Section 215 Emissions Pricing Report Shows Progress

17 January 2023

A section 215 report, released by the Government shortly before Christmas, outlines several changes to the proposed emissions pricing system that give greater certainty for farmers, and better recognises on-farm sequestration.


According to Beef + Lamb New Zealand (B+LNZ), “The Section 215 agricultural emissions pricing report and accompanying commentary released by the Government today is a step forward, but there is still significant work to be done on critical details before sheep and beef farmers can feel confident in the final agricultural emissions pricing system.”


It confirms that the Government has agreed to a farm-level split gas levy rather than agriculture entering the NZ Emissions Trading Scheme (ETS).


Then Prime Minister, Jacinda Ardern said, “The most important thing is getting an emission reduction system set up that lasts. We are working hard alongside the agriculture sector to strike the balance between building good levels of sector buy in, while also ensuring the system is robust and meets our emissions reductions goals. With or without the Government’s proposals the world is changing and New Zealand needs to be at the front of the queue to stay competitive in a market that is increasingly demanding sustainably produced products.”


B+LNZ chief executive Sam McIvor says the report is a significant improvement on what the Government proposed in October and follows the He Waka Eke Noa partners’ consultation submission (see the earlier article on Climate Change in the Beef & Lamb February 2022 newsletter which discusses He Waka Eke Noa) and ongoing work to address a range of issues. “The Government has committed to designing a system that is practical to implement while ensuring that a viable and productive agricultural sector continues – we’ll hold them to account on that.”, says Sam McIvor and adds, “In this regard the Government has committed that methane and nitrous oxide prices should be as low as possible and be fixed for a five-year period to provide certainty. Given that New Zealand is the first country in the world to price agricultural emissions, it’s essential a cautious approach is taken and that we ensure what farmers are asked to do is fair and equitable, doesn’t threaten farm viability or result in emissions leakage.”


The sector will be given greater input into pricing decisions and widen the criteria of factors to be considered to include social, cultural and economic impacts. Agriculture Minister Damien O’Connor has said, however, that oversight of this levy setting system will rest with the Climate Change Commission, but that they are establishing a board with representatives from the agriculture sector and Māori to provide advice and act as an avenue for sector input. B+LNZ disagrees with the proposal that the Climate Change Commission advice should have priority: “The Government has recognised the disproportionate impact on sheep beef and deer farmers of its earlier proposal and committed to ensure that the impacts are equitable across sectors – we’re working with them on potential provisions to ensure sheep and beef farmers do not face an unfair burden of emissions management. The viability of sheep and beef farming cannot be threatened through this pricing scheme.”


Sequestration remains a key area of focus for B+LNZ. It believes that, though the report commits in principle, to recognising all categories of sequestration and transitioning to the ETS, there is more clarity required on this.


B+LNZ’s message is consistent on this – if farmers are to pay for their emissions, they must be recognised for their sequestration at a fair value and it needs to be from 2025.


Sam McIvor also notes B+LNZ is heartened that the Government has acknowledged and committed to act on two issues that B+LNZ has long advocated for. 


The first is the consideration of different ways to track warming impacts, such as global warming potential, on the related issue of emissions reduction targets.


The second is noting the impact of offsetting rules within the ETS on sheep and beef farming and rural communities, and the admission of the need for urgent efforts. McIvor asserts that “We won’t stop pushing for them to turn concern into action.”


McIvor says the Government has listened to feedback to date. “I want to acknowledge the willingness of Ministers and officials to make changes, and their commitment to work with He Waka Eke Noa partners including B+LNZ to find the right solutions. We now need to nail down the detail to ensure equity, fairness and a viable pathway for our sheep and beef farmers.”


Final decisions on agricultural emissions pricing will be made by Cabinet in early 2023 with the aim to introduce legislation by the middle of the year.

