9. Question No. 9—RevenueTAMATI COFFEY (Labour—Waiariki) to the Minister of RevenueQuestion No. 9—Revenue9. TAMATI COFFEY (Labour—Waiariki) to the Minister of Revenue: What recent announcements has he made about making it easier for businesses to innovate and grow?Hon STUART NASH (Minister of Revenue): Good news. Yesterday the Minister of Finance and I announced that we were removing two tax barriers to business innovation expansion and growth. The first change will allow businesses to claim tax deductions for money spent exploring investment opportunities that don't proceed—also known as feasibility expenditure. The second change—Hon David Parker: Black hole. Hon STUART NASH: —yes black hole—will be to work with tax and business experts to design a solution to allow losses to be carried over when there is a change to the ownership of the business—known as lost continuity. When I meet with business taxpayers these two measures consistently rate in their top three list of things that they want the Government to do. We have listened and are acting accordingly. The coalition Government is backing Kiwi companies to innovate and grow by making it easier to invest in new assets and business models and by giving start-ups a better shot at success. Tamati Coffey: How will these tax changes help small businesses? Hon STUART NASH: The changes to the lost continuity rules will make it easier for start-ups to attract investment and get off the ground. A lot of start-up companies accrue losses in their early years. We want to work with tax and business experts to allow these losses to be carried forward while protecting the integrity of the tax system. The ability to deduct feasibility expenditure will also benefit small to medium sized businesses as qualifying expenditure of less than $10000 will be deductible immediately. Ultimately these changes will benefit businesses across the board and it also means that companies won't have tax as a reason to not do something. Tamati Coffey: What reports has he seen from the business community about these announcements? Hon STUART NASH: So many positive reports I've actually lost track but here are quotes from a couple. The changes are quite long overdue"—Deloitte. It will "help optimise business investment."—Business New Zealand. It "could be a game changer for the sector."—Mind Your Own Business country manager Ingrid Cronin-Knight. She also said—and I quote—"this kind of forward-thinking policy is exactly what the sector needs." I believe this report that quotes Brendan Brown tax partner at Russell McVeagh captures the overall sentiment: the "existing [loss] rules had been a barrier to business taking risks and the proposed reform would make a positive difference."—and I quote—"It should help increase productivity by removing an impediment to businesses bringing in new investors to help them grow and become more productive. It will also help businesses that need more capital to remain resilient as we look out to potentially more uncertain economic times ahead." We are looking 30 years ahead not just three. Rt Hon Winston Peters: Could I ask the Minister of Finance how will these two policies affect me if I decide I want to be—Hon Michael Woodhouse: Minister of Revenue. SPEAKER: Order! Order! Now I'm going to ask the Prime Minister to start again and I'm going to ask the corrector on my left just to keep his mouth shut.Rt Hon Winston Peters: Can I ask the Minister and with respect to these two policies if as a desire I have to start a business I decided to get an illegal share in a five-week casino how will these policies from a feasibility cost structure affect me?Hon STUART NASH: That's a good question Prime Minister. What this will allow companies to do—Rt Hon Winston Peters: Gerry wants to know.Hon STUART NASH: Oh well Mr Brownlee if you'd like to know what these proposals allow companies to do is look at a feasibility study for an asset or a project not knowing if it'll go ahead or not. This allows businesses to invest with confidence. [Interruption]SPEAKER: Order! Order! If members want to continue the taxation advice I suggest they do it in the lobbies."