Workstream Initiative Summary 5 Business Investment NEAR TERM
Workstream Initiative Summary 5. Business Investment NEAR TERM & HIGH PRIORITY BIG DETAILED • Reform regulatory approval processes for major infrastructure projects • Target and attract offshore investment and entrepreneurial migrants (e. g. wealthy investors, foreign students) • Improve SME access to working capital • Rapidly reform government procurement processes to improve access by SMEs • Accelerate energy, environmental and water initiatives that open up opportunities for employment and productivity improvements • Allow tax deductibility of blackhole expenditure on capital raising and new projects • Revamp business assistance schemes
Workstream Initiative Summary 5. Business Investment LONGER TERM FOR DEVELOPMENT AND CONSIDERATION • Improve the efficiency and effectiveness of freight logistics • Introduce measures to accelerate capital expenditure in the non-taxed sector • Introduce targeted temporary investment incentive (grant) for certain capital expenditure • Initiate or accelerate major infrastructure projects in Auckland • Develop and implement a National Housing Upgrade Action Plan
Workstream Initiative Summary 5. Business Investment FURTHER INVESTIGATION REQUIRED • Introduce New Zealand Growth Equity Fund (this can also be considered as an option through the revamp of business assistance proposal) • Introduce carry back of losses • Address property investment bias. Introduce Interest deductibility clawback • Create special economic zones • Forego company tax on new businesses for the first three years • Encourage entrepreneurship by attitude and incentive (e. g. tax deduction, deferral for new business) • Value and enhance IP • Consider reducing GST from 12. 5% to 9% • Introduce a company tax structure that provides a rebate for businesses that have high staff numbers relative to taxable profit
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