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.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news