TMNZ celebrates 20 years of investing in innovation
TMNZ turns 20 in April, celebrating two decades of innovation as the world’s first ever tax pool. Ingenuity and creative thinking have always been part of our DNA.
TMNZ started out as an idea. Our founder Ian Kuperus, who worked for Inland Revenue and in the banking industry, recognised way back in the 1980s that businesses and the tax department were struggling with managing provisional tax payments.
The problem was felt on both sides. Businesses didn’t know how much tax they needed to pay and nearly always ended up with a Use of Money Interest exposure which most businesses viewed as a “Use of Money Penalty”. Inland Revenue, on the other hand, had the dilemma of charging one interest rate to all taxpayers, which meant that large businesses were paying up to 14% interest when their normal borrowing cost was 7%. The situation was messy.
Ian came up with a clever solution — which would allow businesses to trade their over and underpayments and thereby reduce their interest costs.
After unsuccessfully pitching the concept to Trevor de Cleene. Minister of Revenue at the time, the idea went quiet for several years. Then, in 2001, IR issued a discussion document – “More Time for Business” that included a number of ideas to improve the provisional tax system. One of its suggestions? A tax pool.
A world first
If at first you don’t succeed, try, try again. Following IR’s review, Ian explored numerous business concepts – involving joint ventures with accounting firms, banks and other financial organisations. Eventually, he went out on his own, and in 2003, TMNZ was born.
Ian says his time working for IR, The National Bank, The Dairy Board and Fonterra gave him a unique perspective on New Zealand’s tax problems, and says he was motivated to make life easier for Kiwi businesses.
“I’m a passionate believer in the value of business creating employment and livelihood for individuals, their families, and communities,” he says. “I’ve always had a desire to improve things.”
He’s proud to have played a role in New Zealand’s rich history of innovation as an integral figure in the evolution of our tax system. For this reason, Ian was recognised as EY Entrepreneur of The Year category winner in 2013, for business and social entrepreneurship.
“To be involved in something that has improved the functioning of the tax system has been very rewarding. It’s great to be part of that era of reform that started in the 80s.”
Ian has always had a strong sense of purpose and community. So, it was no surprise that his business would give back to Aotearoa.
Being the change
One of TMNZ’s values is ‘be the change’, and this has been reflected in our philanthropic endeavours over the years.
“Since the beginning, we’ve always had an element of giving back and contributing,” Ian explains. “That’s always been part of our mission, but a couple of years ago we decided to go a step further and commit all of our profits to a Foundation.”
In 2019, Ian and his wife, Wendy, established Whakatupu Aotearoa Foundation to continue their legacy. TMNZ’s profits are now entirely dedicated to Whakatupu Aotearoa Foundation’s charitable and philanthropic mission, and our goals and objectives are now closely aligned with the causes we care about.
The Foundation invests bravely. It tests ideas that have the potential to create system change and improve our environment and communities. This is ‘venture philanthropy’.
The Foundation backs smart new ideas and works alongside talented project leads, helping them develop so they can bring others on board. The Foundation aims to tackle climate change and support marginalised and disadvantaged communities.
“These are two areas where there are significant needs,” Ian says. “There’s a great opportunity to make a difference, particularly with climate change, where we are running against the clock.”
The Auckland Climate Festival grew out of early funding from the Foundation and is now preparing for its third year. Mindful Fashion New Zealand is uniting businesses from the industry to reduce waste and operate more regeneratively, thanks to seed funding from the Foundation.
Helping other Kiwi innovators
Innovation plays an important role in tackling today’s major challenges in New Zealand, whether that’s climate change, natural disasters, health and wellbeing or economic prosperity.
“We’re proud to be helping to provide a cashflow boost to Kiwi innovators, so they can continue their important work,” says Ian.
TMNZ is administering Research and Development Tax Incentive (RDTI) in-year payments on behalf of the Government, providing businesses with regular cash payments towards R&D costs.
Launched in March, this world-first payments system enables businesses to receive 15% credit on eligible research and development expenditure as regular payments, rather than having to wait until after the end of the tax year.
Early-stage startups and other pre-profit research and development businesses are set to benefit the most from this interest-free loan solution, which provides cashflow boosts throughout the year.
This new R&D tax approach has landed exactly 20 years after TMNZ launched its global-first tax payment solution.
An innovative future
Looking back over the past two decades, Ian has learnt some valuable lessons about bringing business ideas to life.
So, what makes a successful innovator?
“It’s a combination of things,” Ian explains. “Being in a position where you’re prepared to take some risks, and having a vision of a better world or better business environment. Also, being prepared to engage with others and to allow your thinking to evolve.”
We’d like to thank all of our clients, partners, and employees who have supported us since 2003. As we look forward to the next 20 years, we’ll continue our commitment to investing in innovation.
Ian remains focused on inspiring the next generation of tax industry innovators at TMNZ.
