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Almost half of all Kiwi business owners would vote for a common economic zone with Australia and capital gains tax would be political suicide according to the latest MYOB survey.
MYOB surveyed over 1000 business about a range of possible policies ahead of this year's election including tax and employment issues.
"Top of the wish list is really processes around making the cost of doing business cheaper and easier...It's not quite what you would think; it's not a tax cut focus, it's more around process," MYOB General Manager Julian Smith told TVNZ today.
Simplifying provisional tax rules was the most popular policy with 74% saying they would vote in favour of any party that is committed to making it easier for businesses to sort out their tax obligations.
Other strongly popular options included 61% support for offering tax credits for businesses that electronically file returns and 58% wanting late-payment penalty interest for start-up businesses waived.
Smith told AMP Business that Kiwi businesses feel the costs of compliance very strongly, and any party committed to reducing the administration around tax would win votes in this year's election.
"This research is designed to highlight a range of policies that would find support in the forthcoming election. Although these policies could be described as 'business-friendly', the initiatives are not based on party lines, but represent the views of business owners of all kinds," he said.
The survey also showed 55% would vote for a single flat rate for business and personal tax and the policy was particularly popular in Auckland.
Surprising issue
A common economic zone with Australia was surprisingly popular on the business owners' wish list.
"It was a really interesting finding...more than 40% were really keen to explore the idea of a common market or a common currency with Australia," Smith said.
Smith said small businesses were the most keen on closer ties across the Tasman but it had little support in the rural sector and with retail businesses.
"Oddly enough, Kiwi men in business - at 49% - are far more keen on the policy than Kiwi women in business, of whom only 28% would like us to move closer to our trans Tasman cousins".
Innovation welcomed
Owners are also keen on support for innovation and development initiatives from the government, with 55% in support of cash awards for business innovation and just over half want government-funded training for online business development.
Nearly 40% would also vote for the introduction of compulsory KiwiSaver - with 24% opposed - providing a minimum of 50% of the fund is invested in New Zealand businesses.
And the biggest vote loser in this year's elections?
"All parties would do well to steer clear of a capital gains tax. This would be a very unpopular policy, with 65% of business owners promising to vote against the party that has a capital gains tax as an election platform."
Smith says the kinds of policies strongly supported by business owners are those that reduce the costs of doing business, while focusing on opportunities for development.
"Coming out of a long, hard downturn, businesses want more help from the next government, not just in terms of tax relief, but also in making running a business less complex and costly in New Zealand."
Smith warns against characterising the business vote as a simple block who are driven by tax cuts as the research shows most business owners are looking for a mix of stimulus, cost reduction, and investment in innovation.
