Low expectations for Budget

Local businesses will be surprised if there is anything of benefit to them in the National Government's Budget today.

Deloitte Christchurch partner and small and medium business specialist Shari Carter said her clients were not expecting much in the budget to have an impact on their businesses. "They would like to see some tax cuts come through though I'm not sure they are expecting anything significant."

For most SMEs the personal tax rate was still most important because the business pays the owner a salary. The 30 per cent company tax rate was significant for those companies reinvesting profits.

Deloitte partner Andrew Button said the Government seemed to consider that its February package of tax simplification measures for SMEs was sufficient.

Button described the measures as "tinkering at the fringes". They were not cash savings but changes in timing of payments. Businesses were looking for permanent incentives.

"In the technology area there is a desire to see some form of replacement for the R&D tax credit regime," Button said.

- © Fairfax NZ News