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Emergency information for Christchurch members

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We are all in shock regarding the attacks that occurred in Central Christchurch.

Our deepest sympathies are with all of those people who are affected.

Employment / Business guidance

There may be some businesses who were affected by the central city lock down and any advice over the weekend for people to stay away from some areas of the city, so we have compiled information for you to consider in managing how this affects your business. Please click here to access our emergency guideline for this situation.

Wellbeing and health

A crisis or traumatic event can trigger overwhelming emotional responses, while not all people will be impacted in the same way. There are some who will feel no personal impact at all and require no help but there will be others on an emotional rollercoaster. Our partners, EAP Services have produced some information on identifying and minimising stress in yourself and your team members. Access this information here and do seek help if you need it. There is also a national helpline that has been set up for anyone who needs to talk – the number for “Need to talk” is 1737. You can call or text.

Hospitality community fund raising campaign

We have also been contacted by a number of members who want to know how to show their support for the families directly affected by the Christchurch attacks and our Muslim community. We are getting behind DineAid, who have started a month long campaign to raise money for those in need. Find out more about getting involved here.

Advice for tourists

Christchurch NZ are updating advice here and you may find this useful when talking to tourists.

Please heed the advice of NZ Police to keep yourself and others safe and please take care during this extremely dark and tragic time for the city and New Zealand.

If you need to talk to the Restaurant Association, call the helpline on 0800 737 827.

Marisa & the Restaurant Association Team

The future of work skills training in New Zealand

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The Education Minister recently released a set of wide-ranging proposals to strengthen vocational education so that school leavers get high quality training opportunities, employers get the skills they need, and New Zealanders are better equipped for the changing nature of work.

The Coalition Government proposes to establish a unified, coordinated, national system of vocational education and training.

The proposals are:

  • Redefined roles for education providers and industry bodies (Industry Training Organisations (ITOs)) to extend the leadership role of industry and employers;
  • Bringing together the 16 existing ITPs as a one entity with the working title of the New Zealand Institute of Skills & Technology with a robust regional network of provision; and
  • A unified vocational education funding system.

Chris Hipkins, the Education Minister states:

“At a time when we’re facing critical skill shortages, too many of our polytechnics and institutes of technology are going broke.

“The strong labour market is encouraging young people to move directly into the workforce rather than continue in formal education, when it needs to be smarter and accommodate both. And our system isn’t geared up for the future economy, where re-training and up-skilling will be a regular feature of everyone’s working life.

“Instead of our institutes of technology retrenching, cutting programmes, and closing campuses, we need them to expand their course delivery in more locations around the country.

“It’s time to reset the whole system and fundamentally rethink the way we view vocational education and training, and how it’s delivered. – Chris Hipkins

“We would also ensure there’s strong regional influence in the New Zealand Institute of Skills & Technology through the proposed formation of Regional Leadership Groups which would identify the needs of the local economy and become a key link between local government, employers, iwi and communities.

“The development of courses and programmes would be consolidated, improving consistency and freeing up resources to expand front-line delivery.

There will be more sharing of expertise and best-practice, and more use of online, distance, and blended learning. “The Government envisages that the New Zealand Institute of Skills & Technology, and perhaps also wānanga, host Centres of Vocational Excellence (CoVEs). These power houses of expertise could cover key sectors and industries, which could be broad (eg, agriculture) or specific (eg, viticulture).

“Our proposals aim to ensure that the system is easier to navigate and provides the skills that employers and employees need.

“What we are proposing is ambitious, but it needs to be. We cannot continue to tweak the system knowing that the
model is fundamentally broken, and isn’t delivering our workforce the skills that they need to thrive.

“Every New Zealander has a stake in vocational education. I encourage everyone to have their say and I look forward to hearing your feedback. The proposals released today may go ahead in this or another form, but the Government won’t make any decisions until we have heard and carefully considered feedback from this consultation process,” Chris Hipkins said.

Public consultation is open until 27 March. The Restaurant Association will be sending a survey to members so that you can share your feedback on the proposals and help to inform our submission.

The consultation documents and other decision making documents and advice can be found here: conversation.education.govt.nz/conversations/reform-of-vocationaleducation

Strategies to overcome the minimum wage increases

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BY SERENA IRVING
DIRECTOR, JDW CHARTERED ACCOUNTANTS

If one-third of your costs rose by 20% over three years, would your business survive?

