As the dust settles on the 2015 Budget, it seems the government is focusing on structure and planning as a source of stability for the New Zealand economy. So what were the highlights for New Zealand business?
New business and innovation have been identified as crucial drivers of the future growth of the economy. This includes the planned improvement and growth of connectivity across New Zealand; translating to investments of $210 million for ultra-fast broadband and $150 million for improvements to the rural network.
The commercial and residential building sector gets a boost with the budgeted release of crown-owned land to facilitate housing development in Auckland. The government is hoping to build on the success of similar development in Christchurch with a $52.2 million contingency designed to facilitate the release of land.
And finally we all look forward to benefiting from the government’s commitment to make it easier for businesses to work with them. The aim is to achieve a 25% reduction in the cost of dealing with the government by 2017, starting with a $12 million investment in progressing the New Zealand Business Number in 2015. This aims in the long term to be the only number that companies use to interact with a range of government agencies and businesses.
The 2015 Budget may not be exciting, but it certainly plans to continue building on a solid economy and strong consumer confidence. The government is predicting economic growth of about 3 percent over the next few years, with CPI inflation at 0.1 percent. So for 2015, New Zealand Business can enjoy an economy positioned for growth.
Is your business growing quickly but your cash flow can’t keep up? Speak to one of our Business Partners today about how Fifo Capital can help.