Small Business First

A fair shot at work and less time dealing with government.

Key facts
  • A fair shot at government work. A target for 15% of government contracts to go to New Zealand small businesses and start-ups, with large contracts broken into smaller, more accessible jobs
  • Tell the government once. Look at ways to make better use of information the government already holds, so small business owners aren’t repeatedly asked for the same details by different government agencies
  • Rules that work for small business. Ministers and agencies will have to consider the impact on small businesses before new laws, regulations and procurement rules are approved

Labour's Small Business Action Plan will help owners get paid sooner, invest in what they need and cut paperwork. The next step is to put small businesses first when government contracts are awarded, information is collected, and new rules are made.

Putting small businesses first means making sure the government works for the people doing the hard work.

A fair shot at government work

The Government buys goods and services from businesses up and down the country - everything from cleaning and catering to uniforms and computer systems. That should create good work for small businesses. But long applications and oversized contracts can cost thousands of dollars to prepare, and shut small businesses out.

Labour will:

  • Set a target for 15% of government contracts to go to New Zealand small businesses and start-ups
  • Break up big contracts into smaller jobs where it makes sense, so it's easier to bid for work
  • Remove needless barriers that shut small firms out

Government work should help New Zealand small businesses grow, not shut them out.

Tell government once

Small business owners shouldn't have to give the same information to several government agencies.

Labour will look at how government agencies can safely share information where the law allows and make greater use of common identifiers where possible, starting with the New Zealand Business Numbers. Under Labour, small businesses can spend less time giving the same details to different agencies, and more time running their business.

Labour will also task Inland Revenue with reviewing provisional tax, filing requirements and the pile-up of deadlines in January and February. A corner dairy shouldn't have to do the same paperwork as a large company.

A small business test for new rules

New government rules can create costs for a small business, even when that was never the intention.

A Labour Government will put small businesses first when decisions are made.

Labour will make sure Ministers and agencies will be required to consider what new regulations, procurement rules and other relevant policies will mean for small businesses before they are approved.

For decisions that affect businesses, a Labour Government will consider what they will mean in practice for small businesses - whether that’s someone running a café, working from their own workshop or trying to grow a business.

Small businesses often don’t have the same staff or resources as larger companies to manage compliance and paperwork. Where government rules and processes affect them, small businesses should come first.

Frequently asked questions
What is Small Business First?

Small Business First is Labour's plan to put small businesses first when government contracts are awarded, information is collected, and new rules are made. It follows Labour's Small Business Action Plan, which covers payment times, an asset write-off and the GST threshold.

What is the target for government contracts?

Labour will set a target for 15% of government contracts to go to New Zealand small businesses and start-ups.

How will big government contracts change?

Where it makes sense, large contracts will be broken into smaller lots so a local small business can bid for the parts it can realistically deliver, rather than being shut out by oversized contracts.

What does 'tell government once' mean?

Labour will look at ways government agencies can use information they already hold, so small business owners aren’t repeatedly asked for the same details by different government agencies.

Will Labour review tax paperwork for small businesses?

Yes. Labour will task Inland Revenue with reviewing provisional tax, filing requirements, and the pile-up of deadlines in January and February, so a small business like a corner dairy isn't required to complete the same paperwork as a large company.

What is the small business test for new rules?

Before new regulations, procurement rules or other policies are approved, ministers and agencies will have to consider the effect on small businesses by asking what a new rule (or form) will mean for the person running a cafe or working in their own workshop.

How does this relate to the Small Business Action Plan?

Small Business First is the next step after Labour's Small Business Action Plan. The Action Plan helps small businesses get paid sooner, invest more easily, and spend less time on tax paperwork. Small Business First focuses on how government itself deals with small businesses including the contracts it awards, the information it asks for, and the rules it makes.

A fair shot at work. Less hassle.

Small Business First is part of Labour's plan to grow the economy from the ground up.

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