My first employer doubled my wages every year until Prime Minister, Sir Robert Muldoon, instigated a wage and price freeze to curb inflation. My employer was my Dad, I was aged six, and an increase from five cents to ten cents a week wasn’t going to hurt his dairy’s finances. The minimum wage increases are a different story.

Date Min. Hourly
Wage
% Increase from
$15.75
March 2018 $15.75 ~
April 2018 $16.50 +4.8%
April 2019 $17.70 +12.4%
April 2021 $20.00 +27.0%

On 1 April 2019 the minimum wage will rise to $17.70/hour, rising to $20/hour by 1 April 2021.1 Workers on higher wage rates will want to keep relativity to the minimum wages. ANZ analysts suggest that a typical hospitality business could see an overall wages and salaries increase of 20% between March 2018 and April 2021. Sales would need to increase by 7%, or other costs decrease to compensate.

Your businesses already struggle with skilled labour shortages and stress for overworked owners. Now is the time to prepare for change.

Values, purpose and uniqueness

If your values, purpose and uniqueness resonate with your customers, they will be back time and again. The right business strategies will incorporate these. Your business’s core VALUES are at the heart of what you do. It provides clarity and makes decisions easier. When your actions align with your  values, you feel confident and at peace. If a behaviour annoys or upsets you, it may be that it is in conflict with your core values. It reflects in the look and feel of your establishment and the food you serve (e.g. Fast and Fresh, Tranquil, Family Friendly).

If your customers and employees relate to your PURPOSE, they will remain loyal. According to Simon Sinek, the Wright Brothers were the first team to achieve motorised flight because their purpose was inspirational.(2) Your purpose may be to share your signature style of cuisine with the world, to feed families with wholesome food or it may be to build neighbourhood communities.

If you offer a UNIQUE experience, then you can price accordingly. Dans Le Noir at Rydges Auckland has a blacked out restaurant with blind wait staff. Customers are led into the restaurant in single file, cannot see to eat, and have a few giggles when a neighbour spills a drink. They leave with more empathy for the visually impaired.

Basic Business Strategies
Sell More

  • Increase prices
  • Upsell
  • Flexible menu pricing
  • More advertising

Increase Capacity

  • More tables
  • Breakfast service
  • Extra dinner service
  • Rent space and equipment
  • Customer experience
Additional Services

  • Rent space and equipment
  • Customer experience

Reduce Overhead Costs

  • Better utility plans
  • Negotiate interest terms

Cut Staff Hours

  • Owner works longer hours
  • Reduce other staff benefits
Reduce Food Costs

  • Flexible menus
  • Seasonal produce
  • Reduce portion sizes
  • Supplier agreements

Improve Efficiencies

  • Automate booking and/or
    ordering systems
  • Improve workflow
  • Cut wastage

Business strategies

In a recent poll, two-thirds of hospitality employers told the Restaurant Association they would raise prices in response to the higher minimum wage. But raising your prices too high will cause customers to go down the road or dine at home. Look at the table of strategies and compare it with your values. Which strategies align? If you adopt one strategy, what is the flow-on effect? What else would need to change?

Forecasting and budgeting

With business strategy in hand, how will you pay for it? Will you see a positive return from the effort? With the help of your accountant or bookkeeper, create a monthly or weekly budget of your expenses and capital expenses. Forecast your expected revenue, considering seasonal fluctuations. Work out how much extra investment and borrowings you will need.

The minimum wage is rising and with it your labour costs, so the impact for your business will be huge. Increasing
menu prices and working longer hours are not the only answers to this problem. Will you be ready with a clear strategy that aligns to your values, purpose and uniqueness?

Download Serena Irving’s “Business Strategies to Overcome the Minimum Wage” webinar from her 90-minute workshop in February 2019: restaurantnz.co.nz/productcategory\/view_webinars

ABOUT THE AUTHOR
Serena Irving is a Chartered Accountant, Accredited Business Mentor with Business Mentors New Zealand, Distinguished Toastmaster and Associate Member of the Restaurant Association of New Zealand. Serena is a regular contributor to Savour magazine. JDW Chartered Accountants Limited are based in Ellerslie, Auckland and have partnered with clients, including hospitality clients, for 60 years.