“Knowing that we can carry on a tradition of innovation gives me great satisfaction. My role now is to continue fostering the right culture and environment for our team to continue their game-changing work.”
Mindful Fashion - Impact Story
“In New Zealand, approximately 45,000 tonnes of apparel is sent to landfill every year, made up of a whole range of clothing from different sources. That’s a lot of textile waste and it’s a problem because we know it releases a disproportionate amount of carbon emissions as it breaks down. Mindful Fashion has over 80 members who all believe in a more sustainable future for the industry. But, we’ve got a bigger problem in that we don’t, at a country level, have a system to deal with textile waste. This is something we are talking to the Government about addressing at a national level. ” – Jacinta FitzGerald, Programme Director, Mindful Fashion, speaking on Radio New Zealand
Each garment holds its own story; from design through to fabric creation, dyeing, cutting, sewing, finishing and selling. It can journey around the world in this time, consuming energy and water as it goes. The same items are worn less, if at all, contributing to vast quantities of textile-based landfill.
The New Zealand fashion industry faces enormous challenges to dramatically decarbonise, regenerate natural systems and reduce waste from its activities, while at the same time continuing to inspire and clothe consumers. However, there has been no clear vision for a low carbon, circular and regenerative clothing and fashion system in New Zealand and no pathway to guide the industry in this transition.
An area of particular importance for this sector is the circular economy; designing out waste, pollution, greenhouse gases, and keeping safe and clean materials in circulation. It means using new techniques to disrupt and improve supply chains and business models, and investing in people and communities that can make this possible.
In response to the current state of play, Mindful Fashion designed the New Zealand Fashion Industry Climate Action Programme, which was kickstarted by funding from Whakatupu Aotearoa Foundation. This led to further support from the Ministry for the Environment | Manatū Mō Te Taiao. It has been co-developed with carbon measurement and offset specialist Ekos and it is open to all of the fashion industry.
“As consumers we’re buying more clothes than ever and wearing them less than ever, and the industry is feeding these habits. So, the challenge is both to change buyer behaviour and disrupt the industry – because this can’t go on,” says Yii Petrus, Programme Director for Whakatupu Aotearoa Foundation. “I have seen Jacinta take the lead in this space. She has quickly become a national spokesperson for sustainable fashion in Aotearoa due to the pace at which she has gathered support from the industry. She is collaborating with leaders who are seeking solutions and it is an inspiring movement to be part of,” says Yii.
“We know that globally the fashion industry is a huge contributor to carbon emissions. Our action-oriented programme will build capability and use collective action to drive reductions over time. This is a programme the entire fashion and textiles industry can get behind, and frankly it must if we are to meet global targets.” – Jacinta FitzGerald, Programme Director, Mindful Fashion
With support from Whakatupu Aotearoa Foundation, Jacinta has worked with industry, national and international stakeholders to develop an NZ fashion industry programme and high-level roadmap, to drive climate action. She has campaigned across the sector to establish crucial partnerships and signatories and is seeking ways to incentivise participation from the wider industry.
The roadmap identifies a staged approach to climate-positive action that all players in the industry, from textile suppliers to machinists to retailers, can follow. The people, processes and channels are all touchpoints for sustainability and emissions reduction, and product stewardship is central to success. Through Mindful Fashion, members can gain knowledge and upskill in sustainability, and find ways to take action to lower their emissions throughout their supply chain with industry specific guidance and tools.
As the only industry body for the sector in Aotearoa, Mindful Fashion is uniquely positioned to drive the collaboration required to build a sustainable and thriving future for our fashion and textiles.
By the numbers
As at December 2022
9
workshops and events
80+
signatories
$80k
our investment
Inspirational idea wins Tax Policy Scholarship Competition
A game-changing idea to fight climate change won this year’s Tax Policy Charitable Trust Scholarship.
Each year, the Tax Policy Charitable Trust (supported by TMNZ) awards a scholarship to celebrate the brightest young minds in the industry, and 2022’s submissions were as inspirational as ever.
Entrants were invited to submit ideas that could transform New Zealand’s tax landscape, looking at either environmental taxation, tax administration, or the powers granted to the Commissioner of Inland Revenue to collect information.
The competition, open to people aged 35 and under, generated progressive and innovative ideas from the industry’s young leaders. In the end, one entrant was selected as this year’s winner for her outstanding approach to New Zealand’s tax and environmental challenges.
And the winner is....
Vivien Lei, Group Tax Advisor at Fisher & Paykel Healthcare, won this year’s scholarship for her submission to introduce Impact Weighted Taxation in New Zealand, an innovative idea that would see businesses pay taxes based on their environmental impact.
A panel of leading industry professionals judged Lei’s proposal as the winner among a strong field of candidates. Mitchell Fraser, Daniel Doughty, and Jordan Yates were also celebrated as finalists in the competition.
Lei was crowned the winner at the Tax Policy Charitable Trust’s finals evening on October 19, after each finalist presented their idea to an audience of industry professionals.
