Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Good tax policy reflects business voice, enhances innovation

New research and development tax incentives announced by the Government earlier this morning are an encouraging start to help lift productivity for business in New Zealand, says the EMA.

New Zealand’s research and development (R&D) investment levels are about half of the OECD average, with investment in innovation and new technology identified as a key driver of increased productivity. New Zealand also lags OECD equivalents in its productivity from the work force.

EMA chief executive Kim Campbell says the new scheme also reflects a partnership approach between Government and business, with the original proposals being significantly modified to reflect feedback from the business community.

"Business has been listened to in regard to the help it needs to innovate, resulting in good public policy on tax incentives, says Mr Campbell.

The new R&D tax incentive scheme proposed to be introduced on April 1 next year matches the EMA’s submission on behalf of its 8500 members with a lift in the incentive and lowering of the expenditure threshold.

We are especially pleased with these aspects of the coming R&D Tax Incentive legislation:

- A credit rate of 15 per cent, up from the earlier proposed 12.5 per cent;

- A minimum R&D expenditure threshold of $50,000 per year;

- A more user-friendly definition of R&D that ensures the credit can be accessed more easily across all sectors, including the technology sector;

- Small business in particular will know in advance of conducting R&D that their application for the tax incentive has been approved, rather than waiting on the outcome of their tax claims at the end of the year.

Mr Campbell says, "These key aspects of the scheme are close to what we believe will encourage more R&D in New Zealand firms.

"As a country we suffer on the global stage from a lack of innovation in our products and services and business practices. New Zealanders have a low spend on the R&D needed for innovation, compared to other OECD members.

"The scheme will encourage new business development, more employment, higher wages and GDP growth," Mr Campbell says.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

New Reports: Flood Risk From Rain And Sea Under Climate Change

One report looks at what would happen when rivers are flooded by heavy rain and storms, while the other examines flooding exposure in coastal and harbour areas and how that might change with sea-level rise.

Their findings show that across the country almost 700,000 people and 411,516 buildings worth $135 billion are presently exposed to river flooding in the event of extreme weather events...

There is near certainty that the sea will rise 20-30 cm by 2040. By the end of the century, depending on whether global greenhouse gas emissions are reduced, it could rise by between 0.5 to 1.1 m, which could add an additional 116,000 people exposed to extreme coastal storm flooding. More>>



Gordon Campbell: On The Commerce Commission Fuel Report

The interim Commerce Commission report on the fuel industry will do nothing to endear the major oil companies to the New Zealand public... More>>


Emergency Govt Bill: Overriding Local Licensing For The Rugby

“It’s pretty clear some clubs are having difficulty persuading their district licensing committees to grant a special licence to extend their hours for this obviously special event, and so it makes sense for Parliament to allow clubs to meet a community desire." More>>


Leaving Contract Early: KiwiBuild Programme Losing Another Top Boss

Ms O'Sullivan began a six-month contract as head of KiwiBuild Commercial in February, but the Housing Ministry has confirmed she has resigned and will depart a month early to take up a new job. More>>


Proposed National Policy Statement: Helping Our Cities Grow Up And Out

“We need a new approach to planning that allows our cities to grow up, especially in city centres and around transport connections. We also have to allow cities to expand in a way that protects our special heritage areas, the natural environment and highly productive land." More>>


Ombudsman's Report: Ngāpuhi Elder 'Shocked' By Conditions At Ngawha Prison

A prominent Ngāpuhi elder is shocked to find inmates at Ngawha Prison are denied water and forced to relieve themselves in the exercise yard... Chief Ombudsman Peter Boshier has released a report highly critical of conditions at the Northland prison. More>>


Promises: Independent Election Policy Costing Unit A Step Closer

The creation of an entity to provide political parties with independent and non-partisan policy costings is a step closer today, according to Finance Minister Grant Robertson and Associate Finance Minister James Shaw. More>>


School's In: Primary And Intermediate Principals Accept New Offer

Primary and intermediate school principals have voted to accept a new settlement from the Ministry of Education, which includes entrenched pay parity with secondary principals. More>>


IPCA On 'Rawshark' Investigation: Multiple Police Failings In Hager Searches Confirmed

The Independent Police Conduct Authority has found that the Police's unlawful search of Nicky Hager's property in October 2014 resulted from an unwitting neglect of duty and did not amount to misconduct by any individual officer... More>>


Broadcasting Standards: Decisions On Coverage Of Mosque Attacks

The Authority upheld one of these complaints, finding that the use of extensive excerpts from the alleged attacker’s livestream video on Sky News New Zealand had the potential to cause significant distress to audiences in New Zealand, and particularly to the family and friends of victims, and the wider Muslim community. More>>




InfoPages News Channels