Focus On Compliance Cost Timely For Small Business

Media release: 4 February 2009

Govt Focus On Compliance Costs Timely For Small Business – Myob

The Government’s proposed changes, designed to reduce compliance costs for small business, will make a real difference to many thousands of Kiwi business owners, according to MYOB.

Prime Minister John Key introduced a number of policy initiatives today aimed at easing the burden of tax on cash flow for smaller businesses and making it easier and less expensive to pay taxes.

MYOB general manager Julian Smith says maintaining cash flow and profitability, as well as a simplified legislative environment, are the key concerns of small businesses throughout the country.

According to MYOB’s most recent Colmar Brunton survey of nearly 1500 business owners and managers across the country – released at the end of 2008 – compliance is the most significant ‘pain-point’ for the nation’s small businesses. The greatest number of businesses in the retail trade (41 percent) report difficulty with compliance, followed by the agriculture, forestry and fishing sectors (39 percent) and property, business and professional services (35 percent) and construction and trade services (29%).

“We welcome the Government’s proposed changes to the provisional tax rates, underpayment penalties and tax thresholds as it will not only remove costs for Kiwi businesses, it will also simplify the legislative environment – making it easier for business owners and managers to focus on performance and profitability,” says Julian Smith.

“In the current environment, businesses are telling us that any improvements to cash flow are also vital.”

According to MYOB’s research, ‘chasing up late payments’ was an issue for almost a fifth of local businesses – a number the company expects to become far greater in this quarter.

Mr Smith says MYOB, which works regularly with over 100,000 New Zealand businesses of all types and sizes, and helps pay over 40% of the country’s workforce, sees any measures introduced to simplify the business environment as crucial for the success – and survival – of nation’s small businesses.

“The Government’s latest proposals for business are a timely focus on the needs of one of the country’s most significant economic forces – the small business.”

“We believe if these changes are implemented as soon as possible, many local businesses will be better off.”

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