As usual, there’s been some debate when it comes to the budget and whether it’s good for business or not. There are specific business orientated initiatives in the new wellbeing budget, however, and we provide some more detail for you below.
Kirk Hope, chief executive of BusinessNZ said of the $300m that the Government will invest into funding growing Kiwi start-ups “commercialisation of new ideas is often constrained among mid-sized firms” – showing a positive shift. 97% of enterprises in New Zealand have fewer than 20 employees and the performance of these small firms is crucial to driving economic growth.
The wellbeing budget also allocated the sum of $197m towards the Housing First scheme which tackles homelessness in New Zealand and could be good news for the construction industry.
In addition, the Government have said they will spend $6.8m allocated over a period of four years to help the manufacturing industry regarding future-proofing.
Mr Hope also talked about how there will be “another $157 million to assist firms in developing high-value low-emissions products recognises the deep need for research to come up with business solutions to climate change.”
Vocational education and training are another focus benefitting SME NZ and will help raise the pool of New Zealand’s skilled workforce. $197m will focus primarily on young people and improving civics knowledge, financial literacy and key workplace competencies.
If you want to know what the budget could mean for the general economy in New Zealand, Bevan Graham, the NZ Managing Director & Chief Economist with AMP Capital says “New Zealand continues to enjoy a healthy set of financial accounts. We especially like the fact that after a decade of hard work building the fiscal buffers, we have fiscal room to move in the next downturn…This is the Government’s first Wellbeing budget. The approach has much merit and we have been keen supporters of the development of the Living Standards Framework*” You can read more from Bevan and his thoughts here.
*the Living Standards Framework (LSF) “looks across the human, social, natural and financial/physical aspects of those things that affect our wellbeing – the ‘four capitals’. It is a tool that emphasises the diversity of outcomes meaningful for New Zealanders, and helps the Treasury to analyse, measure and compare those outcomes through a wide and evolving set of indicators.” – Treasury.govt.nz
If you want to talk to someone about how the wellbeing budget might affect you personally, talk to your Adviser.