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Budget 2017

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Budget 2017

10.56am 25 May 2017  – Pre Budget Announcements (see below for actual budget notes)

So we’re counting down the moments to the 2017 budget for our country to see which direction the National Government wants to take us in.  It’s fair to say that this government has been relatively kind to small and medium sized businesses in New Zealand.  There have been moves to simplify compliance for small business and some additional initiatives have already been released for this budget which impact positively for business:

Tourism is getting a boost to fund some desperately needed infrastructure for our rapidly growing visitor numbers.   DOC gets $76 million to put towards its efforts to improve the visitor experience from more information to improving the great walks of New Zealand.  In addition, $102 million is going into an infrastructure fund to be used in partnership with local authorities for car parks, toilets and freedom camping facilities.  Part of this fund is re-purposed from other funds ($40 million) as opposed to additional money – but still all good.

Although the contribution to our economy is in the region of $23 billion so this money is a mere 0.7% of annual visitor spend so maybe not as substantial as it should have been.

Particularly when you compare to increased funding for the movies which gets $309.3 million over the next 4 years.

Innovation is also being given a boost with an extra $74.6 million available to businesses looking to expand through research and development.

Value added products and free trade deals are also enabled with additional funding of $91 million for MFAT. Also $53 million for the trade expo in Dubai, signalling that the government is looking to boost exports -whether this is the best option is another matter.

Farmers also get some limited help for their irrigation projects of $27 million – weird that we are simultaneously giving it away to overseas interests and paying for more water here!

Transport is funded to repair the broken road link between Picton and Kaikoura to the tune of $812 million which is good news for any South island clients who are suffering with the extra kms to get from top to bottom of the mainland.

However, has the government done much to push us into a future where we have affordable homes, clean water, a secure environment and high productivity translating into good incomes for Kiwis?  Have we moved from primary industries to smart new tech? Not so much.

Let’s see what else 2pm brings!

 

Notes from Budget 2017

Tax bracket changes means more money in the pocket for most.  The bottom tax bracket will be increased from $14,000 to $22,000 delivering an extra $11 per week and the $48,000 to $52,000 delivering an extra $20 a week. An  average couple will be $41 better off a week. Continue reading “Budget 2017”