What Could the 2026 Election Mean for Your Business?
- Business Studio
- 2 days ago
- 10 min read
A practical look at selected tax and business policies - and the questions business owners may want to keep in mind as the campaign develops.
As the 2026 General Election approaches, political parties continue to release policies that could affect businesses, business owners, and employers.
For business owners, proposed changes to tax, investment incentives, GST, employment costs, payment practices and property taxation can all influence future decisions. This article looks at selected business and tax policies from key political parties and what they could mean in practical terms.
Important context before you read • This is a snapshot. The article reflects selected policies and announcements available as at 17 August 2026. Parties may release additional policies, refine existing proposals, or change their positions as the campaign progresses. • Coalition negotiations matter. Under New Zealand's MMP system, policies campaigned on by an individual party may be amended, deferred, negotiated away or replaced as parties negotiate coalition or support arrangements and a programme for Government. • Proposal is not the same as law. Most measures discussed below are election proposals. National's Investment Boost is already part of the current tax system; other proposals would require implementation and, where relevant, legislation. • Business policy is only one lens. Tax savings, deductions and compliance costs should not be considered in isolation when deciding how to vote. Voters may also want to consider each party's wider policies, priorities, trade-offs and how commitments are proposed to be funded. Business Studio does not endorse any political party. Our purpose is to help business owners understand proposals that may affect them. |
National - investment, KiwiSaver, trade and reducing business barriers
National's business positioning combines measures already introduced by the current Government with further 2026 election commitments. That makes the comparison with opposition parties slightly different: some National policies discussed below are already operating, while others are proposals for a further term.
Investment Boost and business investment
National continues to support Investment Boost as a long-term incentive for businesses to invest.
Investment Boost took effect in May 2025 and is already part of the current tax system. It allows businesses to immediately deduct 20% of the cost of eligible new assets, with normal depreciation then applying to the remaining 80%. It applies to new assets purchased in New Zealand and new or used assets imported from overseas, including machinery, tools, equipment, vehicles, technology and commercial buildings. Land, residential buildings and assets already in use in New Zealand are excluded.
For businesses considering significant capital expenditure, Investment Boost can bring forward part of the tax deduction and therefore improve the timing of cash flow benefits.
KiwiSaver - compulsory participation and higher employer contributions
A re-elected National Government is proposing to make KiwiSaver compulsory for workers from 1 July 2028. National has also committed to progressively increasing the default employer and employee contribution rates to 6% each by 1 April 2032, for a combined contribution rate of 12%.
For employers, the proposal represents a material increase in employment cost over time and would need to be factored into remuneration negotiations, staffing decisions and future budgets. National also positions the policy as a way of building a larger pool of New Zealand savings that can be invested in local businesses and infrastructure.
Trade and export growth
National has released a 2026 election trade policy committing to pursue trade negotiations with seven new economies over the next five years, while reaffirming its goal of doubling the value of New Zealand exports by 2034.
For exporters and businesses in export supply chains, improved market access can reduce trade barriers and create opportunities to expand into new markets. The practical benefit would depend on which agreements are ultimately negotiated and the terms achieved.
Commercial building consents and planning reform
National is also campaigning on further changes intended to reduce regulatory barriers to investment and development. It proposes allowing qualified engineers to sign off certain commercial building work without a separate council inspection and establishing a specialist Building Consent Authority to provide a nationally consistent consenting pathway for large commercial projects.
National is also campaigning to complete the replacement of the Resource Management Act with a new planning system intended to make housing, infrastructure, energy and other development easier to consent to. These policies are less visible than a tax deduction, but consenting time, regulatory cost and certainty can have a significant effect on business investment.
Current business measures already underway
As the incumbent party, some of National's business programme is already reflected in current Government policy rather than being presented as a new election promise. Budget 2026 changes include in-year payments for the Research and Development Tax Incentive and simplified Fringe Benefit Tax rules for private use of business vehicles.
