Labour has unveiled a package of election policies aimed at supporting New Zealand's small businesses, promising faster invoice repayments, tax relief on new equipment and reduced compliance costs if elected.
Leader Chris Hipkins said small businesses were "the heart of New Zealand's economy" and contributed to around 42% of the country's GDP, but argued many were struggling under current economic conditions.
“Small business owners take the risks, put in the hours, employ locally and keep our communities running," Hipkins said.
"But under National, they’re being squeezed by rising costs and falling demand."
Named A Fair Go, the party's action plan would require large businesses to pay invoices of $25,000 or less from small suppliers within 15 days, while also requiring them to publicly disclose how quickly they paid their suppliers.
The party also said it would also increase the instant asset write-off threshold from $1000 to $10,000 for businesses with annual turnover below $10 million, allowing them to immediately deduct the cost of new equipment from their tax bill.
A third proposal would raise the GST registration threshold from $60,000 to $80,000, which Labour said would mean about 35,000 of the country’s smallest businesses would no longer need to register for GST.
Small business spokesperson Dan Rosewarne said running a small business "should mean building something of your own, not spending your evenings chasing overdue invoices and filling in forms".
“If you’re a tradie waiting months for a corporate to pay an invoice, a café owner replacing an oven, or a mechanic upgrading equipment, these changes are about giving you a fair go," he said.
“Lifting the asset write-off means a small business can invest in the tools and equipment it needs now, rather than waiting years to claim the full cost.
"Raising the GST threshold means around 35,000 of the smallest operators can spend less time on tax returns and more time running their businesses and gives small businesses more room to grow."
The package would cost $1.56 billion over four years, funded by a "refocusing" of the Government's investment boost policy.
The policy allows a business to immediately deduct 20% of the cost of a new asset on top of depreciation.
The announcement comes just days after Prime Minister Christopher Luxon apologised for comments he made to small business owners at a Rotorua Business Chamber event.
At the event, Luxon told a business leader her concerns about rising costs and falling demand were “a negative view”, telling the audience some businesses had a "parent-child mentality" and too often looked to government for support.
"I am sorry if my comments do not properly acknowledge the challenges that many small business owners are facing, and that I got that wrong," he later conceded.
"I know many small business owners are doing it tough right now. They're working long hours, they're managing financial pressures, looking after their staff, and doing everything they can to grow their businesses.
"I have enormous respect and admiration for people who are out there backing themselves, taking a risk, and building a business."
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