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More than 5500 letters were sent out to small and medium-sized businesses (SMEs) last week to gauge the cost of complying with tax obligations.
Making life easier for SMEs is the reason we are doing one of New Zealand's most comprehensive tax surveys.
As part of the Government's tax simplification programme, 5600 SMEs will be invited to take part in a major survey commissioned by Inland Revenue to find out how much effort they put into filing tax returns.
The research will provide hard data for developing and evaluating government proposals for tax simplification for SMEs, which will allow for better policy-making. The survey will cover income tax, GST, PAYE and FBT, and a full range of SMEs. Inland Revenue has consulted with the Institute of Chartered Accountants and Business NZ to make sure the approach is right.
An example of a suggested change is the idea of offering a 6.7 percent discount for self-employed people who make voluntary payments of income tax in their first year of business, to cut the strain of paying two years tax in their second year of business.
That change is now before Parliament and is likely to be enacted by the end of the year.
Other ideas, such as aligning provisional tax and GST payments and allowing businesses to base provisional tax payments on GST turnover, are undergoing further consultation and will benefit from the information that emerges from the survey.
I am pleased to see Work and Income's freephone line has been well used since a publicity campaign began in August to encourage people to find out what they are entitled to from the Government's $1.1 billion Working for Families package.
As at last Monday 42,000 calls had been received since Working for Families was announced in May, with more than 30,000 of those calls coming in since the nation-wide publicity campaign started.
I encourage anyone who hasn't yet checked their entitlements to do so as soon as possible and apply, as Work and Income cannot backdate payments.
Announced as part of Budget 2004, Working for Families will provide extra income assistance to almost 300,000 New Zealand families by 2007/08.
With the October 2004 changes it is expected that 5700 newly eligible households will take up the Accommodation Supplement and 5600 more families will receive the extra childcare assistance that became available at the start of this month.
Families who become eligible for assistance for the first time need to apply for it as neither Inland Revenue or the Ministry of Social Development hold the information that would enable them to identify newly eligible households. Existing clients of MSD who qualify for increased assistance will be directly contacted by letter.
The first Working for Families changes will:
- (from 1 October) lower the entry thresholds at which people not on benefits qualify for the Accommodation Supplement
- (from 1 October) remove abatement of the Accommodation Supplement for people on benefit and NZ super until they move off benefit
- (from 1 October ) increase the threshold at which the Accommodation Supplement starts reducing for people not on benefit
- (from 4 October) increase and standardise the hourly subsidy rates for pre-school childcare and for OSCAR. In the past, the OSCAR rate has been well below the pre-school rate, making childcare a less affordable option once a child starts school
- (from 4 October) increase the income thresholds for childcare assistance.
Work and Income's free-phone number is 0800 774 004, and more information can be found at www.workandincome.govt.nz.
Funding to allow an earlier than scheduled start on replacing the Waiohine Bridge near Greytown is a victory for commonsense.
When that scheduled date was announced in July, I commented that the project deserved to be brought forward.
Further investigations have shown that some of the risks associated with the bridge, including its narrowness and vulnerability to flooding, require that its replacement get extra and earlier funding and this is great news for the thousands of people who use it every day.
The initial budget for replacing the bridge was $2.4m but the new figure is $4.42m, with Wairarapa local authorities and the Greater Wellington Regional Council providing $300,000 to improve waterway capacity under the bridge.
I am also pleased to see that the replacement project will now look at the currently inadequate provision for cyclists on the bridge.
My thanks to the work put into this project by the Hill Road Committee and all those who have lobbied for many years to have the existing bridge replaced.
My thanks also to everyone who took part in last Monday's Prime Minister's forum and the associated workshops with Ministers Steve Maharey and Parekura Horomia.
A lot of great information has been fed back to the Ministers and I am very pleased that the day was so successful.
In particular I would like to personally thank our two facilitators - Janice Wenn and Alwyn Williams - for their input. Without their impartial guidance the workshops may not have been so productive and I thank them for donating their time.
Finally my thanks to all those who continue to turn out and help their neighbours during difficult times such as those parts of Wairarapa have been experiencing lately.
The ongoing floods are a trial but the generosity of spirit shown by those willing to help is a bright light amongst the gloom.
Thanks.
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