Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


R&D changes a boost for business in election year Budget

Media Release
15 May 2014

R&D changes a boost for business in predictable election year Budget

“Two new tax measures to support research and development (R&D) confirmed in today’s Budget will bring benefits for business,” says New Zealand Institute of Chartered Accountants (NZICA) General Manager - Tax, Peter Vial.

The first will assist cash flow by allowing loss making start-up companies to cash out all or part of their tax losses from R&D expenditure. Eligible companies will receive cash rather than have to carry forward their losses.
The second addresses R&D expenditure that currently falls into the black hole of being neither depreciable nor deductible.

“While NZICA welcomes these two measures we’re keen to ensure that the rules are straightforward so that businesses undertaking innovation are not subject to undue compliance costs,” says Mr Vial.

Overall the Budget is responsible and predictable, continuing the steady as she goes approach of this Government. It achieves the Government’s long-standing objective of a return to surplus and reinforces the focus on fiscal prudence and net Crown debt reduction (to 20% of GDP by 2020).

“It is no surprise that there are no major tax reform proposals. The Government has stuck firmly to its commitment to maintaining the current tax base and not extending it,” says Mr Vial.

Inland Revenue receives an additional $48.6 million over five years to bolster its tax compliance activities. The initiative is expected to generate nearly $300 million more in tax collections.

“This is a welcome move given the effect non-compliance by some taxpayers has on all taxpayers,” says Mr Vial.

Finance Minister Bill English has focused on big ticket issues in the Budget such as support for families with babies and young children including increased paid parental leave, building a more productive economy, delivering better public services and the Christchurch rebuild.

“Likely to be well received are signalled reductions in ACC levies including a potential decrease of $130 a year in the motor vehicle levy.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news