# Kaimai Law Bethlehem & Ōmokoroa Site: https://www.klb.co.nz Sitemap: https://www.klb.co.nz/sitemap.xml ## Pages - [Home](https://www.klb.co.nz/https://www.klb.co.nz/) — Kaimai Law Bethlehem and a Tauranga based law firm with professional lawyers and solicitors for all of your requirements. Phone us on 07 579 2350 Welcome to Kaimai Law Bethlehem & ŌmokoroaTauranga based law firms with professional lawyers and solicitorsKaimai Law Bethlehem has been based in Bethlehem, Tauranga for over a decade. Our Ōmokoroa office opened earlier this year. The majority of lawyers in our professional team at Kaimai Law have years of experience in their respective fields, which means that they have the knowledge required to give you legal advice you can trust.  This is essential when seeking legal advice.  We know that life is busy and there are more important things to worry about than whether or not you can trust your lawyer.  When you come to Kaimai Law Bethlehem & Ōmokoroa, you can set your mind at ease, knowing you are in good hands.Kaimai Law Bethlehem & Ōmokoroa specialise in all property matters including conveyancing, finance and subdivisions, as well as family law, commercial law, estate planning, estate administration, trusts, wills, employment law and relationship property. These are your one stop Law shops in Tauranga.Kaimai Law Bethlehem & Ōmokoroa is proud to support the Waipuna Hospice and have raised over $1,500.00 receiving donations instead of charging for certifying & witnessing ce… - [Our People](https://www.klb.co.nz/https://www.klb.co.nz/our-people) — Our People Our PeopleThe majority of the members of the professional team at Kaimai Law Bethlehem and Ōmokoroa have years of experience in their respective fields, which means that they have the knowledge required to give you legal advice and service that you can trust. - [Tina McLennan](https://www.klb.co.nz/https://www.klb.co.nz/our-people/tina-mclennan) — Tina McLennan Tina McLennanDirectortina@klb.co.nz07 579 2350 Ext 203University of Waikato LL.BAdmitted to the Bar in 1996Tina specialises in:TrustsEstate Planning - Wills and Powers of AttorneyRelationship PropertyAll aspects of Commercial and Business Law including:Sale & Purchase of BusinessLeasesFranchisesCompany FormationShareholder AgreementsJoint Venture AgreementsTina moved from Hamilton to Kaimai Law in April 2009.  Going on to become a Partner in August 2010, and then sole Principal of Kaimai Law Bethlehem in July 2011.Tina enjoys spending time with her young family and is a keen soccer player, however as she is prone to injuring herself she now enjoys Tramping. - [Gemma Keystone](https://www.klb.co.nz/https://www.klb.co.nz/our-people/gemma-keystone) — Gemma Keystone Gemma KeystoneDirectorgemmak@klb.co.nz07 579 2350 Ext 216University of Waikato LLBAdmitted to the Bar 2008Admitted to the Bar of Western Australia in November 2008Lead Provider in Family Legal AidGemma specialises in:Family Law including:Care of Children and Parenting Orders;Guardianship and Relocation;Domestic Violence;Relationship Property;Dissolution;andEstate litigation - Family Protection - Testamentary PromisesProperty LawGemma joined Kaimai Law Bethlehem in January 2015.  Prior to this she has worked for a number of years for other family and general practices in New Zealand and Western Australia. Gemma hails from the mighty King Country and is a country girl at heart.  In her spare time, she can be found with her Husband working on their small rural property in Whakamarama where… - [Anna Ferguson](https://www.klb.co.nz/https://www.klb.co.nz/our-people/anna-ferguson) — Anna Ferguson Anna FergusonDirectoranna@klb.co.nz 07 579 2350 Ext 214University of Waikato LLBAdmitted to the Bar in 2000Anna specialises in all aspects of Property Law including:SubdivisionsSale & Purchase of LandEasementsLeasesBuildingAlso WillsPowers of AttorneyOccupation LicencesAnna is a property law specialist with particular knowledge in matters involving subdivisions, land sales and purchases, easements, leases and buildings. She heads up the firm’s property team. She also has experience with wills, powers of attorney and occupation licences. Anna worked with major firms in Auckland for a decade before returning to Tauranga, where she was born and raised, and joining Kaimai Law. - [Sharna McElhinney](https://www.klb.co.nz/https://www.klb.co.nz/our-people/sharna-mcelhinney) Sharna McElhinneyAssociate sharna@klb.co.nz07 579 2350 Ext 221With over 20 years of experience in the legal industry, Sharna brings a practical, down-to-earth approach to her work as a general practice solicitor. Sharna started her legal career straight out of college and spent many years working in law offices across a variety of roles. As her children grew older and more independent, she saw the opportunity to formalise her experience and pursue a law degree — a natural next step that allowed her to step fully into the role she had long worked toward.Sharna’s practice spans a wide range of legal matters, with a particular focus on property law including residential, commercial and business conveyancing, refinancing, land acquisitions under the Public Works Act, occupation right agre… - [Bridget McGowan](https://www.klb.co.nz/https://www.klb.co.nz/our-people/Bridget-McGowan) — Bridget McGowan Bridget McGowanSolicitorbridget@klb.co.nz07 579 2350 Ext 204Bridget McGowan is our Family Law Solicitor – based at our Bethlehem office.University of Waikato LLB (Hons)Bridget specialises in Family Law including:Care of Children and Parenting Orders;Guardianship and Relocation;Oranga Tamariki Matters; andFamily Violence.With a personalised approach she works closely with clients, offering practical and compassionate guidance on complex family-related issues. Bridget joined us in December 2024. She has been practicing in Family Law since 2020 Bridget was born and raised in Tauranga. Outside of work Bridget loves to spend time with her children. She enjoys reading and creative activities. - [Karen Rodler](https://www.klb.co.nz/https://www.klb.co.nz/our-people/Karen-Rodler) — Karen Rodler Karen RodlerRegistered Legal Executivekaren@klb.co.nz07 579 2350 Ext 213Karen specialises inEstatesBorn and raised in Matamata. Karen started with us at the beginning of 2025, a registered legal executive, she has worked in law practices in Matamata, Hamilton, Auckland and Tauranga.Karen’s  experience is mainly in conveyancing and Private Client work including Estate Administration. Karen chose to work at Kaimai Law as she “Loves the smaller firm environment and the intimate client connections.” Outside of work Karen’s passions are travelling, DIY (happy with a paintbrush in her hand and the music turned up), hanging out with friends and family,  walking the beach and when conditions are “just right” body boarding in the ocean.  - [Fiona Bumby](https://www.klb.co.nz/https://www.klb.co.nz/our-people/fiona-bumby) — Fiona Bumby Fiona BumbySenior Legal Assistantfiona@klb.co.nz07 579 2350 Ext 215Fiona is our busy assistant to the conveyancing team, working behind the scenes to keep the wheels turning.  Fiona assists the entire property team helping our lawyers and legal executives provide a cohesive and efficient service to her clients.  If dealing on a property matter, you will likely speak with or email Fiona several times, and that is a reflection of her role in our team. From answering calls to arranging the repayment of your mortgage, Fiona is the glue that sees her client’s transactions run smoothly.  Personable and kind, Fiona is a valued and big hearted member of the Kaimai Law Bethlehem team.After hours Fiona will quite likely be on the side of a football pitch, having been a football mum to 5 kids fo… - [Olesya Magurina](https://www.klb.co.nz/https://www.klb.co.nz/our-people/Olesya-Magurina) — Olesya Magurina Olesya MagurinaTrust Administrator07 579 2350 Ext 202Email: trusts@klb.co.nzOlesya has come to Kaimai Law from an educational background and stepped into our Trusts Administrator role at the beginning of 2025.Having a background in administration Olesya enjoys the varied work that her role brings Outside of work, Olesya is passionate about tennis, hiking in the Bay of Plenty and spending time with her family. - [Tahlia Lindsay](https://www.klb.co.nz/https://www.klb.co.nz/our-people/tahlia-lindsay) — Tahlia Lindsay Tahlia LindsayLegal Secretarytahlia@klb.co.nz07 579 2350 Ext 205Tahlia has been with us since 2020 starting as a part-time office administrator and working her way up to our family team legal secretary, however Tahlia is adept at all things ‘office’.Tahlia enjoys the variety and fast-paced nature of her work. She finds satisfaction in staying organised and managing multiple tasks at once and appreciates the opportunity to work and support the team.Tahlia is based at our Bethlehem office.Tahlia grew up in Te Puke before moving to Tauranga. She loves reading books, gaming, op-shopping, and her indoor plant collection. She also loves spending time with her big family. - [Jodie Flintoff](https://www.klb.co.nz/https://www.klb.co.nz/our-people/jodie) Jodie FlintoffLegal Executivejodie@klb.co.nz07 579 2350 Ext 210Jodie joined Kaimai Law in May 2025 and is currently completing her studies to become a qualified Legal Executive. Since joining the firm, she has thoroughly enjoyed putting her newly acquired knowledge into practice and is quickly building confidence in her legal skills. Her natural curiosity, strong work ethic, and willingness to learn have already made her a great fit for the team, and she is well on her way to becoming a highly capable and valued member of the firm. Before entering the legal profession, Jodie worked as a canine behaviourist for three years. Her background in animal care reflects her compassionate nature, patience, persistence and ability to think outside the box—traits that also serve her well in a the l… - [Rochelle Henderson](https://www.klb.co.nz/https://www.klb.co.nz/our-people/rochelle) Rochelle HendersonLegal Assistant rochelle@klb.co.nz07 579 2350 Ext 220Rochelle joined Kaimai Law Bethlehem & Omokoroa July in 2025 as a Legal Assistant based in our Omokoroa office. Proudly born and raised in Katikati, she brings with her a strong background in banking, paired with a genuine passion for customer service and a keen eye for detail. Known for her down-to-earth nature, Rochelle finds great joy in supporting clients through significant milestones. One of Rochelle’s favourite parts of her role is calling first-home buyers on settlement day and sharing in their excitement — a moment she finds incredibly rewarding. Outside of work, Rochelle enjoys watching Coronation Street, hosting dinner parties for friends and family, and spending quality time with her husband and their … - [Isabella Wilson ](https://www.klb.co.nz/https://www.klb.co.nz/our-people/isabella) IsabellaReceptionist admin@klb.co.nz07 579 2350 Ext 201Isabella  is the friendly and welcoming face of our Bethlehem office, having joined Kaimai Law in 2025. As our receptionist, she plays a key role in creating a positive first impression—greeting clients, answering calls, and managing appointments with efficiency and professionalism.Highly organised and dependable, Isabella helps ensure the day-to-day operations of the office run smoothly. She’s always ready to lend a hand wherever it’s needed, supporting the wider team and contributing to a warm, collaborative work environment. Her calm and approachable manner makes her a trusted point of contact for both clients and staff, and she’s a truly valued part of the Kaimai Law family.Outside of work, Isabella enjoys going for walks,… - [News](https://www.klb.co.nz/https://www.klb.co.nz/news) — News - [Review of adult decision-making capacity law](https://www.klb.co.nz/https://www.klb.co.nz/news/2026-08-21-review-of-adult-decision-making-capacity-law) — The Law Commission recently reviewed the Protection of Personal and Property Rights Act 1988 (PPPR Act). This legislation governs how decisions are made for adults who lack capacity and can no longer make some decisions for themselves. Law Commission recommendationsThe PPPR Act applies widely; it includes adults who have declining capacity due to dementia, lack capacity due to intellectual disabilities or have a temporary loss of capacity (for example) due to injuries.  The Commission has made a number of recommendations for reform, particularly regarding property managers and welfare guardians who are appointed by the court to make decisions for people who cannot make decisions themselves.Overall approachThe Commission recommends repealing the PPPR Act and replacing it with new legislation. The biggest shift is away from asking what is in a person’s ‘best interests’ (often considered paternalistic), and towards asking what the person’s own wishes, values and rights are, and how those can be respected. Court-ap… - [When a DIY will goes wrong](https://www.klb.co.nz/https://www.klb.co.nz/news/2026-08-21-when-a-diy-will-goes-wrong) — Most people would never expect a Do It Yourself will, bought from a stationery shop to end up before a High Court judge. Yet that is exactly what happened in Oga v Bourne, a recent case that shows how a seemingly small mistake in a will can have significant consequences after the will-maker dies. The DIY willJoan Bourne completed a shop-bought DIY will kit in 2017 with the assistance of her daughter. Joan wanted her estate to be divided equally among seven of her eight surviving children. She deliberately excluded one son, who had previously indicated that he did not wish to inherit from her estate.Like many people using a DIY will kit, Joan and her family encountered legal terminology they did not fully understand. They believed the ‘bequests and legacies’ section was where they should list the people who were to inherit the estate. They therefore wrote the names of the seven intended beneficiaries in that section; however, they left blank the section dealing with the ‘residue’ of the estate because they did not understand what it meant and it didn’t make sense to them t… - [Methamphetamine in farm worker accommodation](https://www.klb.co.nz/https://www.klb.co.nz/news/2026-07-23-methamphetamine-in-farm-worker-accommodation) — Providing housing for a rural workforce is often essential to run a successful farming operation, but it also puts a farm owner into the role of a residential landlord for legal purposes. Whether the occupier is a contract milker, sharemilker or general farm employee, the same baseline responsibilities apply as they would in any residential tenancy. In recent years, however, methamphetamine contamination has become an increasingly practical and legal risk area for all landlords to manage. Landlord obligationsThe core legal point is straightforward: if you provide residential premises, you must meet the statutory duties imposed on landlords. Under the Residential Tenancies Act 1986, a landlord must provide the premises in a reasonable state of cleanliness and repair, and must comply with buildings, and health and safety requirements that apply to the premises. Landlords must follow contaminant regulations. If the landlord knows the property is contaminated and it hasn’t been properly cleaned, it cannot be let to a new tenant. As well, an existing tenant may only remain there in limited, regulated circumstances during clean-up.Meth testing is now a live issue (especially on farms)Farm accommodation is uniquely exposed to harm because it often involves high turnover, season… - [New Zealand-India Free Trade Agreement](https://www.klb.co.nz/https://www.klb.co.nz/news/2026-07-23-new-zealand-india-free-trade-agreement) — The proposed New Zealand-India Free Trade Agreement (FTA) represents a significant development in the relationship between two very different agricultural economies. India is now the world’s most populous country, with a rapidly growing middle class and increasing demand for high-quality goods and services. Opportunities and limitations for the rural sectorFor New Zealand’s rural sector, the agreement creates many potential opportunities, although the benefits will not be evenly spread across all industries.No dairy productsOne of the most important features of the FTA is what it does not include. Dairy, New Zealand’s largest agricultural export sector, has largely been excluded from meaningful market access improvements. This reflects the political and economic importance of dairy farming within India, where millions of small-scale farmers rely on dairy production for income.For New Zealand dairy farmers, this means the agreement is unlikely to deliver the type of transformational change experienced under previous trade agreements, such as improved access into China. Significant tariffs … - [Revised Law Association Agreement for Sale and Purchase of Real Estate](https://www.klb.co.nz/https://www.klb.co.nz/news/revised-law-association-agreement-for-sale-and-purchase-of-real-estate) — The majority of property sale and purchase agreements are recorded on The Law Association of New Zealand’s (TLANZ) Agreement for Sale and Purchase of Real Estate. TLANZ recently released the fourth revision of the Eleventh Edition of the Agreement for Sale and Purchase (ASP); most conveyancing transactions are now being completed using this revision. Signatories should become familiar with changesThere are a number of changes in the new revision of the ASP, so it is important that anyone signing the ASP is familiar with these changes and the implications of signing this document. We discuss some of the changes below, although this is not a full list of the amendments.New warranties Both buyers and sellers must now provide a warranty that they (or their real estate agent) have not altered, removed or added any wording to the standard ASP, unless any alterations are easily identifiable (for example, a clause has been crossed out using a strikethrough, or an addition is easily identifiable). The use of PDF editing software has meant that it is possible to change the wording in the ASP without making it clear that these changes have been … - [Structuring your development and considerations for buyers in new subdivisions](https://www.klb.co.nz/https://www.klb.co.nz/news/2026-06-29-structuring-your-development-and-considerations-for-buyers-in-new) — The relationships between neighbours in a subdivision and the rules, regulations and the way these are enforced have evolved significantly from handshakes and agreements over the fence. In the last few decades, in order to protect the value of each property, developers have become increasingly concerned with not only managing the look and feel of their subdivision, but also prescribing the rights and obligations of property owners within those developments. There are a number of ways that developers can do this; the arrangements vary depending on a number of factors ­– each coming with its own pros and cons for prospective owners.Residents’ societiesThese are becoming increasingly popular in larger scale developments. Residents’ societies are usually incorporated societies; their structure and requirements are governed by the Incorporated Societies Act 2022. Membership to these societies is often mandatory by virtue of a land covenant registered on the record of t… - [Health and Safety at Work Amendment Bill](https://www.klb.co.nz/https://www.klb.co.nz/news/2026-06-02-health-and-safety-at-work-amendment-bill) — The Health and Safety at Work Amendment Bill was introduced into Parliament on 8 February 2026 and passed its first reading on 12 February 2026. It is currently before the Education and Workforce Select Committee. Expected to be enacted in the springSubmissions closed at the end of March and the committee is scheduled to report back to Parliament by 12 June 2026. It is anticipated that the Bill will be passed before the election (early November). If enacted, the Bill will represent the most significant reform of health and safety law in New Zealand since the Health and Safety at Work Act (HSWA) was passed in 2015.Purpose of BillWorkplace Relations and Safety Minister, the Hon Brooke van Velden, said that the Bill is intended to reduce compliance obligations, focus on preventing serious harm and clarify businesses’ obligations under the HSWA.[1] The key proposed changes in the Bill are:Increased focus on preventing serious harmReducing compliance obligations for small businessesClarification of the… - [Budget 2026](https://www.klb.co.nz/https://www.klb.co.nz/news/2026-06-02-budget-2026) — Despite pre-Budget announcements for the health, education and defence sectors, this Budget certainly contained some meaty content. Securing New Zealand’s future says the Minister of FinanceThe government's broader approach could therefore be characterised as a 'meat and veg now, dessert later' strategy to economic management.With a net operating package of an average $2.146 billion pa ($8.272 billion over the next four years), the health sector is a major winner, followed by education (including tertiary), defence and intelligence, law and order, etc totaling new expenditure of $14.666 billion over the next four years.On the other side of the coin, the Minister has anticipated savings of $6.394 billion over the next four years, making the net package of spending of $8.272 billion over the same period.HealthA $5.5 billion increase in funding for frontline health servicesFunding for three-day postnatal stays ($34 mill… - [KiwiSaver changes open the door to first farm ownership](https://www.klb.co.nz/https://www.klb.co.nz/news/2026-04-29-kiwisaver-changes-open-door-first-farm-ownership) — The government has announced important changes to KiwiSaver that will make it easier for farmers and rural workers to use their KiwiSaver to buy their first farm. These reforms acknowledge the unique way in which farms are owned and operated in New Zealand. Good news for rural workersFor many in the rural sector, particularly sharemilkers, contract milkers and farm managers eager to climb the property ladder, this represents a meaningful step toward farm ownership. Legislation giving effect to these changes will be introduced to Parliament in the middle of the year. Key changesUntil now, KiwiSaver first-home withdrawals have been limited to residential property purchases, with strict requirements that the buyer both owns and lives in the home. This has created barriers for those pursuing farm ownership, as farms are often:Purchased through companies or trusts, rather than in an individual’s name, andUsed as both a business and a place of residence, sometimes with accommodation arrangements tied to employment.The upcoming changes are design… - [Caveats](https://www.klb.co.nz/https://www.klb.co.nz/news/2026-03-26-caveats) — A caveat is a warning and, once registered, notifies the world at large to ‘be aware’ of a potential claim. In the property sector, a caveat is a legal instrument that can be registered against a property title to protect a person’s rights or interests in respect of a particular property. A caveat prevents the registered owner/s of the property from transferring, selling or disposing of, mortgaging or otherwise dealing with it. Why register a caveat?The Land Transfer Act 2017 stipulates when caveats can be registered. It is important that the person wanting to register a caveat (the caveator) meets specific requirements as set out in the legislation.The caveator must have a ‘caveatable interest’ in the property. The legislation[1] specifies the situations in which a caveatable interest may exist. If you think you may have a caveatable interest in a property, we encourage you to talk with us about your particular situation.One common scenario in which caveats are registered is when a person dies and the executors of their will are in the process of transferring or otherwise dealing with the deceased person’s property. The deceased’s former partner or spouse may register a caveat against the deceased’s pr… - [WorkSafe’s heightened focus on farm safety](https://www.klb.co.nz/https://www.klb.co.nz/newsletters/rural-espeaking/2026-04-29-worksafes-heightened-focus-farm-safety) — WorkSafe New Zealand has promised greater attention to safety in the agricultural sector when it announced the new four-year ‘Statement of Intent’ on 4 December 2025. Development of Approved Codes of Practice In recent years, WorkSafe has significantly increased its focus on the agricultural sector reflecting the industry’s persistently high rates of serious injury and fatalities. Farming remains one of the most hazardous occupations in New Zealand, and WorkSafe’s evolving approach aims to address the root causes of harm while working more collaboratively with those on the land.A key development has been the designation of agriculture as a priority high-risk sector. Alongside the other sectors classified as high-risk (construction, manufacturing and forestry), farming now receives a significantly greater share of WorkSafe’s attention and resources. This prioritisation is embedded in the regulator’s broader strategy which centres on reducing fa… - [Options to buy a property during a cost of living crisis](https://www.klb.co.nz/https://www.klb.co.nz/news/2026-03-26-options-buy-property-during-cost-living-crisis) — While the property market has settled somewhat after the Covid boom, house prices in New Zealand are still high. For many, buying a home on your own is no longer viable. It is becoming necessary to consider alternative structures to help make buying a property more affordable. Borrowing from parentsIt is not a new concept, but the rise of house prices in New Zealand has meant that it is very difficult to buy a home without some extra financial help from mum and dad. If this seems to be a realistic plan, it is important that both you and your parents get separate advice on how this could be structured. Loans are an effective way for parents to help their children buy a home, without exposing those funds to relationship property losses. Lenders will often want money from parents to be a gift as part of a purchase. However, careful advice and structuring of money from the bank of mum and dad can mean that parents can provide financial assistance without fear of losing half of their money if a child and their partner separate. It is possible for parental loans an… - [Trustees taking on liabilities of the trust](https://www.klb.co.nz/https://www.klb.co.nz/news/2026-02-24-trustees-taking-liabilities-trust) — When someone acts as a trustee of a family trust, they often take on liabilities associated with the trust. Those liabilities generally include obligations to the trust’s lender (such as a bank) or other creditors. Can they be held personally responsible?While that does not usually cause issues for the trustee, there can be cases where a trustee is left personally responsible for a trust debt that they are not then able to recover from the trust. It’s a daunting prospect for both professional and non-professional trustees. How trustees contract It is a common misconception that when signing documents in your capacity as a trustee, your risk is limited to the assets of the trust. Unfortunately, this is not the case. A contract that is enforceable against a trustee can be enforced against the trustees (or any one of them) personally. The reason is that a trust is not a separate legal entity or ‘person’ in the same way as a company or incorporated society. The trust itself cannot enter into a c… - [Taxing the business income of charities](https://www.klb.co.nz/https://www.klb.co.nz/news/2026-02-24-taxing-business-income-charities) — In February 2025, Inland Revenue issued a paper entitled ‘Taxation and the not-for-profit sector’ (the Issues Paper). Among other things, the Issues Paper proposed taxing the business income of charities, where that income did not relate to their charitable purposes. This was highly controversial and resulted in a flurry of submissions. Charities in New ZealandSection 5 of the Charities Act 2005 defines ‘charitable purpose’ as including ‘every charitable purpose, whether it relates to the relief of poverty, the advancement of education or religion, or any other matter beneficial to the community.’  From time to time, public debate arises over organisations that have been granted charitable status, particularly where that status is seen as controversial. For example, Greenpeace has gained and lost charitable status a number of times, and Family First has had charitable status declined by the Supreme Court. After serious allegations of abuse and law-breaking, Gloriavale’s charitable status is under review.One charity in New Zealand has been controversial for some years. Sanitarium, the company that makes Weet-bix… - [New Zealand’s Resource Management Act overhaul](https://www.klb.co.nz/https://www.klb.co.nz/news/2026-01-23-new-zealands-resource-management-act-overhaul) — For more than three decades, the Resource Management Act 1991 (RMA) has shaped how New Zealand uses land, builds homes and infrastructure, and protects its natural environment. It has been one of the country’s most influential, and controversial, pieces of legislation. What’s changing and why It matters?Now, the RMA is on its way out, set to be replaced by an entirely new resource management system that the government has described as a ‘once-in-a-generation’ reform. The changes underway are not incremental tweaks, they constitute a severing of ties with a piece of legislation that has mutated since its inception. Supporters argue the reforms will unlock housing supply, speed up infrastructure delivery and reduce red tape. Critics warn there are risks of weakening environmental protections and local democratic input. Either way, the new system will reshape development and environmental decision-making for the foreseeable future. Why the RMA is on the way out?The case for RMA reform has been building for years. While the RMA was originally intende… - [Moo-ving on](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-12-10-moo-ving-on) — In August, Fonterra announced that it had agreed to sell its major consumer brands. The sale will see Lactalis take ownership of iconic New Zealand brands such as Anchor and Mainland; it comes as part of Fonterra’s strategy to pursue an increased emphasis on its ingredients and foodservice businesses. Fonterra hands the reins to LactalisThe deal brings obvious and substantial benefits to farmer-shareholders, but also raises questions about overseas investment into iconic Kiwi brands and the change of direction for New Zealand’s most profitable company. The importance of FonterraDairy, and the agricultural sector more generally, remains as New Zealand’s biggest export. With Fonterra’s importance within the dairy industry, the financial health of Fonterra is inextricably linked to the health of New Zealand’s economy. Fonterra is the crown jewel of the New Zealand economy and, notably, dwarfs other Kiwi businesses in terms of revenue. Responsible for around 30% of global dairy exports, Fonterra reported NZ$26 billion in revenue for the 2025 financial year. Due to Fonterra’s im… - [New Zealand’s methane reset](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-12-10-new-zealands-methane-reset) — In October 2025, the government confirmed it will reset New Zealand’s biogenic methane target for 2050; it will move from the legislated 24–47% below 2017 levels, to a 14–24% range, while keeping the 10% cut by 2030 and the net-zero target for long-lived gases. Ministers framed the change as aligning the law with the ‘no additional warming’ approach and recent science. Legislation amending the Climate Change Response Act 2002 (CCRA) is expected before the end of the year. Who is happy?The farming sector welcomed the change as a return to what it called ‘realistic’ targets that recognise methane’s short-lived nature. It follows the government’s earlier decision to scrap the He Waka Eke Noa pricing pathway and to remove agriculture from the Emissions Trading Scheme. Farmers believe the lower range reduces existential pressure on farming businesses and allows focus on practical mitigations (breeding, inhibitors, feed tech, etc) instead of a levy. But who is not pleased?Climate scientists and environmental organisations criticised the r… - [Digital assets and your estate](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-11-20-digital-assets-estate) — For many New Zealanders, daily life is now as much online as it is offline. From internet banking and investment platforms to email accounts, social media, cloud storage and cryptocurrencies, our ‘digital footprint’ has become an important part of who we are and what we own. Why planning ahead mattersYet most wills and succession plans still solely focus on traditional assets such as property, shares and savings. Digital assets are often overlooked, leaving families and executors struggling to access information and take control of these assets when the will-maker dies. What are digital assets? Generally speaking, a digital asset is any item of value that is in an electronic or virtual form (rather than physical). These include:Financial accounts – internet banking, investment platforms, PayPal or electronic walletsBlockchain assets, non-fungible tokens (NFTs) or cryptocurrenciesPersonal content such as photos, videos or documentsSocial media accounts – Facebook, Instagram, X (formerly Twitter) or TikTok accounts, andBusiness platforms – domain names, … - [Using AI in your business](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-11-20-using-ai-business) — Artificial intelligence (AI) has developed from a futuristic concept to a mainstream tool used by many businesses on a daily basis. The exponential growth of AI in recent months/years is hard to miss, with various industries adopting the technology to streamline operations and boost productivity. What to consider?For business owners, the prevalence of AI presents both opportunities and challenges. AI can improve efficiency, generate new ideas and identify opportunities but, like many emerging technologies, it also comes with risks that should be carefully managed. The Ministry of Business, Innovation and Employment recently released AI guidance entitled Responsible AI Guidance for Business to assist with the use and development of AI systems ethically, responsibly and effectively across all types of businesses. We outline some of the key risks and practical strategies discussed in the Guidance to proactively mitigate challenges before they arise.Key risksBias: If an AI tool has been trained on biased data, it may produce biased results. When collecting data, AI systems may reflect… - [Vendor Supplied Reports/ Disclosures](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-11-03-vendor-supplied-reports-disclosures) — The general rule of thumb when you buy a property is that the more information you can find out about the property, the better. Sometimes, the information you are interested in will be offered by the seller or their real estate agent. Can you rely as much on information obtained from these parties as you could using a third party? And how does the information provided by the seller or their agent affect your rights under the contract for sale and purchase? Real Estate Agent DisclosuresDisclosures brought to your attention by real estate agents are usually presented in a form of acknowledgement that you may be asked to sign as part of submitting an offer to buy a property. These include defects that the seller is aware of and that they have a legal obligation to tell you about. It is important to check carefully whether any defects in respect of a property you are buying are disclosed to you before you make your offer; known defects could limit your right to claim compensation or cancel the agreement.You should be mindful of any disclosures that are made to you and where you think further investigation is required. You should investigate the full extent of that defect or how a defect could affect your ownership or your ability to complete th… - [Rent Reviews in Commercial Leases](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-11-03-rent-reviews-commercial-leases) — Two of the most important considerations for parties to a commercial lease are, ‘What is the annual rent?’ and ‘How and when can the rental amount be reviewed?’ The answers are always found in the deed of lease for the premises. Methods of review The first schedule of The Law Association Deed of Lease (the most common format for commercial leases) sets out the methodology relating to rent reviews, including the review dates and the review types. There are three main methods of rent review:Market rent review CPI (Consumer Price Index) rent adjustment, and Fixed rent adjustment. Most leases include a combination of two of the three rent review/adjustment methods, with a common pattern being fixed with market rent reviews on renewal dates.The Law Association’s Deed of Lease standard terms are discussed below. Care, however, should be taken to ensure the clauses have not been modified in your lease.Market rent reviewWhen conducting a market rent review, either party may give the other party written notice of wha… - [Enduring Power of Attorney](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-09-10-enduring-power-attorney) — If your family member is losing capacity and has an Enduring Power of Attorney (EPA) in place, you will be reassured that their attorney is working in your loved one’s best interests. Very occasionally, however, this isn’t the case. In this article, we look at how an EPA works and what can be done if you believe the attorney is not doing their job properly. Enduring power of attorneyAn EPA is a legal document that allows someone else to step into another’s shoes and make decisions on their behalf if they lose the capacity to make important decisions for themselves. An attorney is usually a close relative or trusted friend of the person losing capacity (the donor).There are two types of EPA: for personal care and welfare, and for property. An EPA for personal care and welfare allows the attorney to make decisions on behalf of the donor about things such as medical treatment and living situations – including residential care. An EPA for property allows the attorney to make decisions about a person’s assets and allows them to directly access bank accounts, selling property, making payments on the donor’s behalf and so on.EPAs can be a … - [The office of executor: does it ever end?](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-09-10-the-office-executor-does-ever-end) — An executor is named in a will as the person the will-maker appoints to administer their estate after their death and to carry out the terms of their will. Executors have a number of responsibilities. Their first task is usually to locate the will-maker’s most recent will and, through their lawyer, apply for a grant of probate, so they have authority to manage the estate. Where a will doesn’t name an executor, or they are unwilling or unable to take on the role, an application must instead be made for a grant of administration, and that person will be known as an administrator. Their role is the same as an executor’s role.Once the executor has authority to do so, they must identify estate assets and bring them into the estate. This means putting those assets into the name of the estate, closing bank accounts, withdrawing KiwiSaver, selling shares and, in many cases, selling land or property. Sometimes executors need to recover estate as… - [The Ombudsman](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-09-09-the-ombudsman) — Have you ever felt as though you’ve tried every avenue to resolve a battle with bureaucracy and got nowhere? The Office of the Ombudsman is an option you could consider. The Ombudsman’s roleThe Ombudsman is a concept that originated in Scandinavia. The word itself is loosely translated to mean ‘grievance person.’ The role was introduced to New Zealand in 1962. Despite the title ‘Ombudsman’, it is not a role reserved for men; one woman (Beverley Wakem) held the office from 2008-15. The current Ombudsman is newly-appointed John Allen.The Ombudsman is appointed by the Governor-General on the recommendation of Parliament. The Ombudsman is independent of the government; it is an integral part of our public law framework. The service is free.The Office of the Ombudsman investigates complaints from members of the public about the decisions or conduct of government agencies, local councils, regional authorities and other public bodies, including school b… - [Employment law reform in 2025](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-09-09-employment-law-reform-2025) — Employment law continues to evolve, with several changes, or proposed changes, introduced by the government in recent months. The changes are widespread across the employment law spectrum, and it will be important for both employers and employees to be across them. Theft by an employerThe Crimes (Theft by an Employer) Amendment Bill came into effect on 13 March 2025. Amending the Crimes Act 1961, it now states an employer will commit theft if they intentionally fail, without reasonable excuse, to pay money owed to an employee under their employment agreement and/or statutory obligations. This includes all remuneration entitlements during the notice period and any outstanding holiday pay when they leave their employment. Whilst this does not change employer obligations, it increases their potential vulnerability to criminal prosecution if money is withheld.If employers are found guilty of theft under this new law, they can be liable:For individual employers, for a fine of $5,000, up to one year’s imprisonment, or both, orFor corporate employers, a … - [Credit Contracts and Consumer Finance Amendment Bill](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-05-26-credit-contracts-consumer-finance-amendment-bill) — On 31 March 2025, the government introduced into Parliament a reform package making major changes to New Zealand’s financial services landscape. Included in the reform package is the Credit Contracts and Consumer Finance Amendment Bill which proposes to reform the regulation of credit markets to make them fairer, more efficient and transparent. The overall intent of the Credit Contracts and Consumer Finance Act 2003 (CCCFA) is to protect consumers when borrowing money, or buying products or services on credit. The bill proposes significant changes to the CCCFA to modernise and improve the regulation of financial services, benefitting both consumers and lenders. Key proposals and ImplicationsThe bill proposes several key changes to the CCCFA. These aim to simplify and streamline compliance obligations for consumer credit providers (ie: businesses or individuals that offer credit, such as loans or credit cards) and, in some ways, reduce the risk of CCCFA breaches. We summarise the key changes.FMA oversight One of the most significant changes proposed is the shift in regulatory responsibility. The bill proposes to transfer the res… - [Budget 2025](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-05-26-budget-2025) — On 22 May, the Minister of Finance, the Hon Nicola Willis, presented what she had termed a ‘No BS Budget.’ It is officially entitled ‘The Growth Budget.’ Described by the minister as being ‘fiscally conservative,’ public expectations were not high for a lolly scramble of funding for new initiatives. ‘Fiscally conservative’?In the weeks leading up to the Budget, the minister drip-fed announcements of about $1.9 billion of new spending and, amongst others, a significant ‘restructure’ to the pay equity regime. As a result,it was anticipated that on Budget Day, there would be what the minister has called ‘reprioritising of spending.’Over the past few years, New Zealand has experienced an extended period of high inflation, high interest rates and low growth. With this 2025 Budget and despite worldwide geopolitical and geoeconomic tensions, the minister has indicated New Zealand’s fiscal outlook will gradually recover, despite an initial period of retraction. The government now expects what the minister has called ‘a modest surplus’ by 2028–29. Good news for businessCal… - [Firearms reform 2025](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-04-30-firearms-reform-2025) — The government is currently undertaking a comprehensive reform of our firearms laws; it aims to modernise the Arms Act 1983 which it considers to be outdated and overly complicated. The overhaul is the fourth phase of a commitment to reform the firearms regulatory system following on from three previous phases implemented after the 2019 Christchurch mosque shooting. Government considers current legislation to be outdated and overly complicatedPublic consultation on the proposed changes took place earlier this year.Proposed changesKey proposals include:Rewriting the Arms Act 1983 entirely to create a more coherent and effective legislative framework that balances public safety with the rights of lawful firearms usersStrengthening Firearms Prohibition Orders, expanding the criteria and allowing the courts to impose Orders on gang members and associates convicted of drug, firearms or violent offencesReviewing the Firearms Registry to assess its effectiveness and identify areas for improvement. The government aims to ensure it is promoting public safety without imposing unnecessary burdens on lawful firearms ownersTransferring the Firearms Safety Authorit… - [Emissions Trading Scheme](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-04-30-emissions-trading-scheme) — The Emissions Trading Scheme (ETS) will turn 17 years old in September. An integral part of the Climate Change Response (Emissions Trading) Amendment Act 2008, the ETS has undergone significant change throughout its existence. What is the ETS? The ETS is New Zealand’s main tool for reducing greenhouse gas emissions. It essentially works by requiring participating businesses to measure and report on their greenhouse gas emissions. Businesses that participate in the scheme must surrender what is known as an ‘emissions unit’ for each tonne of carbon dioxide that they emit. One tonne of CO2 will cost you one emissions unit. Over time, the government will reduce the number of units that are supplied into the ETS. The effect of this is that emissions units increase in demand as participating businesses buy and sell emissions units from each other. The price of emissions units in the ETS will (in theory) trend upwards, helping New Zealand to steadily move towards the goal of being a net zero emitter of greenhou… - [Arrested?](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-04-04-arrested) — There is a fair legal process Many people are guilty of spending too much time in front of screens watching crime shows. There is certainly no shortage of police dramas on television. There is a fair legal processThere is, however, plenty of dramatic licence in the way the procedure is portrayed on screen. The police can’t just bundle you away in a car in the dead of night without good reason. Nor can the police force information out of people as sometimes happens in TV shows. Thankfully in real life there are rules.When can you be arrested?A police officer, and anyone they call to assist, can arrest and take you into custody (being locked in a cell) if you are found to be disturbing the public peace or committing an offence that can be punished by a spell in prison. Police officers can also arrest you if they suspect you have committed a breach of the peace or any other offence where you can be punished by a prison sentence.[1] The police must have good cause to susp… - [Fast Track Approvals Act 2024](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-04-04-fast-track-approvals-act-2024) — The legislation is part of the coalition agreement between National and New Zealand First. The government’s stated purpose for the Fast Track Approvals Act is to make it quicker and easier to build the projects New Zealand needs to grow its economy. It aims to cut through the “thicket of red and green tape” and approvals processes that the government believes has held New Zealand back from much needed economic growth. It is intended to create a ‘one stop shop’ consenting process for gaining approvals under the Resource Management Act 1991 and related legislation. How to applyThere are two main routes for projects to be eligible for fast-tracking. Firstly, Schedule 2 of the Act lists 149 projects for which a substantive consent application can be made directly to the Environmental Protection Authority (EPA). These include projects in the following sectors: infrastructure (43), housing and land development (58), renewable energy (22) and mining (11).Secondly, if you have a project that is not one of the listed projects, you can make a referral application to the EPA; it will refer the application to the Minister of Infrastructure if it is complete and within the scope of the Act. Any referred projects must have significant regional or national benefit. The minister must consider whether referring the project for the fast track approvals process will … - [Issues affecting finance and settlement](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-03-25-issues-affecting-finance-settlement) — When you have lending secured by a mortgage on your home, it will be a condition of that lending that you have full replacement insurance for your house. This is a requirement for any new lending (and your lender won’t allow you to draw down the loan without seeing evidence that this in place), and an ongoing requirement with existing lending. Natural disaster risk and insuranceInsurers are now commonly asking whether the local council has recorded that a property could be impacted by any natural hazards (for example, whether it is in a flood zone). If it is noted that the property is potentially impacted by a natural hazard, the insurer may have some follow up questions before deciding on whether it will offer insurance. It may ask whether the local council has completed any remedial work to address the hazard, or whether any specific work has been completed with the property to reduce the impact of the hazard, such as the property being built on piles to elevate it above the anticipated flooding level.  Insurers are also asking questions about whether the property has previously been affected by natural hazard events, such as… - [New deed of lease documentation](https://www.klb.co.nz/https://www.klb.co.nz/news/2025-03-25-new-deed-lease-documentation) — In November 2024, The Law Association of New Zealand (TLANZ), formerly the Auckland District Law Society, released an updated version of the standard form deed of lease document, its 7th edition. Landlords and tenants should be up to dateThis new edition of the deed of lease (DoL) includes a number of new or varied provisions that TLANZ has included in response to the evolving commercial leasing landscape; in some cases these provisions address pitfalls in earlier DoL editions that sought to deal with issues that arose during Covid. The result is that there are a number of new default provisions for both landlords and tenants to consider when entering into a lease, and new procedures to be aware of that didn’t form part of previous leases.RentNumerous provisions affecting rent, rent adjustment and rent abatement have been included in this new DoL. Where previous DoL editions referred only to CPI or market rent adjustments, the 7th edition includes an option in Schedule 1 to inclu… - [Overturning the foreshore and seabed decision](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-12-28-overturning-foreshore-seabed-decision) — The government proposes to overturn a 2023 Court of Appeal decision covering Māori customary rights to the foreshore and seabed. It is of the view that the court’s decision gives too much power to iwi and hapū over what happens on ‘too much’ of New Zealand’s coastal areas. Changes for CMT applicantsThe Marine and Coastal Areas (Takutai Moana) (Customary Marine Title) Amendment Bill will result in only a small fraction of the coastline (about 10%) being available for customary marine title (CMT) which the government alleges was the intention of the 2011 legislation on which the Court of Appeal ruled.  Defining the foreshore and seabedThe seabed is the land that is completely submerged underwater (the sea around the coast).[1] The foreshore is the land that is regularly covered by the tide (the wet part of the beach).[2]  It includes land covered by high tides in spring, the space occupied by the air and water above the land, and the soil and rock under it.Marine and Coastal Area (Takuati Moana) Act 2011In 2011, the National-led government replaced the Fore… - [The moral dilemma of virtual fencing](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-12-28-the-moral-dilemma-virtual-fencing) — The popularity of virtual fencing is increasing quickly amongst dairy farmers, as an efficient method to contain and move stock. The technology works through a collar around, say, a cow’s neck that moves it by sounds and guides it from left to right. If the cow steps over the virtual boundary, it is first guided back by sound and, if that cue is ignored, it is given a low energy shock (significantly weaker than an electric fence). It is also capable of guiding cows to walk themselves to the milking shed It’s not difficult to see why farmers around the country are inspired by this technology. It potentially removes the need for human labour which is not only in short supply, but is also accompanied by overwhelming regulation (think Health and Safety at Work Act 2015, Employment Relations Act 2000, Immigration Act 2009 – to name a few).No brainer. . . why the opposition?On 17 October 2024, submissions were heard before Parliament’s petitions committee from industry leaders (Ministry for Primary Industries (MPI), New Zealand Veterinary Association (NZVA) and the SPCA) after a Golden Bay dairy farmer lodged a petition due to the impacts of virtual fencing on animal welfare. The petition received 414 signatures, with concerns that the technology was cruel and could have a long term ‘br… - [Hiring casual employees](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-11-21-hiring-casual-employees) — With summer shortly upon us, the up take in casual work is synonymous with school and university holidays. Despite the short-term nature of these roles, whether it’s seasonal fruit-picking, a retail Christmas-casual or a restaurant needing extra cover for busy nights, if you hire staff on a casual basis you still have significant legal responsibilities. Employers have significant legal responsibilitiesHiring casual employees can provide beneficial working arrangements for both parties, with employers able to offer work on an ‘as needed’ basis and employees having the flexibility to decide when they wish to work and which shifts they would like to perform.  However, as an employer you must remember that during ‘agreed periods of work,’ casual employees are entitled to similar protections to those to which permanent employees are entitled.  This is highlighted in a recent case before the Employment Relations Authority (ERA).[1]BackgroundMr Ford was employed by Haven Falls Funeral Home as a casual employee. It was agreed he would complete an initial eight-week training period. Mr Ford completed about three weeks of this training i… - [Why should I look at my will?](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-11-21-why-should-i-look-my-will) — You should review and update your will regularly. It is not something that, once done, you should just stick in a drawer and forget about. There are many significant milestones in life when you should think about whether your will is still appropriate for your unique circumstances. Review at life’s milestonesIf you don’t often review your will, particularly after important life milestones, you may discover (or worse, your family may discover after your death) that your will does not leave everything the way you intended. This means that certain people or causes may miss outon an inheritance or a gift in your will. Also, out-of-date wills can cause significant complications for the people involved in the management and distribution of your estate.  With the summer holidays coming up and some time away from the treadmill of daily life, this is an ideal time to review your will.Buying a home is a milestoneMany people make a will when buying their first home. Although there is no reason why you cannot make a will before then, this is often the trigger when it feels… - [The plight of stepchildren](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-08-22-the-plight-stepchildren) — When a parent dies and leaves their child or children out of their will, those children are entitled to bring a claim against their parent’s estate under the Family Protection Act 1955 (FPA). While a financially stable adult child may not have a claim to a large proportion of their parent’s estate, they will usually still have a claim for ‘recognition.’ Non-traditional family structures can result in unfair estate outcomesThe same is not true for children claiming against the estate of a stepparent.Stepchildren are only entitled to bring a claim against the estate of a stepparent in very limited circumstances – usually when they are financially dependent on their stepparent at the date of their death.This can become a real problem when a parent dies, leaving everything to their spouse or partner, who is trusted to make provision in their own will for their stepchildren, but fails to do so.  Stepchildren are often left without a remedy, and this is an increasing source of perceived unfairness in a society where non-traditional family structures are becoming common.[1] How does the law respond?When someone inherits all their partner’s… - [Contracting out agreements for relationships late in life](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-08-22-contracting-agreements-relationships-late-life) — You may think that a ‘pre nup’ is most commonly used when a young couple begins a relationship and there is a significant difference in their financial position. However, these agreements, formally known as contracting out agreements (COAs), can be entered into at any time during a relationship. They are particularly useful for couples entering into a de facto relationship, or marrying later in life, as both parties are more likely to come to the relationship with more complex financial affairs. Why have a COA?A wise move as financial affairs are more complexOne of the couple may have been through a previous separation or the loss of a spouse. They may have children – dependent or adult. They may also have trust or company structures that make their overall asset profile less straightforward from a relationship property perspective than younger couples who are just getting started with their lives together. In these cases, a COA can give both parties (and their families) clarity about what will happen to their assets if one of them dies, or if they decide to separate. A COA is a way of opting out of the default rules as to how the division of property is dealt with under the Property (Relationships) Act 1976 (PRA). Without a COA, the default approach would apply; this generall… - [The Future of Indoor Pig Farming](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-07-29-the-future-indoor-pig-farming) — Concern has been expressed by industry body, New Zealand Pork (NZP), that the National Policy Statement for Highly Productive Land (NPS-HPL) is threatening the future viability of indoor pig farms. It believes the NPS-HPL is preventing current indoor farms from increasing in size and is blocking new indoor farms from being established on productive land. Concerns that policy is threatening indoor pig farmingSo what is the NPS-HPL, how does it affect current and future indoor pig farms, and what (if anything) is projected to change in the future?The NPS-HPL was introduced on 17 October 2022. It was designed to protect productive land from encroaching urbanisation, such as housing, by restricting infrastructure development.The NPS-HPL introduced a regime requiring regional councils to identify, map and protect land defined as ‘highly productive’ for use in ‘land-based primary production.’ Such identification relies on the Land Use Capability (LUC) system, which categorises land into eight classes of productivity. Land classified as LUC 1 is the most versatile and productive, and has the fewest limitations which makes it best suited f… - [Budget 2024](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-07-29-budget-2024) — On 30 May 2024, the Minister of Finance, Nicola Willis, presented her first Budget. The government is focussed on rebuilding the economy, easing the cost of living, delivering better health and education services, and restoring law and order. What was in it for the rural sector?Of course, within all those subsections, there is an underlying reliance on agriculture, the highest contributing sector to our economy. So, what did the Budget provide for the rural sector, and is there anything that farmers can look forward to over the next three years?Drilling down to detailAfter the Budget was presented, the Minister of Agriculture, Todd McClay said, “[It] places our trust back in farmers and growers by cutting public spending and reducing red tape, while also driving the efficiencies required to increase value and place the sector’s success at the forefront of New Zealand’s economic recovery.”Practically speaking, the government intends to do that by:Doubling exports by delivering strong frontline services, cutting red tape … - [Providing for your family in your will](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-07-15-providing-family-will) — We all want to look after our families – both during our lives and after we die. One way you can make sure that your family is looked after when you die is by leaving behind a clear, well-drafted will. You have some legal obligationsIn New Zealand, we have considerable ‘testamentary freedom,’ meaning we can generally choose how we want to distribute our personal assets after our deaths. Testamentary freedom has been a fundamental feature of New Zealand law for many years. There are, however, limits to testamentary freedom. We see these limits in action when claims are made against a family member’s estate.Claims against an estateClaims against estates can be made under the Family Protection Act 1955 which provides that you have  a moral duty to provide adequate maintenance and support for certain family members after your death. They include your spouse, children and sometimes grandchildren. Even if you have family members with whom you have had a poor relationship during your lif… - [Preparing your business for sale](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-07-15-preparing-business-sale) — Whether you’re retiring, pursuing new ventures or looking to cash in on your hard work, selling a business is a significant milestone and one that needs careful planning and preparation. To ensure the greatest return on your investment, your business should be at its best when it goes on sale. Building value in your business is important in attaining an optimum result. Strengthening operationsAs a starting point, you should ensure the business can operate successfully without you. All its operations and processes should be well-implemented and running smoothly.It’s important to delegate responsibilities to capable managers early on. Work to reduce the business’s reliance on you and have a management succession plan in place detailing who will support the incoming owner and what pre-settlement training will be provided. Sales are critical to the success of any business. It’s therefore important that before you put your business up for sale, you focus on increasing the volume of sales. Tighten up on all expenses and eliminate any shrinkage. Give your premises a thorough clean. Ensure all physical and digital assets are in good condition, and that s… - [Can losses be recovered from a faulty building?](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-06-11-can-losses-recovered-faulty-building) — The High Court recently found that the construction and insurance sectors can rely upon limited liability clauses when defending claims for negligence or breach of contract in commercial projects. BackgroundIn 2018, the Tauranga City Council (TCC) decided to build a nine-storey car parking building with 550 car parks on land it owned in central Tauranga. However, it ended up selling the land with a partially completed car parking building two years later for $1.The TCC used a consulting engineering firm to design the car parking building; it engaged a second firm of engineers to check the design. Construction of the building began in June 2018.The failed construction processIn March 2019, when the building was 20 metres high, a steel beam twisted while concrete was being poured. A third firm of engineers reviewed the building’s structural design. The firm’s initial conclusion was that the foundations, including the basement walls, were inadequate and that 300 tonnes of reinforci… - [The Budget 2024](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-06-11-the-budget-2024) — Although it is clear the economic outlook is somewhat gloomy, in delivering the 2024 Budget, the Minister of Finance, Nicola Willis, said that savings across government have resulted in responsibly-funded tax relief. “Spending is targeted, effective and affordable.” A no-frills outlookThe government has promised targeted investments in public services, including healthcare, education, and law and order. Front-line services will be increased. Having said that, the minister has admitted the Budget is “tight but realistic” and she intends to stick closely to these allocations.Tax reliefThe much-promised tax cuts have been delivered.As previously signalled, the Budget will help what the government calls ‘the New Zealand squeezed middle income earner’. For the first time since 2010, personal tax brackets have been adjusted for New Zealanders earning up to $180,000 pa. Overall, average income households will have up to an extra $102 in their back pockets each fortnight.Additional FamilyBoost payments will help around 100,000 families manage the cost… - [Live Animal Exports](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-05-09-live-animal-exports) — In April 2023, following intense pressure from animal welfare organisations, the Labour government banned live animal exports. The basis of the ban was centred on an independent review that New Zealand’s international reputation was being damaged by its live animal export programme because of animal welfare standards being breached. Government intends to lift the banWith the ongoing pressure from SAFE (Save Animals From Exploitation) and other animal welfare organisations, the government is proceeding with caution. It intends to introduce amendments to the Animal Welfare Act 1999 that will impose strict regulations and ensure a ‘gold standard’ of care. This includes fit-for-purpose live export ships and certification regimes for the livestock and their destination country. The government believes these regulations will protect animal welfare and safety. The government has not indicated the timing for these proposed legislative changes.  