Budget misses Asia opportunity

Media release
17 May, 2013

Budget misses Asia opportunity

Global accounting body CPA Australia says yesterday’s Budget has not done enough to address a vital economic challenge: improving New Zealand’s international competitiveness to take advantage of the massive opportunities in Asia.

CPA Australia Country Manager for New Zealand, David Jenkins, says Kiwi kids born today will spend their working lives with China as the world’s largest economic power and as our largest trading partner.

“Where is the Government’s response to its study into New Zealand’s competitiveness[1] which it released in March? Where are the initiatives to lift Asian language and literacy levels? The Government needs a greater focus on creating a more prosperous nation where the high paying jobs of the future are the result of being a more internationally competitive economy, a more productive economy and being a nation more closely integrated with Asia.”

However Mr Jenkins says a number of initiatives announced in the Budget will reduce the costs and improve the ease of doing business.

“Reductions in ACC levies are a good start. We’re also pleased to see tax changes which allow loss-making start-up businesses to claim tax losses on R&D, and these are supported by more funding for innovation and science. Start-ups will be the large businesses of tomorrow, and changes like this help encourage them to continue to invest in innovation.”

But more needs to be done, says Mr Jenkins. “A lower corporate tax rate is very important in supporting the development of a more competitive nation, encouraging business to set up and remain in New Zealand and encouraging capital inflows.”

[1] www.med.govt.nz/business/economic-development/new-zealands-competitiveness-competitiveness-at-the-leading-edge

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About CPA Australia
CPA Australia is one of the world's largest accounting bodies, representing more than 144,000 finance, accounting and business professionals in 127 countries. With a proud 125-year history, CPA supports its members with education, training and technical support, and has a particular emphasis on providing rewarding career pathways for top accounting graduates. CPAs are recognised as strategic business leaders and New Zealand members include senior finance professionals from some of the country’s largest public and private sector organisations. CPA Australia advocates not only on behalf of its members, but also on behalf of public interest. The organisation is committed to New Zealand and actively works with government and regulatory bodies to continuously improve standards and confidence in the local accounting and finance sector. In October 2012 CPA Australia was accredited by the Financial Markets Authority in respect of the licensing and regulation of auditors of issuers in New Zealand.

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