MYOB Welcomes Opportunity for NZ Businesses

Media release: 17 May 2005

MYOB WELCOMES OPPORTUNITY FOR NEW ZEALAND BUSINESSES

The government’s moves to reduce the cost of doing business has been welcomed by the country’s largest provider of business accounting software, MYOB, ahead of this week’s budget.

Revenue Minister Michael Cullen revealed the government’s plan to introduce a series of changes designed to simplify tax and reduce business compliance costs before the International Fiscal Association conference in Christchurch.

MYOB New Zealand general manager David Lowe says compliance costs and the complexity of regulatory requirements are some of the most significant issues New Zealand businesses face – particularly in smaller and start-up operations.

“Simplifying the tax system and reducing the costs of doing business would make an enormous difference to the ability of small and medium-sized businesses to operate effectively and invest in growth,” says David Lowe.

“We welcome Dr Cullen’s announcement that the government is taking further steps to address these issues.”

Mr Lowe, who has been part of an advisory panel for the IRD on the proposed reforms, says, however, that implementing the proposed changes should not create any additional complexity for business.

“We are aware, through recent studies of local businesses, that the majority of business owners in small businesses undertake most of the activities associated with the proposed changes – such as preparing the payroll.”

“It’s exactly why we continue to ensure that MYOB’s payroll products take on as much of that burden as possible. Streamlining essential business processes, although not eliminating them, can go a long way towards freeing up time in a busy day.”

“The fact that they are time poor is a key reason why small business owners feel very keenly the burdens placed on them by any new regulations or changes to the system.”

According to a recent survey of hospitality businesses, conducted by MYOB in association with the Hospitality Association of New Zealand, more than 50% of the 528 business owners surveyed personally prepared their business’ payrolls and almost 40% of the businesses surveyed still prepared their payrolls manually.

The government also plans to introduce a new subsidy for small businesses employing payroll agencies, which will come into effect on 1 April 2006 and be paid on up to five employees.

“We’re pleased to see positive change on the government’s behalf and to have played a part in bringing it about. What’s more, MYOB has always worked hard to enable business owners to gain the benefits of any government moves to simplify their businesses.”

“Looking ahead, MYOB will continue to introduce value-added services over the coming months, designed to ensure local businesses can operate more effectively while concentrating their expertise on achieving growth,” says David Lowe.

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About MYOB

MYOB is a global provider of solutions that liberate business owners and accountants from the burden of day-to-day administration, empowering them to achieve business success. MYOB develops and delivers award-winning software, services and support for more than 500,000 businesses and over 10,000 accounting practices worldwide.

Owner-operated businesses are the most dynamic force in the world economy and yet they are universally challenged by limited resources. MYOB uses its knowledge, expertise and scale to help them build better businesses.

MYOB also works directly with accounting practices to streamline their processes and maximise their productivity. MYOB solutions are used by leading accounting practices from tax agents and sole practitioners to the ‘Big 4’ firms.

Through its understanding and partnership with both business owners and accountants, MYOB strives to further enhance the links between them for their mutual benefit.

MYOB Limited is a public company listed on the Australian Stock Exchange (ASX symbol 'MYO').

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