The good . . .The answer is obvious – revenue. In 2022, before the ban on live animal exports, revenue of $524 million was generated for the farming sector. Reports say th… - [Significant Natural Areas](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-05-09-significant-natural-areas) — Associate Minister for the Environment, Andrew Hoggard, announced on 14 March 2024 that the government will suspend the Significant Natural Areas (SNAs) requirements while it overhauls the Resource Management Act 1991 (RMA). It comes as a timely announcement after the Greater Wellington Regional Council’s (GWRC) unsuccessful prosecutions of two rural landowners due to the council having wrongly identified wetlands on private farmland. Suspended while government overhauls RMASo what are SNAs, how do they currently affect our rural landowners and how will they be addressed in the future?  Defining an SNA   SNAs are areas containing ‘significant indigenous vegetation’ and ‘significant habitats of indigenous fauna’ that must be protected to ensure ongoing biodiversity. The basis for defining and identifying SNAs is in section 6 of the RMA:  ‘6 Matters of national importanceIn achieving the purpose of this Act, all persons exercising functions and powers under it, in relation to managing the use, development, and protection of natural and physical resources, shall recognise and provide [our emphasis] for the following matters of national importance:. . . (c) the protection of areas of significant indigenou… - [Personal Grievances](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-04-03-personal-grievances) — In today’s ever-changing employment landscape, employers face a myriad of challenges. A single misstep can lead to (amongst other things) personal grievance claims, a fractured workplace culture and tainted reputations. Understanding the risk of making a blunder is essential. Employers must act in good faithIf one of your employees has a complaint about their employment, they can raise a personal grievance claim against you. The grounds for a grievance are almost limitless, but common grounds include complaints about being unfairly fired, discriminated against, bullied or disadvantaged in some way. Employees have 90 days (or 12 months in the case of sexual harassment) to bring a grievance. This begins on the date that the action allegedly occurred or came to the notice of your employee, whichever is later. As an employer, you can agree to a grievance being raised late or you may inadvertently do so by responding to it (ie: it has been raised out of time, but you mistakenly legitimised it by responding to it). The Employment Relations Authority (ERA) can allow… - [Invoices not being paid on time?](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-04-03-invoices-paid-time) — The continued rise of input costs, finance costs, labour shortages, ongoing material shortages and compliance costs are forcing many businesses to tighten their belts. In this article we give some advice to assist both creditors and debtors with managing their business relationships and financial accounts when it comes to unpaid invoices. Protecting your business from outstanding invoices Terms of trade and contractual terms: Having robust terms of trade is one of the best ways your business can protect itself from bad debtors. Including clauses for default interestand the recovery of your legal costs means that you are less likely to be left out of pocket if you need to take action to recover an outstanding debt. You should also consider whether your business should take security over your customer’s personal property or land assets, or a guarantee (backed up by a security); these are highly recommended where substantial amounts are involved, or where a customer has few assets and/or extensive liabilities.  Invoicing discipline: Nobody likes getting one large invoice at the end of a contract; it also presents a risk in… - [Easements](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-03-19-easements) — An easement is an instrument registered on the title to your property that allows another party, usually your neighbour, to use the part of your property specified in the easement. In this article we explain the types of easements, their maintenance and repair, and your obligations, and what can happen if there are issues around costs and who pays. Types of easementsThe most common form of easement is a right of way; these are often used where two neighbours share a common area such as a driveway. Other easements include rights to drain sewage and water, and to convey gas or electricity. These last two rights are common where different utilities need to cross through (under the ground) another person’s property to get to yours.These easements are registered on your record of title for the benefit of one or more other neighbouring landowners. Landowners who have the benefit of an easement will also have an interest registered on their title noting that their land has the benefit of an easement. Some easements, called ‘easements in gross,’ are registered against a record of title for the benefit of a local or territorial authori… - [Commercial Leasing and Landlord Consent](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-03-19-commercial-leasing-landlord-consent) — If you are a landlord owning commercial property, you may want to know how your tenant can make changes to the premises, or its use of the premises, without speaking to you about it first. If you are a tenant, you may want to know what you can do without being in contact with your landlord. Tenants wanting to alter the premises or their useTenants under commercial leases generally have fairly broad rights for the use and enjoyment of the property under the lease, but there are some limitations to what tenants can do without your consent. These include changing the business use of the property, assigning the lease or altering the premises. When considering any tenant’s request for consents under the lease, you must act reasonably.Change of business use of the propertyThe deed of lease usually records the business use of your tenant in the first schedule. Your tenant cannot use the premises for anything other than the business use without your prior written consent. Provided the proposed use is not in substantial competition with the business of any other occupant of the prop… - [Estates and Guarantees](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-03-06-estates-guarantees) — Guarantees entered into by a person during their lifetime can create some difficult legal issues for their executor after they die. Limiting a guaranteeThe terms of most guarantees allow a guarantor to give notice; this stops further liabilities accruing. In an estate situation, this will not alter the liabilities accrued to date, however the executor who is aware that an estate is liable under a guarantee may need to issue a stop notice to protect the estate’s position to maximise the value of the estate.This can be a difficult decision for an executor, particularly where (for example) a guarantee is important for the ongoing viability of, say, a family member’s business.   However, where the estate does not have an interest in that business, the executor may need to do this anyway as the estate’s position is the executor’s responsibility, and the interests of all beneficiaries must be prioritised, even if th… - [Making a bequest to a charity](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-03-06-making-bequest-charity) — For many charities, gifts in wills (bequests) are a significant source of funding. Sometimes, however, charitable bequests cannot take effect when wills are not carefully drafted. There can be considerable time and cost associated with addressing that situation and trying to ensure the bequest can go to the charity you intended. This article looks at ways your wishes for a charitable bequest have the best prospect of being fulfilled. Careful will drafting is essentialMost of the time, bequests to charities fail (and cannot take effect) because there are changes in charitable organisations over time, the will is not updated for many years and/or the will does not contain a suitable power for the executors to address these situations. Changes in charities over timeIt is common for charities to restructure.  Many charities once had a number of local branches, which were all registered as individual charities, but they have now consolidated into one overall national organisation, and the local branches  disestablished. Some organisations may have changed their name or amalgamated with other charities. Wills frequently misdescribe charities. The name of the charity may not have been checked on the Charities Register to … - [Whakaari/ White Island Eruption](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-02-07-whakaari-white-island-eruption) — The eruption of Whakaari/White Island on 9 December 2019 was a tragedy. Of the 47 people on the island when it erupted, 22 people were killed. The other 25 people were severely injured, many with life-changing injuries. The last of the prosecutions brought by WorkSafe due to the eruption concluded on 31 October 2023. We look at the lessons landowners and company directors can learn from these prosecutions. After the eruption, WorkSafe brought charges against 13 parties under the Health and Safety at Work Act 2015. These included charges against tourism operators, two government agencies responsible for advising on volcanic risks and the landowners. The charges against the landowners are the most legally significant.Whakaari Management LimitedWhakaari/White Island has been in the Buttle family since 1936. The family currently owns it through the Whakaari Trust; the trust leased the land to Whakaari Management Ltd (WML). The directors of WML are three members of the Buttle family. WML used to contract with tourism operators to allow them to conduct tours on the island. WML had no presence on the island and its staff did not work there.Charges brought against WML and its directorsWorkSafe charg… - [Trial Periods vs Probation Periods](https://www.klb.co.nz/https://www.klb.co.nz/news/2024-02-07-trial-periods-vs-probation-periods) — Many New Zealand business owners know they can offer a trial period (usually 90 days) when hiring a new employee. A trial period is designed to ensure a new employee is a good fit for their employer. An alternative to a trial period is a probation period. This is designed to set expectations clearly between you and your employee including the terms of the hire and when a final decision about the suitability of their employment is decided. We explain the differences between trial and probation periods to enable you to better understand your options.Trial period A trial period, if successfully included in an employment agreement, will allow you to terminate the agreement in the first 90 days of employment without your employee being able to raise a personal grievance for the dismissal. Trial periods can, however, only be used in limited circumstances.Until 23 December last year, using a trial period was only available to employers who had fewer than 19 staff. Now, under the new coaliti… - [Three Waters and Resource Management Act 1991 Replacement Legislation](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-12-13-three-waters-resource-management-act-1991-replacement-legislation) — The 2023 election has resulted in a National Party-led coalition, that campaigned on a commitment to repeal the Labour government’s Three Waters legislation and the Resource Management Act 1991 (RMA) replacement legislation. It has confirmed that these statutes will be repealed within its first 100 days in office. Three Waters to be Local Water Done Well The previous government introduced Three Waters to reform water management by shifting it away from New Zealand’s 67 councils, and handing it to four large co-governed regional entities. It was entitled ‘Three Waters’ as the legislation related to three main types of water infrastructure: storm water, drinking water and wastewater. In April this year, after much criticism, Three Waters was renamed Affordable Water with 10 publicly owned water services entities to be established.The new government intends to introduce its Local Water Done Well plan that will:Repeal Three Waters and scrap the co-governed mega-entitiesRestore council ownership and controlSet water quality and infrastructure investment rules, andEnsure water services are financia… - [National, ACT, and New Zealand First Coalition](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-12-13-national-act-new-zealand-first-coalition) — All three political parties that make up the governing coalition campaigned on the premise that agriculture is the backbone of New Zealand’s economy. Each party stated that the rural sector should be supported, rather than what they saw as being hindered by government, particularly in the areas of regulation, red tape and climate policy. The parties’ agreementsThere are two separate agreements between the coalition partners – the National-ACT Coalition Agreement and the National-New Zealand First Coalition Agreement.Both agreements should be read in conjunction with the other and, in the agriculture area, are quite similar in their aims. Both agreements contain commitments to:Reduce red tape and regulatory blocksReverse the ban on live animal exports while still ensuring high standards of animal welfareReform the National Animal Welfare Advisory CommitteeImprove farm environment plans so they are more cost-effective and pragmatic for farmers, and to be administered by regional councils and targeted at a catchment levelReplace the National Policy Statement for Freshwater Management to better reflect the interests of all… - [What happens to your children when you separate?](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-11-22-what-happens-children-separate) — Goodwill and good process will help prevent turmoil The time following a separation can be highly emotional – for you and your spouse or partner, and for your children. In this fraught environment, disputes can easily arise about the day-to-day care arrangements for your children or other vital issues such as where they will live, schooling, medical care, religious/cultural choices and so on. These are formally called guardianship matters. In cases where the children are safe in their respective parent’s care, there are numerous ways in which care arrangements can be resolved and guardianship decisions made, without the need to involve the Family Court. A co-parenting relationship extends well beyond the uncertain period following a separation. The best case scenario? Parents agree to ongoing care arrangements and guardianship matter… - [Two Decades on: Proposed Changes to the Retirement Villages Act 2003](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-11-22-two-decades-proposed-changes-retirement-villages-act-2003) — You, or someone you know, may be considering a move into a retirement village. It is a big decision, involving lifestyle choices as well as a significant financial commitment. Understanding the rules that govern retirement villages is crucial – and those rules are set to change. Why the Act is under reviewThe Retirement Villages Act 2003 is the cornerstone of retirement village governance. It was designed to provide a clear legal framework for village operators when the industry was new. Two decades have passed, however, and both the sector and our elderly population have grown substantially. The number of villages increased by 24% between 2012 and 2021, and unit numbers surged by 65%. With our ageing population, it is vital to ensure that the legislation is still fit for purpose.A balanced approachTe Tūāpapa Kura Kāinga/Ministry of Housing and Urban Development initiated a comprehensive review; submissions on which closed in mid-November. The aim was to strike a balance between safeguarding the interests of residents and encouraging innovation within the secto… - [Alternative Methods to sell your property](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-11-02-alternative-methods-sell-property) — We are starting to see more upward movement in the property market which is positive news for property sellers. A more buoyant market means that sellers and their real estate agents will be looking at alternative ways to secure a buyer. Rather than sticking to traditional sales methods – advertised price, deadline sale or by negotiation – sellers may want to consider a closed tender or auction process. Closed tenderThe closed tender process is similar to a deadline sale. Your real estate agent will prepare the tender document for prospective buyers. Buyers must submit their offer by the date and time you specify. Under a closed tender, neither you nor the agent can look at any of the tender offers before the closing date.You can place conditions in the tender document before it is provided to prospective buyers, for example making the agreement conditional on you purchasing another property. Tenders may also contain buyer conditions. The top offer isn’t always the driving factor. For example, you may get a ‘cleaner’ offer (with no or few conditions) but at a lower price. Typically, you will have a short period of time after the closing date to consider all of the tenders received a… - [What happens of your builder goes bust?](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-11-02-what-happens-builder-goes-bust) — Building a new home is an exciting process. It can, however, be quite daunting with risks of unexpected delays, cost increases and, in the worst scenario, your project going completely off the rails. In this article, we discuss how choosing your builder carefully can help to give you some peace of mind as you embark on your build. A careful choice of builder, checking references and talking with previous customers can help give you peace of mind when starting a build. Asking us to review the contract with your builder before signing will also help.Guarantees offer the best protection if your builder gets into financial difficulty, goes into liquidation and/or is unable to complete your project. Guarantees vary and how they apply to your build is determined by the type of guarantee that is included in your contract. Building franchise guaranteesNationwide builders who operate under a franchise agreement usually have a guarantee from the franchisor who will ensure that your build is completed if the local franchisee fails financially. Franchise builders value maintaining their reputation on a national level and often… - [New retention monies legislation gives better protection](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-09-14-new-retention-monies-legislation-gives-better-protection) — The Construction Contracts (Retention Money) Amendment Act 2023 was passed on 5 April this year with the legislation coming into effect on Thursday, 5 October 2023. If your business retains funds as part of a construction contract, or a contractor retains funds from you, you should ensure you are familiar with these upcoming changes. The primary intention behind the amendments is to provide greater clarity and to strengthen the rules regarding retained funds under the Construction Contracts Act 2002. The government wants these changes to provide more reassurance to subcontractors that they will be paid for work completed – even if a head contractor becomes insolvent.  Retention monies must be held separately Previously, there was no obligation for the business retaining money to hold it in a separate account unless a trust relationship had been created. From 5 October, all funds retained under a construction contract must be held in a separate bank account that meets specific criteria. This bank account must be held at a New Zealand bank, with a chartered accounting or law firm, or by a trustee company; and the a… - [Mainzeal Decision](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-09-14-mainzeal-decision) — Taking on the responsibility of a directorship is not a decision to be taken lightly. For New Zealand directors, the magnitude of the director role has been hammered home with the decision of the Mainzeal case from the Supreme Court in late August. Major implications for company directorsThis decision has sent a strong signal from the New Zealand justice system that directors can, and will be, held personally liable for financial losses experienced by creditors if the directors allow the company to trade recklessly and/or trade while insolvent. About Mainzeal Mainzeal Property and Construction Limited was one of the largest New Zealand construction companies in the years leading up to its financial collapse. In 2013, the company went into receivership and liquidation owing unsecured creditors around $110 million. The Mainzeal liquidators believed that the directors of the company had breached s135 (reckless trading) and s136 (insolvent trading) of the Companies Act 1993 and should be held personally liable for the losses of the co… - [Polyamorous Relationships](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-08-14-polyamorous-relationships) — In a split decision, the Supreme Court recently confirmed by 3:2 that polyamorous relationships (that is, relationships between three or more people) can be subdivided into two or more qualifying relationships, to which the provisions of the Property (Relationships) Act 1976 (which applies to relationships between two people) can apply. BackgroundBrett and Lilach Paul married in 1993. In about 1999, Brett and Lilach met Fiona. The three formed a triangular relationship in 2002. During their 15-year relationship, all three lived on a farm at Kumeu that was registered in Fiona’s name. Lilach separated from Fiona and Brett in 2017. Fiona and Brett separated a few months later in 2018. Family CourtIn 2019, Lilach brought an application in the Family Court, in which she sought orders determining the parties’ respective shares in relationship property, including the Kumeu farm.Fiona objected to the court’s jurisdiction, on the basis that the parties were not in a qualifying relationship for the purposes of the Property (Relationships) Act 1976 (PRA).The Family Court sought guidance from the High Court about its jurisdic… - [Refusing an Inheritance](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-08-14-refusing-inheritance) — What is the trustee of an estate supposed to do when a beneficiary will not accept their inheritance? This was the question faced by Mr Holland, executor and trustee of the estates of Margaret Glue and her husband, Ian Glue. Margaret died in 2005, leaving a life interest in her estate to her husband Ian, and her remaining estate to her two sons. Ian died in 2009, also leaving his estate equally to his two sons, David and John. Best efforts to contact beneficiaryJohn received his inheritance shortly after Ian’s death in 2009; John died in 2019. David, however, was unable to be contacted, despite Mr Holland’s efforts to contact him for well over a decade. His inheritance was worth approximately $300,000 as at August 2022. Mr Holland had written to David advising him of his inheritance and asking for a bank account number so the funds could be deposited.David lived in London. Mr Holland had arranged for a professional investigator to confirm that David lived at the address known to him, and where correspondence had been sent. It was confirmed that David did live at that address; this was understood to be local authority housing (similar to ‘council housing’ in New Zealand).  Actively avoiding contact?There… - [Emissions Trading Scheme](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-08-04-emissions-trading-scheme) — The Emissions Trading Scheme (ETS) is the primary regime used by the government to achieve its long-term commitment to reduce New Zealand’s greenhouse gas emissions so that our international obligations are met. Through the ETS, a price is set on emissions by charging certain sectors for the greenhouse gases they emit. Emitters must acquire and surrender New Zealand Units (NZUs) to account for their direct emissions or emissions associated with their products. Emission units (often called ‘carbon credits’) are traded between participants in the scheme. One emission unit can either represent one metric tonne of carbon dioxide, or the equivalent of any other greenhouse gas.The government has acknowledged that the current framework is not perfect and the ETS must adapt. In June, the government released two discussion papers as part of its consultation process on proposed changes. Document 1: Encouraging greater gross emissions reductionsThe first document provides four options to encourage grea… - [Freshwater Farm Plans](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-08-04-freshwater-farm-plans) — Freshwater farm plans are part of the Essential Freshwater package introduced in 2020. Its purpose is to: Stop further degradation of New Zealand’s freshwater resources and improve water quality, reverse past damage, and bring New Zealand’s freshwater resources, waterways and ecosystems to a healthy state within a generation. To that end[1], freshwater farm plans are now beginning to be required by all farms that have:20 hectares or more in arable or pastoral useFive hectares or more in horticultural use, or20 hectares or more in combined use. Southland and Waikato roll out firstThe order sets out[2] which of New Zealand’s regions must have their plans underway.The first regions to prepare their plans from 1 August 2023 are Southland and Waikato. The remaining regions must start the process at various times up to 1 July 2025. Due to the effects of Cyclones Hale and Gabrielle earlier this year, the timing of the implementation of these plans in Hawke’s Bay and Tairawhiti is yet to be decided.Within 18 months of the order coming into effect for a particular region, plans must be ‘certified’ by a certifie… - [Advance Directives](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-07-25-advance-directives) — Healthcare choices can influence the quality of our lives. An advance directive can provide direction on the care you consent to, and do not consent to, when you are incapable of expressing your wishes. Right to choose your healthcareAn advance directive can be used when you do not wish to consent to a particular form of healthcare or where you wish to receive a certain form of treatment in situations where you are unable to provide instruction such as a blood transfusion or resuscitation. Your healthcare provider will consider your advance directive when you are unconscious, incapacitated or otherwise unable to provide informed consent.Making an advance directiveThere are a variety of ways to make a directive. There are online templates (see the footnote for one example[1]), you may wish to do your own using these as a guide (remember to sign and date!) or you may want to discuss this with us. Is it valid?Your advance directive must be expressed in clear terms. Although your advance dir… - [Land Covenants](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-07-25-land-covenants) — With all the property development over the last 20 years or so, land covenants have become commonplace in new build residential developments. Now commonplace in residential developmentsIf you are buying a property in a newly or recently built residential subdivision, the odds are that the title will come with various covenants registered against it. These covenants are likely to place restrictions on the ways in which the owners can use and enjoy their properties.What are land covenants?Land covenants are usually put in place to ensure that the aesthetics and maintenance of the subdivision are built and kept up to a certain standard. In other instances, a landowner may subdivide part of their property and wish to restrict what can be done on the subdivided land to protect their use and enjoyment of their remaining land, for example, by restricting the location and size of any buildings to protect their view. Whilst life in a su… - [Owning a Heritage Building](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-07-03-owning-heritage-building) — Owning a piece of New Zealand’s history may be a dream come true for some property owners, but it could be a nightmare for others. Whether ownership of a heritage building is a boon or a burden to you will depend on how your plans fit within the rules and whether you make the most of incentives available to heritage building owners. In this article, we outline some things you need to think about when owning or buying a heritage building. Defining a heritage buildingThe term ‘heritage building’ usually refers to a property on the New Zealand Heritage List/Rārangi Kōrero. Anyone can apply to list a building, but Heritage New Zealand Pouhere Taonga makes the final decision on whether that building is significant enough to be included. All heritage buildings are categorised according to their heritage values. ‘Category 1 Historic Places’, for example, are places of special or outstanding historical or cultural significance, while places categorised as ‘Wāhi Tapu’ are places sacred to Māori. The full list of existing heritage buildings and places can be found here.Listed buildings, however, are not the only ones that may be subject to special protections. Councils can recognise the heritage values of any buildi… - [Business Continuity Planning](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-05-23-business-continuity-planning) — Once reserved for large businesses with a high degree of public dependency, such as banking, hospitals or utility companies, business continuity and disaster recovery plans have become increasingly important for businesses of all sizes. Severe weather events such as Cyclone Gabrielle have increased the importance of planning for the unexpected. While there is no legal obligation to have such a plan, they help businesses maintain a high level of engagement with clients, customers and staff during times of uncertainty while also creating an environment that is supportive of revenue generation. Good business continuity planning also ensures yourlegal and compliance obligations are not accidentally overlooked during a time of high stress and uncertainty. What is a business continuity plan?A business continuity plan (BCP) is also known as a disaster recovery plan or an emergency plan. Sometimes businesses split the plan into different areas that cover their response in an emergency (workplace death or serious injury, active shooter, robbery or sudden loss of digital services), disaster (earthquake, flood or pandemic) and business con… - [Kāinga Ora First Home Partner Scheme](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-07-03-kainga-ora-first-home-partner-scheme) — In the Winter 2022 edition of Property Speaking we discussed what to consider when co-owning a property with friends or family. Another co-ownership option to consider is the Kāinga Ora First Home Partner scheme (FHP). A co-ownership optionThe scheme supports first home buyers, who do not have a sufficient deposit, or who may struggle to service a low-equity mortgage, to buy a property partnering alongside the government. Kāinga Ora (KO) can contribute up to the lesser of $200,000 or 25% of the purchase price. How does it work?It’s easiest to explain by using an example. You want to buy a property costing $800,000. You have a 10% deposit ($80,000) but your lender will only offer a mortgage of $600,000. This leaves a 15% shortfall of $120,000. KO will help you buy the property by contributing the additional $120,000 in exchange for being the registered owner of that 15% share. You must live in the property and will be responsible for meeting all the mortgage payments and outgoings. You must gain KO… - [Budget 2023](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-05-23-budget-2023) — With the country expecting a no-frills Budget to match the Hipkins’ government’s bread-and-butter focus on issues for 2023, this year’s Budget had few surprises. Key PointsThe government has a tightrope to tread in trying to deal with inflation, supporting the recovery from the Covid pandemic, and managing the significant economic effects of the Auckland Anniversary floods and the devastation from Cyclone Gabrielle. The Minister stood by his earlier statement that there would be no tax cuts in this Budget, but there would be increased cost of living support. Already announced over the last few weeks have been a $1 billion flood and cyclone recovery package, funding for climate change initiatives, and additional funding for education and the New Zealand Defence Force.On the afternoon of Thursday 18 May, the Minister of Finance, the Hon Grant Robertson, presented the Wellbeing Budget 2023 – Support for today, building for tomorrow.The Minister foc… - [Having a cyber resilient business](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-04-03-having-cyber-resilient-business) — It’s hard to ignore the headlines; the past few years have brought floods, plagues and an unprecedented rise in cyber-attacks. New Zealand businesses have taken the brunt of these events. Some have been pushed to breaking point. Floods and plagues are tangible events. We can usually see them coming and prepare for the worst. Cyber-attacks are like a bolt of lightning, one minute it’s a sunny day, and the next minute your business is on fire and you are scrambling to mitigate the damage. Cyber resilience is a measure of how well you can manage a cyber-attack or data breach while continuing to maintain business operations effectively. There are some simple steps you can take to make your business more resilient to cyber-attacks.  