For retail businesses, it remains to be seen whether the changes will bolster consumer confidence to a point where the retail sector can rebound the way it’s been hoping to.
Investment Boost and associated measures will bring some welcome tax relief and encourage spending on business assets to boost productivity. With tax incentives, a key question is whether businesses have the funds to spend in the first place. The injection into infrastructure should spur activity for construction and adjacent industries, generating employment and fuelling appetite to invest in productive assets.
Increased funding of $35m a year for Inland Revenue audit and debt enforcement should put taxpayers on notice to be vigilant about their tax obligations and manage tax debt proactively.
As ever, the Budget doesn’t exist in a vacuum. Global economic uncertainty remains a limiting factor, with many businesses cautious about over-extending, although some are working hard to see opportunities despite the uncertainty.