Businesses across Canterbury are looking for a Budget on Thursday that shows the Government is responding to current conditions in the same way they are, through careful cost management and clear prioritisation, while still maintaining a strong focus on the future.
Business Canterbury Chief Executive, Leeann Watson says, “The signals from Government to date have been encouraging. Our latest Canterbury Business Survey, which closed last week, shows 35 per cent of businesses are positive about the Government’s response to conflict in the Middle East, with 47 per cent remaining neutral. This is an indication that businesses are recognising pragmatic decision-making from the Government in a challenging global environment.
However, while short-term discipline is essential, it cannot come at the expense of long-term growth.
“It’s in an environment like this that bold decisions matter most. In its Budget this week, the Government must keep its eyes firmly on lifting productivity, encouraging investment, and supporting sustainable economic growth.
“With limited room for large-scale spending or relief on core cost pressures such as fuel and other inputs, productivity-focused policies are the most practical and impactful pathway forward. There are existing tools that could be strengthened quickly to deliver meaningful gains.
Some opportunities include:
Expanding and enhancing Investment Boost, including opening eligibility to a wider range of asset classes such as second-hand assets and increasing the claimable percentage.
Raising the instant asset write-off threshold from $1,000 to $20,000 as it is in Australia (for small businesses) to improve cashflow and reduce barriers to investment.
Introducing a targeted R&D grant or tax credit for small and medium-sized businesses, bridging the gap between the ‘New to R&D’ grant and the RDTI scheme, where current compliance requirements can be a barrier.
“Businesses have navigated disruption after disruption over the past five years. They are resilient, but they need the right settings to invest, hire, and grow.”
Business Canterbury, formerly Canterbury Employers’ Chamber of Commerce, is the second largest Chamber of Commerce in New Zealand and the largest business support organisation in the South Island. It advocates on behalf of its members for an environment more favourable to innovation, productivity and sustainable growth.