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INSIGHT: Why was Budget 2015 silent on SMBs?

INSIGHT: Why was Budget 2015 silent on SMBs?

Why the Government has completely ignored one of the most important sectors of the economy...

The Government has completely ignored one of the most important sectors of the economy - small and medium-sized enterprises - in Budget 2015.

That’s the view of Labour’s Small Business spokesperson Jacinda Ardern, who in echoing the view of MYOB New Zealand sales manager Scott Gardiner, believes the Government have forgotten to address a key part of the country’s make-up.

“A stunning 41 per cent of jobs were created by SMEs last year - no government should take that for granted,” Ardern adds.

“If we are to tackle two of the biggest weaknesses in our economy - lack of diversity, and regional disparities - then this is an area the Government should be focused on.”

According to Ardern, there are any number of ideas that National could have taken on board.

“Increase the amount of procurement undertaken by small business,” she claims.

“Adopt the New Zealand Institute of Chartered Accountants ‘no more than one hour, one return and one payment each month for income tax and GST compliance’, redirect resources to reduce red tape, give employers the equivalent of the dole if they take on an apprentice, and perhaps top of the list, simplify provisional tax.

“These are all ideas Labour has said we would adopt in Government.”

As reported by Computerworld New Zealand, accounting and business solutions provider MYOB claimed Kiwi SMEs may have been left wanting more from the Government Budget, with more specific policies that recognise the importance of growing this vital sector of the economy.

"There are many others and Andrew Little used his state of the nation speech to highlight the priority we need to give to small businesses,” Ardern adds.

For Ardern, they are the key to New Zealand once again having the lowest unemployment rate in the OECD.

“We will have even more to say on small business and the ideas we have formulated with them over the coming year,” Ardern adds.

“It’s shame that in the interim, the Government hasn’t had anything to say and doesn’t look like having much to say into the future either.”

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