What will the Budget 2016 mean for small and medium sized businesses?
A significant investment in transforming how IRD works will be better for everyone in the long run. An efficient and easier tax collection system is desirable but SME’s won’t be waking up this morning to a dramatic new world. It’ll be business as usual for a while yet.
The tax simplification measures announced in April focussed on SME’s and will be welcomed by most. Penalty reductions, easier provisional tax payment methods, lower interest costs and greater flexibility around withholding taxes will reduce the costs of collecting and paying tax.
I think the announcements most likely to appeal to small and medium sized businesses are those aimed at fostering entrepreneurship and innovation; 25 initiatives over the next four years in science, skills, tertiary education and regional development.
The Government’s Regional Growth Programme gets a boost, there’s more money for the Marsden Fund and the Health Research Council and another 5,500 apprenticeships by 2020.
Encouraging innovation and entrepreneurship benefits us all with more jobs and improved productivity and sustainability. Equipping workers with the skills needed for those jobs ensures the productivity and sustainability gains can be achieved.
Here’s a full analysis on this year’s Budget announcement http://bit.ly/1RpcNTt