Raising GST threshold just shifts the problem, tax expert says
Labour leader Chris Hipkins said it would make changes designed to help small businesses, if it becomes the government.
A tax expert argues that Labour's plan to raise the GST registration threshold may create new issues for small businesses. Labour leader Chris Hipkins introduced the proposal during a Thursday press conference, claiming it would assist small enterprises if Labour were elected. Businesses with annual earnings below $60,000 currently have the option of registering for GST.
Should the threshold be raised to $80,000, roughly 35,000 small businesses would be exempt from registration. The expert asserts that this change would do little to resolve the problem, but merely relocate it.
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