Trust Chair John Shewan said the judges were “delighted to see passion and energy behind the submissions and supporting presentations”.
Lei, who received a $10,000 cash prize, described the competition as “an amazing experience”.
“You don't often get many opportunities to think creatively about tax policy, so this was a nice space to do that,” Lei says. “Being able to develop my policy thinking and talk to some of the leading experts was really great — and winning was a huge surprise!”
This year was Lei’s second attempt to win the scholarship following an earlier submission in 2019. Her perseverance and positive attitude paid off.
“I entered when I was still very green in my career,” she says. “Since then, I’ve been mentored by amazing people who have helped with my development, particularly Rachael Bull, Head of Tax at Fisher & Paykel Healthcare, and Joseph Chueh who fostered my interest in tax policy. I was grateful to have their support this time around.”
Tax to fight the climate threat
Lei’s background in the social impact sector and personal concerns about the environment informed her submission idea.
“These are the most difficult problems of our time,” she says. “I’m hoping my idea will bring the conversation to the fore and spark other young minds in our industry to think about how tax might influence positive environmental outcomes.”
The Tax Policy Scholarship Competition is proudly supported by TMNZ, which invests 100% of its profits back into the environment and community, through strategic philanthropic partner, Whakatupu Aotearoa Foundation. Lei believes that tax professionals can help to build a better future for Aotearoa.
“It’s scary to think about the trajectory we are on with our natural capital, so it’s important for our industry to think of ways to help,” she adds.
Inspiring future tax leaders
Tax Policy Scholarship Competition Judges commented that this year’s entrants will inspire future generations as well as today’s professionals.
“This competition is all about supporting and inspiring future tax policy leaders. The results from this year and from earlier years’ competitions reflect the presence of emerging talent that will ensure the continuation of leading tax policy research and thinking in New Zealand,” said the judges.
Find out more about the Tax Policy Scholarship Competition here.
Upside Youth Mentoring - Impact Story
“Mentoring is a circuit breaker that can be life changing for young people. Introducing a consistent and positive role model into the lives of struggling 9 to 13-year-olds gives them the hope, confidence and ambition to choose a different path.” – Jenny Horst, Chief Executive, Upside
Upside works with schools to identify young people who are showing signs of hardship or where a difficult homelife is manifesting in troubled behaviour in the classroom. This early window of intervention can make a difference to the rest of their lives.
The charity came about in 2006 through the combined efforts of co-founders John Newman, Bill Grayson and Dave Robertson. The trio carry a sustained belief that showing up for young people, through mentorship, at the early signs of trouble can give them a chance in their life that, so far, may not have had much chance at all.
Since then, over a thousand young people have been personally supported through the programme, which sees them meeting with an assigned volunteer mentor once a week for a year. It has a 90% success rate (those matches who reach 12 months in their journey together), often leading to a long-term bond.
Until 2021, income was predominantly from grants, with some individual donors, making funding uncertain and planning for the future a challenge. The organisation was growing, so achieving more reliable and diversified income was important. Broadening funding sources was a key strategic goal identified by the organisation to ensure sustainable service delivery and growth. Whakatupu Aotearoa Foundation supported Upside to achieve their strategy, resulting in the recruitment of a Fundraising Manager to generate a more sustainable income stream. Rachel Clarke was hired and her skills in fundraising and marketing have changed Upside’s future.
Whakatupu Aotearoa Foundation is a catalytic funder and seeks to support organisations to generate greater impact and more robust operational models. “Upside was keen to develop its income mix to provide a diverse and reliable position for planning. However, getting the funds to build this capacity is always a challenge. Fundraising for activity that is not part of a charities’ core work is hard, but we view this as strategic and a way to support the team on their journey to delivering outstanding results for disadvantaged young people.” says Carl Vink, Chief Executive of the Foundation. “We were able to provide upfront support for their initiative with progress payments during the project to support the milestones being achieved.”
The Upside team had the confidence to push ahead and recruit a fundraising role and develop their approach and strategy. The investment has paid off and they now have a broader and deeper income mix with enhanced relationships and ultimately more sustainable income streams.
For every dollar invested in Upside, $4.70 of social returns are achieved. This is according to ImpactLab, who have quantified the harm that has been avoided and the good created from Upside’s youth mentoring programme.
“Upside is also catalytic in its nature; early intervention in the lives of young people brings hope and opportunity into an otherwise darkening future. We saw a chance to uplift their work through venture philanthropy; to de-risk an investment in skills that could grow their work. It is exactly where we are positioned as a funding partner,” says Carl.
Research shows 84% of young people that Upside is working with have experienced some form of neglect, nearly all are in living in poverty, almost half have experienced violence and 33% were at risk of suicide. Understanding the situation for young people, as well as how Upside is making a difference is another important part of Rachel’s job. “By undertaking research, we can communicate what is happening in the lives of young people and how the tools and experiences we offer can support them in building a brighter future. It helps funders understand that, through investing in us, we can make a real difference together,” says Rachel.
