At the time of writing, we’re halfway through the fourth quarterly plan. The Coalition government has been at the helm for just under a year, following negotiations that took place in November 2023.

It’s been a busy year of repeal, reform, and reprioritisations. Each quarterly plan has been ambitious in the face of significant economic headwinds and a challenging global environment of economic and geopolitical uncertainty.

Our advocacy to the government is expansive – covering all manner of topics including tax, small business settings, financial and sustainability reporting and assurance, anti-money laundering, data and technology, not-for-profits, and talent.

In all of these areas, we have keenly watched the government’s activities and announcements. Now it’s time to ask, what has been achieved?

Tax

The government has followed through on all of its tax commitments.

Most commitments were addressed through a bill which returned the bright-line test to two years, reintroduced interest deductibility for residential investment properties, removed tax depreciation deductions on commercial buildings, and retained the trustee tax rate increase with exclusions for which we advocated. The May 2024 Budget addressed the long-overdue adjustment to personal income tax thresholds.

The Annual Tax Bill in August 2024 included an emergency tax package, available in the event of a natural disaster. We have long advocated for such a toolbox and were pleased to see its inclusion. This approach allows for such measures to be well considered and consulted on in advance of an actual emergency, and then switched on quickly when needed.

Business settings

The government has begun to tackle the complexity of the Holidays Act 2003. We were selected to participate in the initial targeted consultation and will provide input again when amended legislation reaches the select committee.

A little-known area of progress has been the requirement for government agencies to adopt e-invoicing and publish their own performance in meeting their payment time commitments. We have long advocated for government to ‘walk the talk,’ particularly as the government is a major procurer of goods and services from small businesses.

Progress still to come

In 2025, we would like to see the government make further progress on:

• Talent: We want to see a more effective and efficient Accredited Employer Work Visa. We need a more robust accounting component within NCEA Level 1 Commerce (a separate NCEA subject that was first taught in 2024).
• Assurance: Work on the introduction of a licensing regime for individuals assuring climate statements needs to be prioritised to ensure a level playing field and integrity in the regime.
• Not-for-profits: Incorporated societies that would like to continue to reregister under the Incorporated Societies Act 2022 need to be supported to do so.
• Tax: Finally, conversations about the sustainability of the tax base, including the pros and cons of a capital gains tax, and superannuation, need to take place. Achieving long-term prosperity in the face of demographic change requires robust discussion.