Running a small business is not easy, and people are telling me that it is getting harder.
When I looked into the figures, I discovered that since 2008, on average 2500 fewer small businesses have been established in New Zealand every year.
That is a problem: our communities and the economy depend on a thriving small business scene. How else are we to grow flourishing big businesses and new industries?
My colleagues and I in Labour have worked closely with small business owners to develop a range of policies for small businesses.
Simplified taxation
One of our changes will be a simpler tax system.
Small business owners have told us that they are sick of spending much time and money on complicated tax compliance. They want to simply and easily do their own taxes, leaving more time to do what they do best, namely running their businesses and contributing to the economy.
At the same time, we will upgrade New Zealand’s 25-year-old Monetary Policy, preserving the good things and improving it for the 21st century.
KiwiSaver help
A Universal KiwiSaver will provide a pool of investment that businesses can draw on to expand as they grow, upping our national income through international trade.
Everyone will be wealthier because we will not only have a low interest rate and fair exchange rate regime, but also help everyone to have their own savings nest-egg.
Capital Gains Tax will encourage people to invest in productive New Zealand businesses rather than speculating on property (this tax will exclude the family home).
Calculation of any Capital Gain will start from the day the policy becomes effective. It will not be backdated to when a property was first bought because that wouldn’t be fair.
We’ll give tax breaks to businesses that invest in research and development, encouraging breakthroughs and innovations we can export to the rest of the world.
As we look towards the future, it is obvious that our workforce should be energetic, highly skilled and highly educated. To achieve this, Labour will make sure that everyone less than 20 years of age will be in work, education or training.
Our education policies are modern and central to our vision of a modern New Zealand.
RBNZ overhaul
Meanwhile, we will not let the high dollar strangle New Zealand businesses.
We will overhaul the Reserve Bank Act to give proper weight to important economic considerations such as jobs and the exchange rate, not solely to inflation
We have also noticed that New Zealand’s small and medium-sized businesses tend to be good corporate citizens that pay the correct tax, yet global companies are not always as meticulous. We need a fairer system that deals with tax avoidance by multinational companies working in New Zealand.
I talk to small business owners every day, and listened to their concerns.
Most of them are smart, hardworking and want a modern, efficient economy so that they can leave a legacy of prosperity for the next generation.
My colleagues and I do not think that is too much to ask
David Shearer is elected Member of Parliament from Mt Albert Constituency in Auckland is the Labour Party Spokesperson for Foreign Affairs and Energy.