Step One: Know what you are trying to protectAll businesses have information that, if lost, would compromise the viability of the business. When considering what you need to protect, think of your information as assets in terms of maintaining their confidentiality, integrity and their a… - [Keeping your employees during the ‘big quit’](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-04-03-keeping-employees-during-big-quit) — Since 2021 and the lessening of the effects of the Covid pandemic, many countries have experienced an increase in staff turnover and lost productivity. This is informally referred to as ‘the great resignation’, ‘the big quit’, ‘brain drain’ and ‘quiet quitting’. These trends are concerning as turnover and lost productivity present further challenges to businesses that may already be struggling in a weakening economy. Employers can implement retention tools to minimise turnover and ensure employee engagement. As with all employment contractual changes, care needs to be taken to ensure that these do not result in unexpected consequences for either party. We look at the most common retention tools that employers might consider along with some alerts when using these incentives.Incentives are variations to the employment agreement  All incentives are a variation to your employee’s individual employment agreement. When considering any form of incentive, you must ensure that all changes are consulted on, and agreed to, by your employee. The agreed c… - [Subdivision Consents](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-03-24-subdivision-consents) — In the Autumn 2022 edition of Property Speaking we discussed different types of resource consents. Since then, the government has released a new National Policy Statement for Highly Productive Land (NPS-HPL), which you can read here. The purpose of the NPS-HPL is to ensure that highly productive land is protected for use in land-based primary production, both now and for future generations. Councils are now required to consider the need to preserve highly productive land when determining any application for a subdivision consent. Subdivision consentIf you want to change the size of your section by purchasing some of your neighbour’s property and merging it with your own (a boundary adjustment) or you want to split your property into additional property titles, then you will need subdivision consent from your local council. RequirementsYour region’s district plan sets out the requirements that you must meet in order to subdivide your property. In addition to the requirements being different between regions, the requirements are also different depending on the zone in which your property is located. Properties are divided into zones that consider the standard characteristics expected in that area. The zones are: ResidentialCommercial/retail/town IndustrialRural lifestyle Rural production, and Special purpose… - [Storm Damage to Properties](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-03-24-storm-damage-properties) — With historic amounts of rain and flooding in many regions, this year has so far been challenging for many communities in the North Island. It is anticipated that these extreme weather events are likely to become more frequent in the future. Many properties have been damaged by flooding, landslides and silt. Some of these may be under sales agreements or leased under residential tenancy agreements. We give some advice on what landlords, tenants and buyers (who have not yet settled) can do. Residential tenanciesThe responsibility for repairing damage to a property caused by a weather event or natural disaster, including drying a property that has been damaged by flood water (and paying for the electricity to do so), lies with the landlord.If the landlord and tenant cannot come to an agreement on the next steps, either party may apply to the Tenancy Tribunal for a way forward.Is the property completely destroyed? If the property is no longer habitable, rent will reduce accordingly and either party may give notice to the other terminating the tenancy. A landlord must give seven days’ notice and a tenant must give two days’ notice. We recommend taking photos of the damage in case there is a dispute about whether the property is destroyed. Notices from emergency services or c… - [Who are the "children of the settlors"?](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-02-28-who-children-settlors) — In the recent case of Re Merona Trustees Ltd , the High Court was asked to determine who the beneficiaries of a trust were as it was not clear who was intended by the phrase the ‘children of the settlors’ that was in the trust deed. BackgroundThe trust settlors, Merv and Rona, had two daughters together - Lilly and Miffy. Rona also had two sons from a previous marriage when she was very young - Rob and Ray. When Rona’s first marriage broke down, and in the absence of social welfare benefits, she could not afford to keep her sons, and they both went to live with different extended family members. Rob had occasional contact with Rona and, after Rona’s marriage to Merv, Rob was raised by them both. Ray, however, was raised by extended family and had no contact with Rona. It was only as an adult that Ray came to know Rona and the wider family.Interpreting the trust deedRona died in 2013. Merv died in 2020. After Merv’s death, a question arose as to who were the beneficiaries of the trust they had settled.The questio… - [Who really wants to be a Trustee?](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-02-28-who-really-wants-trustee) — Are you a trustee of a family trust, or considering becoming one? If so, you need to be familiar with the obligations you are taking on when agreeing to act as a trustee. You should also have a clear understanding of the risks that you are exposed to when you agree to act as a trustee. Before the Trust Act 2019 In its Review of the Law of Trusts in 2013, the Law Commission found that despite the large number of trusts in New Zealand and the number of people acting as trustees, the majority of non-professional trustees had little appreciation of the extent of their obligations.The commission recommended an overhaul of the Trustee Act 1956 and, in 2019, new legislation was passed. It sets out the obligations of trustees, so that it is clear to both trustees and beneficiaries about trustees’ obligations and what beneficiaries can do if trustees do not fulfil those obligations. Trustees’ obligations The main obligations for trustees, as set out in the Trust Act 2019, are to:Know the terms of the trustAct in accordance with the terms of the trustAct honestly and in goo… - [What is PPSR?](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-02-27-what-ppsr) — Anyone who has been in business, even for a short time, will have encountered the PPSR (Personal Property Securities Register). The PPSR is a searchable online register that records if a third party has a financial interest in the assets of individuals or entities. Gives protection when leasing or selling goodsThe register only records interests in personal property (not land). Personal property includes all property that is not land or ships.If you or your business leases or sells goods on credit terms, or if you have lent money to a third party, you should seriously consider registration on the PPSR in order to protect your business or yourself. Registering a security on the PPSRIt is helpful to look at examples where registration on the PPSR would be appropriate.  Leasing assets for a term of longer than 12 months, such as eftpos or photocopier equipmentSelling goods on credit terms, for example, payment is due on the 20th of the following monthSelling goods on consignment terms where payment is due when the goods are sold, orMaking a loan to an… - [Letter of Intent](https://www.klb.co.nz/https://www.klb.co.nz/news/2023-02-27-letter-intent) — A letter of intent, also known as a heads of agreement, is often used by parties before entering into a formal contract. While such a letter can be a useful tool to maintain momentum during a commercial transaction, the document itself has been the centre of many disputes over the years. What is it?A letter of intent is a signed document with two or more parties that shows a commitment to achieve a particular outcome – usually in a commercial setting. A common example is when two or more parties are forming a joint venture or one party is procuring services from another.The document may contain terms that have been agreed upon to date. It may include, for example, the subject of the transaction (a joint venture, merger, etc), key dates, pricing and details around what remains to be determined.PurposeSetting out the terms that have already been agreed can allow the transaction to proceed with confidence to more costly stages such as engaging specialist legal or taxation advice. It can also help tie together many different points of a negotiation process and give clarity … - [Protecting Productive Land](https://www.klb.co.nz/https://www.klb.co.nz/news/protecting-productive-land) — Following the Our Land 2018 joint report from the Ministry for the Environment and Stats NZ, as well as a certain amount of political pressure, the government gazetted the National Policy Statement for Highly Productive Land (NPS-HPL) on 19 September 2022. New policy statement: NPS-HPLThe NPS-HPL came into effect on 17 October 2022 (the commencement date) and requires every regional council to map as highly productive land any land in its region that is:In a general rural zone or rural production zonePredominantly Land Use Capability (LUC) 1, 2 or 3 land, andForms a large and geographically cohesive area.This mapping must take place within three years from the commencement date.Protection of urban expansion on highly productive landThe Our Land 2018 report found that, amongst other things:‘Urban expansion is reducing the availability of some of our most versatile productive land.  Studies based on changes in land cover indicate that between 1990 and 2008, 29 percent of new urban areas were on some of our most versatile land. Fragmentation… - [Trusts and Succession](https://www.klb.co.nz/https://www.klb.co.nz/trusts-and-succession) — In a previous edition of Rural eSpeaking, we covered certain aspects of the changes to trust law brought about by the Trusts Act 2019, particularly in relation to succession. That article focused primarily on the duties imposed by the Act on trustees to provide information to beneficiaries and some of the implications of that. Trustee duties in farm succession planningThe Act also codified trustees’ duties to beneficiaries, with the guiding principle set out in section 21:‘In performing the mandatory duties set out in sections 23 to 27 and (except to the extent modified or excluded by the terms of the trust) the default duties set out in sections 29 to 38, a trustee must have regard to the context and objectives [our emphasis] of the trust.’The mandatory duties are pretty self-explanatory. These are a duty to:Know the terms of the trustAct in accordance with the terms of the trustAct honestly and in good faith, andAct for the benefit of beneficiaries or to further permitted purpose of the trust.Those duties would all seem self-evident, but practice suggests that many trustees have difficulty in knowing the… - [Postscript](https://www.klb.co.nz/https://www.klb.co.nz/news/2022-11-23-postscript) — The new Fair Pay Agreements Act 2022 worked its way quickly through the House and comes into effect on 1 December 2022. The government’s objective is to provide a framework for collective bargaining of pay agreements. It stated that the legislation will improve employment conditions by enabling employers and employees to bargain collectively (by occupation, for example), rather than on an individual basis. Fair Pay Agreements legislation passedThe Minister for Workplace Relations and Safety, the Hon Michael Wood said, “By increasing bargaining coordination to agree minimum employment terms within a sector, outcomes for vulnerable employees will be improved and we will see growth in the incomes of New Zealand employees. This is especially the case for Māori, Pacific peoples, young people and people with disabilities who are over-represented in occupations which will benefit from a Fair Pay Agreement.”As we noted in the Winter 2022 edition of Fineprint, the provisions in this legislation have been welcomed positively by unions although not so warmly by many employers.If you would like help in any pay negotiations, please don’t hesitate to be in touch.Some plastic products now bannedSinc… - [Attorney vs Executor: What is the Difference?](https://www.klb.co.nz/https://www.klb.co.nz/news/2022-11-23-attorney-vs-executor-what-difference) — It can sometimes be confusing when we talk about an attorney (for an Enduring Power of Attorney – EPA) and an executor who is appointed in your will and who looks after your estate when you die. The difference, as outlined below, is literally a matter of life and death. An EPAAn EPA is used when you may not be able to make decisions for yourself. For example, you may become very unwell, or unable to communicate important decisions (you could be away from email or phone access for some time), leading in either case to an inability to make important decisions. Your attorney is the person you trust to act in your best interests – with your property and your wellbeing.There are two types of EPA – property, and personal care and welfare. Your attorney can be the same person/s or you can choose different people for these two roles. An attorney’s roleYour property attorney can manage your finances, they can sell your house if necessary and even buy Christmas and birthday gifts for specific people. Your personal care and welfare attorney can make decisions… - [Shared Parenting](https://www.klb.co.nz/https://www.klb.co.nz/news/2022-11-23-shared-parenting) — Deciding to move to a new location can be exciting and bring a sense of renewal, particularly after a long cold winter and enduring these Covid years. However, if you are separated with children, what happens to ongoing parenting arrangements in these situations? Can you move with your children without agreement from the other parent? Relocating the children without consentIf you do this, it is referred to as a ‘unilateral relocation’, and it can result in applications filed and court orders sought. Both parents are considered a guardian of the children, regardless of how much contact one of the parents may have. There are certain decisions about a child that are ‘guardianship decisions.’ You must discuss these with the other parent. Topics to talk about include where a child lives, where they go to school, any medical decisions and so on.  The processWhatever the reasons for you considering a move, the best option is to discuss this openly and honestly with the other parent. Understandably, the idea of your children moving away can be difficult for the other parent.It may be that you can reach an agreement be… - [Greenwashing](https://www.klb.co.nz/https://www.klb.co.nz/news/2022-11-23-greenwashing) — The Sustainable Business Council ‘Better Futures 2022’ report[1] surveyed New Zealanders and identified that more than 43% of Kiwis are committed to living a sustainable lifestyle; this is a continuation of an upward trend over the last three years. Given the public’s motivation to be more sustainable than ever, businesses are honing their marketing strategies towards environmental sustainability. ‘Green’ credentials are good but take careMaking any form of environmental claim in marketing is known as ‘green marketing.’ Making an environmental claim that is misleading, false or unsubstantiated is usually referred to as ‘greenwashing.’ It is not a new concept but, given the increasing number of Kiwis wanting to make environmentally sustainable decisions, the desire to market products and services in a green way continues to increase. However, if any such claims are not substantiated, an advertiser may inadvertently cross the line between green marketing and greenwashing.  Responsibility for preventing greenwashing falls to a number of different regulatory bodies in New Zealand. These include:Commerce Commission that, amongst its many roles, takes action to enforce the F… - [Insta # Dismissal?](https://www.klb.co.nz/https://www.klb.co.nz/news/2022-11-23-insta-dismissal) — Employers, disrepute and social media. Whether we like it or not, social media affects almost every aspect of our daily lives, including employment relationships. How can employees’ ‘private’ social media posts bring an employer’s business into disrepute and lead to an employee’s dismissal? Shouldn’t employees have privacy out of work? On the other hand, if a post adversely affects an employer, shouldn’t they be able to act? The problem with social mediaGone are the days of casual conversations with a limited audience. Social media can reach thousands of people with the click of a button and filter into real life to have an impact on our working environment. An employee’s social media posts ‘shared’ only with family and friends, may ultimately be far from ‘private’. That post or a screenshot can be forwarded and shared with a limitless audience. A social media post (or a like, comment, hashtag or tweet) is often made emotionally or in the heat of the moment, but can be permanent and can quickly cause damage and/or have effects on a business — with far-reaching consequences. Bringing your employer into disreputeAs an employee, if your conduct impacts (or potentially impacts) adversely on your empl… - [Team Building Event](https://www.klb.co.nz/https://www.klb.co.nz/news/2022-11-04-team-building-event) — On 15 October staff and family teamed up to create the “Kaimai Killers” team in the annual Tauranga 10 Up Dragonboat Regatta – Corporate Challenge. While this was a new experience for all but 1 participant, a lot of fun was had by all and it was a great day of mixing and mingling with all teams that participated.We did not receive the wooden paddle award, but there is talk about the strategy to adopt for next year! - [Hybrid Working- Now an Option for Many Employees](https://www.klb.co.nz/https://www.klb.co.nz/2022-09-13-news/hybrid-working-now-option-many-employees) — The Covid pandemic has reshaped the way New Zealanders work. Southern Cross Health Insurance conducted a nationwide survey for its Workplace Wellness Report 2021 and found that since the Covid outbreak in 2020, 34% of businesses surveyed have changed their position on remote working and now offer it as an option to employees. AUT Business School Professor Jarrod Haar[1] has monitored the New Zealand workforce since February 2020 and, as of November 2021, 48% of Kiwi workers were engaged in hybrid working. It is likely the percentage of hybrid workers has increased since the AUT study. As hybrid working appears to be a fixture in the employment landscape, what are the benefits of hybrid working and why are so many employers agreeing to opt into this flexible working regime?Benefits of hybrid working Hybrid working provides a great deal of flexibility for both employees and employers. A worker who feels tied to their desk all day may feel overwhelmed and stressed by their inability to tend to at-home tasks. Hybrid working provides employees with more flexibility which directly correlates with efficiency. AUT’… - [Contract Compliance- Fair Trading Amendment Act 2021 now in Force](https://www.klb.co.nz/https://www.klb.co.nz/2022-09-13-news/contract-compliance-fair-trading-amendment-act-2021-now-force) — If you have customer contracts, inter-business contracts or contracts valued under $250,000, the Fair Trading Amendment Act 2021, that updated the Fair Trading Act 1986, should be on your radar. The changes came into effect on 16 August 2022. Unfair terms, unconscionable behaviour and direct sales are all targeted in the updated legislation that includes an expansion on the regulation of ‘unfair terms’ impacting all consumer contracts and standard, trade and small contracts. This means all businesses should be reviewing these changes to ensure they comply with the 2021 Act to avoid penalties. In this article, we focus on the ‘unfair’ contract term changes as these will impact almost all businesses.What is an ‘unfair’ contract term?Contract terms that are now considered ‘unfair’, and therefore unenforceable, are any terms that meet all of the following requirements:  The contract or term causes a significant imbalance in the parties’ rights and obligations arising under the contractThe term is not reasonably … - [Wearing two hats in a family protection claim](https://www.klb.co.nz/https://www.klb.co.nz/news/wearing-two-hats-family-protection-claim) — In a recent case , the High Court found that a will administrator’s default in complying with a court order was so flagrant, it justified issuing an order for arrest of the administrator. How did this arise and, more importantly, how could it have been avoided? The will administrator was wearing two hats – one hat as a will administrator and the second hat as a beneficiary. Get independent adviceDan Eckhout died in October 2017. Dan had named a South-African lawyer as executor in his will; that lawyer renounced the executorship. The court then appointed Dan’s third wife, Karen Eckhout, as administrator of Dan’s estate. Dan’s will left almost all of his estate to Karen. As well as Karen, Dan was survived by five adult children, one of whom was a stepchild. The sum of 120,000 South African rand (NZ$12,000) was left in trust for the three children of Dan’s second marriage. Michelle Connelly, the second child of Dan’s first marriage received nothing. She brought a claim under the Family Protection Act 1955 (FPA) for some provision from Dan’s estate. None of Dan’s other children brought claims.Two hats are a no-noKaren was wearing two hats in the pro… - [Trusts Act 2019 also affects executors and administrators of wills](https://www.klb.co.nz/https://www.klb.co.nz/news/trusts-act-2019-also-affects-executors-administrators-wills) — When the Trusts Act 2019 came into force on 30 January 2021 the changes it brought were well publicised. However, not everyone is aware that the some of the provisions in this legislation also apply to wills and the administration of estates by executors. We outline executors’ mandatory and default duties as well as briefly discussing some interpretations of the latter. Mandatory and default duties explainedThe changes in trust law that came into effect on 30 January 2021 have been incorporated into estate administration law by s4B of the Administration Act 1969. It confirms that trustees’ mandatory and default duties set out in the Trusts Act also apply to executors or administrators of estates. This is an important set of protections for beneficiaries of estates who may have concerns about the way an executor is administering estate assets.Mandatory duties for executorsExecutors or administrators are now subject to mandatory duties; these cannot be modified or excluded by the terms of a will. These include the duties to:Know the terms of the willAct in accordance with the terms of the willAct honestly and in good faithAct for the benefit of the benefi… - [Crown Pastoral Land reform Act 2022](https://www.klb.co.nz/https://www.klb.co.nz/news/crown-pastoral-land-reform-act-2022) — In the Autumn 2019 (No 29) issue of Rural eSpeaking, we reported that the Land Information Minister had announced that tenure review of Crown pastoral land under the Crown Pastoral Land Act 1998 (CPLA) would end. On 17 May 2022, the Crown Pastoral Land Reform Act 2022 (CPLRA) became law. In this article, we outline what is included in the new legislation, what will continue to be dealt with under the old Act, and how the Crown proposes managing this land. Tenure review has endedIn February 2019, the then Minister of Land Information, the Hon Eugenie Sage, introduced a discussion document setting out proposals as to how Crown pastoral land could be managed following the end of tenure review. Feedback was sought on the implications of ending the tenure review, the outcomes the Crown was seeking for Crown pastoral land and what changes could be made to the Crown Pastoral Land Regulatory System to achieve those outcomes.  The passing of the CPLRA on 17 May 2022 (the Commencement Date) is a result of both the resolution to end tenure review, and the decisions made following the circulation of the discussion document and the feedback received. Tenure review ended on the Commencement Date (except for some exemptions as set out in column 2) with m… - [He Waka Eke Noa- Follow up](https://www.klb.co.nz/https://www.klb.co.nz/news/he-waka-eke-noa-follow-up) — In the Autumn 2022 issue of Rural eSpeaking we wrote that, following a period of public consultation, the He Waka Eke Noa (HWEN) Partnership was about to provide its recommendations to the government on how best to equip farmers to measure, manage and reduce on-farm agricultural greenhouse emissions. Recommendations with the governmentIn its report to the government, HWEN has recommended a farm-level split-gas levy pricing system. The key features are:Farms calculate their short and long-lived gas emissions using a single centralised calculator (or farmers can use existing tools and software that are linked to a centralised calculator)The system will be calculated by on-farm emissions determining levy costs, rather than the use of national averagesA recognition of reduced emissions from on-farm efficiencies and mitigations as they become availableIncentives are provided for the uptake of actions to reduce emissionsA split-gas approach applies different levy rates to short and long-lived gas emissionsOn-farm sequestration is recognised that could offset the cost of the emissions levyLev… - [Proposed Income Insurance Schemes](https://www.klb.co.nz/https://www.klb.co.nz/news/proposed-income-insurance-schemes) — Every year, more than 100,000 workers in New Zealand are laid off or lose their jobs through no fault of their own. In February, the government proposed a new compulsory insurance scheme for all employees. This would provide most Kiwis with 80% of their regular salary for a minimum of seven months if they lose work through no fault of their own (including a health condition or redundancy). Why introduce such a scheme? Mass and dramatic redundancy of workforces has been experienced in New Zealand during the 2007–09 global financial crisis, the Christchurch earthquakes in 2010–11 and the current Covid pandemic. These events cause significant economic stress on employees and their families while also impacting the broader community as there is decreased consumer spending. The government claims the scheme will also help close the income gap and make income support available to people who cannot work due to non-accident-related health conditions. What would it entail? The proposed scheme would provide coverage for total loss of work due to redundancy or health conditions (including disability). It will not cover an employee’s reduced hours, reduction from full-time to pa… - [2022 Budget - Commentary on the Minister's Main Points](https://www.klb.co.nz/https://www.klb.co.nz/news/2022-budget-commentary-ministers-main-points) — The Minister of Finance, the Hon Grant Robertson, presented the government’s Wellbeing Budget to the House on Thursday, 19 May. With inflation running at a 30-year high at 6.9%, and similar levels of inflation with most of our trading partners, rising interest rates, the stock market in the doldrums, the knock-on effects of the Ukrainian war and the continuing situation with Covid, the government is walking an economic tightrope. Cost of living To help mitigate inflation and the squeeze on the lower-middle income sectors, the government has established a $1 billion cost of living relief package. This includes a one-off $350/person cost of living payment for the estimated 2.1 million people earning less than $70,000 per annum and who are not eligible for the winter energy payment. This $350 payment will be made in three instalments from 1 August. The half-price public transport fare regime (introduced to run from 1 April – 30 June) will continue for an additional two months to 31 August, as will the reductions in fuel excise and road user charges. There will be ongoing concessions for Community Services card holders. The government is attempting to quell some elements of the current supermarket duopoly. On 19 M… - [Forestry Update](https://www.klb.co.nz/https://www.klb.co.nz/news/forestry-update) — Forestry is attracting a great deal of interest and opportunity right now. This rapidly growing area faces challenges in terms of public opinion, regulation and general understanding. With all that is going on, where does this leave the agricultural sector in terms of sequestering carbon and the Emissions Trading Scheme (ETS)? We update you on some current issues. Forest land’ and the farmForestry is a big player in sequestering carbon, however, not all forestry on a property can be registered in the ETS. The ETS defines ‘forest land’ as an area that is at least one hectare in size and has (or will have) tree crown cover of more than 30% in each hectare of forest species, at least 5m in height at maturity and an average width of at least 30m. This set of rules restricts the parameters of registerable areas for carbon sequestration and, in particular, discounts some current developments and areas on farms. The scheme, for example, rules out smaller areas of riparian planting that many farmers have invested in to improve the ecology and environment on their land. However, if He Waka Eke Noa achieves its alternative emissions goal, this could ch… - [He Waka Eke Noa](https://www.klb.co.nz/https://www.klb.co.nz/news/he-waka-eke-noa) — He Waka Eke Noa (HWEN) is a partnership established to reduce the emissions generated by the primary sector. It works to equip farmers to measure, manage and reduce on-farm agriculture greenhouse emissions and to provide sustainable farming practices for future generations. More importantly, HWEN is developing a suitable emissions pricing scheme as the entire primary sector is not currently covered by the Emissions Trading Scheme (ETS). The government’s approval to this industry-led approach, however, comes with a large caveat – the ETS is the backstop for pricing agricultural emissions if HWEN does not deliver an effective and workable alternative. HWEN has put forward two options to the ETS:1.    A farm-level levy: this will calculate emissions using farm-specific data and the farm will pay a price for its net emissions, or2.    