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Covid-19

What were your motivations behind launching Vision Week?

In my day job as CEO of Infrastructure NZ I reached out to all of our 140 members for 1:1 interviews early on after COVID hit. The key issue for all of the companies which I talked to was the lack of a New Zealand strategic plan that was a North Star for how New Zealand would react and reshape itself as a result of COVID-19. CEO’s were obviously deeply concerned about immediate issues of ensuring safety for their employees and shoring up cashflow for their company, however within 2-3 weeks CEO’s were calling for insight on the new strategic direction for NZ, and the core values that would guide those decisions.

Infrastructure NZ has 5 key policy priorities and one of these is to create a national vision for NZ, leading to a nation building plan that would be long term, signed off by all parties and therefore transcending the short term 3 year political cycle. Any vision for NZ had to be about the levels of wellbeing for the people of NZ (how many, where and how ambitious would we be in setting targets for our economic, social, cultural and environmental wellbeing).

Infrastructure is just one (very important!) tool to help achieve wellbeing, so I needed to bring in sponsors and supporters that would help bring diversity of thought and make this an inclusive platform for the views of all New Zealanders.

How did you pinpoint the key themes of Vision Week?

We needed to outline what a vision was and why it is necessary on day 1. A vision is only useful if it moves ‘off the page’ and into an action-oriented plan of action, but that comprehensive, integrated, long term plan has to start with who are we (what are our values as Kiwis) and what we want to achieve. Infrastructure NZ members are very broad, including a really wide range of Kiwi companies. The $30bn Christchurch earthquake rebuild and our missed opportunities to reimagine and build a 21st century city, rather than largely recreate the 20th century original, should be central to our thinking in how to respond to the shock of COVID-19. Our members key message was ‘don’t rebuild what was there before, take a little time to reimagine and then build back better’.

We chose our three mid-week themes (Connecting NZ, Sustaining NZ and Quality Living NZ) to cover the critical pillars of NZ’s economy and way of life. We knew from interviews with members and questions from the 4,000+ attendees on the webinars Infrastructure New Zealand ran during lockdown that tourism, the agri sector, digital, transport, our environment, energy, housing and key elements of social cohesion would be essential for our recovery. Our economy is complex, interconnected and global, so these were very much themes to direct the conversation, but we expected (and got) really rich and deep feedback from interviewees that we too and beyond the edges of these broad themes.

Despite the obvious negative impacts of Covid-19, do you think that a shift in direction for New Zealand will have an overall positive, and even necessary impact?

Absolutely. New Zealand is incredibly lucky with the physical environment we have been gifted with, but even more we heard from interviewees that our strength is in the diversity, values and adaptability of our socially cohesive society – an increasingly rare Western world phenomenon. Another key theme is that our leadership in eliminating COVID has been world beating – a great example that our ‘team of 5 million’ can achieve world leading results when we band together.

NZ has previously suffered from physical isolation, but our COVID-free status, high quality of living, stable leadership, digital and trade connectivity isolated from the world by a 1,500 km wide moat, makes us a really attractive place to be. I believe that any vision for NZ has to include a population policy – how many Kiwis will live here and what standard of living will they enjoy. Prior to COVID, global research firm Gallup identified that if NZ had no border controls that our population would rise to 11.5 million people, that those new migrants would have 3.3x more skills (measured by university degrees) than our existing population and that they would be markedly younger. In most countries in the world this would be seen as an amazing opportunity – we would realise the late Sir Paul Callaghan’s vision of NZ being “a place where talent wants to live”.

Expat Kiwis in the KEA network have a right to live in our amazing country, hence I was keen to reach out so the KEA Network could have its say on what the future of NZ should be. The NZ Government has set aside $50 billion to reset and reshape our economy – the purpose of Visionweek is to lift our sights to size on all the opportunities we have in front of us and also to acknowledge and address some areas where our performance is poor such as quality of housing, traffic congestion, mental health and equality of opportunity across society.

What advantages and setbacks does New Zealand have in terms of their potential for recovery, in relation to other countries?

