into what I call our “pre-flight” phase. This was all about preparation, education, and focused experimentation.
At a recent strategy all hands meeting we re-iterated an important truth for everyone: None of us are AI experts, and that is perfectly fine.
This humility is one of our secret weapons. Instead of pretending to know all the answers, we are working to create an environment where curiosity thrives. We run hands-on workshops and proof of concepts for every team, from operations to engineering to sales and marketing.
Each session focused on one key question: what AI application would make the biggest difference to your daily work? We actively encouraged teams to focus solely on what would make the largest impact in their daily workflows – no blue-sky thinking unless it solves their biggest bottleneck.
The results are remarkable. Teams didn’t just brainstorm abstract possibilities – they mapped out specific AI agents that could solve their biggest bottlenecks. Within a month of these workshops, over half our teams had working proof-of-concepts deployed. In just the first four weeks, we tracked over 200 hours of productivity gains across the company, having invested only about 20 hours to build these solutions.
Achieving Liftoff: Real Impact Across the Business
The transition from experimentation to production happened faster than we anticipated, and the results speak for themselves. Today, every business unit at TMNZ has secure AI tooling available to build into their daily workflows. Our product and engineering teams have accelerated discovery, analysis, development and testing, while our sales, marketing, finance, and customer support teams benefit from the first iteration of AI agents that handle everything from content creation to data analysis.
The numbers tell an impressive story. We’ve achieved an estimated 2 percent business-wide productivity uplift from our initial proof-of-concepts alone – equivalent to gaining a full-time employee. These aren’t just theoretical gains; they’re measurable improvements that allow us to do more with less and grow TMNZ.
To be able to speed up the delivery of practical results, proofs of concept at TMNZ are treated as if they are already in production. This allows us to quickly assess effectiveness, adjust on the fly, and confidently decide where to invest further resources and scale solutions.
Landing Safely: Governance and Responsibility
Success with AI isn’t just about speed and efficiency, it’s about doing things responsibly. Our “landing” phase focuses on sustainable scaling while maintaining the highest standards of ethics and governance.
We’ve embedded human oversight into every human-facing AI output – it’s part of our policy to protect both our clients and our reputation. Our practical and clear-cut AI policy ensures that only approved tools run on approved infrastructure, with clear guidelines around confidentiality and responsible usage.
Continuous education remains a cornerstone of this approach. Every new team member receives foundational training on AI terminology, data privacy, and risk management. We’re also building partnerships across organisations that are on the same journey as well as technology partners to enhance our governance frameworks and maintain our leadership in responsible Fintech AI.
Education and training is a true team effort and I am lucky to have highly capable and motivated members of my team and across TMNZ who deliver lunch & learn sessions, present to everyone the emerging AI phishing risks and champion innovative projects with partners.
The Journey Continues
What really excites me about our AI journey is that we’re just getting started. As part of our next phase, we are committed to sharing our learnings with the broader New Zealand business community because we believe AI’s greatest potential lies in collaborative exploration with our partners and customers.
For any business considering their own AI journey, my advice is simple: invest time in getting your fundamentals right, create space for genuine team-driven experimentation, and stay flexible as you learn. The destination matters less than building the capability to navigate whatever comes next.
Here is an outline of the topics we are going to share over the coming months:
- Practical AI Foundations: Policies, Security, Tech Stack
- Managing your AI Agents like staff members
- Shifting to agentic AI
- Avoiding the Number 8 Wire trap
- Practical low-cost AI setup for NZ SMEs
- AI for Accountants and Tax Professionals in NZ
To learn more about TMNZ’s technology innovation for clients, go here.
Missed your latest provisional tax payment? How you can find relief
Forgot to pay your provisional tax? Or maybe cashflow was tight and you couldn’t quite make the payment work? Either way, you’re not alone. And more importantly, you’re not out of options.
If you own a business, you know provisional tax and its inflexibility all too well. Miss a due date and the penalties and interest start piling up fast. But here’s the thing – there’s relief available, with TMNZ.
Let us show you how we can help.
What happens when you miss that payment?
When you pay provisional tax late or don’t pay enough by the due date, Inland Revenue (IRD) charges penalties and interest on your unpaid amount:
- A 1% late payment penalty (LPP) kicks in the day after the due date
- An additional 4% penalty hits seven days later – and that’s on top of any existing penalties
- 9.89% UOMI (use of money interest) gets charged daily from the day after the due date until you’ve paid everything, including penalties and interest.