Payroll Doesn’t Have to Be a Headache: How to Simplify & Stay Compliant

1 October 2025
Managing payroll can sometimes feel like navigating a maze; complex regulations, tight deadlines, and countless calculations can easily overwhelm business owners. However, with the right strategies and tools, payroll can be streamlined into a smooth and efficient process. Here’s how you can simplify your payroll process while ensuring full compliance. Embrace Technology Choose the Right Payroll Software Investing in good payroll software is one of the best steps you can take. Look for features that automate calculations, tax submissions, and generate detailed reports. Many software options now offer cloud-based solutions, providing the flexibility to manage payroll anytime and anywhere. Stay Informed on Compliance Know the Laws It’s crucial to stay updated on federal, state, and local labor laws, as these often change. Non-compliance can lead to penalties, so consider subscribing to industry newsletters or updates from trusted legal resources. Record Keeping Maintain meticulous records of employee hours, wages, and payroll taxes. Proper documentation safeguards you from legal troubles and helps resolve any discrepancies promptly. Set a Consistent Payroll Schedule Consistency is key in payroll processing. Choose a payroll frequency that suits your business - whether it’s weekly, bi-weekly, or monthly - and stick to it. This creates predictability for both you and your employees, allowing better financial planning and cash flow management. Automate Tax Calculations Manual tax calculations are prone to errors. Automating tax withholdings through your payroll software ensures accuracy and compliance with the latest tax rates and contributions. This reduces the likelihood of costly mistakes and late penalties. Regularly Audit Your Payroll Process Conduct internal audits periodically to identify errors and inefficiencies in your payroll process. This proactive approach helps catch and remedy issues before they escalate, ensuring your business remains compliant and efficient. Consider Outsourcing  If payroll complexities feel overwhelming, consider outsourcing. This allows you to focus on your core business activities while ensuring that payroll is handled by experts who stay abreast of ever-changing regulations and compliance requirements. If payroll continues to be a challenge, our team of experienced accountants is here to help. We offer comprehensive payroll solutions tailored to fit the needs of small and medium businesses, ensuring compliance and efficiency at every step. Contact us today to learn more about how we can support your payroll processing needs.

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What the IRD Expects from You as an Employer

17 September 2025
As an employer, there are several obligations and expectations set by the Inland Revenue Department (IRD) that you must adhere to. Understanding these requirements is essential for maintaining compliance and avoiding any potential penalties. Let's take a closer look at what the IRD expects from you as an employer. Register as an Employer Before you hire your first employee, you are required to register as an employer with the IRD. This is a crucial first step in ensuring that you can meet all tax and payroll obligations. Accurate Record Keeping The IRD requires you to keep accurate and detailed records of all employment-related transactions. This includes: Employee personal details Wages and salary paid Payroll dates and methods PAYE deductions and remittances Details of benefits or allowances provided to employees Maintaining proper records helps ensure that you are reporting and remitting the correct amounts to the IRD. Deduct PAYE Tax You are responsible for deducting PAYE (Pay As You Earn) tax from your employees' pay. This involves calculating the correct amount of PAYE and ensuring it is deducted from each employee's salary or wages before their net pay is provided. Pay Employer Contributions In addition to PAYE, you may also be responsible for contributing to your employees' social security and retirement benefits, depending on the country you operate in. These contributions are typically paid in conjunction with PAYE tax. Issue Statements and Forms At the end of the tax year or upon employment termination, you should provide each employee with a statement showing their total earnings and PAYE deductions. Additionally, filing the appropriate end-of-year PAYE schedules with the IRD is required. File Employer Returns Employers are required to file regular returns with the IRD, which could be monthly, quarterly, or annually, depending on specific regulations. These returns should accurately report all payroll activities, including PAYE deductions. Handle Tax Codes and Changes It's crucial to apply the correct tax codes for each employee's circumstances. Any changes in employment status or tax code must be updated promptly to ensure accurate tax withholdings. Comply with Audit Requests The IRD may audit your business to ensure compliance with employer obligations. As such, being prepared to provide all requested information and records in a timely manner is vital. Adhering to these expectations from the IRD is not just about compliance; it's about fostering a transparent and trustworthy relationship with your employees and the tax authorities. If you need assistance with understanding or managing your obligations as an employer, consider reaching out to a professional accountant. Our team is here to help you navigate these responsibilities seamlessly, ensuring peace of mind and allowing you to focus on growing your business. Feel free to contact us for further information or assistance.
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