New Zealand still AA+

According to S&P Global Ratings, New Zealand’s recent change of government won’t impact the country’s AA+ rating. In the credit rating agency’s view, the new National government (leader Christopher Luxon) has “broadly similar” fiscal policies to the outgoing Labour government. New Zealand was upgraded to an AA+ rating in 2021, off the back of the government handling of the pandemic, low debt, discipline and economic growth.

According to director Martin Foo, S&P Global Ratings will be watching to see if the new government can rein in the fiscal deficit, to ensure there is a buffer against future crises, and so that monetary and fiscal policy are aligned.

While official debt has risen recently, the country still has one of the lowest levels of debt among developed economies. 

Pictured: Christopher Luxon

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2023 internet adoption

Worldwide, 64.4% of people use the internet. Researchers found that four countries have 99% internet adoption, and Australia and New Zealand aren’t far behind at 96.2% and 95.9% respectively. Interestingly, the US score is lower, at 91.8%.

99%	Ireland
99%	Norway
99%	Saudi Arabia
99%	United Arab Emirates
98.4%	Switzerland
98.1%	Denmark
97.8%	UK
97.2%	South Korea
96.9%	Singapore
96.8%	Malaysia
96.2%	Australia
95.9%	New Zealand
95.5%	Netherlands
94.9%	Spain
94.5%	Belgium
64.4%	Worldwide

Source: 2023 Global Overview Report (Dataportal, January 2023)

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What are you worth?

In September 2023, the Australian Senate Finance Committee revealed details of annual salaries at Deloitte Australia.

• Equity partners earn an average of A$810,000
• Non-equity partners earn A$370,000 on average.
• At the top end, 19 Deloitte equity partners earn more than A$1.43 million per annum.

CA ANZ will be releasing the results of its annual remuneration survey later this year. In it, CAs in New Zealand and Australia reveal how much they earn, and the additional benefits they receive – as well as their expectations for promotions and raises in the year ahead.

Visit the CA ANZ website later this month to find out how your own salary measures up. 

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Bit Trade in hot water

Kraken crypto exchange provider Bit Trade is being sued by the Australian Securities and Investments Commission (ASIC) for failing to meet some of its design and distribution obligations. ASIC claims Bit Trade didn’t make a target market determination for its margin trading product – a credit facility customers can use to buy and sell crypto assets on Kraken.

ASIC says at least 1160 customers used the margin trading product and incurred a total loss of about A$12.95 million since October 2021, when the design and distribution obligations started.

ASIC is seeking injunctions prohibiting Bit Trade’s ongoing conduct, as well as declarations and fines.

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Accountants optimistic about AI

In a new report, Future of Professionals, researchers from Thomson Reuters say tax and accounting professionals expect AI, technology and automation to transform the profession over the next five years. They believe that tech will help increase efficiency and ultimately change the work that accounting professionals perform.

• 59% of tax and accounting firms see AI’s main contribution being an increase in productivity.
• 5% of corporate tax and accounting departments say internal efficiency will be the most important outcome of better tech.
• 67% of professionals say providing high-quality advice is their main motivator.
• 66% of tax professionals expect new tech-led career paths to emerge in the next five years.
• 68% don’t expect these new roles to require a traditional tax qualification.

Source: Future of Professionals (Thomson Reuters, August 2023)

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Students in Business Class

CA ANZ and Year13 have launched the Business Class e-learning academy to help high school students explore what a career in accounting could look like.

Four modules look at topics including using accounting skills to start and run your own business, how AI is changing the profession and how accountants can make a real difference in the world and contribute to a more sustainable future.

Learners earn points for completing the modules, which they can exchange for prizes and cash.

Take a look here.

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3 January 2024

International Mind-Body Wellness Day focuses our attention on looking after our mental and physical health, recognising that our thinking can affect our health and wellbeing.

So, why not try and build in some of these short, simple mindfulness and meditation exercises into your workday?

1. Relaxation and stress relief

Take three-to-five slow, deep breaths.

2. Calming

Look at the horizon. Using your panoramic vision can calm the nervous system and instil a sense of awe.

3. Gratitude

Close your eyes. Think of five things you are grateful for and why.

4. Focus

Choose an object (a leaf, pencil, pebble or something else). Take a minute to really observe how it looks, feels, smells and sounds. Or choose a food or drink and do the same, including the taste and texture.

Sources: Thriving on Overload; Jagran Josh

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