Government assistance for Small and Medium Business

Wednesday Feb 11, 2009
 

National is committed to making it easier for small companies and firms to do business. We recognise the importance that small businesses have in our local community. Whether employing local people, investing in our community, or selling local products, a strong small business makes for a strong community.

 

Faced with an economic downturn we are moving quickly to bring in measures aimed at assisting small and medium businesses.

 

Tax Changes

 

  • Increase PAYE once a month filing and FBT annual filing payment threshold to $500,000.

 

  • Increase GST registration threshold from $40,000 to $60,000.

 

  • Increase GST payments basis threshold from $1.3m to $2m.

 

  • Businesses with $10,000 or less of business-related legal expenditure will be able to fully deduct the expense in the year it was incurred, whether it was capital spending or not.

 

  • Allow taxpayers to correct minor errors in subsequent returns where the amount of tax arising from the error is less than $500.

 

  • Reduce FBT prescribed rate of interest for low-interest, employment related loans to 8.05%.

 

  • Reduce FBT for minor unclassified benefits.

 

  • Reducing from this year until 2010 the size of provisional tax repayments business has to make.

 

  • The charge for underpayments reduces from 14.24 per cent to 9.73 per cent. The rate for overpayments will reduce from 6.66 to 4.23 percent.

 

 

 

Export Credit Office

 

  • NZ Export Credit Office (NZECO) to provide trade credit insurance and reinsurance to private providers for payment terms less than 360 days.

 

Extending Jurisdiction of the Disputes Tribunal

 

  • Increase the maximum claim level of the Disputes Tribunals to $15,000 and to $20,000 with the consent of both parties.

 

Expansion of Business Advice services

 

  • Beefed up assistance for business including an enhanced 0800 help line operating 24-hours a day; free business health checks and a mentoring service.

 

A fast-payment requirement of Crown agencies

 

  • Ensuring prompt payment from Crown agencies to suppliers.

 

This package is about the Government playing our part to get this economy going.

 

On top of this package, as part of our 100-days action plan, we have acted swiftly and decisively to provide temporary relief to those who are made redundant through our ReStart Assistance Package. We have passed legislation to reduce taxes which will put more money in New Zealanders' pockets from 1 April. And we have introduced a voluntary 90-day trial period for new employees to make it easier for small businesses to hire new staff.

 

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