Our speakers focused on New Zealander’s values and social cohesion being critical in fighting COVID and now also in addressing the recovery. Our natural environment, resilient, adaptable people, low government debt and our clear leadership position on COVID have all been cited as advantages. Our big blue moat creates physical isolation and looks really attractive compared to other countries with land borders. New Zealand’s Maori population and tikanga/values, with a focus on intergenerational outcomes for people and the environment, were seen as a huge opportunity to refocus our economy on a more balanced & sustainable way of life.

Our possible setbacks are that we are highly globally connected, so we need the world to prosper and some industries (e.g. tourism) are going to face a tough journey until we can re-open borders. Our setbacks could be that some key institutions (our 3-year political cycle, MMP, and the Public Finance Act, which focuses on balancing the books rather than government aiming for stretching outcomes for people, then working backwards to how we afford these) make it hard for Government to lead a transformation journey – voters have set up our Government to be small, hands-off and short term focussed.

The big opportunity is that our small size and our connectedness as a society means that leadership should be able to turn NZ towards more ambitious goals. COVID created a glimpse into an uncertain future – surely this is the catalyst to create a risk environment where innovation can flourish? COVID has changed so much, so quickly that incremental approaches won’t work – in uncertainty, no one party can solve this alone, but there’s a huge opportunity for new institutions that create collective leadership and co-governance between central & local government, businesses, iwi and communities.

What is the ultimate goal you are looking to achieve through Vision Week?

We want Visionweek to start the debate on what a brighter long term future for all New Zealanders looks like. Last week the Productivity Commission published a report on successful small nations and showed that we are lagging our small, OECD peers, but it also gave us a pathway for how to achieve more, together. We need to set stretching targets for our economic, social, environmental and cultural wellbeing, ideally in the top quartile of OECD firms, measure these clearly and make them a bi-partisan, independent requirement of the government of the day.

New Zealand has significant natural and human capital advantages but we have not set our sights high to achieve these. We had bi-partisan support to create the Climate Commission and the Infrastructure Commission, which is a great step forward, however we need a holistic and independent approach to setting the outcomes that matter the most to Kiwis – perhaps a Wellbeing of all New Zealanders Commission? Our interviewers noted that Kiwis have traditionally been good at short term adaptation & innovation to world events/shocks, but we have never expressed a clear, long term vision for the standard of living for New Zealanders.

Now is the time when we should set out sights higher than we can possibly achieve with any one party, then come together to figure out how we will get there. America didn’t know how it was going to put “a man on the moon by the end of the decade” and Singapore had limited resources but its “think big, go global” strategy in the 1970’s was much better managed than ours – a stretching vision for NZ is entirely possible and its now time to be bold and set our sights high.

What were some of the key takeaways from Vision Week, now that it’s all over?

  1. Set targets in the well-being framework at the top quartile/decile of OECD, explain to Kiwis what it will feel like to be that successful, add a cool slogan (I’m no marketer – perhaps World’s Most Liveable Country?) and then work backwards for what innovation we need to achieve that
  2. Use green energy as a platform to decarbonise and as a base to power weightless exports (digitally) and attract domestic and global nice manufacturers who care about sustainability
  3. Zero-carbon connections between people – use green energy to remove carbon from our transport fleet, including electric air flight, and accelerate moves towards 5G, creating bleeding edge global value and allowing remote, regional and rural working to take pressure off our cities and transport routes
  4. Put NZ values at the core of our future – kaitiakitanga (guardianship), manaakitanga (respect, hospitality) and fairness were the three values I heard most often during the week. Te Ao Māori values, with their focus on people and the environment over generations, provide a great base for long term thinking and action
  5. Focus on being the world’s best producer of sustainable/regenerative food – take this strength and focus heavily on it. We are already world class, but to be world leading the Productivity Commission says we need exports to be 60-70% of GDP (we are at 30%) and agri plus digital are the two sectors we need to focus on to achieve that.

