Date: 1st June 2016
Last week the National Government released the 2016 Budget. For small-medium businesses, there were no big surprises, however there were a few potentially helpful initiatives, such as a new tax administration system and more funding for science, innovation and tourism.
Here’s a quick look at five of the 2016 Budget changes likely to affect your small-medium business.
Small-medium businesses will be boosted with an ‘SME-friendly tax package’ to ensure the tax system fits in with how small businesses operate. This includes proposals to simplify business tax, such as changes to how provisional tax is collected.
Working in tandem with the above, $857 million will be spent on Inland Revenue’s new tax administration system, replacing the current one that is over 25 years old.
As proponents of technology in business, Findlay & Co will be interested to see if the new administration measures actually take away some of the pain of tax compliance for New Zealand businesses.
Aimed at growing New Zealand’s science system, Innovative New Zealand will receive a $761 million package to help diversify the economy, and support more jobs and higher wages for New Zealanders in the next 10 years, specifically:
$37 million will be allocated to tourism infrastructure. This includes $25 million to upgrade the New Zealand Cycle Trail, Nga Haerenga. A further $12 million is being provided to help communities with smaller-scale infrastructure projects, such as restrooms and carparks.
Following complaints from New Zealand retailers, GST is to be extended to the cover goods and services purchased offshore. This will come into effect in October and will cover such services as movie streaming services and online apps. The extension of GST, dubbed ‘Netflix tax’ is expected to add $30m to government income next year.
For full coverage of the 2016 Budget, go to budget.govt.nz