Labour is giving Kiwi small businesses a fair go - ensuring they get paid sooner, can invest in the equipment they need, and keep more of what they earn.
“Small businesses are the heart of New Zealand's economy, contributing around 42% of our GDP,” Labour Leader Chris Hipkins said.
“Small business owners take the risks, put in the hours, employ locally and keep our communities running. But under National, they’re being squeezed by rising costs and falling demand.
“Business liquidations are at a 15-year high, business confidence is falling and Christopher Luxon is telling hardworking business owners they’re too soft and to grow up.
“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,” Chris Hipkins said.
Labour's Small Business Action Plan – A Fair Go will:
Require big businesses to pay small suppliers within 15 days on invoices of $25,000 or less and to publish how quickly they pay their suppliers.
Lift the asset write-off from $1,000 to $10,000 for businesses with annual turnover below $10 million, so small businesses can immediately deduct the cost of new equipment from their tax bill.
Raise the GST registration threshold from $60,000 to $80,000 meaning around 35,000 of the smallest operators will no longer have to register for GST.
“Running a small business should mean building something of your own, not spending your evenings chasing overdue invoices and filling in forms,” Labour Small Business spokesperson Dan Rosewarne said.
“If you’re a tradie waiting months for a corporate to pay an invoice, a café owner replacing an oven, or a mechanic upgrading equipment, these changes are about giving you a fair go.
“Lifting the asset write-off means a small business can invest in the tools and equipment it needs now, rather than waiting years to claim the full cost. Raising the GST threshold means around 35,000 of the smallest operators can spend less time on tax returns and more time running their businesses and gives small businesses more room to grow.
“These are simple, easy measures a Labour government will take to support the small businesses that keep New Zealand’s economy ticking,” Dan Rosewarne said.