Filed Under: COVID-19 recovery, World changing Kiwi Tagged With: Covid-19, Paul Blair, Recovery, Vision Week

Residing in Europe you have an external view of New Zealand and how we have been responding to Covid-19. What does New Zealand look like from the outside in?

To outsiders (non-New Zealanders), New Zealand as a somewhat distant and isolated island nation has been able to manage its response to the coronavirus pandemic well, in part due to those attributes. Conversely, I have a great fear that the extensive national and possible over-self-isolation is not going to play out well as we advance into 2021 and up until 2024. New Zealand’s standard of living is overwhelmingly dependent on being an integral part of the world economy. A far greater emphasis must be placed on trade which will require some increased risk-taking. But are we ready for that?

As a leader with a global perspective, what advice do you have for New Zealanders engaging in the changed global market?

The global market is going to become more competitive. In many sectors and especially manufacturing, there will be a re-deployment of the production means of critical supplies back to home markets. Pharmaceuticals and specialised equipment are likely to be the first examples. In my view, the conclusions New Zealand must draw from this are looking forward to focusing on improved productivity (more and better quality from the same input) added value and the supply of premium and distinctive products. The tourism and logging industries could do with attention in this regard.

What are the primary opportunities and challenges you see specifically in relation to the New Zealand agriculture sector arising from this situation?

Agriculture’s importance to New Zealand is a major source of foreign exchange earnings. As an industry, agriculture (which also includes forestry, hunting and fishing) employs some 6% of the total working population. The outlook for agricultural exports is probably relatively good and thus for employment would appear to be somewhat stable. After all, food is an essential and everyone needs to eat.

One possible adverse sign is that there is an excess of food appearing in many global markets. Reasons are various including the global shutting down of restaurants and food outlets, less throwing away of food (some one third of all food produced is estimated to be thrown away), lower available discretionary spending and disruption to logistics of supply chains due to employee lock-downs. New Zealand mostly exports premium agriculture products often in competition with domestic suppliers. A possible saving grace is that New Zealand is a counter-season producer in many of its markets.

What thoughts do you have on the way in which domestic leaders in New Zealand are approaching New Zealand’s recovery from the pandemic?

Managing the initial stages of immediately reacting to the pandemic while not easy, were accomplished well in New Zealand. The Government took some radical decisions all the while backed up by a team of scientific, health and other experts who provided the ‘cover’ for such a radical and rather risky approach of basically shutting down the country.

It is now clear from elsewhere in the world that exiting the shut-down, and at the same time managing the economic consequences, will prove far more difficult. My thoughts are that organising the exit will consist of two basic parts: public health and the economy. In terms of public health, the main focus during the exit should be on managing the inevitable resurgences of the disease. In terms of the economy, the Government is going to need huge amounts of help, including from the public, in achieving an exit with the minimum possible damage.

How might the recovery process best be managed, and what kind of timeframes would you envisage for this process?

My experience suggests that because of the complexity of this issue, this is going to take a group of people with a wide range of expertise. I believe it will be essential when attempting to get the country on board in a non-partisan way to create a National Regeneration Initiative with the recognition that things may not go back to the way they were.

A huge amount of planning, brainstorming and blood sweat and probably tears, will be required to get this underway. As to the time which will be required, the Christchurch earthquake rebuild although on a much smaller scale than the current crisis, gives some idea of the timeframe one is faced with. It is all doable and there are plenty of models from the past and around the world and the key is organisation and planning.

Filed Under: COVID-19 recovery, Global Kiwi, World changing Kiwi Tagged With: Covid-19, Economic Recovery, Ken Baker, World Agricultural Forum

Volcano Coffee Works

Kiwi founded, UK operated Volcano Coffee Works is among the many great coffee roasteries in the UK which has helped forge the coffee revolution here, for which many expat Kiwis are incredibly grateful. Trading through and beyond the economic impact of Covid-19 has many business owners and leaders working to navigate the myriad of information being shared by the government and professional service providers. Volcano Coffee Works Head of Finance, Stewart Morrin has had the unenviable task of deciphering the middle ground between government support, business conditions and financial stability.

