Under a Labour Government, small business owners will get paid sooner, get more support to invest in the equipment they need, and keep more of what they earn.
- Paid on time. Big companies will have to pay small businesses within 15 days for invoices under $25,000 and publish how quickly they pay. Legislation will be introduced within the first 100 days of a Labour Government
- Help to invest. Small businesses will be able to invest up to $10,000 in new equipment and write off the full amount from their tax bill straight away from 1 July 2027. Around 500,000 businesses will be eligible
- Room to grow. No compulsory GST registration until $80,000, from 1 July 2028
- Fully funded by refocusing Investment Boost, costed at $1.56 billion over four years
Running a small business should mean building something of your own, not spending your evenings or weekends chasing overdue invoices and filling in forms.
Under a Labour Government, small business owners will get paid sooner, get more support to invest in the equipment they need, and keep more of what they earn.
We know how hard you work for every dollar. You deserve more time and certainty to grow the business you built.
Paid on time
You do the work, so you should be paid on time.
Labour will require big businesses to pay small suppliers within 15 days for invoices of $25,000 or less. Legislation will be introduced within the first 100 days of a Labour Government.
Big businesses will also have to publish how quickly they pay invoices, so small businesses know what to expect before they take the work. Labour will do this by restoring the disclosure requirements in the Business Payment Practices Act 2023, also within the first 100 days.
If a large business pays late
Small businesses will be able to report late payments to the Ministry of Business, Innovation and Employment (MBIE). Penalties will be proportionate with repeated late payment likely to result in a bigger fine.
Who the rule applies to
A "large business" is one that, in each of the previous two financial years, had revenue above $33 million (excluding GST) and operating expenditure above $10 million, excluding wages, salaries, and payments within the same corporate group.
The rule also applies to the government. Government agencies are already committed to paying 95% of domestic invoices within 10 working days, and Labour says the private sector should meet the same standard.
Help to invest
Write off investments up to $10,000 from your tax bill straight away, so you keep more in your first year and save time on tax admin.
Small business owners know what their business needs better than any government does. Labour will lift the low-value asset write-off threshold from $1,000 to $10,000 for businesses with annual revenue below $10 million, from 1 July 2027.
That means a tradie buying tools, a cafe replacing an oven or a mechanic upgrading equipment can deduct the full cost in the year they buy it, rather than depreciating it over years. Around 500,000 businesses will be eligible.
The write-off is a timing benefit: businesses receive the deduction immediately rather than over several years. Labour says this improves cash flow and can make the difference between replacing essential equipment now or having to wait.
Room to grow
No compulsory GST registration until $80,000.
Labour will lift the GST registration threshold from $60,000 to $80,000, starting 1 July 2028.
Crossing the $60,000 threshold means a sudden jump in compliance, and adding an extra 15% on the price you charge your customers. Lifting the threshold means around 35,000 of the smallest businesses will no longer have to add GST to their prices, or file GST returns. Businesses that want to stay registered still can.
The GST threshold has not changed since 1 April 2009, when it rose from $40,000 to $60,000.
Why it matters
Small business owners take the risk, put in the hours, employ locally and keep their communities running. But too often their money is held up by bigger companies, while paperwork cuts into the time they could spend with customers, finding new work, or getting home to their families.
Christopher Luxon is out of touch with the pressure small businesses are under. At a Rotorua business chamber event, he said that struggling owners were "too negative" and described them as defaulting to a "parent-child" mentality.
Getting paid on time can mean making payroll without the stress. A faster tax deduction can mean replacing broken equipment, or taking on a bigger job. A higher GST threshold can mean less time doing returns, and not having to charge that bit extra to your customers.
Labour understands that small businesses are the backbone of our economy. We will back them, help them grow, and build the economy from the ground up.
Getting the economy moving
Backing small businesses is part of Labour's plan to get the economy moving. Small businesses make up 97% of all New Zealand businesses. Give them more cash, a better way to invest, and more time, and the whole country benefits. That's what this package does.
