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PUBLISHED 26 March 2009

Business Tax Measures Bill passed

The Taxation (Business Tax Measures) Bill, introduced under urgency on 10 February, passed its final stages in Parliament today. The new legislation now awaits Royal assent, giving effect to a suite of measures to help SMEs deal with the economic downturn. For more information see the Government's media statement.

Hon Peter Dunne
Minister of Revenue

MEDIA RELEASE

Dunne: Parliament passes urgent relief measures for SMEs

Revenue Minister Peter Dunne has welcomed the passage today of legislation giving effect to a $480 million package of tax relief measures for small and medium enterprises (SMEs).

The changes, which were introduced by the Government last month under urgency, "would help the small and medium-sized businesses that make up 96 percent of New Zealand's economy to weather the current downturn, by making it easier for them to manage their cash flows and meet their tax obligations," Mr Dunne said.

The package includes removing the 5% "uplift" that businesses pay on provisional tax instalments for the 2008-09 and 2009-10 income years and changes to certain GST thresholds.

"The changes will help to relieve pressure on cash flows and lower compliance costs," he said. "As such, it provides some very practical assistance to the small business sector when it needs it most."