Good News for Small Business in Government Budget 2016

Good News for Small Business in Government Budget 2016

- Small business tax package, provisional tax changes, a huge plus for business owners

AUCKLAND, 26th May, 2016 - Today’s release of the 2016 Government Budget is good news for New Zealand’s small business economy, says Xero’s Managing Director Anna Curzon.

The $187 million small business tax package announced in this Budget will reduce compliance costs and make life simpler for small business owners.

“This move by the Government, in partnership with the private sector, is helping make tangible changes to policies for the good of industry. This is a fantastic step in the right direction for small businesses.”

The Provisional Tax changes, with a new pay-as-you-go option that allows small businesses to pay tax as they earn income, means they won’t have to guess a year in advance what their profit will be.

“This is huge for small businesses, as Provisional Tax is the bane of small business owners’ lives. Previously they had to guess how much money their business might make in the future and forward pay this tax.

“As part of these changes Xero will be able to enhance the current GST processes for small businesses, which means they can pay their provisional tax returns at the same time they pay their GST return. This will reduce compliance, time and effort for small business owners and align their provisional tax payment to their cash flow.”

Budget 2016 also encourages training in disciplines such as science, engineering, agriculture and jobs in the trades, which will provide a larger pool of highly-skilled employees that can help grow small businesses in New Zealand.

“Many New Zealand businesses are challenged by the constant global competition for talent. 170,000 roles will need to be filled in the next four years in those sectors, and it’s great to see an opportunity to arm New Zealanders with the expertise needed to fill them.

“However we should be looking at other ways to harness our talent across New Zealand. To have a significant impact on our own sector in technology, we need to think creatively to unlock talent in the short term. While training and retraining will be a key factor, technology tools and fast broadband can allow our local talent to work from anywhere in New Zealand. This will relieve pressure on housing in the metro areas and create opportunities for our provinces.”

ENDS

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