Victoria Crone: Stability, cost reduction for small business a big plus

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Opinion

It was pleasing to see the Government didn't have any major surprises for small business in the Budget. We know small businesses hate surprises.

This year the Government continues its pattern of fiscal responsibility, generally a positive thing for New Zealand business. It predicts economic growth over the next few years to be about 3 per cent a year, with CPI inflation at 0.1 per cent.

Solid, but not spectacular growth with low interest rates will continue to foster a predictable economic landscape. The immediate future offers more of the same from the last few years, which adds comfort and security for small businesses.

ACC levies will reduce by $375 million next year, followed by cuts of $125 million in 2017.

Also from July 1, ACC levy cuts already announced in vehicle registrations will come into effect. Savings may be coming the way of small businesses here. If everything goes to plan, the Government has signalled small tax cuts in 2017.

The new funding of $210 million for more ultra-fast broadband and $150 million for improvements to rural broadband is a positive step in improving connectivity both in the regions and with the rest of the world.

A further $12 million for the New Zealand Business Number (NZBN) is another positive for small business. Xero has been advocating for this.

The NZBN is part of the Government's Better Public Services for business programme. By 2017 it aims to reduce business costs when interacting with government by 25 per cent. Anything that helps reduce compliance must be good.

The $425 million to support Business Growth Agenda initiatives is welcomed. Funding of $25 million to establish regional research institutes could add three new centres outside the main regions - focusing on creating new jobs, products and services to support regional development.

As per the April announcement there is a further $80 million over four years for Callaghan Innovation in the hope of encouraging private-sector research and development. And, $113 million for tertiary sector education to help develop graduates with more knowledge and skill.

Overall it's a reasonable Budget, providing stability for businesses to have confidence to invest, pushing cash back to businesses, ensuring the infrastructure to support success and trying to address the long-term issues we have around skilled employees.

I'd like to see more go to reducing the compliance onus on business; there's not enough detail in that programme either through the Business Growth Agenda or in this Budget.

• Victoria Crone is managing director of Xero NZ.