Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Making tax easier for small businesses

17 September 2003 Media Statement

Making tax easier for small businesses

Ideas to make tax easier for small businesses are the subject of a government discussion document released today by Revenue Minister Michael Cullen and Associate Revenue Minister David Cunliffe.

“Small businesses are a vital part of the New Zealand economy and are disproportionately affected by tax costs. Many owners do the associated paper work themselves, outside business hours,” the Ministers said. The main proposals are:

- Helping small businesses with PAYE. To encourage small businesses to take advantage of the help that payroll agents can give, the government would offer a subsidy to pay the associated agency fees for a certain number of employees – say, up to five.

- Aligning provisional tax and GST payments. Provisional tax would be paid with GST, which for many businesses would mean more frequent but smaller provisional tax payments.

- Basing provisional tax payments on GST turnover. If provisional tax and GST payments were aligned, businesses could then choose to base their provisional tax payments on a ratio of their GST turnover. This would help match provisional tax payments with income flow.

- A discount for self-employed people who pay provisional tax in their first year of business. Self-employed people who make voluntary payments of provisional tax in their first year of business would be offered a 6.7 per cent discount for each dollar of tax paid in the first year.

“The government has used the results of extensive consultation on the compliance costs facing small and medium-sized businesses to develop the proposals,” the Ministers said.

“Each of the proposals may have advantages for some and disadvantages for others, and what may suit small businesses may not suit larger business, so it is vital that small businesses and their advisers let us know how the ideas would work for them.”

The discussion document “Making tax easier for small businesses” is available at www.taxpolicy.ird.govt and . Submissions close on 31 October.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On That $4 Billion Hit To National’s Economic Cred

National released its economic and tax policy last Friday. Weirdly, the plan was announced right at the end of the news week, when whatever impact it managed to generate would be likely to dissipate over the weekend. Well…. that now seems all for the best. The plan is now known to have a $4 billion hole in it. Apparently, National used outdated figures for the amount it stood to save from NOT paying into the Super Fund. Amusingly, the $4 billion mistake was almost exactly the same size as the $4.7 billion that National still promises to give away in tax cuts... More>>


Government: More Border Exceptions For Critical Roles

The Government has established class exceptions for border entry for a limited number of veterinarians, deep sea fishing crew, as well as agricultural and horticultural machinery operators. “Tight border restrictions remain the backbone of the Government’s ... More>>


PM: Auckland At Bolstered Level 2, Rest Of Country Provisionally At Level 1

Pandemic alert levels for the whole country have been reviewed by Cabinet and Prime Minister Jacinda Ardern is announcing whether restrictions will be eased. More>>


Labour: Supporting Workers And Valuing Their Contribution

Making sure working New Zealanders are safe, healthy and that their contribution to the economy is valued is at the heart of Labour’s Workplace Relations Policy.
“This is Labour demonstrating its commitment to helping working New Zealanders by increasing sick leave, raising wages, protecting them while they are at work, growing jobs and investing in the economy,”... More>>


PREFU: Economy Doing Better Than Forecast

The Pre-election Economic and Fiscal Update released today shows that the near-term economic recovery has been stronger than the Treasury and many economists predicted at the May Budget, as the economy bounced back strongly out of lockdown... More>>


Electoral Commission: Candidate And Party Lists Released

17 registered political parties and 677 candidates will be contesting the 2020 General Election Nominations have now closed and the Electoral Commission has released the electorate and party list candidates for 2020 online at . Advance voting ... More>>

National: Plan To Restore NZ’s Prosperity

National’s Economic and Fiscal Plan carefully balances the need to invest in infrastructure and core public services while also reducing tax pressure on Kiwi families and businesses. National Leader Judith Collins and Finance spokesperson Paul Goldsmith unveiled National’s ... More>>


NZ First: Party List

New Zealand First has a proven twenty-seven-year history of bringing balance and common sense to our government. Amid the continued setbacks of COVID-19 restrictions, New Zealand First has once again sustained its profile by selecting a strong team ... More>>

Election: Arriving Travellers In Isolation To Be Able To Vote By Telephone

Up to 5,000 people in managed isolation or quarantine will be able to vote by telephone in the general election and referendums after an amendment to electoral regulations last week. Chief Electoral Officer Alicia Wright says the Electoral Commission sought ... More>>

National: Investing In Our Children’s Future

A National Government will prioritise lifting achievement for all New Zealand children, no matter their background or ability, National Party Leader Judith Collins and National’s Education spokesperson Nicola Willis say. “Parents just want what’s best for ... More>>





InfoPages News Channels