Green Party plans to simplify tax for SMEs

Simplified tax compliance for small businesses is one of a number of measures the Green Party has promised small and medium-sized enterprises (SMEs) today.

"Reducing the costs of tax compliance for small businesses is one of a number of SME-friendly measures we plan to introduce," said Green Party Co-leader Dr Russel Norman.

"Small businesses with small annual turnovers spend a lot of time and money on tax compliance. We plan to give these small businesses the option of paying their taxes on a simplified cash basis on their GST returns.

"For even smaller businesses, company tax can be based on turnover.

"The proposals are broadly in line with those proposed by the New Zealand Institute of Chartered Accountants and could reduce tax compliance costs by up to a third."

Simplifying tax compliance is one of a number of Green Party policies designed specifically to support SMEs.

"The performance of the SME sector is a critical component of a green economy," Dr Norman said.

"To strengthen the domestic market for green innovation, the Green Party will rewrite government procurement and certification processes to favour New Zealand made environmentally sustainable goods and services.

"By greening government procurement policies, local SMEs will face incentives to rapidly innovate to secure lucrative government contracts. Once secured, those SMEs will have a base from which to export their same clean technology solutions overseas.

"We'll supplement our green government procurement policies with a $100 million start-up capital fund for clean technology SMEs and community enterprises, and boost central government funding of R&D by $1 billion over the next three years.

"Our plans are fully costed and will create thousands of new green jobs as we transition to a more resilient and sustainable economy."

Green Party's plan for SMEs (including fiscal summary):
http://www.greens.org.nz/greenjobs

New Zealand Institute of Chartered Accountants report on tax changes:
http://www.smetax.co.nz/reports/