Published: Wednesday 25 May 2022
The Budget had little in it for businesses apart from the creation of a $100 million Capital Growth Fund. Innovative businesses can borrow from it, however the details are sketchy.
According to Tax specialist Carolyn Jackson from Baker Tilly Staples Rodway Taranaki, last year businesses cumulatively paid 7 per cent more in tax. However, this figure is skewed by the booming construction and infrastructure sector, so it's not a true snapshot of business vitality.
Interestingly 2021 expenditure on house renovations increased 24 per cent, while new car registrations increased by a massive 38 per cent. Despite this hefty expenditure increase, GST revenue for the year was down.
Why? There's been no international tourism in the last two years. Previously overseas visitors have contributed $3.8b in GST revenue each year. This is further evidence why the borders need to fully open, but that's still two months away.
A shortage of skilled staff coinciding with a record low unemployment rate of 2.4 per cent in Taranaki, and an increase in the minimum wage is putting pressure on businesses. In short, skilled workers can afford to be fussy.
Chambers of Commerce have been lobbying the Government to ease immigration quotas to bring in more skilled workers into New Zealand.
Supply chain challenges, delays in getting stock, combined with runaway inflation is also adding to the stress.
The Chamber has organised a complimentary webinar hosted by Dr Tom Mulholland – Striving and Thriving Post Covid-19 and Beyond. The webinar will be at different times over the next couple of weeks. You can register to receive the Zoom link on the Chamber website – www.taranakichamber.co.nz
While things are financially tight, let's shop local, look out for one another, and remember to ask for help.
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