Upside have gone on to share their programme with others, such as Springboard Community Works, who use the Upside Youth Mentoring model in their own work, bringing even more positive options into young lives.
For every dollar invested in Upside, $4.70 of social returns are achieved. This is according to ImpactLab, who have quantified the harm that has been avoided and the good created from Upside’s youth mentoring programme.
By the numbers
As at January 2023
7,000+
annual volunteer hours
1,000+
young people reached
$98,500
our investment
TMNZ: 100% invested in a better Aotearoa
We’re proud to invest 100% of our profits in Whakatupu Aotearoa Foundation to help the environment and community. We have a shared goal to help build a better Aotearoa and make a difference to our people and planet. Discover how working with TMNZ enables us to achieve our goals.
Nearly 20 years after we broke the mould as the world’s first tax pool, we’re reimagining what it means to be a purpose-driven business by investing our profits back into the people and environment of Aotearoa through the Foundation.
In 2003, TMNZ was born, from a desire to help improve the tax environment for New Zealanders. Our founder Ian Kuperus created the first ever tax pooling intermediary in April that year, becoming the first mover in an innovative, uncharted industry.
Our company has evolved significantly since then.
Now operating a pool of up to $10 billion, we have supported more than 100,000 taxpayers. Over the decades, we have helped countless businesses and sole traders better manage their Inland Revenue tax payments, making the provisional tax system easier for New Zealanders to navigate.
Aside from driving tax innovation, philanthropy has always been a significant part of our story. Here’s how it has informed our past, and how it will influence our future.
Our history of giving
In the early days of TMNZ, our founders Ian and Wendy Kuperus had a strong philanthropic vision; to support organisations reaching communities across Aotearoa, making a difference in the lives of New Zealanders. For many years they donated significantly through their private charitable foundation, sharing the stories of impact with people along their journey.
Ian and Wendy stepped back from the day-to-day running of our business in 2011, but over the past 11 years, their ambition to make Aotearoa a better place has strengthened. With the growing pressures on our environment and social challenges in our communities, their goal of making an impact has grown.
As more people and businesses join our tax pool each year and our business continues to grow, we have increased our efforts to ensure we make a difference with our profits and benefit New Zealanders for generations to come.
In 2020, Ian and Wendy decided they would commit the profit of the business to Whakatupu Aotearoa Foundation to support philanthropy and charitable initiatives. They wanted to enable TMNZ to help drive change in New Zealand and create something that would leave a lasting legacy, addressing some of the key issues facing our country.
How Whakatupu Aotearoa Foundation works
Whakatupu Aotearoa Foundation was established in 2020 to continue the great work of our founders. All of TMNZ’s profits are directed towards Whakatupu Aotearoa Foundation to support philanthropic and impactful initiatives, and our goals and objectives as a business and Foundation are more closely aligned than ever. Everything we do as a company is designed to give back to New Zealand.
The Foundation and TMNZ have a vision for a restored and thriving Aotearoa. Our business generates profits and resources that go towards these strategic philanthropic endeavors. Our people are all engaged in this purpose every day.
Everyone who works at TMNZ is connected to our purpose and the work of our Foundation. Our people know that alongside their day job of making tax more flexible for Kiwis, we have an underlying objective to make a difference to our nation’s future.
Climate change is a significant focus area for the Foundation. We are seeing rapid changes to our environment that pose a threat to our future, our people and our ecosystems. The Foundation also strives to help marginalised and disadvantaged communities, which are more significantly impacted by our nation’s challenges, including the threat of climate change.
Whakatupu Aotearoa Foundation invests in projects that are designed to create lasting impact for our environment and communities. The Foundation seeks to ignite ideas that may not otherwise have been realised and its support is both financial and strategic. People working for the Foundation offer guidance and connect projects to external skills through the Foundation and TMNZ’s broad network.
Whakatupu Aotearoa Foundation is inspired by the entrepreneurial spirit of TMNZ’s founders. As the first tax intermediary in the world, TMNZ took risks to get where it is today, going to places where none had gone before. The Foundation promises to do the same, and help to accelerate change as quickly as possible to tackle complex issues.
How does the Foundation do things differently? By making catalytic investments to help set up projects and platforms such as Live Ocean Foundation. Having seen first-hand through their sailing careers how interconnected the world is through the ocean, and realising the critical need to look after it, yachtsmen Peter Burling and Blair Tuke founded Live Ocean Foundation.
It partners with exceptional New Zealand scientists, innovators and communicators to scale up action for a healthy ocean. New Zealand has the world’s fourth largest ocean area, yet only 0.4% is protected. Oceans are one of our greatest allies in the fight against climate change and we must do more to look after them. Whakatupu Aotearoa Foundation has been supporting Live Ocean from its early days to achieve its goals.
Purpose for our people
We’re proud to be a purpose-led business, investing in our people, clients, communities, and the environment. Our purpose is underpinned by our core values; be socially conscious, be the change, collaborate and connect, and make it easy.