021 463 086    |    serenai@jdw.co.nz    |    jdw.co.nz

 

Sources:
1. beehive.govt.nz
2. https://www.ted.com/talks/simon_sinek_how_great_
leaders_inspire_action

What to do when Inland Revenue calls

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When Inland Revenue says your business is to be audited, the most important things to remember are: be prepared and don’t panic. You may even come out of it with a tax refund.

Who gets audited?

Inland Revenue can audit any business. It uses a range of methods to select who to audit, but won’t disclose the reason you have been chosen.

How it works

Inland Revenue may sample your records to see if an audit is needed. If everything is okay, the inquiry ends there and Inland Revenue will confirm you won’t be audited.

If an audit is necessary, you’ll get a letter telling you what records Inland Revenue needs to see, with an information sheet on how the process works. Usually, Inland Revenue will follow up with a face-to-face interview to learn more about your business and answer your questions.

Some audits focus on a small part of a business. In these instances, Inland Revenue may not need to meet you and may instead choose to conduct the audit by email or through your tax agent. If you have not given consent to receiving emails, you will receive letters instead.

A basic audit will look at your business records, such as:

  • ledgers
  • journals
  • invoices
  • payroll records
  • bank statements.

More information might be looked at, depending on the nature of the audit.

How long do audits take?

Audits, like the businesses they look at, are all different. At the start of the process, Inland Revenue will give you an estimate of how long it thinks the audit will take.

Results

Near the end of the audit, Inland Revenue will meet you again to discuss its findings. It should be clear at this point if you’ll get a refund or need to pay more tax.

The auditor will also tell you where you’ve gone wrong and how to put things right.

Source information for this article from MBIE.

For more information contact the Restaurant Association Helpline on 0800 737 827 and check out RA ComplyHub for comprehensive information on all your business compliance obligations.

Changes proposed for employer-assisted visas

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It is already clear that employers will be significantly impacted by legislation changes in 2019. The Government is consulting on proposals that, if they come into force, will dramatically affect the process around employer-assisted temporary work visas.

Download the Restaurant Association’s submission on the proposals here.

The Government says the proposals have two strategic objectives: firstly, for employers to place more New Zealanders into jobs (which help businesses to grow and thrive, and result in better jobs for New Zealanders); and secondly that temporary migrant workers, when they are employed, are not exploited and have wages and conditions that are consistent with New Zealand values.

The proposed changes include:

  • introducing a new framework for all employer-assisted temporary work visas which will be employer-led, rather than migrant-led,
  • replacing the Essential Skills in Demand Lists with Regional Skills Shortage Lists
  • introducing sector agreements with sectors which rely heavily on migrant labour
  • improving alignment of the immigration, welfare and education systems.

As indicated above, one of the critical changes the proposals would introduce is replacing the current essential skills in demand lists. However, it will affect all skilled and lower-skilled temporary migrant workers and employers across the six employer-assisted temporary work visa categories: Essential Skills including the Essential Skills in Demand Lists (ESID), Approval In-Principle, Talent (Accredited Employer), Work to Residence – Long-term Skill Shortage List Occupation, Silver Fern (Practical Experience), Silver Fern (Job Search).

What are employer-assisted temporary work visas?

Around 20 per cent (47,000) of the 230,000 temporary work visas issued in 2017/18 were employer-assisted, where an employer can demonstrate through labour market tests that there are no suitable domestic workers available. The Government says (and most employers would agree) that the current system is complex and does not respond sufficiently to sectoral or regional differences in the labour market. The new framework will combine the six visa categories into one and will switch from being migrant-led to be employer-led. Overall, the proposals will ensure that access to work visas is better matched to where there are genuine and high skill needs, and that the system provides more incentives and support for businesses to employ more New Zealanders.

What impact will the proposed framework have on employers?

The Government says that the changes as a whole will provide more certainty for employers who meet the required standards, make for faster processing for employers hiring subsequent migrants, and support better compliance and assurance processes. The new framework would initially require more upfront investment for most employers however this is balanced with longer-term ease and certainty.

Download the RA submission here.

In addition, members can access a free webinar recording of the update held by the RA on 25 March – Update on Employer Assisted Visas and Proposed Changes. Go to the shop, to access your recording.

Further information:


Following is a short overview of some of the key changes:

The gateway framework

All applications for the new visa category would be processed through a new gateway framework:

  1. The employer gate;
  2. The job gate where checks make sure no Nzer is able to fill the job the employer is recruiting for; and
  3. The migrant gate where checks are made on a migrant worker’s identity, health, character and capability.

