News

Shifting the economy to a low-carbon future may add to compliance costs, but opportunities might also reveal themselves when more details emerge on the $100m Green Investment Fund, designed to encourage the private sector into these areas. 

The big news for business – but mostly big business – was an additional billion dollars into research and development over the next four years to help accelerate New Zealand's growth on the world stage.

Currently at 1.28% of GDP, compared to an OECD average of 2.38% the R&D tax credit will let businesses claim 12.5c back for every dollar they spend on R&D, provided the bill is more than $100,000 a year – a factor that most likely puts it out of reach for most small businesses.

Government's increased spending on health, education and housing was welcome, as was the $29bn over ten years for fixing Auckland's congested roads and a $1bn Provincial Growth Fund.

Employers and Manufacturers Association chief executive Kim Campbell said however, that firms could stop investing and hiring if unions get more power.