NZTech backs improvements to R&D tax credits scheme
Auckland - New Zealand tech organisations, through NZTech, are happy to see the government continuing to improve and evolve the recently launched research and development tax credit scheme.
NZTech chief executive Graeme Muller says they have been supportive of the tax credit scheme but concerned that there were still complex issues such as pre-profit access that needed to be addressed.
“The government promised to continue to evolve the scheme so the announcement of details that provide some pre-profit firms with access is a great step in the right direction, Muller says.
“All Kiwi tech businesses know how critical research and development is for their success and for our country’s economic growth. After all, tech is the fastest growing industry.
“It is clear that the intent is positively focused on ensuring our fastest growing hi-tech and software sectors can access the tax credits system to help encourage them to invest further in R&D.
“There are still a few complex issues that need further discussion such as the definition of software development and we are pleased the Minister is keen to continue working with the sector to maximise the impact of the tax credit system for New Zealand’s prosperous growth,” Muller says.
Statistics NZ data shows computer services and scientific and tech services make up 35 percent of all R&D investment. Computer services companies alone invested $586 million in R&D in 2018, an increase of $150 million.
The tech sector is made up of more than 20,000 firms, most of them small businesses, yet they contribute around $16 billion to GDP and close to $7 billion in exports, making them the country’s third largest export sector.
The growth of the tech sector is contributing to regional growth and employment, with well over 100,000 Kiwis now employed by tech firms. However, the biggest impact from a growing tech sector is the positive impact of its growth on the economy as a whole.
New Zealand has a growing number of successful software firms like Xero, Pushpay, FarmIQ and Soul Machines who continue to spend significant amounts on R&D as their products need constant development, Muller says.
For further information contact Make Lemonade editor-in-chief Kip Brook on 0275 030188
Photo: NZTech chief executive Graeme Muller
Lisa was born in Auckland at the start of the 1970s, living in a small campsite community on the North Shore called Browns Bay. She spent a significant part of her life with her grandparents, often hanging out at the beaches. Lisa has many happy memories from those days at Browns Bay beach, where fish were plentiful on the point and the ocean was rich in seaweed. She played in the water for hours, going home totally “sun-kissed.” “An adorable time to grow up,” Lisa tells me.
Lisa enjoyed many sports; she was a keen tennis player and netballer, playing in the top teams for her age right up until the family moved to Wellington. Lisa was fifteen years old, which unfortunately marked the end of her sporting career. Local teams were well established in Wellington, and her attention was drawn elsewhere.