“Well,” as Michael Barnett from the Auckland Chamber of Commerce just said this evening, “That was boring”
There was nothing earth shattering in this year’s budget and particularly nothing for small business in New Zealand. The most surprising thing was probably a National Government increasing benefits to families with children by $25 a week – good on them for that.
However, there are our top 5 business take-aways from the budget:
- Economic growth is forecast to stay at 3% for the next 4 years – this is a very healthy level of growth and sets the scene well for small business to continue its run. Now is the time to work hard to improve the profitability of your business to extract maximum value from the good conditions.
- We can look forward to modest tax cuts in 2017, coincidentally the next election year, so work hard now, maximise your business and, hopefully, come 2017, you can declare a shareholder salary from your business and keep a little more for yourself.
- For businesses in the construction sector, the government has announced a $52 million contingency fund to speed more builds on crown owned land so potentially a little more money for our construction sector clients.
- A surprise was a ‘border’ levy on arriving and departing international visitors of $16 and $6 respectively. This is linked to greater border security in the wake of the fruit fly scare in Auckland so I guess the tourism sector pays for the risk to the horticultural sector – always some winners and losers. The international visitor market has been very buoyant the last few years so presumably the government felt they could take a tiny bit of this pie.
- There is increased pressure on beneficiaries to find work – and a forecast drop in unemployment so for all employers struggling to find good staff, it’s a mixed picture.
For any more information on how to maximise your business profits – and how to deal with the resulting tax to pay, give us a call on 0800 755 333!