Here they share with fellow food and beverage providers the options and considerations available to them during this time of economic disruption.

Cardrona Distillery

Cardrona Distillery made the news for their recent pivot to producing top quality hand sanitiser for their local community, following their having to stop commercial production of its whisky because of the Covid-19 outbreak. Deciding to give away the pure spirit from its gin and vodka stills for use as hand sanitiser. Founder Desiree Whitaker said “We are only a small distillery, it is not something we are set up to do [commercially], but we wanted to be able to do our bit for the community,”.

As another fantastic New Zealand business taking its products to the world, Cardrona encourage people to send a Kiwi made gift to a loved one or if you’d like to learn to upskill by learning the art of cocktail making at home, please consider buying your favourite spirits and upskilling through the recipes on their website. For the New Zealand shop, click here. For the UK shop, click here. 

Crosstown Doughnuts

You would struggle to find many Kiwis in London who haven’t heard of Crosstown. For the past 5 years they have brought to us the latest sensation of sourdough doughnuts. Like so many businesses, Crosstown has been massively affected by Covid 19. Recognising that they could not survive trying to do business as they previously have. But knowing that people still need to be fed, and looking at the capacities they had across logistics, people, product and technology – Crosstown Doughnuts banded together with Millers Bespoke Bakery & The Estate Dairy to create a Collective.

Between these companies they employ hundreds of people in offices, retail shops, logistics and in milk, food & bakery production. They needed to keep as many of these people working as possible. Together they bring you The Crosstown Collective. Using their industry contacts, they have sourced great local fruit & vegetables, coffee and even granola. A UK business with some Kiwi ingenuity thrown in for good measure. You can purchase a food box here.

Other Kiwi businesses in the UK which you can support:

  • Caravan Coffee Roasters. Caravan have announced their opening dates, check their website for details! In the meantime enjoy their artisan specialty coffee delivered straight to your door. The finest beans from around the world, selected and roasted in London. 
  • Clapton Craft. Clapton Craft are a craft beer and growler retailer with stores in Clapton, Kentish Town, Walthamstow, Finsbury Park and Forest Hill. Check out their online store for their full offering! 
  • Hops Burns and Black. Craft beer, hot sauce and records – finally all together. Check out their online store until the Peckham/East Dulwich and Deptford stores reopen.
  • Karma Cola. Good looking, great tasting, do gooding drinks. Good for our planet, our growers, and as good for you as fizzy drinks can be. #DrinkNoEvil. Get yours from Amazon, Ocado and Waitrose online.
  • Koru Kids. Kiwi founded, London based childcare service which specialises in after school nannies and helping families to find nanny shares, and offering Covid-19 Short-Term cover. Trying to work, homeschool and keep your kids calm and happy in this scary time? We can help. We have vetted, trained, energetic nannies in all of London’s neighbourhoods ready to help you with your short-term childcare.
  • Mere Restaurant. This South-Pacific French restaurant has announced it’s opening dates. Check out their website for details!
  • Ozone Coffee Roasters. Roasters of specialty coffee for flavor in the cup at home or in cafes, restaurants, offices and businesses. We are still shipping as usual to your lock-down location – home, working from home and business location.
  • Parkway Taxis. This Kiwi-owned and operated taxi business is available in Devon. If you’re getting off a train at Tiverton Parkway from London Paddington or Reading, look them up.
  • Pics Peanut Butter. Fresh roasted peanuts, lovingly squished in sunny Nelson, New Zealand. Get yours from Amazon and Tesco.
  • Provenance Village Butchers. Provenance is a modern interpretation of a traditional village butcher. They offer a next day delivery service to W1, W2, W8, W9, W10, SW1, SW3, SW5, SW7, SW10, NW6, NW8 and NW10.
  • Sacred Coffee.  We have been enjoying their gourmet coffee and tea for years… and their lolly cake. Gourmet coffee, tea and L&P available straight to your door.
  • SANZA.  Your one stop food shop that bring Australian, New Zealand, South African foods to ex-pats across London and the UK. When you may be feeling far from home, SANZA brings the taste of home to your front door.
  • Sarah Angel Photography.  Sarah Angel is a Surray-based photographer specialising in family photography. With safety measures in place, Sarah’s practice is open for business!
  • Secret Goldmine.  Secret Goldmine produces mouthwatering pies. A Kiwi delicacy which they are now delivering too!
  • Specialist Cellars. Wines of the new world. Melanie Brown has been bringing the best of New Zealand wines to the UK for many years. Jump on line and fill up the cellar.
  • The Laundry. This Brixton based bistro has recently announced its reopening dates. Check out their website for more details!
  • The New Zealand Beer Collective. At the NZ Beer Collective we have scaled back, are following all distancing guidelines and locking things down, but we really don’t know what else to do but keep selling beer. We have put in place a way to buy the beer directly from us, delivered safely anywhere in the UK, at some lockdown pricing. Contact Todd for the latest at [email protected].
  • Tried and True Cafe offer award winning innovative breakfasts, light lunches and serious espresso. Rob and the team look forward to welcoming you to this gem in Putney.
  • Yeastie Boys. New Zealand beer brewed here! Yeastie Boys have been brewing up a storm for the past 5 years in the UK. They want to keep their beer arriving to Kiwi fridges around the nation. Shop now on their new online store, and get a tasty 10% discount with your code of K1W1.

