What’s in the 2015 Budget for small business?
Date: 29th May 2015
The 2015 Budget has a strong focus on social development, so it’s mainly ‘business as usual’ for Kiwi businesses. However, if your business is focused on research and development, or involved in the Canterbury rebuild, there may be additional Government funding available.
Here are the key things to note for small businesses:
- $80 million extra will be available for R&D growth grants, administered by Callaghan Innovation.
- Up to $25 million extra will be spent over three years to set up and support privately led Regional Research Institutes.
- This will bring the Government’s total investment in science and innovation to more than $1.5 billion in 2015/16.
For all small businesses
- Further ACC levy cuts in 2016 and 2017, as signaled pre-Budget.
- $210 million for ultra-fast broadband and $150 million for improving rural broadband.
- Average wages are expected to rise by $7,000 to $63,000 a year by mid-2019.
- GDP growth is forecast to average 2.8 per cent annually over four years.
- Unemployment is forecast to fall below 5 per cent in 2016 – it’s currently 5.8 per cent.
An additional $107.8 million in operational funding for Canterbury’s earthquake recovery takes the Government’s total contribution to the Canterbury rebuild to $16.5 billion.
This will support land clearances to make way for Anchor Projects and preparation of land before those constructions begin. It also covers the operational cost of owning and developing assets that have been purchased by the Crown, and the cost of preparing these assets for future sale or vesting.
Ultra Fast Broadband
New funding of $210 million for more ultra-fast broadband and $150 million for improvements to rural broadband to improve connectivity both in the regions and with the rest of the world.
More about the 2015 Budget
From the Beehive
From Victoria Crone, Managing Director of Xero NZ
Posted in: Alexandra, Christchurch, Latest News, Queenstown, Wanaka