Summary
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New Zealand’s Labour Party proposes to increase the compulsory GST registration threshold from NZD 60,000 to NZD 80,000 from 1 July 2028. Labour estimates that approximately 35,000 smaller operators could fall outside compulsory registration if the proposal is enacted following the 2026 election.
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Businesses with annual revenue below NZD 10 million would also be allowed to deduct qualifying asset expenditure of up to NZD 10,000 immediately from 1 July 2027. The current low-value asset write-off threshold is NZD 1,000.
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The measures form part of an election policy rather than current law. Implementation depends on Labour forming a government and securing the necessary legislation. Small businesses should not alter current GST registrations, invoicing or depreciation treatment until detailed legislation has been enacted.
Article
New Zealand’s opposition Labour Party has released a Small Business Action Plan containing proposed GST and income tax concessions for businesses with annual revenue below NZD 10 million. The proposals have been announced ahead of the general election scheduled for 7 November 2026. The Electoral Commission has confirmed both the election date and the applicable electoral timetable. [elections.nz], [vote.nz]
The principal indirect tax measure would increase the compulsory GST registration threshold from NZD 60,000 to NZD 80,000 from 1 July 2028. Labour states that the change could remove approximately 35,000 of the smallest operators from compulsory GST registration. The party presents the measure as a way to reduce return-filing and record-keeping obligations while giving microbusinesses additional room to grow. [labour.org.nz], [scoop.co.nz]
Businesses below the proposed threshold would still need to consider whether voluntary registration remained commercially beneficial. A GST-registered business can generally recover GST incurred on eligible expenditure, while an unregistered operator cannot. The relative benefit would depend on the nature of the customer base, cost structure and planned capital investment. The transition rules would also need to address businesses that deregister, including potential adjustments for assets and trading stock.
Labour also proposes to raise the immediate low-value asset write-off from NZD 1,000 to NZD 10,000 for businesses with annual revenue below NZD 10 million. The measure would apply from 1 July 2027 and permit the cost of a qualifying asset to be deducted in the year of acquisition rather than depreciated over several years. Labour estimates that around 500,000 businesses would be eligible. [labour.org.nz]
The Small Business Action Plan is costed at NZD 1.56 billion over four years. Labour proposes funding it by refocusing the existing Investment Boost incentive toward small businesses. The policy also includes payment-practice measures under which large businesses would be required to pay qualifying invoices from small suppliers within 15 days. [labour.org.nz], [business.scoop.co.nz]
These measures remain campaign commitments. Their final design, including eligibility tests, grouping rules, voluntary GST registration and transitional adjustments, would depend on the election outcome and subsequent legislation. Businesses should therefore continue applying the current GST and depreciation rules unless and until amendments are enacted.
Source Links
- New Zealand Labour Party: Small Business Action Plan [labour.org.nz]
- New Zealand Labour Party: 2026 election policies [labour.org.nz]
- New Zealand Electoral Commission: Key dates for the 2026 General Election [elections.nz]
- New Zealand Government: General Election to be held on 7 November [beehive.govt.nz]
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