Employer accreditation

Central to the new frame-work is that it is employer-led rather than migrant-led. This means that all employers would need to be approved or accredited before they could recruit migrant workers. It is proposed that compulsory employer accreditation is introduced for all employers who want to recruit temporary migrant workers. The Restaurant Association’s biggest concern here is the cost that employers will be faced with as a result of the new accreditation programme. New fees would be introduced and would include a transfer of some costs from migrants to employers, as well as a ‘more general increase in fees’ to reflect accreditation requirements.

There will be three different accreditation groups with different standards, incentives and duration – standard accreditation, labour hire company accreditation and premium accreditation. Accreditation will require employers to demonstrate that their business practices:

  • Incentivise training and upskilling of New Zealanders
  • Put upward pressure on wages and conditions
  • Meet minimum immigration and employment regulatory standards to minimise the exploitation of migrant workers
  • Maintain the integrity of the immigration system

One of the Restaurant Association’s biggest concerns here is the cost that employers may be faced with as a result of the new accreditation programme. New fees would be introduced and would include a transfer of some costs from migrants to employers, as well as a ‘more general increase in fees’ to reflect accreditation requirements.

Many employers in the tourism and hospitality sector are small business and we have concerns that these additional costs  may result  in them being ‘locked out’ from using migrant workers forcing them to scale back their business activity or even close. In our submissions we are actively campaigning for alternatives to employers bearing additional costs.

We do have concerns that the level of compliance placed on employers under the premium accreditation is beyond the resources and capability of many smaller businesses and we are advocating in our submissions that the threshold for requiring premium accreditation should be increased to more than 10 employer-assisted migrant workers. It is currently being proposed at more than 5.

Remuneration thresholds adjusted

Another benefit is the proposal that no labour market test will be needed for workers paid a sufficiently high remuneration, although as an industry sector with generally lower than average wages, it remains to be seen if many empoyers will be able to benefit from this proposal. The Government generally consider that the higher the remuneration, the higher the skill level. It is proposed that the highly paid threshold is:

  • 150 per cent of the national median income (currently $25.00 per hour or $52,000 annually) for premium accredited employers; or
  • 200 per cent for all other employers.

Regional skills lists and sector agreements

While the Restaurant Association considers that our skill shortages generally apply across all regions, discussion is also being invited to address the considered need to be more responsive to labour market challenges at regional level. This includes developing a greater understanding of the different needs of regions and sectors and of the mechanisms and initiatives that are already in place.

The skills shortage lists will be recast by region when they are published next in April 2019 and renamed as Regional Skills Shortages (RSS) lists. The Government says this will better reflect the skill shortages that exist in the regions and provide a stronger signal to temporary migrants of opportunities in regional areas.

Sector agreements are also proposed to be negotiated with representative industry bodies, including the Restaurant Association. Once in place it is proposed the agreements will be made compulsory for employers seeking to recruit migrants in that sector.

The agreements aim to provide certainty for employers in industries, like the hospitality industry, that rely heavily on migrant workers. In return for that certainty, employers will need to make commitments including the commitment to employ more New Zealanders over time and reduce their reliance on migration. The agreements would set out specific occupations covered by the agreement, employer accreditation standards, how the labour market test will be applied, required wages and conditions, caps on the total numbers of migrant workers that can be recruited, training commitments and any special regional or other considerations. Of benefit to the hospitality industry, this would also address situations where standard visa application processes and the ANZSCO framework don’t adequately fit the skill and occupation structure of the sector.

The agreements would last for three years and then be renegotiated to reflect changing conditions. Consultation for the tourism and hospitality sector is proposed to get underway in mid-2019 with the expectation that the agreements could come into effect by early 2020.

Implementation

Implementation timeframes for the new gateway framework are aggressive, with final decisions announced by Government in mid-2019 and some proposals to be implemented as early as August 2019.

The sector agreements for the tourism and hospitality sector will begin negotiation in mid-2019 with the expectation that the agreements could come into effect by early 2020. The gateway framework would be fully implemented between April and June 2020

We have concerns about the implementation timeframes, in particular:

  • Whether MBIE has the capacity to implement the changes, for example, processing the accreditation applications in reasonable timeframes;
  • The short timeframes for MBIE to consider sector feedback and develop final policy proposals.
  • The ability to negotiate, and implement, sector agreements within the prescribed timeframes.

