With the release of the 2016 budget, the Government has laid out its spending for the year leading up to the 2017 election. So what important announcements have been made for business?
Apprenticeship training
More funding for apprenticeship training has been put in place, totalling $14.4 million over four years. This aims to support another 5500 apprentices by 2020.
On top of this, a further 2500 young Maori and Pasifika will be placed in trades training programmes at a cost of $9.6 million over four years. The Government aims to have 5000 people in the programmes each year by 2019.
This boost for training aims to meet industry shortages in trades and high demand industries like construction.
Tech startup support
The Government is adding $15 million in funding over four years to two schemes that speed up the commercialisation of new technologies developed by New Zealand scientists and entrepreneurs.
This is aimed at allowing Kiwi scientists and entrepreneurs to develop their ideas more quickly and turn research into products.
Inland Revenue system upgrade
As already announced, the IRD’s computer system is to be given a long-awaited overhaul, costing $800 million. The completion of this will allow businesses using accounting software to scrap provisional tax and pay tax each month directly to IRD through their software.
ETS subsidy gone
The emissions trading scheme subsidy which was introduced during the global financial crisis will be phased out over the next three years. It is expected to boost the Crown’s books by $356 million over four years.
Cybersecurity
The Government is introducing a new cybercrime-fighting team, in partnership with NGOs and the private sector, at a cost of $22.2 million over the next four years.
The team, dubbed the Computer Emergency Response Team (CERT) will provide alerts and advice on how to respond to and prevent further attacks, as well as working with international counterparts to target cybercrime.
The Numbers
- Forecast surplus of $668 million in 2015/16, rising to $5 billion by 2019.
- Total new spending of $1.6 billion per year, plus an extra $480 million freed up from elsewhere.
- Treasury forecasts economic growth of 2.8% over the next five years, and unemployment to drop below 5% in 2018.
- Inflation forecast to stay low for longer than expected, rising to 2% in 2017.
- Net national debt to peak at 25.6% of GDP next year.