This list isn’t exhaustive and focuses on those who we know are trading through Covid-19 current restrictions. This list will be expanded on in the coming weeks. If you are a New Zealander in Business in the UK and would like to be listed here please contact [email protected]

Filed Under: Businesses going global, COVID-19 recovery, Global Kiwi Tagged With: businesses, Covid-19, information, resources, UK

Different times, different crises

When making decisions, it is relatively straightforward to look back in history to see how previous similar crises played out. Then respond accordingly to the current crisis, with that so-called ‘hindsight’. The reality unfortunately is that every new crisis brings nuances that prove ‘hindsight’ to be less relevant.

From the perspective of financial markets and economies it is useful to take note that this crisis is quite different in nature to the global financial crisis (GFC) of the late 2000’s. But, it does share some similarities in terms of its impact.

The GFC

The GFC originated from, and was mostly contained within, financial markets (with some spillover into the real economy). It was triggered by a downturn in the US housing market. Subsequently, across the globe, share and bond investors faced significant losses (some up to nearly 50% of their value), banks went bankrupt and some large institutions had to be ‘bailed out’ by Governments.

From an ‘economic’ perspective, that crisis mostly impacted the ‘demand’ side of economies. Or to put it in another way, with consumers feeling less wealthy as a result of falling share markets and house prices, they were less willing to spend. This in turn negatively impacted sales for businesses that produce goods and services in the real economy.

In response, central banks stepped into lower interest rates; meaning money became cheaper to borrow both for businesses as well as consumers. This not only boosted investor confidence, but also incentivized consumers to spend. As a result, in the 12 or so years after the crisis, investment markets grew at unprecedented levels, with investors enjoying stellar increases in wealth. As an example, an index that tracks the shares of companies across 23 countries had gained over 200% by end of 2019. In simpler terms, for every $1,000 you invested before the crisis, you would have had $2,039 by Dec 2019.

The Current Crisis

While the GFC originated in financial markets and spread into the real economy, the current crisis has traversed in the other direction.

In this instance, not only has the demand side been impacted but also the ‘supply’ side of the economy. The supply side refers to the production of goods and services. With social distancing measures being applied across countries and resource (e.g., talent) mobility being significantly restricted, the Covid pandemic is directly impacting on our ability to ‘produce’ goods and services.

This means a period of turmoil for businesses, with some facing an existential crisis, as well as the prospect of job losses for individuals, at almost unprecedented levels. It is still early stages in the crisis and no one has a crystal ball to divine the future or determine how long this may last.