The Restaurant Association welcomes a review of the current visa system, as feedback from members is that change is needed. We have been actively advocating for changes that assist our member businesses with the least compromise. Consultation on the proposals is open until March, 2019 to all individuals, groups and organisations. Final decisions will be announced by mid-2019. with the intention that the gateway framework is operational by mid-2020.

Technology driven restaurants and plant-based menus top list of NZ dining trends

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Survey of hospitality owners cite plant-based menus, technology and delivering exceptional experiences as 2019’s top dining trends

Vegan and vegetarianism, increased use of technology and offering exceptional experiences to diners.  These are some of the key trends expected to make an impact on the New Zealand food scene this year, according to recent research by the Restaurant Association.

The Restaurant Association, an industry body that represents more than 2300 hospitality businesses nationwide, asked its members to weigh in on what they think will be the hottest trends in 2019.

The survey conducted this month asked respondents to share what they thought would be the biggest hospitality business, and food and beverage trends for the year ahead. The move to plant-based food came through as the single biggest trend with one third of respondents forecasting its growth.

“The global trend towards wellness coupled with a focus on environmental concerns and animal welfare is having an impact on consumer interest in more plant-based menu items.”

– Restaurant Association CEO, Marisa Bidois

“Many of our members have already adjusted their menus accordingly and offer either vegan or vegetarian food options, and/or have a focus on using local and sustainable produce.”

The use of technology to take customer orders and process payments is also expected to be more prevalent over the coming year as hospitality businesses battle with increasing wage costs and staff shortages.

The interest in hospitality specific technologies in the short term could see restaurants able to offer more digitally forward payments methods as well taking online orders and managing deliveries and bookings.

The role of technology in the hospitality industry is one that is gaining momentum internationally and in the longer term could see us saying goodbye to cash registers, waiters and printed menus and hello to kiosks and tabletop ordering systems giving diners the opportunity to browse the menu, create their order, and pay for their meal without the need for wait staff.

This ordering technology will allow restaurants to manage increasing wage costs and to focus their efforts on back-of-house operations and customer service.

Bidois says that hospitality specific technology has continued to develop at pace over recent years, “The lack of skilled labour and increasing wage costs are putting a huge strain on business owners so the use of technology in restaurants could be beneficial in increasing efficiency and profitability without having to increase costs to diners.”

“However, whilst these systems are good for more casual eateries the higher end establishments still rely on human interaction to enable them to deliver world class experiences to their diners.”

“Good examples of this are physically, through the environment, the way the dish is served, the theatre surrounding it or how the dish is marketed and sold to them, the back story, the history of the producer or the heritage of the ingredients or even the cooking methods. These are all increasingly important considerations in what is a highly competitive industry and are crucial to attracting diners.”


Key findings
  • One third forecast an increase in vegan / vegetarian and plant-based offerings
  • 20 per cent mentioned a move toward greater use of technology
  • 22 per cent forecast a need to deliver exceptional and bespoke hospitality experiences to diners.

 

Neville Waldren, founding CEO of the Restaurant Association, has passed away

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Neville Waldren, founding CEO of the Restaurant Association of New Zealand, has passed away.

Sadly Neville Waldren passed away on Sunday, 10 February 2019. He was the founding CEO of the Restaurant Association of New Zealand and served the Association for over 20 years.

Neville saw the Association transition from the Foodservice Association to the Restaurant Association of New Zealand and assisted in growing the Association over his time here.

He loved the Association – it was his life. He loved helping people and he loved the industry.

He will be greatly missed.

Messages of condolence can be sent to: the.waldrens@xtra.co.nz

Neville Waldren

 

 

Small Business: Restaurants taking inspiration from South-East Asia – Comensa Group

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Small Business: Restaurants taking inspiration from South-East Asia – Comensa Group

Restaurant group co-owner Krishna Botica discusses South East-Asian food being the flavour of the month and the logistics of running a food business.

What does your business do?

We have a few different businesses all under our hospitality group Comensa, all dining experiences, providing food and beverage and an experience of the culture behind the food. We own Cafe Hanoi, Xuxu Dumpling Bar, Saan – Asian-inspired restaurants. We opened Cafe Hanoi in 2010, Xuxu in 2012 and Saan in 2016.

