Prime Minister Chris Hipkins has recently announced that the minimum wage in New Zealand will be raised to $22.70 starting from April 1, 2023. This represents a 7% increase from the previous rate of $21.20. It’s worth noting that the Starting-Out and Training minimum wage rates will remain at 80% of the adult minimum wage.


Implications for Businesses


Even if your business doesn’t employ individuals earning minimum wage, this change can still impact your operations. Over time, wages tend to rise, and employees who missed out on a pay increase this year are likely to expect one in the future, especially if your business is doing well.

In addition to labor costs, inflation is predicted to drive up prices for everyday items. This can lead to increased running costs and higher prices for materials. Factors like rising petrol prices and supply chain challenges have already contributed to the increased cost of imported goods.


Consider Adjusting Pricing


It may be time to evaluate your pricing strategy. Ideally, businesses should make small adjustments to their prices annually rather than implementing significant price hikes every few years. Incremental increases help avoid sudden price shocks for customers and keep your business competitive within the market.


Exploring Cost-Cutting Measures


If increasing prices isn’t a viable option or you need to make more substantial changes, it may be necessary to identify areas where you can reduce expenses. We can assist you in examining your business’s various aspects to identify potential areas for cost-saving measures.


Reach Out for Assistance


Feel free to get in touch with us by giving us a call or sending us a message. We’re here to provide guidance and support to help you navigate these changes effectively.


Your Outside Team



Need a bit of assistance with your
business? Contact an Outside Accounting team member today and learn more about
our fixed fees. You won’t regret it.

Aside from business consultation, we
are business accountants Wellington
who offer accountingbookkeeping, payroll services designed to
help you achieve greater financial success.

You can click here to speak to a businessaccounting and bookkeeping firm. We will give you a
call to know more about your needs. We will explain to you how we can improve
your business.




Contact 

Wellington Accountants | 

Business Accountants | 

Construction Accountants 

Property Accountants 

Contractor Accountants 

Hospitality Accountants |

Property Developer Accountants | Accountants Wellington | Wellington Accountant | Business Consultation | Business Adviser

AddressLevel 2, 182 Vivian Street,
Te Aro, Wellington 6011, New Zealand 

Mail: PO Box 24-457, Wellington 6142

Phone04 889 2975

New Zealand Accounting, Bookkeeping & Property Business Consultancy Services | Wellington & Lower Hutt Xero Property Accountants Business coach business consultation business adviser

Business Accountants: Exploring Business Structures: How to Choose the Right One for Your Venture

Embarking on the journey of entrepreneurship is exhilarating, but establishing the right business structure can be a daunting task. Whether you’re a solo entrepreneur or part of a larger team, understanding the different business structures and making the right choice is crucial for your long-term success. This guide aims to demystify the process and help you navigate the intricate world of business entities.

Read More »
New Zealand Accounting, Bookkeeping & Property Business Consultancy Services | Wellington & Lower Hutt Xero Property Accountants Business coach business consultation business adviser

Business Accountants: Optimising Your Business for Recession Resilience: Strategies for 2024

In the face of economic challenges, understanding how to recession-proof your business becomes paramount. A recession, marked by prolonged weak or negative growth in real GDP and heightened unemployment, demands strategic planning to weather the storm and emerge stronger on the other side. To fortify your business for the uncertainties ahead, consider the following comprehensive guide.

Read More »