Budget 2015 – Facing the Future

For immediate release

KPMG Executive Chairman, Ross Buckley welcomes Budget 2015 as a pragmatic balance of priorities. "Government has recognised that action is required on low income families and on housing. At the same time, it is important for the prosperity of economy as a whole, that financial markets have comfort that the debt track and fiscal position is sound and robust."

"The return to surplus is an important signal, and although delayed one year remains wafer thin at under $200 million. The Government has foregone greater headroom in the surplus projections by spending some of that now on low income families and vulnerable children" said Buckley. "That shows the Government is addressing the social challenges but balancing these within tight fiscal restraint."

Businesses will welcome the stability and strategic focus the Business Growth Agenda presents. KPMG believes these challenging but strategically important targets are a useful framework for managing the economic direction of the country. "Budget 2015 in New Zealand starkly contrasts with that in Australia" says Buckley."New Zealand is in a robust fiscal position, with clear frameworks and targets. Australia has real challenges, and has needed to put a substantial stimulus package towards its SME businesses."

KPMG National Managing Partner for Private Enterprise, Paul McPadden is pleased that increased R&D grant funding has been confirmed for entrepreneurial businesses. He also notes the ACC levy reductions when confirmed will release cashflow for businesses and will be welcome. "KPMG would like to have seen more in the Budget for the regions" says McPadden. "The New Zealand economy rests on the performance of our small businesses, and many of these operate outside the major metropolitan hubs. Our entrepreneurs provide valuable jobs, experience and opportunity for the workforce in the regions.”

Specifically addressing the challenges for regional business is limited to funding $25 million over three years for new privately led Regional Research Institutes.

"It will be important that Government Agencies look to regional businesses within their core baseline activities" says McPadden.

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