Increasingly, people are looking for purpose in their work, and we are proud to offer each of our employees the chance to donate $1,000 to a registered charity of their choice every year. It’s a small gesture that makes a big difference — our people can personally direct funding to a charity that has affected their lives, or the lives of loved ones.
We give autonomy to our people, enabling them to engage in philanthropy from a personal level and contribute to causes that are meaningful to them, as well as supporting Whakatupu Aotearoa Foundation through their everyday work at TMNZ. The initiative has helped us to learn more about our people and what is important to them as we continue to embed philanthropy into our company.
Becoming more sustainable
In line with our goal to build a restored and thriving Aotearoa New Zealand, at TMNZ and Whakatupu Aotearoa Foundation we have turned the spotlight on ourselves over the past year to deliver a holistic approach to sustainability.
Earlier this year, we moved our headquarters in Auckland to a state-of-the-art sustainable office on 23 Customs Street, putting the environment and our people at the heart of the design.
During the year leading up to the move, we developed our sustainable new headquarters with consideration for climate change, environmental impact and waste mitigation, as well as providing a welcoming space for our people, and clients, and partners of TMNZ and the Foundation.
Engagement sessions with our employees ensured that everyone was involved in the moving process. Every aspect of the design, from flooring to furniture, was chosen with sustainability in mind, with recycled and reused materials incorporated throughout,
The vision was made a reality on moving day in March as we moved into our new home. TMNZ and Whakatupu Aotearoa Foundation have a continued commitment to reducing our environmental footprint, cutting down on waste, and finding new ways to improve on sustainability.
Relentless innovation
True to our values back in 2003, TMNZ remains relentlessly focused on tax innovation and making life easier for our clients. Technology will continue to drive innovation and enhance our services in the years to come.
Our business is in transformation mode, and we will continue to explore new ways to meet our clients’ growing demands.
Already this year, we have introduced Inland Revenue integration for our clients, with the help of Reckon/APS, and sustainable e-signature provider Good Sign. Further innovation is on the way.
We have been selected by Ministry of Business, Innovation and Employment as delivery partner, for the R&D Tax Incentive In-Year Payments Scheme. New Zealand businesses performing eligible R&D will soon be able to access R&D Tax Incentive credits much earlier, with the introduction of in-year payments in 2023. We are excited to be part of a solution that will help R&D companies doing great work to grow our economy.
100% invested in a better Aotearoa
By delivering a great service to our clients, making a profit, and donating to Whakatupu Aotearoa Foundation, we can help to tackle environmental and social challenges, putting our country in a stronger position to face the future with confidence.
Our goal to deliver the best tax solutions for Kiwis won’t change. But the impact we can make will. Whether it’s delivering flexible tax services to our clients, or working with charitable partners to drive change across Aotearoa, both TMNZ and the Foundation are committed to making a positive impact.
By investing our profit back into the Foundation to support its initiatives for the environment and community, our clients, our business, and our Foundation are all in it together.
Carl Vink, Chief Executive of Whakatupu Aotearoa Foundation, says: “It is an exciting journey, that we all are on across TMNZ, the Foundation and our project partners. We are united by taking on the biggest challenges facing our nation. There is no better motivation."
“This is such a unique opportunity to make a difference and infuse the goals of the Foundation into TMNZ,” adds Chris Cunniffe, Chief Executive of TMNZ. “Our business is fully invested in our country.”
Live Ocean - Impact Story
The ocean is a life support system for our planet – it provides 50% of our oxygen, has absorbed 90% of the extra heat we have produced, and can host thriving ecosystems of marine life. But climate change is affecting what’s above and below the waterline. Our oceans are changing, they’re heating up, becoming more acidic, and are at a tipping point.
Aotearoa is an ocean giant. We have the fourth largest ocean space in the world, but we only protect 0.4% of it. As guardians, it’s our role to look after, protect and restore it so that life can flourish.
Having seen first-hand through their sailing careers the interconnectedness of the world through the ocean, and realising the critical need to look after it, in 2019 sporting legends Peter Burling and Blair Tuke founded Live Ocean Foundation. It partners with exceptional New Zealand scientists, innovators and communicators to scale up action for a healthy ocean.
An example of research taking place is the documenting of kelp forest loss in Tīkapa Moana, the beautiful Hauraki Gulf. Beneath the surface the ecosystem is in crisis. A key tohu or indicator is the kina barrens that have become prevalent where kelp used to thrive. Live Ocean Foundation is supporting research into the significance of kelp forests and their regeneration. This research is led by Dr Nick Shears and Dr Caitlin Blain from the University of Auckland. The research is looking at how we can protect and restore coastal areas to encourage kelp forests to bloom and those ecosystems to recover. It’s also investigating how kelp forests contribute to carbon cycles, providing an exciting potential opportunity to quantify blue carbon.
