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


R&D tax credits good news in a construction economy

R&D tax credits good news in a construction economy

Accounting and business advisory firm Staples Rodway has welcomed the return of Research and Development Tax Credits.

“Research and Development is crucial to the growth of the New Zealand economy. While this is was well signalled in the election campaign, it’s great to see a billion dollars being spent, which is more than we expected,” says Mike Rudd, Staples Rodway Tax Director.

Budget 2018 takes into account $5.3 billion from a growing economy as forecast in the Pre-Election Economic and Fiscal Update.

“This figure contrasts with Staples Rodway’s inaugural Business Confidence Survey of 500 business leaders released this week which showed 55 per cent believed the economy would decline over the next year. It also contradicts Labour’s election campaign where they claimed economic growth wasn’t strong.”

“It’s interesting to see Budget 2018 announce $23.5 million over the next four years to chase unfiled corporate tax returns. The need for this is surprising given companies are already penalised through the use of money interest regime. This is a tax group which is already very visible and compliant, it’s hard to believe that $183 million would be gathered from this exercise.”

“The increase in the minimum wage to $20 by 2021 is effectively outsourcing tax cuts for low income people to the private sector. The Government has recognised the impact of inflation on its budget, but it’s not adjusting the tax bands for individuals. Bracket creep means that as incomes go up through cost of living increases the tax rate bands are stuck where they were ten years ago.”

This means Tax Freedom Day, which is calculated by Staples Rodway will likely move further out from May 7thwhere it fell this year.

“The Labour Government is so far living up to its promises of no new taxes and balancing the books. This should help with business confidence.”

“The most surprising thing in the Budget was the winebox champion bringing back a 1980s’ tax dodge with Bloodstock tax rule changes. Bloodstock was one of the classic 1980s tax dodge industries. At $4.8 million this is unlikely to be a big issue, but ironic all the same,” says Mr Rudd.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Still Gaining: More Migrants Head Back Overseas

Annual net migration is down 4,800 from a high point a year ago, largely because more non-New Zealand citizens are leaving the country, Stats NZ said today. More>>

Christchurch: Red Zone Used To Boost Endangered Bee Population

“May 20 has been declared World Bee Day by the United Nations, and I am pleased to announce today that we have been able to use the red zone to protect and grow our native bee stocks,” says Minister Megan Woods. More>>

Trips, Support, Conferences For Agents: Insurers Spend $34 Million On Soft Commissions

“We are concerned that insurers are designing and offering incentives that potentially set advisers up to fail in complying with their obligations.” More>>


Privacy Commissioner: Facial Recognition Tech Not Reliable

The Privacy Commissioner says businesses should take great care when using facial recognition technology because there is a high risk of misidentification. More>>

Compliance Costs: Cheesemakers "Have A Reason To Smile"

Delighted to be a guest at The Great Eketahuna Cheese Festival today, Mr O’Connor launched the Food Safety Template for Cheesemakers – a tool to help cheesemakers producing cheese for New Zealand and Australia to meet food safety requirements. More>>

Te Uru Rākau: NZ Forestry Now Future Proofed

The Associate Minister of Forestry the Hon Meka Whaitiri says the launch of Te Uru Rākau will mean that the New Zealand forestry industry will be future proofed. More>>


Minister Of Tourism Speech: TRENZ 2018

Tourism is an economic bedrock. It’s our biggest export earner, employs hundreds of thousands of people, and the industry is the world’s window into our beautiful country. More>>