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BusinessNZ Network | Budget 2024 | Message & Guide

Issue date

What Businesses want to see from Budget 2024

1. A roadmap away from inflationary conditions

  • “Inflation is a burden adding cost to households and businesses at every turn.” · “Inflation is predicted to be back within the Reserve Bank’s target band by late 2024”. (per Budget Policy Statement 2024)
  • “By clearly outlining the plan to bring inflation under control, this year’s Budget can signal better days for investment, hiring and growth are ahead.”

2. Tax relief

  • “This Government’s first Budget policy statement released in March was brief, but made for sober reading - especially in terms of the Government’s fiscal position.”
  • “Given the state of the books, the Government needs to balance relief with reality on the balance sheet.”
  • “Small to medium sized businesses are looking for a change in the company tax rate.” (down from 28% to 25%)
    • (FYI: Medium sized businesses want; Red-tape reductions, long-term infrastructure commitments, more trade deals and R+D investment)

3. Reduction of ‘red tape’

  • “Businesses want assurance that policy changes will ‘make the boat go faster’.”
  • “Compliance costs are a frustration that disproportionally affects small to medium sized businesses.”
  • “Small business owners are at their limit, giving up under the burden of compliance and waning demand. Fixing this needs to be a priority.”
    • “Monthly liquidation figures are at their highest in almost 10 years according to recent data from credit bureau Centrix”. (since March 2015)
  • “The Budget is an opportunity to tackle the burden of compliance costs to positively impact day-to-day operations.”
    • (Examples include; Fast-track digitisation of govt and public sector systems, a simplified tax compliance system, streamlined consenting process)
  • “We welcome collaboration with the future Ministry of Regulation so that businesses can get on with work, create jobs, and do their part in stimulating the economy.”

Businesses want better outcomes for New Zealanders through increased investment in…

1. Healthcare

  • “NZ has fallen behind other OECD countries when it comes to public health waiting lists and access to world-class drugs.”
  • “This Government and Budget needs to ensure better outcomes from investment in healthcare.”
  • “This Budget is an opportunity to make a lasting impact on the wellbeing of New Zealanders, and to recognise the connection between individual health, overall productivity, and economic prosperity.”

2. Living Standards

  • “Policies which support business growth also increase living standards through more employment and better wages.”
    • (Examples include: Foreign investment, investment in R+D)

3. Education

  • “New Zealand needs investment targeted at preventing educational failure in our school system, achieving better skills, and lifting outcomes.”
  • “New Zealand businesses want support for on-the-job training and upskilling to ensure our workforce is equipped with the right tools in a fast-changing future of skills, learning and work.”

4. Infrastructure

  • “New Zealand has a lot of catching up to do on infrastructure, and we need to turn on the pipeline of work sooner rather than later.”
  • “We need to make the investment in infrastructure and commit to matching the population growth New Zealand has already undergone.”
  • “The Fast-Track Bill is a good start. We believe it is a suitable short-term solution until an alternative Resource Management Act can be introduced.”

Additionally, we recommend reading the recent survey by MYOB which asked businesses what their expectations were for the 2024 budget.

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