“There is no option other than to act, together and with urgency to secure the ongoing health and productivity of the ocean.” – Sally Paterson, Chief Executive, Live Ocean Foundation (Speaking at the United Nations Ocean Conference, Lisbon 2022)
In 2022, Peter Burling and Blair Tuke presented a commitment of over 120 leading sportspeople and ocean communities to the UN Secretary General’s Special Envoy for the Ocean, Ambassador Thomson, at the UN Ocean Conference in Lisbon. This is part of Live Ocean’s work to create a platform that amplifies the voices of sportspeople – calling for better global marine protection on the world’s stage. Here, Chief Executive Sally Paterson spoke to the conference on behalf of Live Ocean Foundation, presenting its work.
Whakatupu Aotearoa Foundation’s journey with Live Ocean Foundation started two years ahead of Lisbon. With the combined talents of Peter Burling, Blair Tuke and Sally Paterson on board it was clear that their strong leadership, diverse connections, experience and a shared global vision for the ocean could create much-needed kinetic action. Action that is required across government, business and communities. As an initial partner, Whakatupu Aotearoa Foundation was able to provide catalytic funding to help establish Live Ocean and provide core infrastructure to set up and run the organisation.
As Founder of Whakatupu Aotearoa Foundation and a keen recreational sailor, Ian Kuperus relates to Live Ocean’s mission. “The sea connects us all, we rely heavily on its prosperity and we are bound together to protect it. As a nation of voyagers and travellers who have made our home on a group of islands way out in the Pacific, our identity extends to the water as much as the land. We are all invested in its restoration, and I am inspired by the team’s urgent and considered progress at Live Ocean.”
By the numbers
As at October 2022
11
projects
2.4m
people reached
$850k
our investment
All Heart NZ - Impact Story
An extraordinary amount of corporate and construction, or demolition, material ends up in landfill when owners consider it to have reached the end of its useful life. It is these materials that make up the large majority of what goes into landfill, currently about 83%, but what else can we do with it?
Joe Youssef placed himself at the heart of this question and rose to the enormous challenge of repurposing and redistributing perceived ‘waste’ to those who look at it as an exceptional, life-changing resource. He founded All Heart NZ in 2016 and communities around Aotearoa began receiving office chairs and tables, storage furniture, stationary, de-branded clothing, technology, hotel linen and repurposed retirement-home furnishings. Everything, including the kitchen sink!
All Heart NZ employees come from all walks of life and Joe seeks to bring on staff who are looking for a chance, helping them to return to the workforce, for whatever reason, and gain meaningful employment. Roles are varied and have recently extended towards upcycling materials that need work before they can be redistributed, and breaking down materials into their separate recyclable parts, diverting them from landfill and extending their use.
“We have a tendency to think and act in a linear way. We extract resources to create a thing that is then sold, consumed, and ultimately thrown away. That has to stop. At All Heart NZ we don’t talk about waste, we talk about resource.” – Joe Youssef, Founder and Chief Encourager, All Heart NZ
“Businesses aren’t buildings, they are people,” Joe reminds us. As soon as a better way becomes available, people are drawn to it. Since All Heart NZ started six years ago, the All Heart NZ network of providers and recipients has grown to a level that requires minimal storage. An All Heart NZ driver will pick up and drop off all items on the same day as matches are made in advance. There is also a social enterprise stream at All Heart NZ. Items that can be repurposed or sold are taken through the retail network, All Heart Store, providing a circular solution for the resource, creating further employment, volunteerism, and training opportunities.
With All Heart NZ looking to grow further outside of Auckland, establishing its regional All Heart Store network was key. However, funding was a significant constraint. Through the partnership with the Whakatupu Aotearoa Foundation, Joe has been able to explore new initiatives and grow the store network, including adding additional services to the business model, enabling corporates to strategically rethink and redesign waste out.
Having seed funders that can appreciate the vision and get behind it is absolutely critical. Joe worked closely with Carl Vink, Chief Executive of Whakatupu Aotearoa Foundation, on realising the vision. “Joe is one of the leading lights in trying to change the mindset of our businesses and communities, while also providing the critical infrastructure to help organisations do better with the material they no longer need,” says Carl.
By the numbers
As at October 2022
4.4m kgs
resources recovered
355
community recipients reached
1,770
corporate providers reached
$340k
our investment
Tax Policy Scholarship showcases the next generation of talent
Four bright young industry minds have emerged as finalists in this year’s Tax Policy Scholarship Competition, an annual prize hosted by the Tax Policy Charitable Trust.
The biannual competition, which supports the continuation of leading tax policy research and thinking in New Zealand, enters its fourth round in 2022. The first competition was run in 2015.
The scholarship is designed to inspire the next generation of tax industry leaders. This year, entrants under the age of 35 were invited to propose significant reforms to our current tax system or analyse potential weaknesses and unintended consequences from existing laws, and propose changes to address them.
