A family-friendly Budget also provided good news for
businesses, Deloitte Dunedin tax partner Peter Truman said
Commenting after Finance Minister Bill English delivered his
sixth Budget, Mr Truman said businesses often bore
substantial compliance costs when the law changed and the
lack of change would be welcomed by many businesses.
''Not having to devote time to altering their processes when
the law changes allows for time and effort to be available to
enhancing and growing their business.''
The Budget did appear light on specific initiatives to create
jobs or to encourage businesses to take on new staff, Mr
The reduction in ACC levies was welcome.
The Budget indicated ACC was on track to provide further levy
reductions of about $480 million in 2015-16. Mr English said
final decisions on the levies would be made after public
consultation by ACC.
Depending on the outcome, the average levy for a private
motor vehicle could fall by about $130 a year from July 1,
Mr Truman said business had been through a period where ACC
had been building reserves in a climate where many businesses
were focusing increased attention to health and safety
''It is good to see there are savings in ACC levies available
as a result.''
The abolition of cheque duty, at a cost of $15.5 million over
four years, had presumably resulted from a large reduction in
the number of cheques being removed, he said.
With more electronic transactions occurring, cheque duty had
become less relevant. It followed a process of many duties
being progressively repealed during the past decade or so.
A further expansion of research and development expenditure
to include some current ''black hole'' spending was long
Deloitte would encourage the Government to keep addressing
other instances where black hole expenditure arose, to allow
businesses to get a tax deduction for legitimate business
Otago Chamber of Commerce chief executive John Christie said
the chamber was pleased economic indicators showed increased
employment, higher wages and greater consumer and business
''We are encouraged the Government sees the repayment of the
net government debt as a priority as it returns to surplus.''
The additional funding into the Christchurch rebuild would
have national and regional benefits, he said.
The chamber saw the importance of the rebuild and its flow-on
benefits to the South Island.
Additional funding for New Zealand Trade and Enterprise, with
a focus on expanding globally competitive firms, supported
initiatives already the focus of Dunedin's economic
''We are encouraged this Budget retains the focus on building
a productive and competitive economy and, in particular, the
Government's business growth agenda,'' Mr Christie said.
Mr Truman said the Government appeared to be keeping
something back that would presumably appear once the election
campaign got into full swing.
''There is likely to be a large difference between the
Government and Opposition parties on tax policy during the
election campaign,'' he said.
''Significant tax change is likely to be ahead if there is a
change in government later in the year.''