The costs add up quickly. But there’s a way around this.
Enter TMNZ – your relief option
TMNZ pioneered tax pooling – a world-first, and IRD-approved solution. Here’s how it works.
We pool provisional tax payments from multiple businesses in an account we hold as a registered tax pooling intermediary. When one business needs more time to pay, another business’s overpayment covers them. Business helping business.
Because we can backpay your unpaid tax, IRD no longer sees it as a ‘late payment.’ Which means you dodge those penalties and fees entirely.
Whether you simply forgot to pay or cashflow got tight, TMNZ gives you breathing room. You can make a one-off payment when it suits you, or set up regular instalments – giving you up to 13 months to pay your provisional tax.
Missed your terminal tax date too? We can still help slash interest costs and wipe out late payment penalties.
The real deal
TMNZ lets you pay when it actually works for your business. There is some interest to pay – but it’s much lower than IRD’s late payment interest or what you’d pay on business overdrafts or unsecured loans. And tax pooling with TMNZ eliminates those late payment penalties entirely.
All you need to do is tell us how much tax is due and when or how you’d like to pay it. We handle the rest and notify Inland Revenue of your arrangement. Simple.
Take control of your tax payments
Whether you forgot to pay or couldn’t make the payment work with your cashflow, you’ve got options. TMNZ can eliminate those late payment penalties and give you the payment flexibility your business needs.
Contact your accountant or tax agent and let them know you want to use TMNZ’s tax pooling product for your missed or underpaid provisional tax. Or get in touch with us directly to explore your options.
Don’t let a missed payment throw your business off track. With TMNZ, you can navigate tax season with confidence and keep your cashflow working for you.
Ready to take advantage of tax pooling? Contact our team today.
Balancing your Imputation Credit Account
We’re here to make tax a bit easier. This webinar that cuts through the complexity of imputation credits and shows you how to manage your ICA when you’re using tax pooling.
What you’ll learn
- how to better manage your ICA when using tax pooling
- case studies that bring the concepts to life
- get your questions answered by our tax experts
Who this is for
This webinar is perfect for accountants and finance professionals in medium to large businesses dealing with Imputation Credit returns.
This content is for general information purposes only and should not be used as a substitute for consultation with our team of specialists.
The interest rates mentioned in our webinars were accurate at the time of original recording. Please note that IRD interest rates change over time. Always refer to current official IRD rates for the most up-to-date information
Book a tax pooling overview for your business
Is tax pooling the right solution for you? Every business we work with has different needs. Book an overview with one of our tax pooling specialists to find out how we can support you.
Five top tips for paying 28 August provisional tax
Are you due to pay 28 August provisional tax?
For most business taxpayers, your first instalment of provisional tax for the 2025 tax year is coming up. It’s important to pay what you owe on the due date. Inland Revenue won’t hesitate to charge steep interest and late payment penalties if you don’t.
If you’re a business owner or operator, here are five useful tips to ensure you’re ready to pay the first provisional tax payment for the year on the 28 August due date. For agents, you may also wish to share these tips with your clients to help them prepare.
1. Assess your cashflow
Now’s the time to look at the money coming in and going out of your business.
Cast your eyes over your accounts receivable report to see which customers owe you money. If required, ask them if they can sort their bill earlier. Conversely, see if you can buy more time if you owe suppliers money.
If cashflow is tight or you have a better use for the money, keep reading. There’s an option that lets you pay 28 August provisional tax when it suits you.
2. Be aware of the fish hooks
If you pay less than $60,000, you are what’s known as a safe harbour taxpayer. You won’t be charged interest by Inland Revenue if you pay your provisional tax late. But, you will be charged late payment penalties. You can find out more about safe harbour rules here.
3. Know your methods to calculate 28 August provisional tax
It’s important you are aware of the different methods available to calculate your provisional tax payments. For more information about the provisional tax methods available to you, see our Provisional Tax Guide.
4. Consider using tax pooling
An Inland Revenue-approved tax pooling intermediary such as TMNZ can assist if cashflow is tight. Working with us allows you to pay 28 August provisional tax at a time and in a manner that suits you, without incurring Inland Revenue interest or late payment penalties. You can defer the full payment to a date in the future or pay off what’s due in instalments.
TMNZ will date-stamp tax for you in a special trust account with Inland Revenue on your behalf. You pay TMNZ at the agreed future date or as and when it suits your cashflow, and the tax will be transferred to your account with Inland Revenue, and treated by them as being paid on time.
5. If in doubt, consult a professional
Do you have any questions about 28 August provisional tax? Seek the advice of an accountant or tax advisor. They can determine the best provisional tax calculation for your business and help you manage your payments and cashflow.
If you wish to learn more about the provisional tax payment flexibility TMNZ offers businesses, get in touch.
Get provisional tax peace of mind with TMNZ
The 28 August provisional tax payment date doesn’t need to cause stress. TMNZ offers flexible, IR-approved payment solutions that give you more control over your cashflow—without the risk of late payment penalties or use-of-money interest. Explore our full 28 August payment guide or talk to TMNZ today to find out how we can support your business this tax year.
Information in this article is correct as at 31/7/25. You should consult with your tax advisor concerning all tax matters. Read our Terms and Conditions.
First year of trading and provisional tax
What are a taxpayer’s provisional tax obligations in their first year of trading?
This is a question we receive a lot. In fact, there is certainly a lot of confusion out there.
As most know, their first year of trading is not tax-free. However, when income tax is due and payable depends on a taxpayer’s tax liability (called their residual income tax (RIT)) for the year and if they are a ‘new provisional taxpayer’.
So, with that in mind, we explain below how the provisional tax rules work for new business taxpayers.
First year of trading: RIT is less than $60,000
If a taxpayer’s residual income tax (RIT) is less than $60,000 in their first year of trading, they won’t need to pay provisional tax that year. Instead, tax is payable as a lump sum on their terminal tax date, which for most taxpayers will be 7 February or 7 April of the year after this tax year.
Use of money interest and late payment penalties will be incurred if their tax bill isn’t paid by the due date.
If the RIT is more than $5000 in their first year of trading, they will be a provisional taxpayer for the following year.
First year of trading: RIT is $60,000 or more
Inland Revenue (IR) will charge interest if taxpayers fall into the ‘new provisional taxpayer’ category and you don’t make provisional tax payments.
The new provisional taxpayer criteria are different for individuals and companies/trusts.
An individual qualifies as a new provisional taxpayer if:
- Their RIT for that tax year is $60,000 or more
- Their RIT in each of the four previous tax years was $5000 or less
- They stopped receiving income from employment and started to receive income from a taxable activity during that tax year.
A company or trust qualifies as a new provisional taxpayer if:
- Their RIT for that tax year is $60,000 or more
- They did not receive taxable income from a taxable activity in any of the four previous years
- They started receiving income from a taxable activity during that tax year.
Please take note of the different criteria for individuals and companies/trusts. This catches taxpayers out.
When is the first provisional tax payment due?
Inland Revenue will charge interest (see the current rate here) on the number of provisional tax payments a taxpayer could have made in their first year of business if they meet the new provisional taxpayer criteria.
Of course, that number depends on the date on which their business starts trading.
For someone with a 31 March balance date, refer to the table below:
| If the first year of trading starts… | Then the number of provisional tax instalments payable is… | And the due dates are… |
| Before 29 July | Three | 28 Aug, 15 Jan and 7 May |
| 29 July – 15 Dec | Two | 15 Jan and 7 May |
| 16 December+ | One | 7 May |
These dates will differ if your balance date isn’t 31 March or if you file GST returns on a six-monthly basis.
First provisional tax payment – The basic amount
So, what happens if you meet the new provisional taxpayer criteria in your first year of trading?
Well, put simply, Inland Revenue will divide your tax liability (RIT) for the year by the number of instalments you were liable to pay per the table above.
For instance, say your business starts trading on 1 October and your RIT for the year was $69,000.
IR will charge interest from two provisional tax payment dates: 15 January and 7 May. The amount on which interest will accrue at each due date will be $34,500.
Reducing exposure to Inland Revenue interest
Taxpayers may wish to pay provisional tax in their first year of trading to mitigate their exposure to IR interest if they expect their RIT to be $60,000 or more.
If they are an individual or a partner in a partnership and meet certain criteria, they may also get an early payment discount of 6.3%. This is provided they make voluntary payments before their tax date and haven’t been obligated to pay provisional tax in the current or previous four years.
Reduce IRD Interest with TMNZ
Worried about use of money interest on your first year tax bill?
If you have missed making a provisional tax payment, or wish to delay when you make the provisional tax payment, TMNZ can help. TMNZ can delay the payment of your provisional tax, or help you with any missed payments. The interest cost to you is well below Inland Revenue’s interest rate. Talk with TMNZ to stay on top of your tax obligations without the stress.
This article has been written in general terms only. You should not rely upon this to provide specific information without also obtaining appropriate professional advice after detailed examination of your situation.
Using smart tax solutions to drive growth in the construction industry
The situation
Leighs Construction, a proudly New Zealand-owned and operated company, is renowned for delivering complex, high-calibre construction projects that leave a lasting legacy for local communities. As they continue to grow, managing tax obligations amidst fluctuating project phases proved to be an ongoing challenge.
The challenge
In the construction industry, taxable income can vary significantly depending on the phase of projects. For Rebecca the Group Finance Manager of Leighs Construction, this variability made it difficult to forecast and plan for tax obligations ahead of time. Traditionally, they paid taxes directly to the IRD, but this rigid approach lacked the flexibility needed to align payments with their cashflow.
The solution
Leighs Construction turned to TMNZ for a smarter, more flexible approach to their provisional tax payments. Key benefits included:
- saving money on IRD Use of Money Interest (UOMI)
- ability to time-shift tax payments forward or backward, depending on project performance and cashflow needs, without IRD penalties
- confidence in TMNZ’s trusted and IRD-approved solution for managing their tax obligations
- access to expert tax guidance and support, ensuring peace of mind during tax time.
The results
With TMNZ, Rebecca and the team at Leighs Construction have transformed their tax management process. The company now enjoys:
- cashflow flexibility, allowing them to pay taxes when it best suits their business
- significant savings on UOMI, freeing up working capital for reinvestment
- confidence in their tax compliance, supported by TMNZ’s expertise.
- ability to focus on growth knowing their tax obligations are under control.
Your key takeaway
For businesses in the construction industry, tax flexibility can unlock working capital and reduce financial stress. By partnering with TMNZ, Leighs Construction has gained the tools and support needed to navigate tax obligations with ease, enabling them to focus on building a brighter future for their business and the communities they serve.
For more on how our TMNZ’s solutions can help your business, go here.
Book a tax pooling overview for your business
Is tax pooling the right solution for you? Every business we work with has different needs. Book an overview with one of our tax pooling specialists to find out how we can support you.
How TMNZ partners with accountants to simplify tax for growing businesses
The situation
Sauvruth Sanjay is the Senior Accountant at Orb360, a small-to-medium-sized chartered accounting firm based in Auckland and Wellington. They specialise in helping SME businesses with compliance, tax advisory, dispute resolution, and franchise consulting. They’ve built a reputation for delivering tailored solutions for their clients’ financial needs, including navigating complex tax obligations.
The challenge
Many of Orb360’s clients struggle with:
- Compliance issues: Filing tax returns on time and avoiding IRD interest and penalties.
- Cashflow pressures: Juggling multiple tax obligations simultaneously (e.g., GST and provisional tax), creating strain on cashflow and preventing reinvestment into their operations.
These challenges are especially significant for SMEs, where resources are stretched, and missing deadlines can have costly consequences.
The solution
Over a decade ago, Orb360 partnered with TMNZ, to provide their clients with flexible, tailored provisional tax solutions. TMNZ offers:
- Flexibility: Clients can pay provisional tax on their terms, aligning payments with their business cashflow cycles, not just IRD’s deadlines.
- Cost savings: No IRD penalties and interest, freeing up funds for other priorities.
- Peace of mind: Integrated systems ensure clients never miss tax deadlines, reducing stress for both clients and accountants.
TMNZ also supports Orb360 during IRD audits and reassessments, providing an additional 90-day payment window to ease financial pressure during tax disputes.
The results
- Improved compliance: Orb360’s clients now consistently meet tax deadlines, avoiding penalties and maintaining good standing with IRD.
- More cashflow flexibility: Businesses can manage large tax bills without sacrificing operational growth, reinvesting funds into their companies.
- Stronger client relationships: The partnership with TMNZ has strengthened Orb360’s reputation as a strategic partner for business growth.
- Operational efficiency for accountants: TMNZ’s dedicated account managers and responsive support team have streamlined workflows for Orb360’s accountants, allowing them to focus on client growth.
Your key takeaway
For small and medium sized businesses, managing tax compliance and cashflow can be overwhelming. By partnering with TMNZ, Orb360 has provided their clients with a strategic financial planning tool, ensuring cashflow flexibility, cost savings, and peace of mind. This collaboration has not only helped clients thrive but also supported Orb360’s growth as a trusted advisor.
Book a tax pooling overview for your business
Is tax pooling the right solution for you? Every business we work with has different needs. Book an overview with one of our tax pooling specialists to find out how we can support you.
Tax payment flexibility. Too good to be true?
Why smart kiwi businesses are making the switch to TMNZ.
For over 20 years, TMNZ has been helping New Zealand businesses manage their provisional tax more effectively. Yet many SMEs still have questions about how it works and whether it’s right for them.
We sat down with Joe Kettlewell, Customer Growth Manager at TMNZ to address the most common concerns we hear.
Is tax pooling actually legit?
Absolutely. It’s has been part of New Zealand’s tax landscape for more than two decades. All tax pooling intermediaries, including TMNZ, use trust accounts directly linked to the IRD. This means your funds carry crown risk – the lowest risk level possible.
When you deposit funds into a tax pool, it’s essentially the same as paying the IRD directly. The IRD fully supports this provisional tax payment method because it helps businesses stay compliant by ensuring the right amount of tax is paid at the right time.
I’ve always paid the IRD directly – why change now?
There are two main reasons to consider TMNZ’s provisional tax solutions, even if you’ve never had payment issues before:
- Future-proof your business: Cashflow consistency today doesn’t guarantee tomorrow. Whether it’s seasonal dips, unexpected expenses, or market changes, having TMNZ set up means you’re ready to respond quickly if circumstances change.
- Take control of your tax: When you overpay the IRD, they might allocate your surplus to other tax types without consulting you. With TMNZ, your funds remain ringfenced and under your control. Need a refund? You can typically get surplus funds back within a week, rather than waiting months for the IRD to process your request.
My accountant handles everything – do I need to get involved?
The beauty of TMNZ’s provisional tax solutions is the flexibility. If your accountant manages your tax affairs, they can engage with TMNZ on your behalf – in fact, we’re endorsed by major consultancy firms and accountants across New Zealand.
For businesses with in-house tax teams, we provide hands-on support. We’ll review your historic myIR statements, understand your income patterns and seasonality, and recommend solutions that smooth out your provisional tax obligations throughout the year.
Isn’t it just for big corporates?
This is perhaps the biggest misconception. While large enterprises certainly benefit from deferring provisional tax payments for capital expenditure or better returns, the majority of our clients are actually small to medium businesses.
From hairdressers to tradies, any business with income fluctuations finds TMNZ invaluable. You can pay as much or little as you want throughout the year, matching your tax payments to your actual cash flow. Plus, you get an extra 75 days after your terminal tax date to settle your affairs.
What if I’ve never had problems paying provisional tax?
Even businesses with perfect payment histories benefit from TMNZ:
- Better reminders: We proactively remind you of upcoming provisional tax dates – something the IRD doesn’t always do effectively
- Expert support: As New Zealand’s tax pooling originators with 20 years’ experience, we provide guidance the IRD can’t
- Insurance policy: If circumstances change, purchasing tax through TMNZ costs less than IRD penalties and interest
Any other benefits?
Using TMNZ for your provisional tax gives you:
- More time: An additional 75 days to pay after your terminal tax date
- Faster refunds: Surplus tax refunded within a week versus months with the IRD
- Cost savings: Purchase tax at rates lower than IRD penalties and interest
- Flexibility: Handle reassessments across all tax types using pooled funds
There’s virtually no downside to using TMNZ. Your funds sit in an IRD-linked trust account with crown risk protection. You only pay interest if you need to purchase tax – and our rates beat both bank lending and IRD penalty rates.
Start proactively, not reactively
While TMNZ can rescue you from a shortfall discovered late in the year, the smartest approach is proactive planning. By engaging with TMNZ at the start of your tax year, we can:
- review your provisional tax notice
- understand your business’s unique cashflow patterns
- design a payment arrangement that works with your seasonality
- ensure you meet all obligations without straining your working capital.
Getting started is simple
Ready to take control of your provisional tax? Getting started with TMNZ is straightforward:
- Using an accountant? They’ll already know TMNZ and can set everything up with minimal input from you
- Managing tax yourself? Contact us directly and we’ll review your situation and recommend the right solution
Your key takeaway
With 28 August approaching, now’s the perfect time to explore how TMNZ can benefit your business. Don’t wait for cashflow constraints to force your hand – be proactive and give your business the flexibility it deserves.
Ready to pay provisional tax on your terms? Contact our team of tax experts here.