Dunne Peter: Taxation (Business Tax Measures) Bill — Third Reading 
Dunne Peter: Taxation (Business Tax Measures) Bill — Third Reading 
[Volume:653;Page:2152] 
Hon PETER DUNNE (Minister of Revenue) 
: 
 I move  
That the Taxation (Business Tax Measures) Bill be now read a third time 
. This bill was introduced under urgency a few weeks ago as part of the $480 million package of tax assistance measures to help small and medium sized businesses weather the current recessionary climate. As such the bill covers a range of provisions that will allow businesses to hold tax moneys for longer and lower the costs of doing business by reducing the amount of form-filling the calculations and the payments they have to make. 
Let me briefly recap the main measures in the bill. The first change is the removal of what is known as the 5 percent standard uplift in the calculation and payment of provisional tax. This is the amount that is added to the previous year’s residual income tax and is based on the assumption that in a normal business cycle a business’s income will increase over the year. Unfortunately we know these are not normal times. To help relieve some of the pressures that small businesses are facing the bill allows the uplift of the provisional tax calculation to be reduced in the current and next income years. The aim behind that is to reduce the amount of provisional tax businesses must pay and free up much needed cash flow. A further change in this bill will allow a greater number of individual taxpayers to reduce their exposure to use-of-money interest. This particular measure was previously part of the omnibus taxation bill I introduced last July but it has been included in this bill to ensure more speedy enactment. Other changes from that previous tax bill have been significantly enhanced in this bill which also introduces some important new measures. 
Overall the aim of these measures is to make lower costs for many businesses by reducing the number of calculations and tax payments they have to make. For example certain GST thresholds are being raised giving more businesses greater freedom from the compliance costs currently associated with accounting for GST. Similarly the PAYE once-a-month filing threshold is being raised to allow more employers to file and pay their PAYE once rather than twice a month. The threshold under which businesses may file fringe benefit returns annually will also rise as will the value of minor fringe benefits that employers can give their employees without attracting fringe benefit tax. Finally a new threshold for business-related legal expenditure is being introduced so that businesses will no longer have to identify which amounts relate to non-deductible capital expenditure and which are deductible revenue expenditure. 
When these measures are all taken together they form a package of assistance that will help smaller businesses to save time and money so that they can spend more time doing their business and dealing with the challenges of the recession. In recognising the importance of smaller businesses to New Zealand’s economic well-being I am heartened by the spirit of cooperation that has been shown in bringing this bill to its third reading. I especially want to thank the Finance and Expenditure Committee for its very constructive and cooperative approach to the consideration of the bill. As the bill stands it provides some very practical assistance to the small-business sector at a time when it needs it most. I also want to record my thanks to the officials who worked on the policy matters contained in the bill and the drafters who worked on the legal detail both of which occurred against very tight time constraints. 
Finally I acknowledge the Committee of the whole House for the very constructive and positive way in which it dealt with the bill a couple of days ago. There were a number of useful contributions in that debate that demonstrated a willingness to see progress being made and recognised that there were positive measures contained in this bill. It is with great pleasure that I now commend this bill to the attention of the House.