New Zealand’s 2013 Budget has not done enough to address a vital economic challenge: improving New Zealand’s international competitiveness to take advantage of the massive opportunities in Asia.
Kiwi kids born today will spend their working lives with China as the world’s largest economic power and as our largest trading partner.
Where is the Government’s response to its study into New Zealand’s competitiveness, which it released in March 2013?
Where are the initiatives to lift Asian language and literacy levels?
The Government needs a greater focus on creating a more prosperous nation where high paying jobs of the future are the result of being a more internationally competitive economy, a more productive economy and being a nation more closely integrated with Asia.
However, a number of initiatives announced in the Budget will reduce the costs and improve the ease of doing business.
Reductions in ACC levies are a good start.
We are also pleased to see tax changes which allow loss-making start-up businesses to claim tax losses on R&D, and these are supported by more funding for innovation and science.
Start-ups will be the large businesses of tomorrow, and changes like this help encourage them to continue to invest in innovation.
But more needs to be done.
A lower corporate tax rate is very important in supporting the development of a more competitive nation, encouraging business to set up and remain in New Zealand and encouraging capital inflows.
David Jenkins is Country Manager of CPA Australia in New Zealand. CPA Australia is the sponsor of the ‘Best Accountant of the Year’ category of the Indian Newslink Indian Business Awards 2013.
