- An SME-friendly tax package announced by the Prime Minister will reduce compliance costs and make tax simpler for small businesses.
Key measures in the proposal are that:
- Provisional tax is being reformed, with a new pay-as-you-go option giving up to 110,000 small businesses a way to pay tax as they earn income from 1 April 2018.
- Use-of-money interest will be eliminated or reduced for the vast majority of taxpayers.
- Contractors will be able to choose a withholding tax rate that suits their needs, rather than one being set for them.
- The ongoing 1 per cent monthly penalty will be scrapped from 1 April 2017 for new debt – although immediate penalties and interest charges for late payments will continue to apply.
- Budget 2016 will invest $46 million of operating funding over four years to better support victims and prevent sexual violence. The $46 million in total funding, of which $6.4 million is reprioritised funding, will be used to design and implement new sexual violence services and maintain existing services.
- The Government will increase funding for health research by $97 million over the next four years, Science and Innovation Minister Steven Joyce and Health Minister Jonathan Coleman announced.
- An extra $39 million will be invested in 2016/17 to enable Pharmac to provide more New Zealanders with access to new medicines.
You can read more about Budget 2016 here: https://national.org.nz/features/budget-2016