Labour's small business policy aims to raise the GST registration threshold, help small business owners get paid faster and lift the asset write-off threshold

Labour has unveiled its latest election policy, focused on small businesses.

‘Small Business Action Plan - A Fair Go’, pledges to make:

• Big businesses pay small suppliers within 15 days on invoices of $25,000 or less, and publish how quickly they pay their suppliers
• Lift the asset write-off from $1000 to $10,000 for businesses with an annual turnover below $10 million so small businesses can deduct the cost of new equipment from their tax bill
• Raise the GST registration threshold from $60,000 to $80,000 which Labour says would mean 35,000 of the smallest operators would no longer have to register for GST

If Labour's elected in November's election, the asset write-off would begin from July 2027 and the GST registration threshold would begin from July 2028.

“Small businesses are the heart of New Zealand's economy, contributing around 42% of our Gross Domestic Product," Labour leader Chris Hipkins says.

"Small business owners take the risks, put in the hours, employ locally and keep our communities running. But under National, they’re being squeezed by rising costs and falling demand."

Labour would refocus the Government's existing Investment Boost policy, and estimates its small business policy would cost $15.6 billion over four years.

In a Labour Q&A sheet the party says Investment Boost mainly benefits larger companies for investments many would have made anyway.

“An Inland Revenue survey found that 53% of respondents said it had no effect on their 2025 investment. Only 24% reported an increase, and just 7% said the increase was significant. Small business owners have told us they would rather have a higher immediate write-off," Labour says.

Labour says its plan targets support where it will make the biggest difference, being improving small-business cash flow and helping businesses invest and grow.

“Business liquidations are at a 15-year high, business confidence is falling and Christopher Luxon is telling hardworking business owners they’re too soft and to grow up," says Hipkins.

Labour's small business spokesperson Dan Rosewarne says running a small business should mean building something of your own, "not spending your evenings chasing overdue invoices and filling in forms.”

“If you’re a tradie waiting months for a corporate to pay an invoice, a café owner replacing an oven, or a mechanic upgrading equipment, these changes are about giving you a fair go,” Rosewarne says.

“These are simple, easy measures a Labour government will take to support the small businesses that keep New Zealand’s economy ticking.”