Lower Tax Cost & Compliance
National knows the tax system imposes too much cost and compliance on small businesses. We will introduce a range of changes that reduce the cost and compliance of the tax system for small businesses:
- Not increase taxes or introduce any new taxes.
- Lift the threshold to expense new capital investment from $5000 to $150,000 per asset.
- Increase the provisional tax threshold from $5000 to $25,000.
- Raise the compulsory GST threshold from $60,000 to $75,000.
- Allow businesses to expense an asset once its depreciated value falls below $3000, as opposed to having to continue to depreciate it until its depreciated tax value equals zero.
- Change the timing of the second provisional tax payments for those businesses with a 31 March year end to 28 February (rather than 15 January).
- Ensure Use of Money rates charged by IRD more properly reflect appropriate credit rates and increase the interest rate paid on amounts owed by IRD to its customers.
- Increase the threshold to obtain a tax invoice from $50 to $500, to reduce compliance costs.
- Implement a business continuity test (rather than ownership test) to allow the carry forward of tax losses.
- Review depreciation rates for investments in energy efficiency and safety equipment.
- Consolidate the number of depreciation rates to reduce administrative burden.
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