Analysing the Latest Budget’s Impact on Your Business and Household
Discover how the latest budget can influence your business and household. Here are some key changes that are likely to affect Kiwi business owners:
Extended Free Childcare Hours
The extension of the Early Childhood Education (ECE) subsidy to include two-year-olds brings good news for parents and grandparents. It will facilitate easier re-entry into the workforce, benefiting both families and businesses in the childcare sector.
Higher Trustee Tax Rate
The trustee tax rate now aligns with the highest income bracket, increasing to 39% from its previous rate of 33%. While this may result in a higher tax burden for trusts, it simplifies the accounting complexities associated with trusts.
Reinstated Fuel Tax and Enhanced EV Infrastructure
The 25 cents per litre fuel excise duty, reduced last year, will be reinstated on June 30th. This could lead to immediate increases in petrol and diesel prices, affecting personal and business transport costs. However, EV owners will benefit from a $120 million investment in EV charging infrastructure, facilitating easier access to charging stations nationwide. Additionally, the government has announced free public transport for children under 13 and half-price fares for those under 25.
Boost for Construction and Peripheral Industries
The extended Warmer Kiwi Homes program will improve the insulation and dryness of more homes, providing business opportunities within this sector. Investment in 3,000 new homes and infrastructure will also benefit building and construction businesses.
Extended Free Apprenticeship Scheme
The Apprenticeship Boost program will continue supporting approximately 30,000 apprentices. Participating in this scheme can help businesses find young workers and support their training.
Investment in Tourism, Horticulture, and the Digital Sector
Sectors such as tourism, horticulture, and the digital industry will receive investments aimed at bolstering economic resilience. Industry Transformation Plans will provide digital skills training and accreditation for tourism employers. Eligible businesses spending at least $250,000 annually can benefit from a 20% rebate to stimulate growth and protect New Zealand’s domestic game-development sector.
Free Prescriptions
All New Zealanders now have access to free prescriptions, providing savings of $5 per prescription for both you and your employees.
No Forecasted Recession
The Treasury’s latest forecast predicts slight economic growth in the first quarter of 2023, offering an improved outlook compared to previous recessionary projections. While not guaranteed, avoiding a recession can boost confidence among consumers and businesses as they head into the winter season.
Have Questions About the Budget’s Impact?
If you want to delve into the full budget summary, you can find it here. Whether you’re concerned about the new trust tax rate, the Apprenticeship Boost scheme, or any other budget details affecting your business or finances, feel free to reach out to us. Contact us via email or phone, and we’ll be delighted to provide guidance and advice tailored to your situation.
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