2013 Budget may see NZ economy return to surplus

Cashmanager | 8 years ago

On Thursday May 16, the New Zealand government announced the 2013 Budget, which - if successful - should see the economy back into surplus with overall growth predicted to be between two and three per cent over the next four years. The Budget announcement that may be of particular interest to small business owners revolves around the possibility of a new tax incentive. As part of the Budget, minister of revenue Peter Dunne announced that the government would be exploring the option of a Research and Development (R&D) tax incentive for start-ups. A public consultation paper is expected to be released in June, which will allow interested parties to submit feedback and comment. Mr Dunne believed an R&D incentive could significantly help start-ups find financial stability in the early stages. "Small R&D-intensive start-ups tend to endure long periods in tax loss as a result of high-risk, up-front investment," Mr Dunne said in a statement. "Start-ups, by definition, are not swimming in money, and the hit they take on R&D can be a real disincentive to undertaking it." Further expressing his support of the proposal, Mr Dunne added that offering an incentive could have benefits for the whole economy, not just the start-up sector. "If we can encourage R&D, the economy itself will benefit. Our economy is growing, and to help it get stronger we need innovation backed by research. The changes we will be proposing and consulting on in June aim to encourage that," he asserted. The minister also introduced a range of measures designed to improve overall financial stability, including four new tools that can be implemented by the Reserve Bank to strengthen the banking system. More information about these measures can be found here. If you are developing an enterprise in New Zealand then you may benefit from investing in small business accounting software. CashManager is a no frills, easy-to-use accounting software suite that is perfect for start-ups.