A processer-hybrid levy: this will calculate emissions at the meat, milk, and fertiliser processor level, based on the quantity of produce received from farms or, the amount of product sold to farms. It will be paid at a pr… - [Not sure of your Boundary?](https://www.klb.co.nz/https://www.klb.co.nz/news/not-sure-boundary) — All property owners, whether commercial or residential, must ensure that any structure on their property is located within its legal boundaries. These boundaries cannot be moved without the property’s title also being changed. Sometimes, however, the legal boundaries do not match up with structures (such as a fence or a building) on that property. What happens when the title does not match what is literally ‘on the ground’? Confirm the legal boundary firstThe first step when a query about a boundary arises is to determine where your boundary legally lies. Online aerial maps (like those available on some council websites) give you a starting point. However, the definitive description of your boundary is on the legal title for your property. There is usually at least one diagram on your title which will have the set measurements of all of your boundaries’ locations.On the ground, there should be markers along your boundary. You can use these boundary markers together with the title to figure out where the relevant boundary lies. Sometimes, however, the boundary markers are well hidden or missing entirely, particularly on older properties. If boundary markers cannot be found, you should engage a surveyor to es… - [Resource Consents](https://www.klb.co.nz/https://www.klb.co.nz/news/resource-consents) — The Resource Management Act 1991 places restrictions on how your land can be used; this is done by the issuing of consents. Their purpose is to limit any adverse effects that your intended use of your property may cause to neighbours’ properties or the environment. If you are a property owner, or you lease premises to operate your business, we explain below the various types of consent that you may come across from time to time. Types of consentDischarge consents: The Act restricts the discharge of contaminants into the air, water or land. It is important that the way you use your property doesn’t adversely affect it for future generations or damage your neighbour’s property. If your business manufactures goods or you are farming, rules restricting the use of pesticides, limiting dust and controls around dairy effluent will be familiar to you.Consent to take water: If your farm has a spring or river flowing through it, you may use that to water your crops or herd. What you may not know is that your council may restrict how much water you can draw from that source over a particular period. Although there is plenty of water in the sea, clean fresh water is a limited resource and it needs to be controlled appropr… - [Caring for Kiwis who cannot make decisions for themselves](https://www.klb.co.nz/https://www.klb.co.nz/news/caring-kiwis-who-cannot-decisions-themselves) — In the Spring 2021 edition of Trust eSpeaking, we looked at whether someone in New Zealand could end up in a similar situation to American entertainer Britney Spears. Britney was under a conservatorship (or guardianship) arrangement that was established against her wishes. Britney Spears’ conservatorship has now been formally ended. Since then, she has made a number of specific allegations against her conservators including these four points:She was paid $2,000 per week, despite earning millions per year; this was less than her conservators were paidHer conservators were unwilling to allow her to marryHer conservators required her to use contraception so she could not become pregnant, despite her wanting to start a family, andBritney was forced to work long hours, against her wishes, and despite her sometimes being very unwell.Could any of these things have happened in New Zealand under the Protection of Personal and Property Rights Act 1988 (PPPRA)? This legislation allows for the appointment of property managers and welfare guardians to make decisions fo… - [Gift or Loan?](https://www.klb.co.nz/https://www.klb.co.nz/news/gift-loan) — The trusty Kiwi “She’ll be right” approach is often manifested in a reluctance to formally document intra-family lending arrangements. Catch cries of “I trust the kids to sort things out between themselves after I’m gone” and “My new partner says she will never make a claim and I believe her” are common, but all too often lead to disputes down the track. In this article, we look at three different scenarios that are based on Maddy’s story. Maddy’s parents help outIn 2016, Maddy’s parents decide to help her buy her first home. The bank will not lend to Maddy without a 20% deposit; her parents offer to lend her $250,000 to make up the 20%. The bank’s rules also require her parents to sign a gifting certificate, confirming that they will not require repayment of the money. Despite that, Maddy and her parents agree verbally that the money is a loan, not a gift, and Maddy will pay them back when she can. This is important to Maddy’s parents, as they also want to help their younger daughter, Sarah, into her first home in a few years’ time once Maddy has enough equity in her home to repay them. Maddy takes out a bank loan, secured by a first ranking all obligations mortgage in favour of the bank and buys her first home. E… - ['Nuisance' Is still relevant in court](https://www.klb.co.nz/https://www.klb.co.nz/news/nuisance-is-still-relevant-court) — Many of us are familiar with the tort of negligence — an act or omission by one party that causes loss to another party. Inherent in a negligence claim is the concept of ‘fault’. A recent case illustrates why nuisance, a tort similar to negligence except that fault is not necessary, is still relevant. Forest trees causing nuisanceNottingham Forest Trustee Limited (NFT) owned land on which it had planted a commercial forest. Over a period from December 2010 to August 2016 pinus radiata trees growing in the forest, which had been planted many years earlier, fell onto two electricity lines owned and operated by Unison Networks. Unison’s customers experienced power outages while repairs were carried out, and Unison incurred costs as it repaired the damage. Unison sued NFT both in negligence and in nuisance and sought damages to cover the cost of repairs and also an injunction to prevent future falls of trees.  BackgroundUnison’s electricity lines crossed over the land while it was a sheep and beef farm, and the power lines were present when NFT acquired the land and planted the forest… - [Co-owning a Property](https://www.klb.co.nz/https://www.klb.co.nz/news/co-owning-property) — For many, owning a property simply involves having your own name recorded on the title. There are some situations, however, where you might share property ownership with friends, family or business partners. This type of co-ownership seems to be rising in popularity. Amongst other things, the difficulty for a single purchaser to meet finance requirements has seen an increasing number of people sharing a roof. Lately, whole developments have been designed to accommodate this type of arrangement.[1] For others, co-ownership may come about through inheritance, for investment reasons or in situations where the property is only needed part-time, such as a shared holiday home.Whatever the reason, co-ownership comes with many issues to consider. The greatest risk with co-ownership is making assumptions about how things will work, only to find out at crunch time that your fellow owners see things very differently.Put it in writingIn this article, we focus on a common way of dealing with co-ownership … - [Land Covenants](https://www.klb.co.nz/https://www.klb.co.nz/news/land-covenants) — A covenant is an instrument registered against land that governs how an owner or occupier can use their land. The land bound by the terms of the covenant is referred to as the ‘burdened land’ as that has the burden (although not all covenants are negative) of complying with the terms of the covenant. There can be either positive covenants which compel the owner or occupier to do something, or restrictive covenants that prevent the owner or occupier from carrying out a particular activity.Common covenantsGenerally, people encounter covenants when their lawyer reviews the Record of Title of a property and advises that it is subject to a land covenant. Often the covenant will dictate that certain activities or uses are restricted or prohibited on the property. Examples include the maximum height of buildings allowed to be built on a property or a prohibition on keeping certain animals.Covenants are commonly seen in subdivisions where the developer intends to sell multiple sections for the construction of new homes. Often a developer will register extensive land covenants that prescribe va… - [Water Services Act 2021](https://www.klb.co.nz/https://www.klb.co.nz/news/water-services-act-2021) — Water has been very much in the news lately, particularly with the government’s proposed Three Waters Reform Programme. The Three Waters Reform generally deals with the transfer of water infrastructure (drinking water, wastewater and stormwater) to four new water service delivery entities. What hasn’t been in the news as much is a very important piece of legislation with regard to water that will impact on the rural community: the Water Services Act 2021. This came into force on 15 November 2021. The purpose of this legislation is to ensure that ‘drinking water suppliers’ provide safe drinking water to consumers. Previously, responsibility for drinking water was dealt with under the Health Act 1956 but, as a result of the water contamination issues in Havelock North in 2016 and the subsequent inquiries that resulted from that, it was determined that the supply of safe drinking water was so critical that it needed its own legislation and regulator — Taumata Arowai.What is a ’drinking water supply’?A ‘drinking water supply’ means the infrastructure and processe… - [Lockdown rent relief – are there remedies?](https://www.klb.co.nz/https://www.klb.co.nz/news/lockdown-rent-relief-there-remedies) — For many of us the recent lockdown brought a sense of déjà vu. Once again, a number of us were back juggling Zoom calls while supervising school work from the confines of our own homes. The landlords and tenants amongst us were again grappling with the issue of how the lockdown affects lease obligations. Businesses which were not deemed ‘essential’ were prohibited from accessing their premises during Alert Level 4, and for some of you this meant your business could not earn any income during that period or revenue was severely reduced.Is rent relief available?The first place to look for rent relief options is in your lease itself. The most common form of commercial lease is the Auckland District Law Society (ADLS) lease. If you’ve entered into an ADLS lease in or after 2012 it is likely to contain clause 27.5 which deals with situations where tenants are unable to gain access due to an ‘emergency’.Although this clause was originally introduced as a result of the Christchurch earthquakes and tenants being unable to enter undamaged premises which were in the locked down ‘red zone… - [Defining a de facto relationship](https://www.klb.co.nz/https://www.klb.co.nz/news/defining-de-facto-relationship) — You may have heard that ‘Marriage is betting someone half your stuff that you’ll love them forever’. But what happens about the ‘stuff’ you own before you formally say “I do”? The law providing equal sharing of relationship property automatically begins after three years in a de facto relationship. However, what a de facto relationship looks like, and when it starts, isn’t always obvious and is often the subject of a dispute. We take a closer look at de facto relationships as defined in the Property (Relationships) Act 1976 (PRA for short). This is key if you and your partner separate and have a dispute over property.Harry and KahurangiIf Harry and Kahurangi had been dating casually for a while before moving in together, we’d all agree their relationship evolved into a de facto relationship when they set up home as a couple. But what if Harry and Kahu were flatmates first? Would we assume they were in a de facto relationship from their first kiss?The landscape changes again if Harry and Kahu each own their own home and want to keep their independence, or if Harry lives in Auckland away from Kahu in Tauranga? Does it matter that Harry hasn’t told Kahu about his significant credit card debt? Or that Kahu’s … - [Caveats](https://www.klb.co.nz/https://www.klb.co.nz/news/caveats) — The Latin word ‘caveat’ literally translates to ‘let him beware’. In a legal sense, caveats are generally used to protect the proprietary rights of the person registering the caveat by stopping the registered owner of the property from transferring, mortgaging or otherwise dealing with the property. Why use a caveat?There are a number of scenarios in which you may want to register a caveat. Some examples are:When there’s a significant time lag between a purchaser signing an agreement and settlement, or where (after the agreement is signed) the vendor may try to cancel the agreement. A caveat should prevent the vendor from dealing with the property in any way that will interfere with your interest.A beneficiary of a trust may need to register a caveat to prevent the land to which their beneficial interest relates being transferred. Again, a caveat registered in this instance will protect the beneficial interest being claimed on the land.There is also a provision under section 42 of the Property (Relationships) Act 1976 available if you wish to prevent land that is the subject of a re… - [Disputes in Contracts](https://www.klb.co.nz/https://www.klb.co.nz/news/disputes-contracts) — Building your own home or doing renovations can be a way to get exactly what you want in your residential property. Even with the best preparation and planning, however, there are things that can go wrong in a build: the work may not be completed in the agreed timeframe, the quality may be poor or there may be surprise costs. One current common issue is unexpected delays or costs due to Covid-related supply disruptions. If you find yourself in one of these situations, there are a few things to keep in mind. Your contract may have the answerThe first step in any build dispute is to look at your contract with the builder. Often your contract will provide an answer about who is responsible for things like unexpected costs.By law, for any residential building work over $30,000 (including GST) in value, your builder must provide you with a written contract setting out things such as the scope of the work, expected start and end dates, how changes are negotiated and how problems with the work will be fixed.[1] Your contract also may set out timeframes for raising issues with your builder and how you need to do this. This is why it is particularly important to talk with us about your contract before signing and as soon as any issue arises.Other laws may protect youIf things go wrong, you also might… - [Lease vs Licence](https://www.klb.co.nz/https://www.klb.co.nz/news/lease-vs-licence) — Choosing the premises from which to operate your business can be daunting; it is essential that you know you are entering into the right type of agreement to suit your intentions. Leases and licences are common contractual arrangements. Although both are similar, there are crucial differences between them which can have significant implications for anyone who owns or occupies commercial premises. Knowing their differences, and when to use each, will help prevent any confusion, conflict or loss that may arise if you are not fully informed. Possession or occupation? The essential distinction between a lease and a licence is the type of rights they grant in relation to the property. A lease grants you exclusive possession of the property, but a licence only grants the right to occupy and use the land. ‘Exclusive possession’ in a lease situation means you can exercise control over the property and exclude all others from it, even the owner of the property, except where they have a legal right to enter the premises, for example to complete repairs or inspections. Occupation, however, is a right to use the property for a certain purpose and does not give you the right to exclude other people from it. A lease typically grants much wider rights than a licence because it gives you control of the property subject to some excep… - [Bonding Agreements](https://www.klb.co.nz/https://www.klb.co.nz/news/bonding-agreements) — Bonding agreements can be an incredibly useful tool for ensuring employers can recoup costs incurred for training staff. Used improperly however, bonding agreements may be unenforceable and – in some circumstances – be a clear breach of the Wages Protection Act 1983 (WPA). We look at two of the most common issues with bonding agreements as well as what should be considered for enforceable agreements. What is a bonding agreement?A bonding agreement is a benefit given to an employee where you agree to pay for some or all of the cost of further training in exchange for your employee agreeing to stay under your employment for a period of time; this is usually around one to two years after the training is complete. The result is an upskilled employee who has better qualifications and future employment prospects, and your business has the benefit of a more valuable employee who usually will stay for the period of the bonding agreement.  These arrangements can be recorded in the original employment agreement or in a subsequent document both the employer and employee sign which records the bonding agreement as a formal variation to the employment agreement that is already in place.Wages Prot… - [The Wellbeing Budget 2019](https://www.klb.co.nz/https://www.klb.co.nz/news/the-wellbeing-budget-2019) — As expected the government’s The Wellbeing Budget, presented by the Minister of Finance, the Hon Grant Robertson, on 30 May focussed very much on mental health and child wellbeing. The wider economy was looked after with increases in funding to KiwiRail, the establishment of a new venture capital fund, investment in science and research, and so on.  The government has indicated that New Zealand’s economy is in good shape, despite some softening of the global economy.  Mental health The government’s investment in mental health includes: $1.9 billion to be allocated towards mental health funding over the next five years. The introduction of a new universal frontline mental health service; this is expected to help 325,000 people with mild to moderate mental health needs by 2024. Acknowledging there is a current skill shortage, the government has committed to not only train more mental health professionals, but also to build more facilities. $40 million over four … - [PPSR Lease Losses](https://www.klb.co.nz/https://www.klb.co.nz/news/ppsr-lease-losses) — When the Personal Property Securities Register (the PPSR) was established in 1999, most businesses were quick to catch on that it was a good idea to register security over goods that were sold under a line of credit. What wasn’t so easily recognised is that the register was designed to also capture leases of goods that are indefinite or extend past one year.  Businesses that frequently lease goods, or provide hire purchase arrangements, with the intention of remaining the true owner of the goods leased, do not always register their lease on the PPSR. They believe it to be an effective means of security that they retain legal ownership of the goods. This ownership can, however, be defeated by a registered interest on the PPSR and result in significant loss to their business. Good intentions  The PPSR was designed to increase the transparency of lending and to be a source of truth for all financiers, purchasers and lessees. Where entities purchase goods and require credit, or financing, the financier or seller can register that interest on the PPSR. This puts other potential financiers (or purchasers) on notice that those goods are financed or l… - [Insurance & Financial Services Ombudsman](https://www.klb.co.nz/https://www.klb.co.nz/news/insurance-financial-services-ombudsman) — The Insurance & Financial Services Ombudsman office (IFSO) was established in 1995 to help consumers who were in dispute with their insurers or financial services providers. The IFSO1 is a free, independent entity to which you can lodge a complaint regarding the conduct and decisions of insurance and financial services providers, once you have exhausted that provider’s internal complaints procedures. Getting help when you have difficulties with your insurer or financial services provider The Insurance & Financial Services Ombudsman office (IFSO) was established in 1995 to help consumers who were in dispute with their insurers or financial services providers. The IFSO[1] is a free, independent entity to which you can lodge a complaint regarding the conduct and decisions of insurance and financial services providers, once you have exhausted that provider’s internal complaints procedures. In the 2017–18 year, the IFSO received 3,357 enquiries about its services, and investigated 320 formal complaints – 304 of which related to insurance. Of all complaints investigated by the IFSO in 2017–18: 2% were upheld 5% were settled through negotiation, conciliation and mediation 2% were part… - [Accessing the Assets of a Trust](https://www.klb.co.nz/https://www.klb.co.nz/news/accessing-assets-trust) — When a marriage, civil union or de facto relationship breaks down, the couple will usually divide their property according to the Property (Relationships) Act 1976 (the PRA). However, these two people often hold property in a trust rather than personally. The PRA has limited remedies to access property which has been put in a trust, and this can result in unfairness when a couple separates if there are no assets that they own personally.  The Law Commission has undertaken a review of the PRA and proposed that the legislation be changed to make it easier to access trust property when a couple separates.    The situation now In its current form, the PRA gives very limited access to trust property. As a result, New Zealand courts have found a number of other methods to dismantle a trust when a relationship breaks down. For example, the courts have developed ways to help partners who make valuable contributions to trust property in the expectation that their relationship would continue and they would continue to receive benefits as a result… - [No Enduring Power of Attorney?](https://www.klb.co.nz/https://www.klb.co.nz/news/no-enduring-power-attorney) — Most people are now aware of the importance of having an enduring power of attorney (EPA). If you are unable to make decisions for yourself at any stage (either temporarily or longer term) it is important there is someone in place to act on your behalf. What happens to you, and your family situation, if you have no EPA? Ensuring you have EPAs (for property and for your health and welfare) is a very important part of keeping your personal affairs in order. An EPA can be used if you are out of the country for a long time and you need someone to keep an eye on your financial affairs, or if you become mentally incapacitated and cannot look after your property or yourself. Mental incapacity can happen for a variety of reasons – a car crash or other accident, old age or a medical event. If anything like this happens and you can’t manage your own affairs, unless you have a signed EPA, there is no one with an automatic right to step in. Your spouse or partner may be able to deal with some of your jointly-owned assets but they are not authorised to sign on your behalf if you’re mentally incapacitated. If the… - [Do I Still Need a Trust?](https://www.klb.co.nz/https://www.klb.co.nz/news/do-i-still-trust) — If you have a family trust set up a number of years ago, it’s good practice to review it to ensure it is still ‘fit for purpose’. Leading on from that is the question that is often asked of us, “Should I bring my trust to an end?” Trusts are still very useful arrangements, and there is usually a good reason why you established a trust in the first place. If that reason no longer exists, however, then it may be sensible to think about alternative arrangements. Common reasons why you might consider bringing your trust to an end are: The trust may prevent you qualifying for a subsidy if you need to go into care If the trust was set up by your parents and they have now died, you and your siblings may have different needs You may no longer have concerns about business creditors, and Protecting assets from a relationship property claim may no longer be a concern. Even if your trust is no longer required for its original purposes, there may be other reasons to retain it. A trust may, for example, avoid disputes over your e… - [How do I Bring My Trust To an End?](https://www.klb.co.nz/https://www.klb.co.nz/news/how-i-bring-my-trust-end) — It has been estimated that there are between 300,000-500,000 trusts in this country. Trusts have been established for many different reasons, including estate planning, creditor protection, to ensure access to rest home subsidies, tax benefits or for protection from relationship property claims. When the reason for a having a trust is no longer valid (there’s more on this on our article Do I still need a trust? here), it is important to bring it to an end in the most appropriate way bearing in mind the powers in the trust deed and the needs of all the beneficiaries. This article explores the two most common ways that trusts can be brought to an end – bringing forward the date of distribution (the trust’s expiry date) and distributing all the trust assets to beneficiaries. Bringing forward the distribution date Trusts are not allowed to last forever. The ‘perpetuity’ rules currently state that a trust can either last for 80 years, or for ‘a life in being plus 21 years’. Given that you cannot predict how long someone will live, most New Zealand trusts are set to las… - [What Happens When Your Employee Wants to Retract Their Resignation?](https://www.klb.co.nz/https://www.klb.co.nz/news/what-happens-employee-wants-retract-resignation) — We all know that people can sometimes say things in the heat of the moment which, on reflection, they didn’t really mean. What happens when your employee quits suddenly, perhaps by storming out of your workplace as a result of a disagreement? As an employer, can you take this as a resignation? What happens if your employee has a change of heart and wants to return to work? Most employment agreements will provide a notice period that any employee must give when they want to end their employment. This allows you some time to find a replacement and make arrangements for the handover of work. Sometimes, however, your employee may quit without giving any notice. This often happens after a disagreement or argument between an employer and employee, when you may be looking to investigate your employee’s performance or conduct, or perhaps a stressed employee reaches ‘breaking point’ and decides they can’t work another day in the role. Sometimes your employee’s words and intentions are clear. For example, they may actually say, “I quit” or words to that effect. Sometimes, however, the situation is not so clear. What if your employee says, “I can’t t… - [Receivership of Construction Companies](https://www.klb.co.nz/https://www.klb.co.nz/news/receivership-construction-companies) — In light of Ebert Construction’s recent receivership, not taking protective measures opens subcontractors up to recovery and enforcement issues. If you are a subcontractor, you should think about how to prevent your tools and equipment (including cranes and scaffolding) from being seized and sold by a receiver, and to ensure you have the best chance of getting paid. Protecting your tools and equipment The first step to take is very practical. If you can, always take your tools and equipment home with you each night. When a construction company goes into receivership, the receivers lock the gates to the relevant construction sites which prevents you from collecting your tools and equipment. If this is not practical (if you have supplied scaffolding, for example) there are other steps to take to ensure you recover your gear. Make sure any tools or equipment left on site are clearly labelled and distinguishable as your property. If you have entered into a construction contract that could last for more than one year, you must also register a security interest on the Personal Property Securities Register (PPSR). If you do not do this, the receiver could… - [Changes Affecting Every Buyer of Residential Land](https://www.klb.co.nz/https://www.klb.co.nz/news/changes-affecting-every-buyer-residential-land) — Overseas Investment Amendment Act 2018 is now in force. The implication for you is that when you next buy residential property, there will be another layer of compliance to be completed before your property purchase goes through. The OIA Act’s primary purpose is to amend the definition of sensitive land to include ‘residential land’. This means that people who are not New Zealand citizens, or who do not hold New Zealand, Australian or Singaporean residence class visas ANDare not ordinarily resident in New Zealand must apply for consent to buy residential land in New Zealand. The underlying reason for this beefed-up legislation is to restrict foreign ownership of New Zealand land, and to encourage foreign owners to live in their properties rather than become landlords. Defining residential land The OIA Act defines residential land as a property that has a category of residential ‘R’ or lifestyle ‘L’ for the purpose of the relevant district valuation roll. It also includes a residential flat in a buildi… - [Buying a Cross Lease Property](https://www.klb.co.nz/https://www.klb.co.nz/news/buying-cross-lease-property) — New Zealanders love to talk about property. There are a multitude of topics relating to property that Kiwis have an intimate knowledge and understanding about which form the topic of water cooler and dinner conversation. The cross lease is just one of those many topics of conversation. Traditional land ownership model When you’re considering buying a house, you don’t envisage a cross lease form of ownership. You think of owning your own slice of land, subject only to the laws of New Zealand, and what your title says you can and can’t do. This form of ownership is called a fee simple title. A cross lease is not the same as a fee simple title. What are the differences? When you purchase a cross lease property, you buy a joint share of the underlying land together with the other cross lease holders and you lease from the other cross lease holders the rights to the house/ flat/building you will occupy. The terms of this arrangement are governed by a lease registered against the title to the land. The main difference from a fee simple title is that you are not the sole … - [Agri-Tourism and Food](https://www.klb.co.nz/https://www.klb.co.nz/news/agri-tourism-food) — Agri-tourism and food are growing sectors in New Zealand. We have farm tourism where tourists are shown working farms with activities such as sheep dog and shearing exhibitions. Artisan producers are growing their own products and then processing them into, say, cheese, and free-range pigs are becoming salami, bacon and ham. Often farm and food tourism begins as a way of diversifying a farm’s income stream. Sometimes it starts off as a relatively small hobby or sideline activity but then grows into something much larger in scale. There are legal implications to consider when you diversify your farming operation in these ways, particularly with regard to health and safety in the workplace and food safety. Health and safety One of the main issues with health and safety is that diversification brings a change in type of visitor to your farm. A regular farming operation has contractors or workers regularly coming onto your farm, whether they are employees, shearers, fencers and, in the case of horticultural enterprises, there are pickers. As well, you will have as other people such as engineers and electrician… - [Wandering Stock](https://www.klb.co.nz/https://www.klb.co.nz/news/wandering-stock) — One of the perennial problems that farmers face is that of stock wandering or stock getting out and interfering with, or causing damage to, neighbouring properties. Generally speaking, the issue of having a small number of stock grazing on your land for a short time until they are put back in the neighbour’s property may not be too great a concern. There are, however some fairly serious issues that can arise, particularly where stock from a pastoral farm, for example, gets into cropping or orchard land where the damage could not only relate to the crops that are eaten or destroyed but also could cause issues with export or organic certification. As a result, losses caused by wandering or trespassing stock could be significantly in excess of the value of the lost crops. What can be done about this? The right to impound The Impounding Act 1955 gives landowners the right to ‘impound’ wandering stock and, in the case of pigs or goats (except for branded angora, saanen or toggenburg goats), destroy them. A landowner can ISSUE 28Summer 2018 use the provisions of the Impounding Act to impound stock and claim damages for trespassing and… - [New Website for Kaimai Law Bethlehem](https://www.klb.co.nz/https://www.klb.co.nz/news/new-website-kaimai-law-bethlehem) — Kaimai Law Bethlehem are starting off 2019 with a brand new website. The new design features photos that reflect our love of our local landscapes and new profiles of our staff so our clients can get to know them better. The new site also features a revamped news section that will enable us to keep our clients abreast of important legal matters in New Zealand. Visit the new site: https://www.klb.co.nz - [Construction Industry and its Retentions Scheme](https://www.klb.co.nz/https://www.klb.co.nz/news/construction-industry-its-retentions-scheme) — The collapse last year of Ebert Construction Limited took many in the construction industry by surprise, particularly its subcontractors who were owed retention moneys. In our Spring 2018 edition (No 50) we published an article on Ebert Construction and subcontractors which had a section on retention moneys. Since then, the High Court decision has provided some guidance on the retentions scheme under the Construction Contracts Act 2002. We explain the main aspects of that decision and how subcontractors can help manage their risk. The retentions regime The retentions regime was created under the Construction Contracts Act 2002. It requires all principals/head contractors to hold moneys they retain on trust. The regime aims to protect retention funds if the principal/head contractor becomes insolvent. While Ebert was not legally required to establish a separate bank account to hold the retention money, it did so. In July 2018, the Ebert Construction Limited receivers applied to the High Court for directions around Ebert’s retentions scheme. The receivers wanted guidance on:  Whether they could manage and distribute the funds held in a retention account Which subcontractors had a right to receive those funds, and  How those funds were to be distributed.  Useful guidance from the court  The High Court case provid… - [Potpourri of Employment Law Changes Ahead](https://www.klb.co.nz/https://www.klb.co.nz/news/potpourri-employment-law-changes-ahead) — Last year saw many changes in the employment law sphere, with the Labour-led government delivering on promises of reform in this area. Of particular significance are the changes incorporated into the Employment Relations Amendment Act 2018 that was passed late last year. These changes will affect both employers and employees. We summarise some of these below. No 90-day trial periods for ‘large employers’ From 6 May 2019, employers who have 20 or more employees (‘large employers’) will no longer be able to include 90-day trial periods in their employment agreements.  The number of employees will be judged at the date employment agreements are entered into, not on the day the employee starts work. If you are an employer with close to 20 employees and wish to include trial periods within your employment agreement, it will be important to carefully consider whether any such trial period would be enforceable. Casual employees are likely to be ‘counted’ as employees when judging whether your organisation is a large employer.  