Kia ora ,
Running a small business is hard work.
I remember it well from when my dad ran his own business. Most nights, once dinner was cleared away, the dining room table became his office. The day’s work was done, but the other work was just beginning - writing invoices, paying bills, and preparing quotes.
Most New Zealand businesses are one or two people doing everything themselves - serving customers during the day, then catching up on paperwork at night. Today Labour announced the first part of our Small Business Action Plan. It is about making life easier for the people putting in those hours.
We’ll make big businesses pay small suppliers within 15 days for invoices of $25,000 or less. They’ll also have to publish how quickly they pay, so people know what to expect before taking on the work. Once the job is done, the money should be back with the small business that earned it.
We’ll also lift the immediate asset write-off from $1,000 to $10,000. Whether it is new tools, equipment, or a laptop, small businesses will be able to deduct the full cost from their tax bill in the year they buy it. That keeps more cash in the business when they have just had to spend it.
And we’ll increase the GST registration threshold from $60,000 to $80,000. The threshold hasn’t changed for 17 years. Around 35,000 of the smallest businesses will no longer have to file GST returns. That means fewer evenings spent on tax paperwork and more time with customers or at home.
These changes may sound technical. But the difference is real. It is the difference between chasing an overdue invoice and paying the bills on time. Between putting off broken equipment and replacing it now.
That is how we grow the economy from the ground up - by backing the people who back themselves.
Small business owners don’t expect anything to be handed to them. They just want a fair go. That is not too much to ask. You can read the full plan here. And if you know someone running a small business, please send it to them.
Chris
