Important Tax & Business Updates for Your Business
- weyelanja
- Aug 5
- 2 min read
Xero Price Increases - Action Required by September 1st
If you're currently using Xero's 'Grow', 'Comprehensive' or 'Ultimate' plans, you'll see another price increase from 1st September 2025. I know this is frustrating - these regular increases are really starting to add up for small businesses like yours.
There is an alternative. I'm now exploring MYOB as a cost-effective option for clients who want to reduce their accounting software costs. The main advantage is simple: price. MYOB offers comparable functionality at a lower cost, and they're gaining back market share as businesses look for budget-friendly alternatives.
The migration takes 3-5 working days depending on your data volume and is free of charge. MYOB also has an excellent support team to help with the first setup.
If you're interested in exploring this option, please reach out immediately so we can discuss your specific situation and I can provide you with pricing comparisons. There will be a setup fee involved, which we can discuss individually.
Updated Kilometre Rates for 2024-2025
Good news for anyone who uses their vehicle for business! The IRD has updated the kilometre rates, and most have increased:
Tier 1 rates (first 14,000km per year):
Petrol: $1.17 per km
Diesel: $1.26 per km
Petrol Hybrid: 86 cents per km
Electric: $1.08 per km
Tier 2 rates (over 14,000km per year):
Petrol: 37 cents per km
Diesel: 35 cents per km
Petrol Hybrid: 21 cents per km
Electric: 19 cents per km
These rates apply to:
Business vehicle expenses when you use your vehicle for both business and private purposes
Employee reimbursements when staff use their own vehicles for business travel
Remember: Keep that logbook up to date! You need to track your business kilometres to claim these deductions. If you're doing significant business travel, these rate increases could mean meaningful additional deductions.
Home Office Rate Increase
The square metre rate for home office calculations has increased to $55.60 per square metre for the 2024-2025 income year (1 May 2024 - 31 March 2025).
If you're working from home, here's how to calculate your potential deduction:
Measure your office space - length x width in metres (e.g., a 3m x 4m room = 12 square metres)
Multiply by $55.60 (so 12 sqm x $55.60 = $667.20 potential annual deduction)
Remember: This only applies to space used exclusively for business - not your kitchen table that doubles as a desk
This method covers costs like power, heating, cleaning, and depreciation for the business portion of your home.
Questions?
As always, I'm here if you have any questions about these changes or how they might affect your business. Don't hesitate to get in touch.
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