The Government is about to get another windfall - and if you're in business it's coming from your pocket.
Companies' annual returns will now come with a $45 fee and those in business will be forced to pay out for the Financial Markets Authority and External Reporting Board (XRB).
That might not be a major cost when you look at it on a sinle-business basis, but it all stacks up to millions of dollars. Commerce Minister Craig Foss says that the fee, as well as a levies for the FMA and XRB, will provide $16.4 million in funding a year for the FMA and $3.66 million for the XRB.
"The new levy and fee structures will help fund a well-regulated market that all investors can trust," Foss says. "It's important that our regulators are properly resourced." The new fees and levies began on August 1.
All companies are subject to a reintroduced Companies Office annual return fee, and $10 FMA and $10 XRB levies.
Personal Property Securities Register fees will be increased but the Companies Office company registration fee has been slightly reduced.
I see the point of the XRB. It used to be the New Zealand Institute of Charted Accountants that had the role of setting New Zealand reporting standards for its members.
Individuals and organisations want independence and fairness meaning this responsibility needed to be shifted.
Businesses want less red tape, but investors need to be informed.
If you want to issue or amend a company prospectus, you should have to pay and have it reviewed so it is free from misstatements and fraud.
The FMA site has a warning alerts and scams page on their website, which might save someone out there a lot of money.
Investment always comes with some risk but $45 a year for limited liability, really, that's still cheap.