Labour Slashes Investment Boost Policy, Targets Small Businesses

Labour has announced it would modify its Investment Boost policy to focus on small businesses if elected. The coalition's original plan has been criticized for benefiting larger corporations.

The revised policy targets big companies, requiring them to pay their small suppliers within 15 days for invoices up to $25,000. Labour also plans to make these companies publish their payment records.

This move is designed to give small businesses a 'fair go'. The party aims to boost support by lifting the tax write-off from $1000 to $10,000, allowing immediate deduction of equipment costs from their tax bill. Additionally, it would raise the GST registration threshold from $60,000 to $80,000.

This change affects about 35,000 businesses that previously had to sign up for GST at this lower threshold. Labour claims its policy is more targeted and will have a greater impact on small business owners who are 'the heart of New Zealand's economy.'