Australian Budget shows lead for NZ on tax deduction

Australian Budget shows lead for New Zealand on tax deductions for small business

The Australian Government has recognised the importance of small business to growing the economy with tax write-offs on asset purchases up to $20,000 for small businesses. This is an example which New Zealand would do well to follow as it considers its budget, says Adam Cunningham, President of Hospitality New Zealand.

Small hospitality businesses struggle to find the capital to reinvest and grow their business and such an asset write-off would be an excellent boost to all small business in New Zealand, not just hospitality. If the government is serious about continued support of the tourism sector, anything that helps small, family-run owner operators put some money back into their business is real support, not just rhetoric.

Mr Cunningham said improving productivity in small businesses should be a core objective of Government and a lack of capital has always been recognised as one of the factors limiting the growth in productivity of small businesses. Mr Cunningham urged the New Zealand Government to follow the Australian lead.

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