7 ways the Budget could affect your business

The 2015 Budget is likely to have at least a small impact on your business and possibly also your investments over the next two years. I’ve selected the seven ways it’s most likely to affect SME’s clients: 

ACC cuts

You’ll pay less in ACC levies for vehicle, work and earner accounts in 2016, followed by a further cut in 2017. The reduced levies on vehicle registrations that were announced earlier start kicking in this month. All good news for small businesses.

Tax cuts

The Government is predicting minor cuts to income taxes in 2017. That would be welcome news for everyone, although these tax cuts are far from guaranteed and could easily be derailed by an economic setback.

Connectivity spending

With $210 million being spent on ultra-fast broadband, your business may be able to take advantage of better connectivity and quicker download speeds in the future. Rural businesses can also take heart, with $150 earmarked for developing faster rural broadband. 

R & D growth grants

Is your business involved in research and development? There’s an additional $80 million available in grants, so get in touch with Callaghan Innovation and find out if some of that could help your company.

More land in Auckland

For developers and investors in Auckland, there will soon be more land available to build houses, thanks to 450 hectares of Crown land opening up for Special Housing Areas.

Reducing the cost of government interaction

Another $12 million is going towards the NZBN scheme, with the ultimate aim of reducing the cost of business-to-government interactions by 25% by 2017. Cheaper compliance is definitely a plus for small companies.

 

Additional airport taxes

A user-pays tax rather than a business one, this will increase costs for our clients who often travel by air.

If you have any questions about how the Budget will have an impact on your taxes or accounts, give us a call or send us an email and we’ll be happy to help.

By Matthew Green