Probation periods can be used Even though large employers will not be able to use trial periods, probationary pe… - [Tenure Review Of Crown Pastoral Land To End](https://www.klb.co.nz/https://www.klb.co.nz/news/tenure-review-of-crown-pastoral-land-to-end) — Tenure Review Of Crown Pastoral Land To End What is the government proposing? The Minister for Land Information, the Hon Eugenie Sage, announced on 17 February this year that the ‘tenure review’ of Crown pastoral land under the Crown Pastoral Land Act 1998 (CPLA) would end. She introduced a discussion document entitled ‘Enduring Stewardship of Crown Pastoral Land’ that sets out a number of proposals in relation to Crown pastoral land. Public feedback is sought on: The implications of ending the tenure review The outcomes the Crown is seeking for Crown pastoral land, and What changes should be made to the Crown Pastoral Land regulatory system to achieve those outcomes. Submissions should be made by 5pm on Friday 12 April 2019.   Background There are 171 remaining Crown pastoral lease properties covering approximately 1.2 mil… - [Property Sale and Purchase](https://www.klb.co.nz/https://www.klb.co.nz/news/property-sale-purchase) — Generally speaking, GST on a property sale and purchase between two GST-registered entities results in a ‘GST neutral’ position for both the seller and the buyer. It’s essential that the sale and purchase agreement contains the correct wording, particulars and information in respect of the GST position of the parties to the agreement.  If, however, the parties to the agreement have not correctly recorded their respective GST positions, it can result in a situation where a GST liability is triggered. This can mean the seller would effectively receive a 15% reduction of the contracted purchase price (as they may have to return 15% of the purchase price to Inland Revenue). Or, a buyer may end up having to pay an additional 15% on the purchase price if the agreement turns out to be ‘plus GST’. It’s vital that the GST position of buyer and seller is recorded accurately in order to avoid a possible nasty surprise at settlement. Correctly recording the GST position  The front page of a standard ADLS/REINZ agreement for sale and purchase requires a seller to warrant to the buyer as to their GST status. This is a matter of… - [Looking For Your First Home?](https://www.klb.co.nz/https://www.klb.co.nz/news/looking-for-your-first-home) — The purchase of your first home may be more in reach than you think. In 2018, the government aligned the purchase price limits of existing first home buyer schemes with the newly-launched KiwiBuild programme. As a first home buyer, or an eligible ‘second-chancer’, you could use these schemes to help you into your new home, sooner. KiwiSaver First Home Withdrawal If you have been a KiwiSaver member for three years or more, you may be able to withdraw your KiwiSaver funds (except $1,000) to contribute to your first home purchase. Each KiwiSaver scheme has different requirements for KiwiSaver First Home Withdrawal applications and you should contact your scheme provider directly to check your eligibility. HomeStart Grant Under the HomeStart Grant scheme, you could be eligible for a $3,000 to $10,000 grant for each person purchasing the property. To access the HomeStart Grant, you must have been contributing to your KiwiSaver scheme for at least three years. The amount of your HomeStart Grant is then determined by how long you have been a KiwiSaver member and the type of property you are purchasing.  HomeStart Grants a… - [National Environmental Standards for Plantation Forestry](https://www.klb.co.nz/https://www.klb.co.nz/news/national-environmental-standards-plantation-forestry) — National Environmental Standards for Plantation Forestry Review due in May The National Environmental Standards for Plantation Forestry (NES-PF) were first proposed in 2010. Following a period of consultation, the Standards came into effect on 1 May 2018, with a review due in 12 months after that (May 2019) to ascertain whether or not they are being successfully implemented. Ironically, the NES-PF came into effect a month before torrential rain north of Gisborne in the Tolaga Bay area in June 2018. This storm caused flooding which led to tonnes of forestry debris being strewn across farms and blocking rivers. The cleanup was expected to cost around $10 million and to take up to a year to complete. The cost and responsibility for this cleanup is still being determined.   Why have NES-PF? The objectives of the NES-PF are to: Maintain or improve t… - [Are You a Landlord or Looking to Buy a Rental Property?](https://www.klb.co.nz/https://www.klb.co.nz/news/are-you-landlord-looking-buy-rental-property) — From 1 July 2020, landlords will be required to provide additional details in their new or renewed tenancy agreements on how their property meets the standards Timelines 1 July 2021: Private landlords will need to ensure that their rental properties comply with the standards within 90 days of any new or renewed tenancy from this date 1 July 2021: All boarding houses must comply with the standards from this date  1 July 2023: All Housing New Zealand houses and registered Community Housing Provider’s houses must comply with the standards from this date 1 July 2024: All rental homes must comply with the standards by this date. Standards Rental homes will be required to have a heater that can heat the main living area to 18˚C Rental homes will be required to have ceiling and underfloor insulation that either meets the 2008 Building Code insulation standards, or (for existing insulation) has a minimum thickness of 120 mm Kitchens and bathrooms wil… - [Action Plan for Healthy Waterways](https://www.klb.co.nz/https://www.klb.co.nz/news/action-plan-healthy-waterways) — Water quality is no new issue in Aotearoa New Zealand, but it is a growing one. On 31 October 2019, the government closed submissions on the Action Plan for Healthy Waterways. The Plan has since been referred to an independent advisory panel that will consider the public’s submissions and report back to the government. The panel consists of five members with expertise in a range of areas including dairy farming, environmental law, hydrology and water management. Introducing the Plan, Environment Minister, David Parker spoke of the loss of New Zealand’s once-swimmable rivers and lakes. Damien O’Connor, Minister of Agriculture and for Rural Communities, commended the effort made by farmers to date: “Farmers have done a huge amount of work to improve their practices over the last 20 years and some are leading the way in restoring our pristine waterways. But more work needs to be done. The knowledge and skills of those exemplar farmers need to be shared with others. This will give us the quality water that farmers, city dwellers and future generations want and deserve.” Government’s six major goals The government’s proposal introduced six major goals to: Speed up the implementation of freshwater regulations through amendments to the Resource Management Act 1991, including more nationally-consistent freshwater management plans. Set and clarify policy direction in order to bring freshwater back to a healthy state within a generation using a new National Policy Statement for Freshwater Management (NPS-FM). This would give effect to Te Mana o te Wai, strengthening water health from the mountains to the sea and prioritising essential human needs such as drinking water. Improve freshwater ecosystem health by introducing new requirements in the NPS-FM to protect threatened species and habitats via better monitoring and reporting. This includes indicators of … - [Rural Leases; More on COVID and access issues to land](https://www.klb.co.nz/https://www.klb.co.nz/news/rural-leases-more-covid-access-issues-land) — In the Autumn edition of Rural eSpeaking we discussed the situation that COVID had caused with leases where tenants were unable to access their premises due to lockdown restrictions. Potential issues for the rural leasing sector arose from this problem, particularly given that rural leases are often in a different form to urban commercial property leases. The article pointed out that the main lease issue due to COVID was the inability of tenants to access their premises. Since we published the Autumn edition, the government has announced that it proposes further changes to the Property Law Act 2007 where it would imply in certain leases a clause similar to that in the latest version of Auckland District Law Society (ADLS) lease, section 27.5, where a tenant has:Twenty or fewer full-time equivalent staff per lease siteA New Zealand-based business, andNot already come to an agreement for a rent abatement with their landlord. Of interest to rural tenants is that the government’s proposals indicated that the clause would have a wider effect than the ADLS ‘no access’ clause in section 27.5. It would particularly apply ‘where there is, o… - [On-Farm Emissions Reduction](https://www.klb.co.nz/https://www.klb.co.nz/news/on-farm-emissions-reduction) — On 24 October 2019 the primary sector launched the ‘Primary Sector Climate Change Commitment: He Waka Eke Noa – our future in our hands to manage agricultural emissions.’ He Waka Eke Noa kicks off a collaborative five-year joint action plan between the agriculture sector, the government and iwi with the target of decreasing farming emissions and developing a farm emissions pricing scheme. If the action plan produces satisfactory results, agriculture will not be brought into the Emissions Trading Scheme (ETS) under the proposed Climate Change Response (Emissions Trading Reform) Amendment Bill. Targets in the plan The action plan includes: Improved tools for estimating and benchmarking emissions on farms Integrated farm plans that include a climate module Investment in research, development and commercialisation Increased farm advisory capacity and capability Incentives for early adopters, and Recognition of on-farm mitigation such as small plantings, riparian areas and natural cover. Backstop option if progress is unsatisfactory The agreement gives farmers until 2024 to start reporting livestock emissions, and until 2025 to finalise a way of pricing agricultural emissions. A Climate Change Commission review is scheduled for 2022. If the government isn’t satisfied with the sector’s progress, there is a backstop option to bring the agricultural sector back into the ETS. Under … - [National Environmental Standards for Freshwater 2020](https://www.klb.co.nz/https://www.klb.co.nz/news/national-environmental-standards-freshwater-2020) — Water was the hot topic in the 2017 election campaign. This year, with an election coming up shortly, there seems to have been little talk of water (or much policy at all, so far) with COVID still taking up most of the news space, closely followed by scandals of various sorts. The National Environmental Standards for Freshwater 2020 (the Freshwater NES), however, are due to be published later this year. Some parts of it will take effect 28 days after it is published while other parts won’t come into effect until the winter of 2021. This year is more than half over, and with the first half of the year being severely disrupted by the COVID lockdown and because the election is looming, there can be no certainty that the new Freshwater NES will be published this year. There is no certainty as to what form it will take, given we may not know which parties will form the government – perhaps sometime in October.  Whatever shape the next government takes, the new Freshwater NES will be published sooner or later as water continues to be one of the major environment… - [Leasing Commercial Properties](https://www.klb.co.nz/https://www.klb.co.nz/news/leasing-commercial-properties) — Commercial leases come in varying shapes and sizes. Whether you operate a transport business and need a place to park your trucks, manufacture and sell goods from a warehouse or conduct your trade from a boutique store in the heart of the CBD, your lease agreement will be at the heart of your business. Before you sign a lease, there are a number of core issues to consider. It is important to do your homework and talk with us before you commit to anything. The rent The first thing you are likely to consider is how much rent you will be paying. It’s good to remember that an agreed rent as stated in the lease can change (usually up!) through a rent review process. If you have a sub-lease your rent may be linked to the head lease. If this happens, and your landlord’s rent is increased, then your rent is also likely to increase. The parties to the lease If you run your business as a sole trader, then it is likely that you will be the tenant in a personal capacity. If your business operates through a company, your company is likely to be the tenant. In addition to your company being the lessee, the landlord may also require personal guarantees from those involved in the company. You may need some guidance on the impact of being a guarantor un… - [Residential Tenancies](https://www.klb.co.nz/https://www.klb.co.nz/news/residential-tenancies) — The Residential Tenancies Amendment Act 2019 came into force on 27 August 2019. This legislation affects both landlords and tenants in a number of ways including limiting a tenant’s liability for careless damage in rental properties, and how methamphetamine (meth) contamination of rental properties is to be tested and managed. Landlords are also now required to provide a statement in the tenancy agreement about the property’s insurance. Damage to rental properties The legislation is designed to encourage tenants (and their guests) to look after the property they rent, and for landlords not to be out-of-pocket for careless or intentional damage by their tenants. As a landlord, you cannot hold your tenant liable for any fair wear and tear to your rental property or your chattels. However, your tenant is liable if you can show that the destruction or damage was: Intentionally caused by your tenant (or their guests) The result of your tenant doing something illegal which could result in them going to prison, such as making meth, or The result of your tenant doing something careless, such as cooking while intoxicated. If your tenant is liable for the damage to your rental, their liability is limited to the lesser of: The exces… - [Emissions Trading Scheme](https://www.klb.co.nz/https://www.klb.co.nz/news/emissions-trading-scheme) — New Zealand’s Emissions Trading Scheme (ETS) was established by the Climate Change Response Act 2002. The ETS was created as the vehicle for New Zealand to meet its obligations for the reduction of greenhouse gas (GHG) emissions under the Kyoto Protocol. The purpose of the ETS is to achieve a reduction in GHG emissions through emissions trading. Emissions trading is the exchange of carbon credits between those parties with surplus credits and those who are required to contribute credits as compensation for their production of GHG emissions. Although the ETS affects nearly all New Zealanders in some way, it has significant impact if you are buying or selling forestry blocks, and/or own a forestry block. The first part of this article focuses on the implications of buying and selling of forestry lots, or land destined to be planted in forests. The second part gives you some background on the ETS, New Zealand’s obligations under the Kyoto Protocol and this country’s acceptance of the Doha Amendment.   Buying land with trees Buying land with forestry lots is a serious business. As well as the usual due diligence you would undertake in buying any rural property, you need to determine the status of the trees under the ETS. There are a number of tree-type issues you need to think about. Were the trees planted pre-1990 or post-1… - [People and the right information are vital for effective governance](https://www.klb.co.nz/https://www.klb.co.nz/news/people-right-information-vital-effective-governance) — The damage from governance failure can be profound, and can attract significant unwelcome media and public scrutiny. Focusing on the learnings from these cases is how we can get some real benefit and continuous improvement in corporate governance. He tāngata – it is the people Governance is, above all, about people. It’s a team game and, like any team, the board’s composition, and its culture and dynamic, are all critical to its effectiveness. Boards need a broad mix of skills and experience now and for the future. Individual attributes of directors are also highly relevant such as integrity, courage, judgement, emotional agility, energy and curiosity. Other factors relating to board composition include diversity, new membership and tenure. Getting the right mix and balance can be as much art as science. Putting time and thought into developing a skills matrix to determine the board’s needs is worth the investment. While a balanced board is necessary, it is not sufficient to create an effective team. It is board culture tha… - [Commercial Leases Post - COVID](https://www.klb.co.nz/https://www.klb.co.nz/news/commercial-leases-post-covid) — Clause 27.5 and inability to access premises: In the past three months, most landlords and tenants would have become more familiar with the details of their lease. In particular, most will be looking at how clause 27.5 of the Auckland District Law Society (ADLS) lease applies to the government-imposed lockdown that we have all experienced as a result of COVID-19. A bit of backgroundFollowing the Christchurch earthquakes, landlords and tenants were not permitted access to leased properties that were inside the ‘red zone’ while investigations into the structural integrity of buildings were being undertaken. In these instances, where the property had not been totally or partially destroyed, the parties were still required to meet their full obligations under their lease even though they were unable to operate from their leased premises. As a result of the hardship this situation caused for tenants, clause 27.5 was added to the ADLS lease. It states that, where there is an emergency and a tenant is unable to gain access to the property to fully conduct their business, including by reason of a restriction on the occupation of the premises imposed b… - [Residential Tenancies Post- COVID](https://www.klb.co.nz/https://www.klb.co.nz/news/residential-tenancies-post-covid) — Due to the COVID lockdown and the ensuing impact on the country’s economy, the government has made temporary changes to the Residential Tenancies Act 1986. These changes restrict a landlord’s ability to increase the rent or to end residential tenancies. If you are a landlord, you should read on to ensure you are not inadvertently breaching this temporary law change. Ending a tenancy in this periodWhile these restrictions remain in force, you can only seek to end a residential tenancy in exceptional circumstances:The sole tenant of the tenancy diesThe Tenancy Tribunal finds that your tenant has failed to pay rent for at least 60 days (instead of the usual 21 days) or, if your tenancy is a boarding house tenancy, they failed to pay rent for at least 28 days (instead of the usual 10 days). In both cases the Tenancy Tribunal must be satisfied that your tenant has not made reasonable endeavours to meet rental paymentsYour tenant has, or has threatened to cause, substantial damage to your propertyYour tenant has assaulted, or threatened to assault, you, your family, your agent or the neighbours of your propertyYour property becomes uninhabitable as a result… - [COVID Relief Roundup](https://www.klb.co.nz/https://www.klb.co.nz/news/covid-relief-roundup) — Since the pandemic arrived on our shores, the government has made available multiple types of financial relief; more than one may be available to your business. Although applications under the popular Wage Subsidy Scheme ended on 1 September 2020, other options are still available for support if you need it. Apprentice Support ProgrammeIf your business has an apprentice who is actually training, you may be eligible to receive $1,000/month for first year apprentices and $500/month for second year apprentices. This payment is for a maximum of 20 months from August 2020 to March 2022. Visit here at Work and Income Te Hiranga Tangata to apply.COVID-19 Leave Support SchemeWhat used to be called the Essential Workers Leave Support scheme has been renamed the COVID-19 Leave Support Scheme as it is now available to all eligible employers, not just essential businesses. An eligible employer with an employee who cannot work from home and is required to self-isolate due to COVID restrictions can, with the consent of their employee, apply for $585 per week for four weeks ($350/week for part-time employees… - [OIO Temporary Emergency Notification Requirement](https://www.klb.co.nz/https://www.klb.co.nz/news/oio-temporary-emergency-notification-requirement) — It seems as though the Overseas Investment Office (OIO) has been under constant evolution over the last two years. In June, the OIO enacted a change that now requires all overseas purchasers of New Zealand business assets to submit a notification to the OIO before the transaction takes place — regardless of the asset value. This submission will allow the OIO to monitor and prevent New Zealand asset ownership being unnecessarily diluted due to stressed sales caused by unprecedented economic pressures from COVID. Which transactions does this apply to?Previously, ‘overseas persons’ who purchased New Zealand business assets valued under $100 million (excluding land), did not have to apply for OIO consent. Under the ‘Emergency Notification’ requirement, however, the OIO must be notified by every overseas person before purchasing any New Zealand business assets — even if the transaction holds minimal value. This includes an increase of shareholding in a business in which the overseas person already holds an interest. The requirement to submit a notification does not extend to purchases that require the consent of the OIO, as the office will already be aware, and have the opportunity to reject, those transactions. What is an ‘overseas person’?An overseas person is anyone who is not a New … - [2021 Rural Leases](https://www.klb.co.nz/https://www.klb.co.nz/news/2021-rural-leases) — Leasing of farms, orchards and cropping land is becoming more common. It is a good way for farming operations to expand without capital commitments involved in buying land. For landowners, it can be a useful way to retain ownership of the capital but give away the day-to-day farming operations, either through a desire to semi-retire or to hold the farming asset for a period while family or continued ownership issues are resolved. In the past, some rural leases have been less formal than, for example, leases of commercial buildings, particularly in the cropping area. These days, however, due to compliance issues there is a need to consider the terms of these leases much more carefully than in the past. Three issues in particular are:Resource management/environmentalBiosecurity, andHealth and safety.Until recently, most leases (and this is in common with leases of commercial buildings) contained a clause simply requiring the lessee to comply with all relevant statutory or regulatory requirements, sometimes enumerating the various acts and regulations in a non-exhaustive list.Today, those general clauses are no longer good enough and leases should be much more specific in the compliance obligations of each party.Resou… - [Buying off the plans](https://www.klb.co.nz/https://www.klb.co.nz/news/buying-plans) — It’s no secret that the housing market in New Zealand is incredibly competitive at the moment. Already on a trajectory pre-Covid, demand has shot up since New Zealand came out of lockdown. Many people are choosing to ‘nest’ rather than spend on overseas holidays and thousands of expats are returning home earlier than planned. Open homes often have queues out the door, many vendors choose to sell at auction where they can expect to make top-dollar and the supply of existing homes for sale is starting to run low.As a result of this tight market, many people are deciding to buy off the plans. Buying off the plans has become popular with increasing numbers of land developments both in central cities and the suburbs. It has become increasingly popular in Christchurch, for example, where developers are playing a key role in regenerating the city post-earthquakes.What is ‘buying off the plans’?Buying off the plans is when you sign an agreement to purchase a property sight unseen, typically from a developer, before construction has been completed or, in some cases, even before the build has begun. If you get in ear… - [2021 Trusts](https://www.klb.co.nz/https://www.klb.co.nz/news/2021-trusts) — Trusts have long been the preferred vehicle for farm ownership. Historically, holding a property through a trust meant that ownership did not change on the death of the farmer and, therefore, any death duties could be avoided during the generational change. There were also significant advantages in being able to allocate income amongst a group of beneficiaries according to their personal tax rates; this was particularly popular during the 1970s and 1980s when there were high marginal tax rates. Both death duties and the very high marginal tax rates were abolished in the mid-1980s; it is now nearly 40 years since these reasons for holding farm assets in a trust have disappeared. Still a good way to own your farm?The new Trusts Act 2019, replacing the Trustee Act 1956, came into effect on 30 January this year. So now would seem an opportune time to review whether your trust is still a suitable vehicle for farm ownership. One of the reasons that trusts were so effective in the tax field was a ‘blurring’ of ownership. While the trustees held the strict legal ownership of property, they held it on behalf of a group of discretionary beneficiaries who, at any time, could benefit from the trust property but until such time as a decision to allocate trust income or capital had been … - [Post-Covid Working World](https://www.klb.co.nz/https://www.klb.co.nz/news/post-covid-working-world) — Over the past 18 months, we have seen significant changes to employees’ hours of work, rates of remuneration and the expansion of flexible working arrangements as businesses have adapted to the Covid economy. With most sectors of our economy recovering, and and despite some occasional changes in alert levels, both employers and employees should ensure that any agreed post-Covid terms of employment or changes to the workplace are accurately recorded in their employment documentation.Changes to hours of work and remunerationIn 2020, a significant proportion of businesses reduced their employees’ hours of work and rates of remuneration in response to the economic impact of Covid and claimed the government wage subsidy. While many employees have returned to their previous hours and rates of pay, there is still a significant number who have not. It is important that employees’ rates of pay and hours of work are formally recorded; this will help avoid uncertainty and clarify how long the new hou… - [Buying your first home using KiwiSaver funds](https://www.klb.co.nz/https://www.klb.co.nz/news/buying-first-home-kiwisaver-funds) — But you’re already the trustee of a trust. The rules around the use of KiwiSaver have evolved over recent years as banks and other financial institutions have developed their understanding of the KiwiSaver regime. KiwiSaver members may use their funds to help buy their first home; this is straightforward. What happens, however, if you want to buy your first home and you are already a trustee of a trust that owns property? Initially, you could only access your KiwiSaver funds to buy your first home in your personal name; using a trust as a vehicle to purchase was not allowed. Now, however, the situation is more nuanced. An increasing number of lenders allow KiwiSaver members to make a withdrawal to finance the purchase of a first home, even where trusts are involved. Let’s look at three scenarios to illustrate how this can work.You are a trustee of your friend’s trust, but not a beneficiary; as a trustee, your name is on the title to your friend’s homeYou are a trustee and a beneficiary of your parents’ trust; your name is on the title to their home, andYou are a trustee and a beneficiary of a trust that has just been settled and so far only holds the initial $100 settlement; the trust does not hold… - [Estate laws due for a shake-up](https://www.klb.co.nz/https://www.klb.co.nz/news/estate-laws-due-shake-up) — The laws about the administration of estates are being reviewed by the Law Commission. Much of what has been proposed so far is uncontroversial but there are some recommendations that may prove unpopular, although they are likely to be refined during the Parliamentary process. The Law Commission has called this project Succession Law — that is the system of rules that governs who gets a person’s property when they die and rights to make a claim against an estate. There are two main laws that govern this area of the law: the Administration Act 1969 that rules the way estates are administered and the Family Protection Act 1955 that is the law about claims against estates. Both these statutes are out of date.Other laws under review include:Rules about who gets what if a person dies without a will (intestacy)[1]Part of the relationship property law concerning the right to bring a claim after one spouse/partner has died[2], and Testamentary promises legislation (bringing a claim against an estate for work or assistance for the deceased in reliance on a promise t… - [Congratulations Tayla!](https://www.klb.co.nz/https://www.klb.co.nz/news/congratulations-tayla) — Congratulations to Tayla Yim-Loy who was Admitted to the Bar as a Solicitor and Barrister of the High Court of New Zealand on Friday 14 August 2020, at the Hamilton High Court. Tayla is a junior here at Kaimai Law, and her Moving Counsel was our Director, Gemma Keystone. Tayla and Gemma work closely together in the Family Law Team, helping clients with Relationship Property Disputes, Care of Children Matters and Family Violence.   - [Shareholdings for Employees or Family Members](https://www.klb.co.nz/https://www.klb.co.nz/news/shareholdings-employees-family-members) — Bringing a key employee or a family member into your business by offering them a shareholding can be a powerful motivator and a significant indicator of how much you value their contributions to your success. However, the process should be done carefully with a robust shareholders’ agreement and company constitution, as there are many facets of the company-shareholder relationship that must be agreed upon to ensure a harmonious future between yourself and the new shareholders. The circle of trust  First and foremost, your shareholders should be people whose values are aligned with those of your business. Even if they are minority shareholders, there are circumstances in which you will have to rely on their good judgement. The easiest way to prevent disagreements down the road is to carefully consider their business sense, character and propensity for confrontation before embarking on shareholder discussions.  The majority shareholder issue  There is a misconception among business owners that 51% or more share ownership is a ‘controlling stake’. While that is correct for general resolutions, if a special resolution of shareholders is required, anything less than a 75% ownership will put you at the mercy of your fellow shareholders. Given that a special res… - [Restructuring your business](https://www.klb.co.nz/https://www.klb.co.nz/news/restructuring-business) — New year, new you – new business structure? Restructuring is common in the new year when business owners feel refreshed and ready to take on the next challenge. The process however, is often shrouded in uncertainty (and stress) for employees. Following the correct procedure for a restructure will allow your employees time to feel heard and to ensure decisions are made in good faith. They need to know your plans so they can ask the right questions and get the required support during a restructuring process. What exactly is restructuring? Restructuring includes anything that is the addition of new roles (not to be confused with hiring more of the same role you already have), merging two or more existing roles, losing roles that are now surplus to your business requirements or any combination of those changes.  