The only thing certain is ‘uncertainty’. Unfortunately, financial markets and ‘uncertainty’ don’t get along well. As a result, at the time of writing in late March, share markets around the globe, have already sold off over 20% since the start of this year. In summary, the world is staring at a global recession in its face. Given interest rates are already low, the responses that were effective for the GFC may not be practical for the current crisis.

Lessons learnt

As much as ‘hindsight’ doesn’t make us all that much more wiser, there are a handful of universal truths that stand the test of time. This is as good a time as any to review how resilient and savvy you are financially.

  • If you are relying on interest earning assets such as bank term deposits for income, you may want to figure out what else you can supplement your income with. It is very likely that returns from such assets will remain low for much longer.
  • If you don’t need access to money right away consider leaving your money in what you are already invested in. Remember that any loss that your investment is facing now is simply on paper. It becomes a real loss only when you sell it. The question is how long you can afford to leave it as is, without withdrawing.
  • The above is on the assumption that you were invested in it for a good reason to begin with. Get professional advice if you are unsure of why you are invested in something and how it fits into your financial portfolio. Good advice is worth the fees.
  • Trying to time when to buy and when to sell is fraught with risks. As logical as ‘buy low, sell high’ sounds, it is not for the faint hearted and nearly impossible to get consistently right.
  • The same goes for currency. If you have assets denominated in a foreign currency, know that your investment returns will depend not only the asset but also on the exchange rate between your home currency and the foreign currency.
  • While it is always safe to remain ‘diversified’ across assets and jurisdictions, during times of extreme dislocations in financial and economic markets know that most assets get caught up, and there aren’t too many places to hide. But consider remaining appropriately diversified through the crisis.
  • Various governments are taking different approaches to tackling the crisis – some are using monetary policy tools (e.g., reducing interest rates), some fiscal (e.g., using taxation related tools) and other regulatory (e.g., extending disclosure and accounting reporting deadlines). Not all of them will be successful equally. At the core of it, this is a health crisis – it is logical to focus efforts on containing that crisis as a priority. How the share markets and the investment assets in each country perform will depend on how the leaders in those countries respond. Depending on what exposure you have to each of the countries, your investment portfolios will be impacted differently.
  • If you are struggling to meet your loan repayments, consider restructuring options with your bank early on. It is in their interest too to ensure that their loan to you doesn’t end up being a ‘non-performing’ one for them.
  • Be wary of an increase in fraud and investment scams. Such operatives work best in times of emotional distress, playing into the ‘fear’ and ‘greed’ theory. If something sounds too good to be true, be wary. If you don’t how an investment makes money, stay away. That ‘hot tip’ will likely burn you.
  • On a happier note, every crisis comes with an opportunity. Markets are driven by fear and greed. There will always be some assets that are over sold by some investors out of panic. You get to buy them cheaper now. Keep an eye out for the opportunity. But do your research first.

As indicated, we are still in the very early stages of this crisis, with things likely going to get worse before it gets better. Part of the uncertainty is because much of the recovery (and recover we will) is going to depend on the size and scope of the responses from Governments across the globe.

As a first response (which has since beefed up), New Zealand responded with a $12billion plan, the US with close to a trillion dollars and the Eurozone with a Eur750 billion package of stimulus. In reality, these amounts may still not be enough, as we don’t know how effectively each stimulus package is implemented. Only time will tell.

At times of such uncertainty, when I have to make a decision I’m reminded of a philosophical quote “it is better to be vaguely right than precisely wrong”.

Stay safe!

CONTRIBUTOR

Binu Paul

Founder

Savvy Kiwi

Kea member

Filed Under: COVID-19 recovery Tagged With: Covid-19, Economics, Savvy Kiwi

Re-establishing New Zealand residence

For individuals who only intend to be in New Zealand for a short time, to sit out the global rolling lockdowns with the benefit of close family and New Zealand’s great outdoors nearby, the potential of inadvertently triggering tax residence needs to be considered. Residence in New Zealand is broadly based on two tests, one of which applies a threshold for the number of days spent in New Zealand in any 12-month period, (183 days).

