The Government’s first 100 days in power officially passed on 8th March and we are in a period of rapid policy change (some more rapid than others). Some changes have already been implemented; others are still beginning. Which will affect your business?
100 day plan completed
We've had a look at the 49 actions covered in the 100 day plan and picked five of the changes businesses should watch for:
1. Reintroduction of 90-day employment trial periods
The government has extended the availability of 90-day employment trial periods for all businesses, reversing changes made in 2018, which scrapped 90-day trials for businesses with more than 20 employees.
2. Clean car discount and ‘ute tax’ has ended
The clean car discount, allowing people to claim back up to $8,625 for an electric or hybrid vehicle, ended on 31 December 2023. The levy on higher emissions vehicles, such as utes, has also been scrapped.
3. Fair Pay Agreements cancelled
The Fair Pay Agreements Bill has been repealed. Collective agreements can still be negotiated by unions through collective bargaining, however with the repeal of the Fair Payments Agreements Bill, any person or organisation that obtained personal information for the purpose of Fair Pay Agreement bargaining must now dispose of that information in line with the Privacy Act 2020.
4. Fuel tax changes
The Auckland Regional Fuel Tax, adding 11.5 cents to every litre of petrol sold in the city, will end on 30 June 2024. National has also cancelled the previous Government’s planned fuel tax increases that would have added a further 12 cents to the litre. However, the gradual price increase will be replaced in the first year of the next term of Parliament when fuel taxes will rise by 12 cents in one go. After this hike in January 2027, fuel taxes will increase by 6 cents a litre in 2028 and four cents a litre each year after that, meaning by the end of the next term, the Government will have raised fuel taxes by 22 cents a litre. An equivalent increase in road user charges will also occur.
Vehicle registrations will also jump by $50.
5. Rural regulations set to go
National and Act have committed to reducing regulation and red tape in the farming sector, though it’s not certain yet what that looks like.
We’ll keep you posted.
For questions, clarification or assistance, just drop us a note or give us a call, we’re here to help.