Entrants were asked to tackle one of three topics: environmental taxation, tax administration, or the powers granted to the Commissioner of Inland Revenue to collect information for tax policy purposes. Participants were invited to address the topics with creative ideas backed up by reasoned research and analysis.
We are delighted to announce the four finalists for this year’s competition, selected by our panel of leading tax industry professionals.
Daniel Doughty
Daniel is a Senior Consultant with EY in Wellington. He has proposed the introduction of a small business consolidated reporting regime to simplify tax reporting for small companies.
The regime would consolidate pre-existing tax obligations into a single report to be filed every second month. Inland Revenue would send an automated income summary out at the end of the year, similar to those currently prepared for individuals.
Mitchell Fraser
Mitchell is a Tax Solicitor with Mayne Wetherell in Auckland. Mitchell is concerned that the recently-expanded powers granted to Inland Revenue to collect information for tax policy purposes could create unintended consequences.
He believes the new powers risk political interference, conflicting with the IR’s need to be politically neutral. Mitchell proposes identifying alternative means to collect this information, including through Statistics New Zealand.
Vivien Lei
Vivien is Group Tax Advisor with Fisher & Paykel Healthcare, and finance lead with the Fisher & Paykel Healthcare Foundation.
Vivien proposes to change New Zealand’s environmental practices through the introduction of an impact-weighted tax regime. Under this model, organisations would be taxed on their net positive or negative impact on the environment.
Jordan Yates
Jordan is a Senior Tax Consultant with ASB in Auckland.
Jordan believes the tax policy landscape is fractured, and suffocated by political roadblocks. His proposal is to establish an independent statutory authority that would be responsible for the independent management of fiscal policy, as it relates to the tax base.
Selecting a winner
The finalists were announced on 2 June, and each will go on to develop a 4,000-word submission on their proposal.
The four will be invited to present their final proposals and answer questions at a function in October 2022. The winner will be announced that evening.
Our Tax Policy Scholarship Competition celebrates creative thinking from young professionals and also provides a springboard for the brightest industry minds to develop their careers.
Nigel Jemson, the winner of the 2019 competition, says: “Entering the competition was a terrific opportunity for me to grow and develop my tax policy thinking and connect with leading minds in the tax community. Winning the competition has given my career a boost and since, I have enjoyed a range of great roles in tax for leading businesses, Spark and PwC, and continued my involvement in and passion for New Zealand tax policy.”
Chris Cunniffe, Tax Policy Charitable Trust Committee Member and TMNZ Chief Executive, says this year’s entries underline the strength of the next generation.
“We’re consistently delighted with the breadth and the freshness of thinking young people bring to this competition. The competition provides a forum to share ideas, and secondly, ensures that creative tax policy is not the sole domain of people who have worked in the industry for a long time. As an industry, we are open to fresh thinking and new ideas.”
Tax Policy Charitable Trust Chair John Shewan says the entries prove the industry’s future is in good hands.
“New Zealand has been very fortunate to have so many competent tax leaders involved in developing policy for the betterment of our country. It’s very exciting to be around the next generation of future tax policy influencers, who are already, at a young age, focused on innovative opportunities to enhance the tax landscape.”
Michelle Redington, Chief Tax Counsel at Inland Revenue, who was the guest speaker at the event where the four finalists were announced, says it is fantastic to see the Tax Policy Charitable Trust create opportunities for the next wave of tax policy thinkers.
“Throughout my career, I have been very lucky to be supported by some of New Zealand’s preeminent tax leaders, who have been fantastic teachers and mentors,” she says. “I’ve enjoyed a diverse career in tax, spurred on by a need to solve complex problems, and I’m proud to be able to give back to the next generation of talented tax enthusiasts.”
Find out more about the Tax Policy Scholarship Competition, here.
Using the Due Date on myIR statements may needlessly expose you to UOMI
Let's talk about how TMNZ can help you to avoid interest charges with payments at P3.
Unfortunately we're seeing many clients buying tax at the wrong dates. We believe this is caused by the confusing way Inland Revenue displays the Residual Income Tax liability on the myIR statements. If a taxpayer doesn’t meet the safe harbour threshold of less than $60,000 RIT for the relevant tax year, paying tax at terminal tax date will cost you Inland Revenue Use of Money Interest (UOMI).
Why is this?
- Inland Revenue myIR transaction detail statements show the tax due split on what amounts are liable for late payment penalties and what amounts are not.
- As late payment penalties are charged on the lesser of the standard uplift amounts and RIT/3 for all provisional tax dates, they will usually show two amounts for the P3 date. The standard uplift amount will be shown as due at P3, and the balance of current year RIT will be shown as due at the Terminal Tax date.
- However, what is not clear on myIR is that use of money interest will be charged on the combined P3 total, from P3 to the date the tax is paid.
- So those that are not transferring the combined total at P3 but transferring the amount at the terminal tax date, will incur interest from the P3 date.
How can I stop this?
When transferring or purchasing tax from the TMNZ tax pool, you should be doing this for the combined P3 amount at the P3 date. This will mean you avoid interest charges.