What was the motivation for opening the restaurants?

The first cafe opened when we had an alliance with the then executive chef Jason van Dorsten who had wanted to open a restaurant when he was over in England with us. Then when he came back home we started talking about what we thought was an inspirational idea to get us all going.

It started as a bit of a dream for him, he loved Vietnamese food. We went to Vietnam a couple of times to try to understand the culture so we could reflect that with the products that we can access here. It took us two years to get it off the ground.

We had long waits at Cafe Hanoi and we wanted to control the experience for our customers who were waiting to dine at the restaurant so that is why we bought the bar across the road. It was more of a holding pen for us initially, and we developed it and two years later is when we actually turned it into a dumpling bar. That one wasn’t a firing passion from the beginning, it was the desire to manage the experience.

The third outlet was built around one of our chefs who we found out was a very experienced and encyclopedic about Northern Thai food. We didn’t actually want to open up a Thai restaurant initially, we thought there were too many Thai restaurants in New Zealand, especially Auckland.

We said “present us with some food so we can get our head around it” and every time he presented food I said “we’ve never had anything like this before” so we went over to Thailand with him to try to understand the culture behind it and how we were going to create an experience for people.

Why is it important to spend time in the country that a restaurant’s food is inspired by?

It’s not just about the cuisine, it is about the culture behind it. We do have a belief that food is the cornerstone of culture and you can understand foods to a certain extent but until you actually get over there and understand how it is created and the environment it is presented in, you don’t really understand how it works.


small business owner, restaurant owner, cafe hanoi

Comensa Group’s Cafe Hanoi specialises in Vietnamese food. Photo / Cafe Hanoi Facebook


How long have you been working in the hospitality industry?

I’ve been in hospitality ever since my first day in a coffee shop when I was 13. Prior to starting Comensa, I was one of the owners of Prego on Ponsonby Rd.

What are the plans and goals for Comensa Group this year?

There are always plans to open other restaurants but we like to take our time. I think we’ll always focus on Asian restaurants. I did my 24 years with European food and I’m definitely more passionate about Asian cuisine, now. Asian cuisine is about texture and balance in the palette and doesn’t use dairy.

We have quite a big human resources strategy happening. We started a project last year within our team and we’re looking very much internally at our ongoing upskilling and training. The diversity of our staff base is quite extraordinary, at any one time we have between 20 and 23 different cultures working, so we want to dig deeper into the special-ness within our teams. Our team is made up of 75 people.

What’s the hardest part about running a hospitality business?

Everybody says hospitality has great cashflow potential, which it does, but you do have to pivot very quickly week to week, month to month based on what’s happening in your local area, in the wider economy and even trend within the hospitality sector so there’s lots of balls to juggle.

You have to look short term, as in next week; what’s happening with the roster, what’s happening with events round the city, public holidays, whether it’s school holidays … there’s lots of things that determine how profitable the business is, you literally have to key your eye on the calendar, and even look back historically. And then there’s staying on top of seasonal produce and staying modern.

One business opening up can take a chunk of your revenue depending on how successful they are or the flavour of the month.

What’s it like operating in Auckland’s hospitality industry?

Auckland’s hospitality industry is going gangbusters in terms of its creativity. We have a lot of Australians that come over and they talk to us about how vibrant the Auckland’s restaurant scene is. We see ourselves as a very large part of the tourism sector and as one of the drawcards in tourism now.

What advice do you give to others thinking about starting their own business?

Make sure you’ve got enough energy to sustain the business and make sure that you have your message right – you need to understand what you are trying to do in so much depth and detail that you’re living and breathing it.


By Aimee Shaw, NZ Herald

Start payday filing now

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Over the last few months, we’ve shared lots of information to help employers around New Zealand get ready for payday filing.

All employers need to be payday filing from 1 April 2019, but if you think you’re ready to start payday filing now, February is a great time to opt in. It’ll give you time to get used to payday filing ahead of it becoming mandatory, and IRD will be in a good position to help you iron out any issues – we think April is going to be a busy month!

If you opt in before March, it means that you’ll start payday filing electronically from 1 March.

