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:

National will:

  • 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.

You can read our full Small Business Package Factsheet here.

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