Government releases plan for 'productive, sustainable and inclusive economy', including changes to business tax

September 23, 2019
File image of $50 and $100 notes.

The Government announced its economic plan this morning with a push on tackling long-term issues including improving environmental outcomes, bettering housing affordability and lifting productivity.

Minister of Finance Grant Robertson specifically addressed two business tax changes that were announced - the R&D Tax Incentive and the small business tax simplification - as practical examples of how delivering our Economic Plan will "help businesses move from volume to value".

The changes will allow businesses to be more adventurous when it comes to research and development and make it easier for start-ups to get up and running 

The new Economic Plan identifies "eight economic shifts for a more productive, sustainable and inclusive economy":

  • Moving the New Zealand economy "from volume to value" with Kiwi businesses, including SMEs, becoming more productive
  • Ensuring people are skilled, adaptable and have access to lifelong learning
  • Making deeper pools of capital available to invest in infrastructure and grow New Zealand’s productive assets
  • Strengthening and revitalising regional economies
  • Enabling a step-change for the Māori and Pacific New Zealand economies
  • Developing a sustainable and affordable energy system
  • Utilising land and resources to deliver greater value and improve environmental outcomes
  • Transforming the housing market to improve productivity growth and make houses more affordable
  • "These economic shifts represent a broader approach to economic policy than used by the previous Government," Mr Robertson said.

    "We understand that improving the health and wellbeing of our people, protecting and enhancing our environment, and strengthening our communities will allow us to achieve our potential."

    Mr Robertson said New Zealanders valued a strong economy that provides decent jobs, higher incomes and more opportunities for current and future generations.

    "Our economic fundamentals are strong, with low unemployment, rising wages, a Government surplus and low debt," he said. "But we are currently facing a number of headwinds, including global volatility and low productivity."

    And Minister for Economic Development Phil Twyford said it wasn't just the immediate challenges they would address.

    "The economy also faces longer-term challenges, like the impacts of climate change, an ageing and changing workforce, and technological changes. Fixing and facing up to these issues now will turn them into economic opportunities," he said.

    "This economic plan provides a one-stop-shop for business and government agencies to view the Government’s long-term plan and see how different policies contribute to it."

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