So, if you’re ready to start payday filing electronically via file upload or onscreen in myIR, here’s what you should do:

  1. If you use payroll software, double check that it’s payday filing-compatible
  2. Opt in to payday filing using the I want to menu in the My Business section of myIR
  3. Review your myIR delegations and access roles – the ‘Owner’ may need to set up other users, and
  4. Start payday filing in myIR from the start of the next month using the new Payroll returns

Want more information? The payday filing website has plenty of resources to help, including downloadable guides, how-to videos, checklists, and links to on-demand webinars.

Remember, payday filing means IRD will be receiving more timely information to better calculate individuals’ tax obligations and entitlements – making tax more straightforward for all New Zealanders.

Register for free webinars

Through 2018, IRD held a series of webinars to help you get ready for the upcoming changes are being rolled out.

If you’re an employer, register for a new webinar on 11 February about payday filing without using software. This will focus on the on-screen and paper filing methods for payday filing.

If you’re a tax agent, why not register for our next webinar on 18 February? It’s all about the next round of changes to myIR happening in April.

Changing for You

IRD are working on some proposed changes to make the tax system more straightforward for you. The changes are currently going through Parliament and are designed to simplify the end of year tax process for everyone.

If the law changes, these are some of the things you need to look out for:

Income Tax notifications

If your only income is from salary or wages, or investment income, you will receive an end of year Income Tax Assessment between mid-May to mid-July. This will tell you how much you’ve earned and how much tax you’ve paid.

If you have additional sources of income, such as from business, rental property or from overseas, you will still need to provide IRD with more information and file an income tax return (IR3).

Automatic tax refunds

If you’ve paid too much tax during the year, and your details are up to date in IRD’s system, you will automatically have a refund paid into your bank account.

If you haven’t paid enough tax, IRD will let you know how much you owe and when you need to pay.

We recommend that you check if your contact and bank account details are up to date with IRD, which you can do via myIR.

Helping you stay on track

As a result of payday filing, IRD will be receiving more regular information from employers, which will help prevent people paying too much or too little tax.

If it looks like you are on the wrong tax code, or are paying too little or too much tax, IRD can let you know.


Visit the Changing for You website to find out more about the proposed changes and what they could mean for you.

Foodies invited to help find the country’s favourite food producer and farmers’ market

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Foodies invited to help find the country’s favourite food producer and farmers’ market.

Kiwi foodies are being encouraged to help uncover the country’s favourite food producer and Farmers’ Market as part of the 2019 Outstanding NZ Food Producer Awards.

The Coast People’s Choice Awards encourages food lovers to share the name of their ‘go to’ food producer and Farmers’ Market. The winners will be chosen by popular vote and named Coast People’s Choice Outstanding Food Producer and Coast People’s Choice Outstanding Farmers’ Market, announced in mid-April.

Last year food lovers chose Lake Farm Pies, Clevedon Herbs and Produce and the Clevedon Village Farmers’ Market they followed on from the inaugural winners of the People’s Choice in 2017 which were; Otago Farmers’ Market and Fix and Fogg.

Everyone who votes in the Coast People’s Choice Awards goes into the draw to win a year’s subscription to NZ Life & Leisure and an Outstanding NZ Food Producer Awards hamper, featuring a selection of winning products from the Awards.

Nominations for the Coast People’s Choice Awards are open from Friday 1 February until Sunday 31 March 2019 and can be made by visiting outstandingfoodproducer.nz or facebook.com/OutstandingNZFoodProducers/

The Outstanding NZ Food Producer Awards celebrate Kiwis who harvest, grow and make food and drinks. Over two years of the awards a team of specialist judges have assessed almost 350 products, awarding 130 products with an Outstanding NZ Food Producer Award which allows the products to wear a medal sticker as an independent endorsement of its quality.

New Zealand producers harvesting, growing and making food which is available for retail sale are encouraged to enter the awards online at outstandingfoodproducer.nz by Monday 25 February 2019. Feedback is available for all entries and Marvellous Marketing will host a number of Winner Events around New Zealand between April and September 2019 that will showcase champions, gold and silver medallists.

Reminder for businesses that sell, make or manufacture food

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Food businesses operating before 1 March 2016 must transition and be registered under the Food Act 2014 by 28 February 2019. 

Food businesses operating and registered under either the Food Act 1981 or Food Hygiene Regulations 1974 would have been operating under a food safety programme (FSP). Under the Food Act 2014, FSPs are deemed to be food control plans, but only until 28 February 2019. After that, operators of food businesses must transition and register their respective food businesses under the Food Act 2014.