Cash moving through the economy
When a small business is paid quickly, that money goes straight back to work (wages, stock or the next job). And it flows through the rest of the economy.
Better equipment, higher productivity
Lifting the write-off to $10,000 means a business can buy the equipment it needs and claim the full cost that year. Up to 500,000 businesses will be able to make the call on how best to invest in their future.
Room to take on more work
A higher GST threshold means a sole trader can grow into bigger jobs instead of stopping short of $60,000 to stay under the line.
More cash circulating. More investment. More work taken on. That's growth from the ground up.
Fully costed. Fully paid for.
The package will be fully funded by refocusing Investment Boost and directing more support towards small businesses. It's costed at $1.56 billion over four years, of which the asset write-off makes up $1.355 billion.
Labour says Investment Boost is not targeted. It mainly benefits larger companies for investments many would have made anyway. An Inland Revenue survey found that 53% of respondents said it had no effect on their 2025 investment, only 24% reported an increase, and just 7% said the increase was significant. Labour says a more generous write-off targeted at small businesses will provide greater support where cash flow matters most.
How does Labour define a small business?
A business with annual revenue below $10 million.
What counts as a large business under this policy?
A business that, in each of the previous two financial years, had revenue above $33 million (excluding GST) and operating expenditure above $10 million, excluding wages, salaries, and payments within the same corporate group.
When will these changes take effect?
- The paid-on-time legislation and payment-time disclosure requirements: within the first 100 days of a Labour Government
- The $10,000 asset write-off: from 1 July 2027
- The $80,000 GST threshold: from 1 July 2028
Why is a paid-on-time rule necessary?
Small businesses rely on regular income to pay wages, rent, suppliers and other bills. Late payments create stress, weaken cash flow, and can force owners to cut spending or take on debt. Getting paid on time means more certainty and less financial pressure.
How will payment-time disclosure work?
Labour will restore the disclosure requirements in the Business Payment Practices Act 2023. Large businesses will have to publish how quickly they pay small suppliers, so small businesses know what to expect before taking on work.
What happens if a large business pays late?
Small businesses will be able to report late payments to the Ministry of Business, Innovation and Employment (MBIE). Penalties will be proportionate with repeated late payments likely to result in a bigger fine.
Does the paid-on-time rule apply to government?
Yes. Government agencies are already committed to paying 95% of domestic invoices within 10 working days.
How much will the asset write-off cost?
The asset write-off is forecast to cost $1.355 billion over the forecast period, as part of the wider $1.56 billion, four-year package.
Why set the write-off threshold at $10,000?
It covers many of the common assets small businesses need, including tools, equipment, ovens, computers and machinery, and lifts the current $1,000 threshold tenfold.
Why is Labour replacing Investment Boost with this write-off?
An Inland Revenue survey found 53% of respondents said Investment Boost had no effect on their 2025 investment decisions, with only 24% reporting an increase and just 7% saying the increase was significant. Labour says a more generous write-off targeted at small businesses will provide greater support where cash flow matters most.
Why increase the GST threshold to $80,000?
The GST registration threshold has not changed since 1 April 2009, when it rose from $40,000 to $60,000. Some small businesses hold back from taking on extra work to stay under the threshold. Increasing it to $80,000 means more small businesses can take on extra work without having to worry about adding 15% to their prices or doing extra tax admin.
Will businesses below the new threshold still be able to register for GST?
Yes. GST registration remains voluntary below the threshold, so businesses that benefit from staying registered can choose to do so.
How many businesses will benefit from the higher GST threshold?
Around 35,000 businesses with annual revenue between $60,000 and $80,000 will no longer be required to register for GST.
Our plan will help small businesses get paid faster, invest more easily, and spend less time on tax paperwork.
Labour will grow the economy from the ground up, backing the people who back themselves.
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