To find out more, get in touch.
Disclaimer: This article is correct as at 19 April 2022. It is subject to change.
TMNZ’s sustainable office: how we moved and improved our environmental footprint
Our new Auckland office aligns with our ambition to build a more sustainable future for Aotearoa. Here’s why we made the move.
When we kick-started the process of finding a new Auckland home last July, we were eager to do things differently and place a strong emphasis on sustainability. At TMNZ, we’ve always been conscious of the environment, but we wanted to go a step further as we developed our new corporate headquarters.
We wanted to ensure people and the environment were at the heart of our new workspace design. We needed to find the right setting for our Auckland employees and develop an office that would help us become more sustainable. Moving required a holistic approach, incorporating climate change, environmental degradation, and waste mitigation.
“We wanted to create a great workplace for our people to enjoy. They were involved throughout the project,” says Amanda Thorpe, TMNZ’s Head of People and Culture. “Our people helped us select the office space and we ran engagement sessions with employees to discuss aspects of the design. We worked together to make our vision a reality for both TMNZ and the Whakatupu Aotearoa Foundation, as we continue to support the trust’s philanthropic efforts.”
The environment is a big focus for TMNZ and the Whakatupu Aotearoa Foundation. Through the Foundation we look to invest in initiatives that tackle climate change, environmental degradation, declining biodiversity, and waste. It was very important to us to give the same environmental focus and attention to the design of our new workplace.
Building a sustainable home
We selected an office at 23 Customs Street in Auckland and enlisted Peter Doyle, from NOWW Advisory and Wingate Architects, to help us build an eco-friendly workspace. Together we explored how we could reduce our environmental footprint with each decision.
”Materials used in the new space have been chosen with sustainability in mind,” says Sarah Bryant, Associate Senior Interior Designer at Wingate Architects. “TMNZ’s new home features Jacobsen’s carpets made from recycled drinking bottles, Tarkett hard floors manufactured from recycled PVC, and Green Tag Certified Autex Cube ceiling tiles, made with at least 40 percent recycled materials.”
We selected sustainably-sourced mataī joinery and panels, and recycled rimu tables. We also chose sustainable furniture fabrics for every chair and stool.
No detail was too small; desktop surfaces at TMNZ are now made of all-natural linoleum, produced from pure oxidised vegetable linseed oil and natural pine rosin. We also made use of recycled products, including a reused office pod that hosts our breakout meetings.
Making an impact, without waste
While we took a careful approach, moving from one place to another inevitably produces waste. In our case, much of our old furniture was no longer suitable for the new office. Our people worked to find a solution and struck upon an idea to recycle and make a social impact at the same time.
To ensure nothing went to landfill, we teamed up with All Heart NZ, a charitable organisation that works with corporates to redirect and repurpose unwanted corporate and construction items. The organisation offers ‘Reduce partnerships’, which help to further develop the sustainable, ethical, and social aspects of procurement and supply chain management. All Heart NZ has established a national circular solution for redundant corporate items, which creates employment, volunteerism, and training opportunities while supporting local community need.
All Heart NZ helped us to achieve a positive social and environmental outcome by redirecting 216 items weighing more than 6,500kgs. With items reused, repurposed, and resold, 100 percent of the benefit went to New Zealand communities in need.
Joe Youssef, All Heart NZ’s Founder and Chief Encourager says: “We know that improving the ways we source and dispose of corporate goods can positively impact our planet and people. We partnered with TMNZ to redirect all redundant materials in preparation for their office move. Together we created a sustainable solution and community impact to be proud of.”
Through our partnership, we added $16,700 in community impact value and avoided 7.6 tonnes of carbon emissions. All Heart NZ’s partnerships have supported 439 different communities throughout Aotearoa and the Pacific, helping them save or raise more than $9.1 million, while at the same time assisting corporate partners to divert more than 3.7-million kilograms from landfill.
A welcoming space for our people
Our office was designed for our people. Collaborative spaces and new technology will enable us to work together and with our customers and partners regardless of where they are in New Zealand. Technology including whiteboard cameras, immersive collaboration spaces and fully cable-free working will make us more connected than ever and reduce the need for unnecessary travel. What’s more, we have chosen technology suppliers that lead in terms of their sustainability commitments while at the same time provide a seamless employee experience.
We moved into our new workspace in March, and our environmental sustainability efforts continue. We have made an ongoing commitment to reduce waste sent to landfill and we’re constantly exploring new ways to improve.
TMNZ and the Whakatupu Aotearoa Foundation have a shared vision of a “restored and thriving Aotearoa”. Our new workspace will allow both organisations to come together with clients and charity partners in an open, inviting environment — one that has been designed to limit the impact on future generations.
While COVID-19 restrictions have prevented us from welcoming visitors into our new home so far, we look forward to showing customers and charity partners our new surroundings in the months to come as we mark new chapters at TMNZ and the Whakatupu Aotearoa Foundation.