Labour Unveils Small Business Support Package with Faster Repayments and Tax Relief

New Zealand's Labour party has unveiled a package of election policies aimed at supporting small businesses in the country, promising faster invoice repayments, tax relief on new equipment and reduced compliance costs if elected.

Leader Chris Hipkins described small businesses as 'the heart of New Zealand's economy', contributing around 42% to the country's GDP. He argued that many are struggling under current economic conditions, being squeezed by rising costs and falling demand.

The party's action plan is called A Fair Go and includes requiring large businesses to pay invoices of $25,000 or less from small suppliers within 15 days. They will also be required to publicly disclose how quickly they paid their suppliers.

Labor also plans to 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. Additionally, the GST registration threshold will be raised from $60,000 to $80,000.

The package is expected to cost $1.56 billion over four years and will be funded by a 'refocusing' of the Government's investment boost policy.