For individuals who are returning permanently to New Zealand, if their last visit was less than six months ago (e.g. over Christmas), there is a risk that they may have inadvertently triggered residency at that earlier time. New Zealanders who intended to return temporarily but who are grounded here indefinitely due to extended lockdown and closed borders, are also at high risk of exceeding the days count threshold in New Zealand and becoming a tax resident.

Key tax considerations

Some of the tax issues which can arise when you are treated as a New Zealand tax resident are set out below:

  1. Tax on foreign employment income:
    We are aware of several Kiwis who returned to New Zealand just before the borders officially shut, and who are still working for their foreign employers, but in an extra remote working from home arrangement.
    Exceeding the 183 days count threshold can mean that these individuals are taxable in New Zealand on their employment income. The obligations for income tax in New Zealand could apply in these situations regardless of the location of the foreign employer.
  2. Unexpected tax and administration obligations for foreign employers:
    Having an employee who is a tax resident in New Zealand can also have implications for the foreign employer. The obligation to pay New Zealand pay as you earn income tax (PAYE) is based on where an employee is tax resident and physically present.
    Other corporate tax risks can also arise as a result of an employee’s extended presence here. As such, it is important the offshore employer is made aware of individual’s presence in New Zealand so that the risks can be appropriately assessed by the business.
  3. Triggering transitional residence early:
    Kiwis returning to New Zealand often do so with careful forethought to manage the timing of when New Zealand tax residency starts. This is because tax residents are taxed on their worldwide income; while non-residents are taxed only on their New Zealand-sourced income.
    Some lucky individuals may be able to take advantage of a special tax concession known as transitional residence. This is available to first time New Zealand residents and those who have been out of New Zealand for more than 10 years, and who have not had the benefit of transitional residence status previously.
    For individuals who are treated as transitionally resident, all their offshore investments and assets will be exempt from the New Zealand tax base for a limited period. This gives people time to think about how to structure affairs and manage the impact of New Zealand taxation.
    If an individual is returning to New Zealand temporarily before a permanent return in a few years’ time, they may end up using up their transitional residence status before they get the benefit of it.
    The status is available for up to four years but ceases to be available once an individual becomes non-resident again.
  4. Offshore investments:
    For returning Kiwis who don’t have the benefit of transitional residence, it will be important to consider the tax treatment in New Zealand of offshore investments including foreign shares and bank accounts.
    Foreign investments including foreign superannuation are subject to distinct tax regimes in New Zealand, which can result in actual tax payable on unrealised gains.
    Many foreign shares are taxed based on a fixed percentage of the market value of those shares at the beginning of each tax year (1 April). Foreign exchange gains and losses can equally have a significant impact.
    Take the example of Bridget, an expat Kiwi who purchased a house with a mortgage while she was living in London. Having returned to live in New Zealand, she rented the property out, but after a few years, decided to sell the property. Because the New Zealand dollar had strengthened against the pound over the time since she became resident in New Zealand, she made a taxable gain on the mortgage even though in New Zealand dollar terms she made a capital loss on the disposal of the property.
    Finally, if you have an existing offshore business that you intend to keep operating after you return to New Zealand, you will need specific advice on the complex tax implications involved.

Next steps:

KPMG has prepared two helpful Tax Guides – Beyond Borders for Individuals, and Beyond Borders for Business Owners, which you can download for free.

If you would like to seek advice or to arrange your KPMG Kea Global Repatriation Package, our People Services team would love to hear from you. Please call Rebecca Armour on +64 9 363 5926 or email her at [email protected]

CONTRIBUTOR

Rebecca Armour

Partner, Global Mobility Services (tax)

KPMG New Zealand

Kea member


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Filed Under: COVID-19 recovery, Kiwi coming home Tagged With: Coming Home, Covid-19, KPMG, Tax

Victoria Macdonald reporting from an ICU

Tell us about yourself, and your role as Health and Social Care Correspondent for Channel 4 in the UK.

I have been the health and social care correspondent for Channel 4 News in the UK for 21 years, reporting on the national health service, Government health and social care policies, as well as more global issues like HIV and TB. It is so varied – every day is different but the constant is always being ready to scramble to wherever you are needed and making sure your hair and clothes are tidy enough not to distract while on air!

