Small Business Plan To Keep New Zealand Moving

Small Business Plan To Keep New Zealand Moving

Small businesses are at the centre of Labour’s plan for
economic recovery with a raft of further measures to support
SMEs to respond, recover and rebuild from the global impact
of COVID-19.

“We took decisive action to cushion the
blow of the pandemic with a strong health response.
Supporting small businesses remains a central principle in
our five point plan to keep New Zealand moving,” said
Labour Small Business spokesperson Stuart Nash.

“Our
track record of support for SMEs demonstrates we are
prepared to respond quickly to keep the engine room of our
economy humming. We are now moving to the next phase to help
small and medium enterprises adapt and innovate to the new
business landscape.

“Improved cash flow support, new
ways to drive digital transformation, and lowering costs and
regulatory impacts are at the heart of our plans to help
business bounce back faster.

“Our message to small
businesses is that we have got your back.”

Labour
has outlined the proposed next steps in its plan to support
businesses and jobs. Key elements
include:

Interest-free loans more widely available,
zero-interest period extended

Tighter regulation of
merchant service fees charged to retailers

More
support for digital transformation of SMEs

Promotion
of digital commerce like e-invoicing and other innovative
processes

Government funding for tailored business
advice

Mitigate compliance costs to keep our number
one spot for ease of doing business

Overhaul the
Accounting Income Method (AIM) tax regime to make it easier
for SMEs to move to a ‘pay as you earn’ model throughout
the year

“SMEs have already responded
enthusiastically to schemes like the wage subsidy,
interest-free loans, tax refunds, a more flexible approach
to tax, and access to professional advice.

“Labour
will expand the Small Business Cashflow Loan Scheme. It will
be available for a further three years. The second year of
the loan will be interest-free. We will also investigate
more permanent sources of finance for SMEs.

“We will
tighten regulations around merchant service fees charged by
banks to retailers. Retailers are estimated to pay on
average $13,000 more than their Australian counterparts each
year on merchant service fees. This needs to
change.

“The point where customers transact with
businesses is a source of both health and economic concern.
Contact-less payments give customers and businesses greater
peace of mind as we all work to eliminate the
virus.

“Central government regulations are also in
the frame as we undertake to put small businesses at the
heart of decision-making. A dedicated cross-government unit
will be tasked with ensuring all proposed new regulations
are considered from the perspective of SMEs.

“Small
businesses are the lifeblood of our economy and will
continue to be at the centre of our policies. We will keep
up the momentum of recovery,” said Mr
Nash.

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