Labour-led Government says small business tax rates will not change for this term

Labour-led Government says small business tax rates will not change for this term

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The Government must support small businesses more than ever during the most challenging economic crisis, younger generations will suffer from this the most financially in the years too come.

Ms Ardern said on Sunday after her ‘landslide’ win; that she wants “more support for small business” — further proposing both changes to the Small Business Cashflow Loan Scheme and the creation of a Flexi-wage scheme – containing $311 million in cash incentives to drive hiring of the unemployed, which would be put in place by the end of 2020.

The Labour-led Government currently has several policies that slightly address ‘some of these issues’, but these preferences must actually be given as a promise to ‘keep moving’ as a real focus and part of the ongoing COVID-19 recovery plan.

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Small business owners, of which 47% had reported according to MYOB that they wanted the elected government to prioritise more job creation and support for employment growth.

This means that people looking to join high-growth industries can be trained and upskilled in the areas that will benefit them. The Government should be investing in training and development in these sectors, which will assist small business owners who require skilled workers due to borders being closed under COVID-19 restrictions.

The Government must implement new systems to create New Zealand jobs and not focus on selling Kiwi’s out for ‘seasonal workers’ due to the lack of skill and actually make ends meet in training and improving the infrastructure for the younger generation to get into the high-growth industries.

What also is much needed, knowing that 29% of small businesses are wanting to continue improving the efficiency of the tax system, and simplifying it. Straight-forward regulations and rules are a key factor.

If a reduction of a company tax rate were to happen, many would agree that the elected government should reduce the company tax rate of 28% within the next three years to a lower percentage.

But, the Labour-led government isn’t interested in the reduction of company tax rates saying it is ‘off the table’ for this term coming — a disaster.

Image: Getty

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