You have been covering the developments of the Covid-19 pandemic in the UK. What has it been like, and how does this compare to any other global health crisis you have covered?

For years I have reported on HIV and spent a lot of time in places like South Africa reporting on the terrible loss of life as well as the sometimes excellent, sometimes woeful, political responses worldwide. Several times during my career, ebola has broken out and we have prepared for it to spread globally. Each time it has been contained which is not to take away form the dreadful loss of lives in places like Sierra Leone and DRC. But nothing could prepare you for this pandemic.

We watched as it unfolded in China with increasing trepidation. Every day I would dial into the World Health Organisation press conferences as they gave updates on the figures and the strategies China was using to try and contain it. Once it spread across the world, my stories started to take in South Korea, the outbreaks on cruise ships, then Italy, and eventually, though inevitably to the UK. We have had to adapt rapidly to reporting at arms length (2m long poles to hold the microphones), zoom and Skype interviews are the norm, we rarely travel now. On the upside, there is more transparency from Government scientists in telling us what they do and don’t know, and we have far more ability to ask questions via the Downing Street briefing. I hasten to add, not all questions are answered or currently answerable but it is an important step forward.

Emotionally, it is distressing as you see the death toll climb and as more people are put in hospital. I said early on in this pandemic that as a reporter you are usually an observer but in this case we are all affected. My friends and family are as much at risk as everyone else’s. This isn’t something happening to other people, which is often the case when you are reporting. It is happening to all of us and I have to constantly remind myself, too, that I am not immune, and that I have to be careful, too. Seeing not just ‘elderly people with underlying conditions’ but young people. On a recent visit to an ICU Department I saw people who had been put into a coma and ventilated. It was distressing but I spoke to a nurse who had come back on to the ward after 10 years and I watched as she brushed the hair of a young woman and wiped her face. It brought me to tears.

Do you get overwhelmed, and if so how do you manage your own mental and physical health?

Do I get overwhelmed? Virtually every day. The amount of information coming in is incredible and you have to sift through it, work out what is true, what is important for that day, and what can hold or needs further investigation or interrogation. I don’t do it alone, I hasten to add. I have amazing colleagues, especially the producers I work with, so by the time the piece makes it to air a whole team has had input.

Every day I am working I also do a live in the studio to pick up on some of the areas that I haven’t had time to put into the piece, or that need more explaining. On my day off during the week I then have to turn my attention to home schooling which is infinitely more difficult than explaining coronavirus to the nation!!

In a world of social media and mis-information, what should our members be doing to ensure they have access to responsible and reliable reporting?

We are constantly bombarded with mis-information via social media and it is depressing how unquestioning some people can be but this pandemic has, on the plus side, brought out the scientist in many of us and I am impressed by how carefully the public is looking at the information available and taking on board the need for such things as shielding and social isolation. We are incredibly indebted to the Science Media Centre (there is a centre in NZ) who get expert comments to help you assess scientific papers being published or claims made.

While the world is focused on Covid-19, are there other global health and social care issues you are investigating and reporting on?

The very short answer to this is no. My job is only covid19 which is, of course, worrying because other health and social care issues haven’t gone away. Look at the measles epidemic, for instance, and all the children who still have not been vaccinated.

You have lived away from Aotearoa, New Zealand for some time, how do you think networks like Kea New Zealand help in the expat journey?

I am missing New Zealand very much at the moment, partly because of the fear it may be awhile before my daughter and I can visit, and because my parents and sister and brother are there and I worry about them. Keeping in touch with New Zealand and the expat community provides support at a time when you feel turned upside down by something so huge and so scary.

CONTRIBUTOR

Victoria Macdonald

Health and Social Care Correspondent

Channel 4 News, UK

World Class New Zealander

Filed Under: COVID-19 recovery, Global Kiwi, World changing Kiwi Tagged With: Covid-19, Health, journalism, media, Victoria Macdonald

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