National is focused on helping small businesses get ahead and saving them even more time and money. It’s important for small business to succeed because that boosts our economy and helps to create more jobs for New Zealanders.
Under National, small business confidence in the New Zealand economy is growing and around a third of small businesses across the country have reported an increase in their revenue over the past 12 months.
The tax system is a key issue for New Zealand’s small businesses — that’s why we’ve just announced a business-focused tax package that will be positive for businesses, particularly smaller ones.
The aim is to reduce compliance costs and make tax simpler. The proposed changes are:
- Provisional tax is being reformed, with a new pay-as-you-go option giving up to 110,000 small businesses a way to pay tax as they earn income from 1 April 2018.
- Use-of-money interest will be eliminated or reduced for the vast majority of taxpayers.
- Contractors will be able to choose a withholding tax rate that suits their needs, rather than one being set for them.
- The ongoing 1 per cent monthly penalty will be scrapped from 1 April 2017 for new debt – although immediate penalties and interest charges for late payments will continue to apply.
This is just the latest initiative we’ve introduced to help small businesses.
Building a more productive and competitive economy is one of the National-led Government’s priorities for this term. These initiatives are evidence of how we are supporting that.
Our work programme is helping to ensure the New Zealand’s economy is performing well – growth of around 3 per cent is predicted for the next few years – which is giving businesses the confidence to invest and grow.
National will continue to focus on helping small businesses get ahead.