14 July 2011

Two-thirds of the country’s business owners will vote against Labour’s capital gains tax policy, according to the latest MYOB Business Monitor, and a special concession for older business owners is unlikely to make much difference to their opposition.

The survey of the policy and voting preferences of over 1000 business owners from around the country found that the introduction of capital gains tax was the most unpopular policy, with 66% of the business community vowing to vote against the policy, while only 12% would vote for it.

MYOB general manager Julian Smith says the new policy is one that will cost votes, for a party that is clearly out of step with the country’s business community.

“Labour’s capital gains tax policy is one that is going to meet strong opposition from business voters, and will see them lose further ground with the business community,” says Julian Smith.

“Even with a small concession of tax exemption for older, long term owners of businesses, the policy announced today is unlikely to find more favour.”

“Creating more complexity around the way it is applied is only likely to increase dissatisfaction among business owners.”

Although the policy is particularly unpopular among older business voters, with 70% of business owners aged 40+ opposing the policy and 12% in favour, more than half (52%) of younger business owners were against a capital gains tax, while only marginally more supported it (14%), compared to their older counterparts

The policy announced today is also unpopular amongst women, with 69% of female business owners saying it is a vote loser. Business owners in the Wellington region have also come out most strongly against the introduction of a capital gains tax, with 72% saying it would cost their vote in the upcoming election.

Of the industry sectors, business owners in the professional services and property sectors are the most strongly opposed to the policy (74% opposed, 10% for), while Labour’s initiative has found some favour in the transport and logistics industry (26% in support, 59% opposed).

“And while they are both unpopular policies, the introduction of a capital gains tax is also opposed much more strongly than National’s proposed state asset sale policy,” says Julian Smith.

“44% of business owners say they would vote against state asset sales, while 27% would vote for the policy according to the MYOB Business Monitor survey.”

According to the latest MYOB Business Monitor, 62% of business owners would vote National, 10% Labour and 3% Act, 2% for the Greens and 1% for the Maori Party, with 21% undecided.

Mr Smith says Labour appears to be increasingly out of touch with the country’s business owners.

“However, it would be a real mistake for any party to write Kiwi business owners off as a single voting bloc, always favouring the right,” says Julian Smith.

“In fact, according to the same survey, 57% of Kiwi business owners would support Labour’s policy of removing GST on essential goods, while only 23% would vote against.”

“What is very clear, though, is that local business owners do not simply demand less taxation, but rather need simpler processes and less complexity – something this new policy clearly won’t deliver.”

“Kiwi business owners – large and small – are the driving force of this country – providing not only economic growth, innovation and employment, but also bearing the responsibility for collecting the nation’s taxes.”

“It’s important that any party considers the views of business owners when planning for the success of the New Zealand economy.”

ENDS

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