The Ministry of Business, Innovation and Employment (MBIE) provides a recognised procedure for businesses to follow. It is documented in clear and easy to follow checklists that are available here. Even if you follow the MBIE-approved procedures, there are common errors business owners make during a restructuring process. Errors during the restructuring process can lead to grounds for a personal grievance (PG) being raised by one or more of your employees; dealing with a PG is a costly … - [Emission Control](https://www.klb.co.nz/https://www.klb.co.nz/news/emission-control) — What the Zero Carbon Act means for business One of the most significant pieces of new legislation introduced last year was the Climate Change Response (Zero Carbon) Amendment Act 2019, more commonly referred to as the ‘Zero Carbon Act’. The legislation outlines the government’s targets over the next 30 years (by the year 2050) of net greenhouse gas emissions of zero and to reduce methane emissions by up to 47%. According to the Ministry for the Environment, the Act ‘provides a framework by which New Zealand can develop and implement clear and stable climate change policies that:Contribute to the global effort under the Paris Agreement to limit the global average temperature increase to 1.5°C above pre-industrial levels, andAllow New Zealand to prepare for, and adapt to, the effects of climate change.’Key pointsUnder the Act, the government has committed to:Set a new domestic greenhouse gas emissions target for New Zealand to reduce net emissions of all greenhouse gases (except biogenic methane) to zero by 2050 and… - [Charities in New Zealand](https://www.klb.co.nz/https://www.klb.co.nz/news/charities-new-zealand) — Charities play an important role in our society to help the disadvantaged, support specific causes or to advance knowledge. In New Zealand we have more than 27,000 registered charities, with 230,000+ volunteers and 180,000 paid staff1. Many of these charities are structured as trusts which can be incorporated and run as a trust board by the trustees. Others are structured as incorporated societies or companies, or as unincorporated bodies. These types of charities are run by a board with specific obligations and responsibilities.The Charities Act 2005 (which is currently under review) regulates the Charities Register and sets out the statutory rules relating to registered charities. Those rules include a requirement for registered charities to report, on an annual basis, to Charities Services (a division of the Department of Internal Affairs).Where a charity is a trust, the Charitable Trusts Act 1957 provides for the trust to be incorporated as a trust board soit is similar to a limited liability company. As an incorporated board, the trust has the advantage of being a corporate entity, so that the trust itself (rather than the trustee… - [Succession and Trust law changes](https://www.klb.co.nz/https://www.klb.co.nz/news/succession-trust-law-changes) — A significant change to the succession laws relating to Māori land came into force on 6 February 2021 (Waitangi Day). Te Puni Kōkiri states that the amendments to Te Ture Whenua Māori Act 1993 are intended to better support whānau to succeed to their land by: Enabling simple and uncontested succession applications to be dealt with by a Māori Land Court registrar, instead of going through a full court hearing process in front of a judge (though applicants can still elect to go through the full court process)Allowing a landowner’s descendants to immediately succeed to their Māori land interests on the death of the landowner (instead of having to wait until the death, new relationship or surrender of interests of the landowner’s spouse who may not have any connection to the land), while still allowing the surviving spouse or partner a lifetime right to income from the land as well as the right to occupy a family home on the land Clarifying that the tikanga of the relevant iwi or hapū will determine whether whāngai are eligible to succeed … - [Trustees' Expenses](https://www.klb.co.nz/https://www.klb.co.nz/news/trustees-expenses) — Should be reimbursed, but no need for extravagance. When trustees incur expenses, they are not expected to be out of pocket in carrying out their responsibilities. Trustees are entitled to use trust money or to get a refund from the trust fund if they incur expenses in carrying out their duties. Trustees’ expenses, however, must be fair and reasonable. A recent case shows why it is also important to be sure that you can trust your trustee not to take advantage of the right to claim expenses. Carrying out a trustee’s obligations and responsibilities can take up much time and some expenses can be incurred in doing this. Trustees are not usually entitled to charge a fee for their time, unless the trust deed or will allows them to do this. The trustees are, however, at least entitled to have their expenses met from the trust fund, provided the expenses are fair and reasonable. If the trustee has to pay for anything personally, the trustee is entitled to be reimbursed.When it can go pear-shapedA recent case[1] is a good example of what can go wrong where trustees go too far when claiming expenses. The Kellerman case was mentioned in the news last year.John Kellerman died in 2018; his will left some of his estate for his wife but he also had three children by an earlier marriage. … - [Subdivisions](https://www.klb.co.nz/https://www.klb.co.nz/news/subdivisions) — Subdivisions are more common than you think. A subdivision can range from the carving up of hundreds of acres of rural land for housing, developing land in a prime commercial area, selling half your quarter-acre section or simply wanting to extend your boundary a few metres. Whatever the scale of your subdivision, there is a common thread of stages to be ticked off – we explain below. Getting your land ready to subdivide The first thing is to line up your professionals – discuss the project with us, arrange finance with your bank, consult your accountant and speak with a surveyor. If you are undertaking a large commercial development, you may want to line up buyers early on. A real estate agent can help with this so that you avoid cashflow issues half way through. Next, you need to check that your local council’s district plan will allow you to subdivide your property. Your surveyor prepares a scheme plan to submit to the council for resource consent. A resource consent for subdivision may be issued by your council in as short a timeframe as 10 working days from its receipt, but the process can also take years to resolve if the application is particularly complex. I… - [The Secret Lives of Tenants](https://www.klb.co.nz/https://www.klb.co.nz/news/the-secret-lives-tenants) — Following publicity in 2018 that some property managers were using the ‘KFC test’ to vet prospective tenants, landlords’ protection of their tenants’ privacy has come under scrutiny by the Privacy Commissioner. Any unlawful intrusion into your tenants’ private lives can be a costly mistake. If you are a landlord, it is timely to ask yourself, “How can I best protect my property without risking a privacy breach?” The ‘KFC test’ In a submission made to a Parliamentary Select Committee in July 2018, an Auckland property manager admitted to requesting prospective tenants’ bank statements and referring to the amount of their fast food spend as an indicator of whether the tenants could afford the rent. Dubbed by the media as the ‘KFC test’, the property manager’s actions were criticised by the Assistant Privacy Commissioner as potentially “unfair or unreasonably intrusive”. Privacy Act 1993 To address practices such as the ‘KFC test’, in May 2019 the Privacy Commissioner released these guidelines that were intended to help landlords in meeting their obligations under the Privacy Act 1993. Following concerns that some aspects are unduly restrictive or confusing, these guidelines are c… - [Changes to the Building Act 2004](https://www.klb.co.nz/https://www.klb.co.nz/news/changes-building-act-2004) — Changes to the Building Act 2004 came into force on 31 August 2020. The changes vary the circumstances under which you are required to obtain a building consent. The exemptionsYou are no longer required to obtain a building consent from your local council for the new exempted works. This does not stop you from applying for building consent if you want to be certain that your proposed building is up to standard.The new exemptions include:         Single storey detached buildings up to a maximum of 30m2         Carports up to 40m2         Ground floor awnings up to 30m2         Ground floor verandas and porches         Permanent outdoor fireplaces or ovens, and         Ground-mounted solar panel arrays.All plumbing and electrical work for these structures still need consent. For a full list of the exemptions and the conditions attached see the Building Performance website here.Even if you don’t need building consent, a… - [Understanding Your Property Title](https://www.klb.co.nz/https://www.klb.co.nz/news/understanding-your-property-title) — Before you buy a property it is important that you understand exactly what you are purchasing. Your property title records (or should record) all of the interests that affect your title. That way, you are fully informed about any rights or obligations you may have – before you buy. EstateThe property that you buy will be an estate in freehold, leasehold, cross lease or stratum (freehold or leasehold). A freehold estate means you own both the land and the buildings on the property. For a leasehold estate, you own the buildings and another entity, most usually your local council, owns the underlying land. If you buy a leasehold property, you must comply with a lease; this will also be registered against the title, and you pay a lease rental to the landowner.In a cross lease situation you own a share in the underlying land and you rent your house from the other owners. Likewise the other owners will rent their houses from you. Each owner will have a separate lease registered against their title.It is important that each lease is on the same or very similar terms so yo… - [Legal Documents Signed during Lockdown](https://www.klb.co.nz/https://www.klb.co.nz/news/legal-documents-signed-during-lockdown) — Best to sign again after lockdown to avoid later complications. During the COVID lockdown, special rules applied to the signing of some legal documents. Obviously it was, and is, not possible to have your signature witnessed by someone outside your bubble in Levels 3 and 4. So the law allowed signing over audio-visual link (AVL) and other similar arrangements. While these documents will remain valid in the future, it may be wise to have wills and enduring powers of attorney (EPAs) signed out of lockdown to avoid any time-consuming queries later on. Many legal documents need to be signed in a particular way or before a particular person. For example, some documents such as affidavits must be signed in front of a JP or lawyer. As this was, and is, not possible during lockdown, special rules were put in place to enable people to sign documents such as wills, EPAs, affidavits and so on.The Epidemic Preparedness Act 2006 had anticipated that some special changes might be needed depending on the nature of any emergency that might arise. This meant that while an Epidemic Notice is in force, special regulations can allow documents to be witnessed by AVL. The Epidemic Notice came into force on 25 March 2020 and was renewed later so that it will not expire until 24 September 2020. This does not mean that documents signed under the special regu… - [Succession Law in New Zealand](https://www.klb.co.nz/https://www.klb.co.nz/news/succession-law-new-zealand) — In late 2019 the Law Commission reported back to the government on its review of the Property (Relationships) Act 1976 (PRA). Discussion on Part 8 of the PRA that deals with the division of relationship property on the death of a spouse or partner was specifically excluded from the scope of that review. Acknowledging the issues that could arise by not addressing the division of property when a spouse/partner dies, in December last year the government asked the Law Commission to review the law of succession – that is, the law that governs who inherits a person’s property when they die. A particular focus of the Law Commission’s succession project will be the conflict between two statutes – the PRA and the Family Protection Act 1955 (FPA). Property (Relationships) Act 1976 The PRA provides that when a spouse or partner dies, the surviving spouse/partner must choose ‘Option A’ or ‘Option B’. Option A requires the survivor to apply to the Family Court for a division of the relationship property which means: All the property that the deceased spouse owned is presumed to be relationship property, and the onus is on the executor to prove that property is not relationship property, and Unless a contrary intention is expressed in the will (or a court orders otherwise), the survivor forfeits any benefit they would have received under the will or on an intestacy (that is, when there is no will). In Option B, the surviving spouse or partner receives what they have been given under the will or what they are entitled to if there… - [Trustee's Decisions](https://www.klb.co.nz/https://www.klb.co.nz/news/trustees-decisions) — In a recent case, trustees’ decision-making came under scrutiny from the High Court. Lara Unkovich was a young teenager when her grandfather died in 2016, leaving her a share of his estate. Her share was worth around $65,000. Under his will Lara would not receive the funds until she was 21 years old. The trustees, however, had the power to make payments towards her ‘maintenance, education, advancement or benefit.’ The trustees were her aunt Margaret and a lawyer. Request for beneficiary to be paid out earlyIn October 2016, Lara’s mother wrote to Margaret about Lara’s share of the estate. She asked that Lara’s share be immediately paid out on the basis that Lara needed it for her education in Australia. Lara’s mother said that this Australian education would provide Lara with the best opportunity to improve her national tennis ranking and then possibly gain a scholarship to a US university. The trustees refused. In September 2017, Lara’s parents sent a detailed request to the trustees explaining the nature and the purpose of the request for funds. Arguments continued for some time about the proposal to fund Lara’s education in Australia. The trustees were critical of the funds being used when Lara was only 16 years old and believed the… - [Enduring Powers of Attorney](https://www.klb.co.nz/https://www.klb.co.nz/news/enduring-powers-attorney) — In previous articles in Trust eSpeaking, we have explained why it is important to have an enduring power of attorney (EPA) and the problems that can be created if you do not have one when the need arises. You should have two EPAs – one for property, and the other for personal care and welfare. In your EPA, you should also take care to name appropriate people as your attorneys. Ideally you should name two people to manage your property, which also includes your finances and investments. Property EPA If your property EPA only names one person to act for you there can be risks. Naming two people who act together (known as your ‘attorneys’)[1] should mean there are some checks and balances. A property attorney’s job is to look after your money and property, not to benefit personally from an involvement in your affairs. Unfortunately, some attorneys forget this and need someone to remind them. An example of the problems that can arise from naming a single attorney is the 2015 Vernon case[2]. A son, who was the sole attorney named in his father’s EPA, made personal use of most of his father’s money. When his father died, there was nothing left for other members of the family to inherit. The court decided the son had misused his authority as the sole attorney and orde… - [Smooth sailing this summer](https://www.klb.co.nz/https://www.klb.co.nz/news/smooth-sailing-summer) — With summer fast approaching, many businesses will be hiring temporary staff to meet their needs over the busy summer months. Taking on temporary staff can throw up some tricky issues. Employers often are uncertain about what employment agreement is appropriate for temporary staff and how their holiday entitlements should be met. We explore the pros and cons of different kinds of agreements for temporary employees and provide guidance on their annual leave and holiday pay entitlements. In general, there are two types of employment agreements that can be used for temporary employees: Fixed-term employment agreements, and Casual employment agreements. Fixed-term agreement A fixed-term employment agreement expressly states that your worker’s employment will end either on a specific date or on completion of a particular project. Fixed-term agreements also specify your employee’s hours and days of work over this period. The Employment Relations Act 2000 prohibits employers from using fixed-term employment agreements unless there are ‘genuine reasons based on reasonable grounds’ for requiring the agreement to end in this way and these reasons must be recorded in the employment agreement. Using a fixed-term agreement as a trial for new employees is also expressly prohib… - [Enjoy our waterways- but think water safety!](https://www.klb.co.nz/https://www.klb.co.nz/news/enjoy-our-waterways-think-water-safety) — We are truly blessed to live in the Land of the Long White Cloud. This beautiful country of ours is, however, also the land of water. Wherever you are, you are never far from water. We are world-famous for our stunning waterways – our lakes, rivers and beaches. But, it‘s also important to always remember that water can be dangerous and unpredictable. Whenever you are near a waterway – going for a swim, collecting seafood, or paddling or boating – it is vital that you think about water safety. Swimming is the deadliest recreational activity. Too many people underestimate the risks, and overestimate their ability, when it comes to swimming. Guest editorial by Jonty Mills, CEO, Water Safety New Zealand Too many drownings Drowning is the leading cause of recreational death, and the third highest cause of accidental death, in New Zealand. In 2018, there were 66 preventable drowning fatalities. The five year average (2014–18) is 79 deaths. In 2018, the vast majority of drownings were from accidental immersions – people ending up in situations in the water when they never intended to. New Zealand’s drowning rate per 100,000 of population is twice that of Australia and four times that of the UK. Too many people drown in this country every year. Most fatalities are caused by a bad decision. We need everyone to remember the water safety code: Know before you go – the basic Water Safety Code The Water Safety Code consists of four simple rules to remember each time you venture near the … - [Investment in Farming](https://www.klb.co.nz/https://www.klb.co.nz/news/investment-farming) — With the current low interest rate regime looking set to continue for some time, investors are increasingly looking at ways to generate a reasonable income either for their retirement or for other forms of saving. Recently, commercial property syndicates have come back into fashion. Their popularity is based on the return that they are able to provide to investors, notwithstanding the risks inherent in that sort of investment. A focus on syndicated farm investmentsSimilarly, syndicated investments in farming have had a resurgence. This type of investment has always been popular, particularly in the forestry and dairy sectors. In recent years, however, there has been a big move into the horticultural sector with kiwifruit, apple, cherry and other horticultural syndications being offered on a regular basis.How farming syndicated investment worksFarm syndicates can be structured in different ways. One that is becoming common, is for a property syndicate to buy land and then enter into a lease with either the farmer or the horticulturalist. This enables the promoter to offer investors a fixed return that is, on the face of it anyway, less subject to the fluctuations and returns that are inherent in the horticultural… - [The Finite Supply of Water](https://www.klb.co.nz/https://www.klb.co.nz/news/the-finite-supply-water) — Water is an absolute necessity for any type of farming or horticultural activity. Historically viewed as an infinite and expendable resource, water is now seen as having a finite supply and must be dealt with as a commodity. The right to access water from a source, such as a spring or well, and the right to use that water are different, but related, issues. Water EasementsThroughout New Zealand there are thousands of water easements that create a legal right for one or more landowners to take water from a source on another landowner’s property and to convey it to their own property. Many of these easements have been in place for years, often decades. As such, they were put in place in a different time and well before some of the issues now facing us. The use of water from sources on private land for domestic and stock watering has always been a right that did not need a resource consent. Its use for irrigation, however, has required a consent. These days, consents are more difficult to obtain. In some areas of the country, there are moratoriums on the issue of new consents; these are being issued for shorter periods or with more condition… - [Wellbeing Budget 2021: Key Points](https://www.klb.co.nz/https://www.klb.co.nz/news/wellbeing-budget-2021-key-points) — A better than expected economic recovery after the scourges of Covid has enabled the government to propose significant investment in health and welfare, housing (particularly for Māori), infrastructure to rebuild from the impact of the pandemic and to continue to make this country safe from the virus. This 2021 Budget will have significant positive impacts on the economy and the wellbeing of New Zealanders. The government states that it wants to focus spending on areas that will support enduring, intergenerational change that will give people the capabilities to live lives of purpose, balance and meaning. The opening of our borders for quarantine-free travel between Australia and the Cook Islands heralds the start of an economic recovery whilst keeping Covid out of our communities. InfrastructureCore to this country’s recovery, is a significant investment in infrastructure. $57.3 billion has been earmarked for roads and rail, schools and hospitals, housing and energy generation over the next five years. Included is $306 million for an urgently-needed redevelopment of Scott Base.Bene… - [To Jab or not to Jab?](https://www.klb.co.nz/https://www.klb.co.nz/news/to-jab-jab) — While many Kiwis are queuing up and eagerly awaiting their Covid vaccinations, not everyone is willing to take ‘the jab’. Recent headlines of sacked border staff who refused their Covid vaccinations have highlighted the difficulty many employers will face in deciding if their staff can reasonably be required to be vaccinated. Dismissing one of your employees on the basis of vaccination status is not as straightforward as it may seem and, in most cases, will be grounds for a personal grievance. Special legislation covers border workers and othersMany of the statements made in this article do not cover border workers and associated roles. The COVID-19 Public Health Response Act 2020 and the COVID-19 Public Health Response (Vaccinations) Order 2021 identifies affected roles that, by law, must be carried out by a vaccinated person.The right to refuseThe general right for New Zealanders to refuse any medical procedure or treatment is entrenched in the Bill of Rights Act 1990. You cannot, therefore, force any person in this country to be vaccinated.As an employer, you are also not entitled to change an employment agreement or terms without agreement from your employee; consultation, and cooperation, with your employees is essential when asking them to be vaccinated.Asking staff to get… - [Trusts Act 2019](https://www.klb.co.nz/https://www.klb.co.nz/news/trusts-act-2019) — The new Trusts Act 2019 will come into effect on 30 January 2021. Much of the Act updates or restates lawthat exists already, either in statute or in case law. There are, however, a number of changes about which trustees and settlors should be aware.The Act contains ‘mandatory’ and ‘default’ duties for trustees. Mandatory duties Mandatory duties cannot be modified or excluded by the trust deed so all trustees will be required to abide bythese duties. These duties are to: Know the terms of the trust Act in accordance with the terms of the trust Act honestly and in good faith Deal with the trust property and to act for the benefit of the beneficiaries in accordance with the terms of the trust deed Exercise the trustees’ powers for a proper purpose. Default duties Default duties are obligations by which trustees must abide — unless the settlor decides otherwise when thetrust is established. These default duties include a general duty of care, a requirement to invest prudently, aprohibition on trustees acting in their own interests, a duty to consider the exercise of trustees’ powers, aduty not … - [Grandparent Wills](https://www.klb.co.nz/https://www.klb.co.nz/news/grandparent-wills) — Grandparents often want to give some financial assistance to their grandchildren and great-grandchildren. There can be a number of good reasons for making specific provision for grandchildren in your will or through a family trust. The traditional will-drafting practice is for parents to provide for each other and then when both of them have died, they provide for their children, on the assumption that their children will then in turn acquire assets and provide for grandchildren and great-grandchildren. First, there is often, in practice, no such provision for grandchildren and great-grandchildren by will-makers. In many cases, the will-maker’s children receive their inheritance and either spend it or provide for their partners or spouses. Little, or sometimes nothing, trickles down to grandchildren and great-grandchildren. Secondly, it is now common for people who die in their 80s and 90s to have adult grandchildren who can make very good use of an inheritance to buy a property, establish a business or clear a student debt. Thirdly, specific provision for grandchildren often comes as a very pleasant surprise for a grandchild. It can create a real bond and sense of belonging between grandparent and grandchild. If you are a grandparent and would like to provide for your grandchildren by … - [Significant Natural Areas](https://www.klb.co.nz/https://www.klb.co.nz/news/significant-natural-areas) — The identification of ‘Significant Natural Areas’ has been in the news lately. How are these areas defined and what are the implications for rural landowners? The legislative basis identifying significant natural areas is in section 6 of the Resource Management Act 1991 (RMA): ‘6   Matters of national importance In achieving the purpose of this Act, all persons exercising functions and powers under it, in relation to managing the use, development, and protection of natural and physical resources, shall recognise and provide [our emphasis] for the following matters of national importance: …(c) the protection of areas of significant indigenous vegetation and significant habitats of indigenous fauna. …’ The RMA is nearly 30 years old, but it is only fairly recently that the people exercising the functions and powers under it (in respect of this section, mainly being regional councils) have stepped up the process of identifying the are… - [Buying or Leasing Māori Land](https://www.klb.co.nz/https://www.klb.co.nz/news/buying-leasing-mori-land) — There are significant amounts of Māori land in New Zealand in productive rural areas. Much of this land is farmed by way of lease, sometimes in conjunction with adjoining general freehold land. Sometimes these ’joint’ farms have been farmed in this way for generations. For Maori land to be leased or sold, however, specific rules apply. The Te Ture Whenua Maori Act 1993 governs the ‘alienation’ of Māori land. Why Māori land is so tightly controlledThe preamble to the legislation tells us why alienation of Māori land is so tightly controlled as it states: ‘Whereas it is desirable to recognise that land is a taonga tuku iho of special significance to Maori people and, for that reason, to promote the retention of that land in the hands of its owners [our emphasis], their whanau and their hapu, and to protect wahi tapu: and to facilitate the occupation, development and utilisation of that land for the benefit of its owners, their whanau, and their hapu: And whereas it is desirable to maintain a court and to establish mechanisms to assist the Maori people to achieve the implementation of these principles.’ ‘Alienation’ under the Act is a very wide term and includes:Every form of disposit… - [Directorships Mean Significant Obligations](https://www.klb.co.nz/https://www.klb.co.nz/news/directorships-mean-significant-obligations) — Hefty consequences for getting it wrong when company was in financial distress. In September 2020, the Supreme Court released its keenly anticipated decision in the Debut Homes case . This decision illustrates the risks for directors where a company is experiencing irrecoverable financial distress. In the Debut Homes decision, the court clearly spelt out that in insolvency, or near-insolvency situations, it is not acceptable to simply try to ‘trade through’ in the belief that this will improve the company’s financial position. Instead, directors must ensure they use the formal (or informal) mechanisms provided in the Companies Act 1993 to address the company’s financial predicament.If directors fail to meet their duties, they face a very real risk of incurring personal liability — as occurred in the Debut Homes case. The lawBefore we look at the implications of the Debut Homes case, it is helpful to summarise the legal duties of company directors. Directors have a range of specific legal duties, including to:Act in good faith and in what they believe to be the best intere… - [Holiday Houses](https://www.klb.co.nz/https://www.klb.co.nz/news/holiday-houses) — With New Zealand’s borders closed and overseas travel restricted for the foreseeable future, many Kiwis will be looking to rent a holiday home for the traditional summer holiday this year. There are plenty of options on sites such as Bookabach, Holiday Houses and Airbnb as well as renting a holiday house privately. Whether you own a holiday home and are looking for some extra income, or you want to rent a place for the whānau Christmas, there are a few things to remember. Property ownersHouses should be presented in a clean and tidy way. Paying the rent: The expectations about payment arrangements need to be clear from the outset. Property owners can ask for a deposit for a holiday house rental but, to avoid confusion, it’s important to be clear about this requirement in the fine print in any agreement. In some cases, the property owner may require that the full cost may be retained if the booking is cancelled. In other situations, however, a partial refund could be made to the renter depending on the timing of the cancellation (for example a 50% refund could be given if the booking is cancelled not less than two weeks prior to the booking). Any refund arrangements not covered by the agreement are made at the discretion of the property owner. It is, howe… - [NAIT Review](https://www.klb.co.nz/https://www.klb.co.nz/news/nait-review) — The NAIT (National Animal Identification and Tracing) system was first introduced in 2012 and came into effect progressively until it was fully implemented on 29 February 2016. Any completely new system is likely to need a review after being in operation for a period of time. Within 18 months of NAIT’s final implementation date, the outbreak of Mycoplasma bovis in this country gave the regime a real test and, not surprisingly, the system was found wanting in some respects. Operational Solutions for Primary Industries (OSPRI) manages the NAIT system. OSPRI began its review of NAIT in early 2016, the purpose of the review being “to evaluate the implementation and performance of the programme since 2012 against its intended objectives and to make recommendations on any enhancements, changes and improvements that will ensure the intended benefits can be realised. The review sought to examine NAIT’s performance, uptake and outcomes, new and emerging drivers for traceability, operational and legislative issues, needs and priorities, and options to provide uptake, compliance and awareness.” NAIT review recommendations To a certain extent, the M.bovis outbreak, which has been devastating for many farmers, overtook the OSPRI review, as the response to the outbr… - [Over the Fence](https://www.klb.co.nz/https://www.klb.co.nz/news/over-fence) — The law surrounding the ownership and possession of firearms has been reformed following the Christchurch mosque massacre. The Arms (Prohibited Firearms, Magazines, and Parts) Amendment Act 2019 has introduced changes to ban the ownership and possession of most semi-automatic firearms and pump-action shotguns (known as ‘prohibited firearms’), some large capacity magazines (‘prohibited magazines’), and parts (‘prohibited parts’). New offences have also been created, such as importing a prohibited item, unlawful possession of a prohibited firearm and supplying or selling a prohibited firearm or magazine. If you own any of these newly-prohibited items, they should be surrendered to police by completing a notification form and attending one of the scheduled collection events. Another option is to hand over the prohibited items to approved gun dealers or at your nearest police station. A buy-back scheme is in place which aims to compensate owners of prohibited firearms and prohibited parts. To receive compensation, people surrendering a prohibited firearm must hold a valid firearms licence. A valid firearms licence is not required when handing in prohibited parts and compensation will still be provided. The buy-back scheme runs from 20 June – 20 December 2019. An amnesty is in place throughout the collection period. Additional reforms are likely and further proposed amendments include estab… - [Social media – intellectual property owner’s friend or foe?](https://www.klb.co.nz/https://www.klb.co.nz/news/social-media-intellectual-property-owners-friend-foe) — Treat your friend as if he might become an enemy (Publilius Syrus, 85-43 BC) Social media is a very powerful marketing tool. If used and managed properly, platforms like Facebook, Instagram and Twitter can be a brand’s best friend. If not managed properly, however, social media platforms can be a brand’s enemy. They can, at least temporarily, impede growth and — in the most extreme circumstances — cause significant damage to brand reputation. In the context of intellectual property (IP) rights, whether social media platforms are your friend or foe depends on two factors:How you manage the IP rights of your own business, andHow you treat the rights of others. In this article, we focus on the two IP rights that feature most prominently in social media marketing – copyright and trade marks – and how these should be managed on social media.Copyright – be vigilantThe IP right that is probably the most often complained about in social media is copyright. Copyright rights arise automatically on the creation o… - [Cyber security 101 for business](https://www.klb.co.nz/https://www.klb.co.nz/news/cyber-security-101-business) — You arrive at work to find that files with sensitive commercial and client information held on your computers have been hacked. This is the situation the Reserve Bank of New Zealand (RBNZ) found itself in earlier this year. In January, the RBNZ encountered a data breach of its global file-sharing application Accellion FTA. This application was once used by the RBNZ and its stakeholders to share personal and commercially-sensitive information. It is alarming to contemplate having to negotiate with hackers who have stolen your business information for ransom. All businesses can learn from the RBNZ’s incident to increase awareness of cyber security and minimise the risk of a hacker attack. Prevention is the best solution. Install antivirus softwareAntivirus software helps detect, quarantine and remove malicious software from computers. Although Windows 10 comes with Windows Defender built-in, this only provides a baseline level of protection. Hackers are constantly inventing new viruses and threats, and it’s important to have up-to-date antivirus software. It’s worth paying for reputable antivirus software; free antivirus software programs can be fake and/or harbour viruses. Use a virtual private network (VPN)If you connec… - [The Wellbeing Budget 2020: Rebuilding Together](https://www.klb.co.nz/https://www.klb.co.nz/news/the-wellbeing-budget-2020-rebuilding-together) — The government’s Budget, presented by the Minister of Finance the Hon Grant Robertson on 14 May has addressed, in the words of the Minister, “a 1-in-100 year health and economic challenge” as it moves to rebuild the economy post-COVID-19. “With the outbreak of COVID-19, New Zealand now faces a 1-in-100 year health and economic challenge. The pandemic continues to evolve, and it has already caused enormous social and economic disruption. It has required agility on the part of New Zealanders, the Government included,” said the Minister.