Most food businesses operating under a deemed food control plan should have applied to register their business under the new rules before 30 November 2018 as the registration process takes time, but they must do so before 28 February 2019.

Depending on your food business, you will be able to register under a:

  • national programme;
  • template food control plan; or
  • custom food control plan.

Registering takes time, so if you haven’t registered you will need to do this as soon as possible. We provide guidance on how to do this in our “Food retail” and “Cafés, bars and restaurants” topics. If your business must operate under a food control plan and you don’t register your plan, the courts can fine you up to $50,000 or your business up to $200,000, so make sure you meet this legal obligation.


From the ComplyHub Team
Find out more about RA ComplyHub to stay on top of all your compliance requirements.

Food Act changes

Thousands of people sign petition to keep Shchetkova family in New Zealand

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A Ukrainian family facing deportation once their work visa expires in July have received an influx of support from MPs and the public.

Nataliya Shchetkova, her husband Alex Derecha, and their five children, face an uncertain future after Immigration New Zealand’s decision to deny the family residency because it does not believe their business adds significant benefit to New Zealand.

The family run Auckland restaurant La Vista which had a turnover of $1.6 million last year and employs 26 staff – 17 of whom are full-time.

Since the Herald shared their story this time last week, the family have received an influx of support from members of the public, MPs and Act Party leader David Seymour.

A petition has been launched and backed by Seymour, asking Parliament to urge the Minister of Immigration Iain Lees-Galloway and Associate Minister of Immigration Kris Faafoi to grant them residency by special direction.

The petition has received almost 10,000 signatures of support in two days.

Seymour has organised a rally for next Sunday to support the family.

“Nataliya Shchetkova and her family are much-loved community members and successful proprietors of La Vista restaurant in St Heliers,” the petition reads.

“The Government has declined their application for residency despite the family building a successful business as required by their visa requirements.

“I believe it is simply wrong that upstanding citizens be sent to wartorn Ukraine when others of varying character are allowed to stay. Please show your support of the Immigration Minister intervening so they can stay.”

Shchetkova and Derecha arrived in New Zealand six years ago on a long-term business visa with plans to take over a fine-dining restaurant. Their 5-year-old twins Alexander and Victoriya were born in New Zealand a few months later.


La Vista

Nataliya Shchetkova at her restaurant La Vista in St Heliers, Auckland. Photo / Brett Phibbs


Shchetkova believed residency was declined because of wrong advice from an Immigration NZ case officer, when her plans to buy a French business outlined in the business plan submitted with her visa application fell through.

She instead purchased St Heliers restaurant La Vista for $700,000 – $200,000 more than what she said she would initially spend on a business.

But Immigration NZ manager Michael Carley said that wasn’t the case and residency was denied because her business did not add significant benefit to New Zealand.

“We do not consider the immigration officer who assessed the application made an error in advice and we consider the decision to decline, and the process followed, was correct,” Carley said.

“A core reason for the decline was the business did not add significant benefit to New Zealand by creating sustained and ongoing employment, over and above the existing level of employment.

“The Immigration and Protection Tribunal found INZ’s decision to be correct under applicable residence instructions.”

Shchetkova has unsuccessfully appealed the immigration decision.

Shchetkova and her husband have worked without a day off for two years to make the business a success and to reach the forecast sales figures they needed.

“When we bought the business it was dying,” Shchetkova told the Herald.

“For the whole six years we have employed 140 people – that’s 140 New Zealand families; their children come to us and we upskill them, we give them some experience, something they can put on their CV.

“We have over 40 local suppliers, we support local businesses, we buy local, we live local, we spend our money local. We’re contributing to GDP.”

Shchetkova’s lawyer said New Zealand’s immigration law was “not well-designed” and “bad advice” had resulted in a significant injustice.

“We feel like we’ve been used because we were welcome to bring our money and worked very hard all of this time and now what do they offer us? to sell the business for nothing? Nobody will buy the business for a fair price if they know the owner is going to leave the country.”

The family has been advised to sell the business and prepare to leave the country.


By Aimee Shaw, NZ Herald

 

If you’d like to support the Shchetkova family and urge the Associate Minister of Immigration to give special consideration to the case of Nataliya Shchetkova and her family, you can sign the petition here and attend the rally and mass petition signing event on Sunday 11 February 2019 in St Heliers.