9. H V ROSS ROBERTSON (Labour—Manukau East) Link to this
to the Minister for Small Business
What is the expected impact on small to medium enterprises of legislative and regulatory changes coming into effect on 1 April?
Hon LIANNE DALZIEL (Minister for Small Business) Link to this
On 1 April small to medium sized enterprises will experience a number of benefits related to changes to the fringe benefit tax, a new accident compensation levy discount programme will be introduced, and changes to tax on offshore income will encourage new migrants and New Zealanders to return home, which in turn will increase access to skilled employees. These changes should reinforce the World Bank’s view that New Zealand is the easiest place in the world in which to do business.
H V Ross Robertson Link to this
Can the Minister give us an example of how a small business will benefit from these changes?
Hon LIANNE DALZIEL Link to this
The cost of fringe benefit tax on motor vehicles will fall from 24 percent to 20 percent of the vehicle’s cost, so if a company pays fringe benefit tax on a $40,000 car, the saving will be over $1,000. In addition, cellphones or laptops costing less than $5,000 that are used primarily for the business will be exempt from fringe benefit tax from 1 April this year.
Paula BennettWhy does the Minister not take on board the fact that the most important change the Small Business Advisory Group wanted was probationary periods for new employees—or does she think she can fob it off with yet another round of trivial amendments?
Hon LIANNE DALZIEL Link to this
I will enjoy telling the Small Business Advisory Group that these amendments were regarded as being trivial by the National Party.
Gordon CopelandDoes the Minister agree that the amendment introduced by United Future’s Minister of Revenue to give the Inland Revenue Department the power to waive penalties in dealing with cases where taxpayers have taken an unacceptable tax position through genuine error will make it easier for small businesses to make a GST and a tax return?
Hon LIANNE DALZIEL Link to this
Absolutely, and I would like to take the opportunity to congratulate the Minister of Revenue, the Hon Peter Dunne, on that measure, as I have often been approached by constituents about genuine errors in those areas. I am sure it will be welcomed by the Small Business Advisory Group, as well, given that this is part of its No. 2 recommendation in its latest report.
Hone HarawiraIs the Minister aware of comments made by Alan Groves, a former investment manager for Māori innovation at the Foundation for Research, Science and Technology, that young Māori are being encouraged away from small business, and how will she address that type of attitude?
Hon LIANNE DALZIEL Link to this
No, I am not aware of those comments, but I know that the Associate Minister for Economic Development the Hon Dover Samuels is particularly interested in that matter.