“We have quickly reoriented the Budget 2020 package to focus on maintaining critical support for existing public services and supporting key infrastructure investments. This has meant putting ‘on ice’ new initiatives under priority spending areas that were announced in the Budget Policy Statement. We may well return to these projects, but for now our focus is on our response, recovery and rebuild from COVID-19.”The focus of the Budget is to grow New Zealand’s economy, create jobs,… - [Government's COVID-19 Wage Subsidy Scheme](https://www.klb.co.nz/https://www.klb.co.nz/news/governments-covid-19-wage-subsidy-scheme) — Many New Zealand employers are scrambling to maintain solvency while balancing their employer obligations during the COVID-19 lockdown; thousands of businesses accepted the government’s COVID-19 12-week wage subsidy as a necessary lifeline. The subsidy was not, however, a gift. We take a closer look at employers’ obligations when accepting the wage subsidy. Not all applications were equal Obligations imposed on an employer are different depending on when the subsidy application, and the associated declaration, was submitted. For applications submitted up to 4pm on 27 March 2020: you were obliged to use your best endeavours to retain all staff, and to make the best endeavours to pay at least 80% of your employee’s regular wages. For applications submitted after 4pm on 27 March 2020: you have an obligation to retain all staff during the 12-week period of the wage subsidy and to make best endeavours to pay at least 80% of your employee’s regular wages. You are also unable to make any changes to pay or hours of work without express agreement from each employee.Best endeavours to pay at least 80% salary ‘Best endeavours’ has previously… - [Recent Property Tax Changes](https://www.klb.co.nz/https://www.klb.co.nz/news/recent-property-tax-changes) — In March 2021, the government announced three changes to property tax rules that are likely to affect anyone with residential property investments. The changes include extending the bright-line period from five years to 10 years, changing the main home exemption ‘test’ and removing the ability to deduct mortgage interest from rental income. Changes to the bright-line regimeThe bright-line test was established in 2015 to classify as income the profit made from buying property and selling the same property within a set period. Once captured as income, tax must be paid on that income at your marginal tax rate. Initially the bright-line period was two years from the date that you acquired the residential property. This was extended to five years from 29 March 2018. From 27 March 2021 onwards, if you purchase residential property and you sell it within 10 years, any profit from that sale will be subject to income tax.The government has indicated, however, that for new build investment properties, the five-year period still applies, rather than the longer 10-year period.The government has stated that a new build investment propert… - [Going out on your own](https://www.klb.co.nz/https://www.klb.co.nz/news/going-own) — You have decided to quit your job, and go out on your own to run your own business. Do you form a company or trade in your own name? We outline some of the pros and cons of these two options to help you make a decision. Trading through a company Brown Biscuits Limited: owner Jackie Brown Brown Biscuits Ltd (BBL) is a separate legal entity. There are some significant advantages of trading through a limited liability company. Limited liability: The ‘limited’ in the name of BBL means that Jackie’s obligations as a shareholder are limited to the amount of unpaid share capital. As a shareholder Jackie is not personally liable for BBL’s obligations. In most commercial situations Jackie is protected from personal liability for claims against BBL, such as an employee’s personal grievance claim and claims for breach of contract or negligence. If BBL fails, Jackie is not personally responsible for its debts. However, if Jackie is also a BBL director, there are some major exceptions to these rules, see pag… - [Clarity around Fixtures and Fittings](https://www.klb.co.nz/https://www.klb.co.nz/news/clarity-around-fixtures-fittings) — In December 2020, a commercial landlord and their tenant found themselves in the High Court arguing about who was responsible for replacing fixtures and fittings because their lease was silent on the issue. These types of disputes around fixtures and fittings in commercial leases are quite common. Address these before the lease is signedFor both landlords and tenants negotiating a commercial lease, it is always best to turn your mind to your intentions for any fixtures and fittings attached to the premises; this will help enormously in avoiding costly disputes later on. Issues to think aboutWhich items are the landlord’s fixtures and fittings? Will a tenant’s fixtures and fittings be added to the premises?A lease may allow the tenant to make various alterations to the premises to ensure the fit-out meets its business needs. Whether certain fixtures or fittings belong to the landlord or the tenant often affects the rights and responsibilities around those items. It is critical that a clear schedule of landlord’s fixtures and fittings (and the condition of those items) is inclu… - [Solving relationship property issues by mediation](https://www.klb.co.nz/https://www.klb.co.nz/news/solving-relationship-property-issues-mediation) — After separating, you could find yourself at loggerheads with your former partner or spouse on exactly how all property should be divided between you. Negotiations may be bouncing between your lawyers, with no common ground achieved. Without agreement, you could file court proceedings but learn costs would increase dramatically. As well, it could be years before a judge can give a decision on how your property will be divided. Mediation, on the other hand, could be arranged within weeks. It offers a practical alternative to reach a conclusion on how property should be divided between you and your former partner. What is mediation? The mediation process requires the appointment of an impartial and independent person (the mediator) whose role is to help the parties find a solution which is satisfactory to both. The mediator does not decide an outcome. Only you and your former partner can make the final decision, but the mediator will help guide both of you towards making those decisions and resolving matters completely. Where to start The first step is to find a mediator. You and your former partner must appoint the mediator jointly. Your lawyers will be able to help you to get an experienced family law mediator. You will both sign an Agreement to Mediate. This agreement will cover all the ground rules of the mediation process, your commitment to participate in good faith, costs, who is paying what … - [Are restraint of trade clauses worth the bother?](https://www.klb.co.nz/https://www.klb.co.nz/news/are-restraint-trade-clauses-worth-bother) — Restraint of trade clauses are common in the sale and purchase of a business and in some employment agreements. In a business context, they offer protection to a buyer who has acquired a business and prevent the seller from directly competing against the buyer. A restraint provision in an employment context is designed to protect the employer’s business interests when key employees leave. There’s a general perception that these clauses are difficult to enforce, so why bother? Non-competition restraint – sale of a business The purpose of a non-competition restraint in regard to the sale of a business is to ensure that the purchaser is able to retain the benefits of the business they have purchased including existing and potential customers. It prevents the seller from establishing, working for or being involved in a similar business. Non-competition restraints are routinely used in the sale and purchase of businesses. Non-competition restraint – employment agreement The first consideration before inserting a restraint of trade clause in an employment agreement is to decide whether or not you, as the employer, have a proprietary right (be it trade connections or trade secrets) which might be considered reasonable to protect. The effect of a restraint in an em… - [Employing people with a past](https://www.klb.co.nz/https://www.klb.co.nz/news/employing-people-past) — Employing staff is never a simple process. Finding people with the right skills and personality to fit into your team can be challenging. Today’s employers go through a rigorous process when recruiting; most believe it’s better to put time into getting the right person than to have to deal with the consequences if things don’t work out. One aspect of all staff recruitment is background checks on applicants. This is more important in some roles than others. It’s standard to ask prospective employees to submit forms, and provide CVs and evidence of qualifications. Many employers also include a question regarding past criminal convictions, but this is not a surefire way of getting the full picture of an applicant’s background. Job applicants are not required to declare convictions in certain situations as they are ‘clean-slated’. Being ‘clean-slated’ The Clean Slate Act or clean slate scheme, more formally and correctly known as the Criminal Records (Clean Slate) Act 2004, became law almost 15 years ago. Its purpose was to limit the effects of historic criminal convictions on a person’s future. The Clean Slate Act limits the effect of convictions if certain criteria are satisfied. If it has been seven years since someone was convicted, they are considered to have no criminal record in certain situations. For anyone to be ‘clean-slated’, they must have: No convictions within the last seven years Never been sentenced to a custodial sentence Never been convicted of a specified offence such as sexual offending against young children Paid any fine, compensation, reparation or other monetary penalty ordered by … - [Raising Capital for your Business](https://www.klb.co.nz/https://www.klb.co.nz/news/raising-capital-business) — The COVID pandemic has paved the way for innovation, and many New Zealanders spent 2020 investing time and money into their new or existing businesses. When raising capital to grow their business, however, many business owners find themselves limited by the size of their wallet. While interest rates are currently at an all-time low, trading banks’ lending terms are arguably the strictest in recent memory. There are, however, alternatives to using personal funding or borrowings; you can offer shares in the company in exchange for funds (or ‘capital’).    While this method of capital raising sounds relatively straightforward, it can be a costly and complex process for business owners to navigate. When a business elects to raise capital by offering shares, it is governed by the Financial Markets Authority of New Zealand (FMA) and the Financial Markets Conduct Act 2013 (FMCA). Broadly, the FMA requires any offer of shares to be accompanied by a full suite of disclosure documents in accordance with the FMCA; these disclosure documents are expensive and time-consuming to prepare. The ongoing reporting associated with these activities is also significant and often requires substantial profe… - [Rent Reviews in Commercial Leases](https://www.klb.co.nz/https://www.klb.co.nz/news/rent-reviews-commercial-leases) — Negotiating commercial leases can involve a significant amount of crystal ball gazing – particularly when some leases can last decades. As recent times have shown, the landscape at the start of a lease can be miles away from the situation at the end of the lease. One area where the shifting sands can bite for long-term leases is the rent figures. Without appropriate rent review clauses to adjust the rent, any landlord could find themselves with a vastly undervalued rental as the lease progresses. Types of rent reviewNot all rent review clauses are alike and there are various methods of calculating changes to rent.Market rent review: This review adjusts the rent so that it reflects the current market value of the lease. It allows the rent review to take into account the general market conditions and factors specific to your property such as zoning and the desirability of your property’s location.A market rent review can be particularly helpful if you have a gross lease given the market value of the property will affect some of the operating expenses you must cover as landlord, such as insurance and rates.One risk of market rent reviews is they can lead to a dispute about the quantum of the actual market rent. You and your tenant may have to bear the cost of valuations or, in a wor… - [Having a puff at work](https://www.klb.co.nz/https://www.klb.co.nz/news/having-puff-work) — New Zealand laws have finally caught up with vaping (also called e-cigarettes) that have, for some time, enjoyed freedom from the country’s strict tobacco regulation. Since 11 November 2020, however, all vaping products and behaviours must now be treated the same as for tobacco products and smokers. All businesses and employers should be aware of the changes to SmokeFree legislation; for retailers of any vaping-related products these changes are especially important. The reasons for vaping lagging behind tobacco products (legislatively speaking) were that not only had the technology for vape-related products developed rapidly, but also because encouraging vaping is part of the government’s plan to help support smokers switch from tobacco products to ‘significantly less harmful alternatives’. You can read more on that here. If you run a business that is already required to be completely smoke-free (such as an early childhood centre, school or public transportation service), under the new legislation here, vaping is now considered to be equally prohibited. If you run a restaurant or bar, you must take all reasonable steps to ensure that vaping only occurs in the same spaces you already permit smoking – that is, in open areas.  EmployersEmploy… - [Reverse Mortgages](https://www.klb.co.nz/https://www.klb.co.nz/news/reverse-mortgages) — The current combination of increasing living costs, rising house prices and low interest rates has seen more than property-seekers signing up to home loans. On the other side of the coin, some older homeowners are seeking ‘reverse mortgages’ from their lenders in order to release the growing equity in their property. What is a reverse mortgage?A reverse mortgage is a lending structure that allows you to access the equity you have accumulated in your home or other property. With a reverse mortgage, you borrow money from a lender using your existing home as security in order to, for example, supplement your living costs or complete renovations rather than for the purpose of acquiring a new property.In essence, a reverse mortgage is a home loan than operates slightly differently from other home loans.The specific terms and conditions of a reverse mortgage will depend on the loan agreement you sign. However, the terms of a reverse mortgage often include the following:No repayments are required until your death, your home is sold or you stop living in your home. This avoids your loan being a day-to-day burd… - [Covid-19](https://www.klb.co.nz/https://www.klb.co.nz/news/covid-19) — The COVID-19 virus that is sweeping the world will impact upon us all and pretty much everybody in the world one way or another. The repercussions will differ depending on where you live, what age you are and what you do, but it will be there nonetheless. The economic impact of the virus is uncertain but it will be significant. In New Zealand, the immediate effect was on the tourism, hospitality and retail sectors. Challenges ahead for agricultureSectors such as agriculture, which are deemed ‘essential’, could carry on even during Alert Level 4 but will continue to experience significant difficulties, including:Disrupted supply chainsDisrupted markets, both domestic and internationalThe need to change packing and processing set ups to ensure social distancing, etc and the costs associated with that, and both direct costs and indirect costs associated with the slowdown of processing, andMarkets either disappearing or shrinking.The country has just moved to Alert Level 3 and (hopefully) two weeks thereafter will move to Level 2. Some of the immediate difficulties for the agricultural sector will be alleviated as the alert levels lower, but the economy (both local and international) will be disrupte… - [Rural Leases](https://www.klb.co.nz/https://www.klb.co.nz/news/rural-leases) — As a result of the COVID-19 Alert Level 4 situation, one of the issues that has arisen in the commercial leasing area is that of tenants being unable to access their leased buildings. These tenants are in non-essential industries and are therefore prohibited from working, other than from home. This affects commercial leases right across the spectrum from hospitality, retail, office to warehousing. Leasing is common in the rural sector, particularly in the pastoral, horticultural and cropping areas. Agriculture, being an essential industry, is not directly affected by this prohibition on accessing leased land. No access to land can be an issueIt does, however, raise an issue for the rural sector because there are scenarios in which similar problems could arise as a result of an inability to access the land due to an event outside the control of either the lessor or the lessee. Possibilities might be: A biosecurity issue, orAn earthquake or some other event that impacts on the land or access to it.Looking back to the ‘red zone’In the commercial leasing area, attempts were made to deal with this issue following the Christchurch earthquakes. Many buildings were undamaged by the earthquakes but lessees couldn’t access them because they were located in the ‘red zone’. Most commercial leases had fairly comprehensive provisions dealing with what would happen in the event buildings were dama… - [Retirement Village Life](https://www.klb.co.nz/https://www.klb.co.nz/news/retirement-village-life) — New Zealand’s ageing population has created a boom for retirement villages, with record numbers being developed. For many looking to retire or slow down, retirement village living is attractive – and it’s not hard to see why. A new apartment or cottage in a secure, well-maintained environment, offering a lock-up-and-leave lifestyle, and providing resort-like facilities such as cafes, gyms, pools, bowling greens, libraries and men’s sheds can be very appealing. Many clients tell us how happy they are to have made the move, some even say they wish they had done it sooner, but retirement village living is not for everyone. It’s important to think carefully about what this move means for you – both financially, and in terms of your current and future needs.   Consider carefully Do your homework and consider your options. Why do you want to live in a retirement village? Will this move meet your needs in the future? What happens if your health or financial circumstances change? Have you considered the alternatives? Do your family and friends support a move?  We recommend you visit as many villages as you can, including those close to where you live now (you may want to keep up connections to clubs and your social circles), and talk with family a… - [Make Sure You Have a Will](https://www.klb.co.nz/https://www.klb.co.nz/news/make-sure-you-have-will) — New Zealanders need to find time to sit down and make sure they have a will. We all know this is important but how many of us don’t get around to it? Recent research by the Commission for Financial Capability has shown that only 47% of Kiwi adults have a will and the figures are worse for women, Māori and Pasifika. This survey of 2,000 New Zealanders found that only 44% of women have wills compared with 51% of men. These statistics are concerning when you consider the devastating effects that not having a will can have on your family. Gives comfort to your family New Zealanders need to find time to sit down and make sure they have a will. We all know this is important but how many of us don’t get around to it? Recent research by the Commission for Financial Capability has shown that only 47% of Kiwi adults have a will and the figures are worse for women, Māori and Pasifika. This survey of 2,000 New Zealanders found that only 44% of women have wills compared with 51% of men. These statistics are concerning when you consider the devastating effects that not having a will can have on your family. Why should you have a will? A will is often described as your final letter to your family. We agree with this but would add that your will is a legal document that gives instructions on what you want to happen to your personal … - [What We Do](https://www.klb.co.nz/https://www.klb.co.nz/what-we-do) — What We Do Our extensive experience enables us to give you advice in a wide range of areas of law. As well as having a depth of knowledge, we also take the time to listen carefully to your concerns and needs. This combination ensures we provide practical advice and effective solutions.   Areas of expertise:   Civil Law/Dispute Resolution Commercial Law/Business Law Conveyancing/Property Elder Law Family Law Wills/Estate Planning/Trusts and Asset Management Family Legal Aid Available - [Dispute Resolution](https://www.klb.co.nz/https://www.klb.co.nz/what-we-do/dispute-resolution) — Dispute Resolution We are able to help with issues arising from matters including:   Court disputes over money or property Neighbour issues Landlord/tenant disputes Lease disputes Building disputes Mediation Alternative Dispute Resolution     For further information please contact Gemma Keystone, Tina McLennan or Anna Ferguson - [Commercial Law-Business Law](https://www.klb.co.nz/https://www.klb.co.nz/what-we-do/commercial-law-business-law) — Commercial Law/Business Law Our experienced staff specialise in:   Franchise Leases Contracts Terms of Trade Debt Collection Business Sale and Purchase Commercial Property Sale and Purchase   If you require further assistance contact:   Tina McLennan or Anna Ferguson - [Conveyancing/Property](https://www.klb.co.nz/https://www.klb.co.nz/what-we-do/conveyancingproperty) — Conveyancing/Property Our experienced staff can help in all areas of property conveyancing including: Residential Sale & PurchaseRural Sale & PurchaseCaveatsEasementsCovenantsMortgages and GuaranteesRetirement Village Occupation LicenceProperty Development/Subdivisions Please contact Tina McLennan or Anna Ferguson for more information.  - [Elder Law](https://www.klb.co.nz/https://www.klb.co.nz/what-we-do/elder-law) — Elder Law We cover various aspects of Elder Law including:   Retirement Villages and Rest Homes Dispute Resolutions in Retirement Villages Protection of Personal and Property Rights Act 1988 Wills Enduring Powers of Attorney Relationship Property Issues for the Elderly Trust Issues for Separating Elderly Spouses and Partners Trusts and Trust Administration Dying With or Without a Will Elder Abuse and Neglect Prevention Legal Issues Faced by Older People with Intellectual Disability Grandparents who Care for Grandchildren Estate Administration Residential Care Subsidies      For more information please contact Tina McLennan, Anna Ferguson or Gemma Keystone - [Estate Administration](https://www.klb.co.nz/https://www.klb.co.nz/what-we-do/estate-administration) — Estate Administration When someone close to you dies, whether family or a close friend, it’s a time of shock and dealing with the unexpected, as well as your own feelings of grief and loss.You’re catapulted into thinking about organising a funeral, whether it will be a cremation or burial and how to organise the day, and then you also need to think about the Will and all the ramifications of dealing with the estate.This information provides an overview to help you if you’re doing some preplanning, or organising a funeral of a family member or close friend.We’ll guide you through the steps you need to take from the time of your loved one’s death through to their funeral.Most of this information, however, focuses on what happens with the Will and the estate. There’s information for executors, trustees… - [Family Law](https://www.klb.co.nz/https://www.klb.co.nz/what-we-do/family-law) — Family Law We specialise in the following Family Law matters: Matrimonial Property (Relationship Property)AdoptionPre-nuptial agreements/Contracting Out AgreementsSeparation agreementsProtection OrdersDissolution of Marriage (Divorce)Child SupportDay to Day Care/Contact (Custody/Access)MediationCourt Applications for Property Manager/Welfare GuardianRelocation DisputesInternational Abduction/Hague Convention mattersAsset planning and protection for new relationshipsSpousal maintenance Family legal advice serviceFamily Trusts  Legal Aid is available For further information please contact: Gemma Keystone   - [Wills & Estate Planning](https://www.klb.co.nz/https://www.klb.co.nz/what-we-do/wills-estate-planning) — Wills & Estate Planning We cover the following areas of Estate Planning Wills (including Life interest, Mirror, and Trust Wills)Enduring Powers of AttorneyTrust FormationHealthcare Directives (commonly known as a Living Will)Please contact Tina McLennan,  Anna Ferguson or Gemma Keystone for more information.  - [Trust & Asset Management](https://www.klb.co.nz/https://www.klb.co.nz/what-we-do/trust-asset-management) — Trust & Asset Management Trusts are a popular way for New Zealanders to protect their assets. There may be a number of reasons why you are considering setting up a trust or have been advised to do so. A trust can offer a number of benefits and these are explained in this book. Before you make any decisions about this however, it’s important that you understand what a trust is and how it works.This article sets out some of the important features of a trust and what is required in order for your trust to work as intended. Unless the legal obligations are met, your trust may not be legally effective or a court may later decide it’s a sham and therefore of no benefit to you. New Zealand trust law is the result of centuries of development by Acts of Parliament and by the courts both here and, in earlier times, in E… - [Resealing of Probates](https://www.klb.co.nz/https://www.klb.co.nz/what-we-do/resealing-probates) — Resealing of Probates RESEALING OF PROBATES AND LETTERS OF ADMINISTRATION“Resealing” is the process of formalisation of an overseas grant of probate by the New Zealand Courts.  If you have an overseas grant of probate or letters of administration and any assets worth more than $15,000 in New Zealand, you will need to have your overseas grant of probate “resealed” here in New Zealand.  We are always able to determine whether a Reseal is required, where it should be completed and thereafter arrange for it’s issue as quickly as the Courts can allow. Generally a reseal takes between 4-6 weeks to obtain. We complete this process on your behalf.Once the reseal is issued we can assist you with the sale of property and/or transfer of funds overseas.If you have any questions or you need a probate resealed … - [Family Legal Aid Available](https://www.klb.co.nz/https://www.klb.co.nz/what-we-do/family-legal-aid-available) — Family Legal Aid Available Legal Aid Terms and Conditions    What is Legal Aid? Legal Aid is an essential part of our legal system supporting access to justice.  It is a government service which provides legal services for people who cannot afford them.  Where Legal Aid is granted payment of legal fees is made directly to Kaimai Law Bethlehem as your approved legal aid lawyer.  If you have made an appointment to see us regarding Legal Aid please provide your proof of income and government issued photo ID (Passport, drivers licence) at your first appointment.  If you qualify for Legal Aid you will be informed by the Legal Services Agency of the fee that has been approved for our services and any contribution or other obligations you may have.  If you apply and your application for Legal Aid is declined, Kaimai… - [Terms of Engagement ](https://www.klb.co.nz/https://www.klb.co.nz/terms-engagement-) — Terms of Engagement Standard Terms of Engagement (Effective 3 October 2018) The Standard Terms of Engagement (“the Terms”), sent to the client together with the Information for Clients and any engagement letter and any fee estimate, form the initial Contract between Kaimai Law Limited trading as Kaimai Law Bethlehem & Ōmokoroa (“Kaimai Law Bethlehem & Ōmokoroa”) and the client. Unless otherwise agreed in writing, any subsequent services performed by Kaimai Law Bethlehem & Ōmokoroa will be provided by Kaimai Law Bethlehem & Ōmokoroa on the basis of the Terms. In such cases, references to the Contract and the Services below will be to the Terms and any orally specified services. Services. Kaimai Law Bethlehem & Ōmokoroa will provide the services specified in any initial engagement letter or, as subsequently agreed and set out, in any replacement or supplementary engagement letter or other communication (“the Services”). The Services may include advice and recommendations, but it is understood and agreed that all decisions in connection with the implementation of such advice and recommendations shall be the responsibility of, and made by the client. Unless implementation is specified … - [Information for Clients](https://www.klb.co.nz/https://www.klb.co.nz/terms-engagement-/information-clients) — Information for Clients From 3rd October 2018 Set out below is the information required by the Rules of Conduct and Client Care for Lawyers of the New Zealand Law Society (“Law Society). 1 Fees The basis on which fees will be charged is set out in our letter of engagement and our Standard Terms of Engagement.  The method for payment of fees is set out in our appended Standard Terms of Engagement. We may deduct from any funds held on your behalf in our Trust Account any fees, expenses or disbursements for which we have provided an invoice. 2 Professional Indemnity Insurance We hold professional indemnity insurance that meets or exceeds the minimum standards specified by the Law Society.  We will provide you with particulars of the minimum standards, upon request. 3 Lawyers’ Fidelity Fund The Law Society mai… - [Forms](https://www.klb.co.nz/https://www.klb.co.nz/forms) — Forms The forms linked below are available for our clients. Please contact admin@klb.co.nz if you have any questions. Family Law FormsForm 06 Application For Family Legal Aid 2014Form 5 Application For Civil Legal Aid 2014Form 17 Statement Of Financial Position 2014Third Party Authorisation 2014Form Trust 2014  Used for providing information to allow investment of funds in Trust AccountsIndividual Self-CertificationEntity Self-CertificationExemption Form  - [Contact Us](https://www.klb.co.nz/https://www.klb.co.nz/contact-us) — Contact Us Email Us:  Please fill out the below contact form and we will respond as soon as we are able to: