Budget Basics for Small Businesses

There were few surprises for small businesses in the recent Budget but it does create an environment of certainty and stability for businesses to invest.

Writing on the bizedge.co.nz website, Xero’s managing director NZ, Victoria Crone, says the 2015 Budget will see an additional $425 million of new spending on business over the next five years.

Here is what small business owners need to know:

  • ACC levies will reduce by $375 million in 2016, followed by cuts of $125 million in 2017. These cuts will be across motor vehicle, work and earners accounts.
  • As of 1 July, cuts in motor vehicle registrations come into effect.
  • There will be small tax cuts in 2017 if everything goes to plan but the Government will only do this if it is deemed affordable.
  • The Government will allocate $210 million for more ultra fast broadband and $150 million for improvements to rural broadband that will bring New Zealand closer to the rest of the world.
  • $25 million will be spent on establishing regional research institutes which could add three new research centres outside the main regions.
  • A further $80 million over four years will be given to Callaghan Innovation to encourage private sector research and development.
  • $113 million will be available for tertiary sector education to create a better workforce and boost New Zealand’s economy.
  • The $1,000 kickstart for KiwiSaver has been removed.

If you wish to read the full article, you can do so here). [http://bizedge.co.nz/story/what-does-nz-budget-mean-small-business/]

 And if you need advice on the financial aspects of your business, I am only a phone call away and would be happy to help.

 

Source: http://bizedge.co.nz/story/what-does-nz-budget-mean-small-business/

© KEPA 2015

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