The current Government has announced tax-system changes aimed at reducing compliance costs, including simplified Fringe Benefit Tax rules for the private use of business vehicles and an increase in the Foreign Investment Fund de minimis threshold from $50,000 to $100,000.
The Government is also extending regulated Open Banking into business banking, with the aim of supporting faster loan comparisons, automated accounting, and cash-flow tools, and is consulting on capital-market reforms intended to reduce costs and barriers for New Zealand businesses raising capital.
These measures should therefore be read as examples of the current direction of Government policy that National is campaigning to continue, rather than as entirely new 2026 election promises.
Labour - replacing Investment Boost with targeted small-business measures
Labour proposes to refocus the funding currently allocated to Investment Boost towards more targeted support for smaller businesses. Its Small Business Action Plan includes a higher immediate asset write-off, a higher GST registration threshold and payment-time rules for large customers dealing with small suppliers.
$10,000 immediate asset write-off
Labour proposes lifting the low-value asset write-off threshold from $1,000 to $10,000 for businesses with annual revenue below $10 million, from 1 July 2027. Qualifying assets costing up to the threshold could be deducted in full in the year of purchase rather than depreciated over several years.
This is an immediate tax deduction rather than a $10,000 reduction in the amount of tax payable. The actual tax benefit will depend on the taxpayer and the applicable tax rate.
Illustrative comparison - deduction in the year of purchase
Example purchase | National - Investment Boost | Labour - proposed write-off |
$8,000 new equipment | $1,600 immediate deduction, then normal depreciation on the remaining $6,400. | Full $8,000 deduction in the year of purchase for a qualifying business. |
$50,000 new equipment | $10,000 immediate deduction, then normal depreciation on the remaining $40,000. | Normal depreciation would generally apply because the asset exceeds the proposed $10,000 threshold. |
Illustrative only. Eligibility, grouping rules, GST treatment and depreciation details can affect the actual deduction available.
Labour's proposal could provide a larger immediate deduction for some smaller asset purchases, while National's Investment Boost can provide a substantial upfront deduction where a business is making larger capital investments.
GST registration threshold
Labour proposes increasing the compulsory GST registration threshold from $60,000 to $80,000 from 1 July 2028. Businesses below the threshold would still be able to remain voluntarily registered.
For very small businesses and sole traders, this could reduce compliance and provide more room to grow before compulsory registration applies. However, a business should not automatically deregister simply because its turnover falls below a new threshold. Deregistration can require a final GST return and adjustments relating to business assets. For some businesses, remaining voluntarily registered may continue to make commercial sense.
We would recommend discussing your position with your accountant before making any decision to deregister.
Getting small businesses paid more quickly
Labour proposes requiring qualifying large businesses to pay small-business suppliers within 15 days for invoices of $25,000 or less and to publish information about how quickly they pay suppliers. The rule would also apply to Government, and Labour says it would introduce this legislation within its first 100 days in Government.
For small businesses that regularly wait extended periods for payment from larger customers, faster payment could have a meaningful effect on working capital and cash flow.
Apprenticeship Boost expansion
Labour is also proposing changes to Apprenticeship Boost that could be relevant to employers taking on apprentices. The proposal includes extending employer payments of $500 per month from one year to two years, effective 1 July 2028; widening eligibility to trades; and introducing a $1,000 toolbox grant for new apprentices, effective 1 July 2027.
Proposed 28% capital gains tax on investment property
Labour proposes a 28% capital gains tax on gains arising after 1 July 2027 when commercial property or residential investment property is sold. The family home, farms, KiwiSaver, shares, business assets, inheritances, gifts and personal items would be exempt.
There is an important distinction for business owners: the proposed tax applies to gains on commercial property, rather than to the underlying business itself. A business owner who owns the building from which the business operates could therefore be affected even though gains in the business itself are outside the proposal.
Labour also proposes rollover relief where a small business sells its premises to move into a larger property. If this proposal became law, affected property owners would need to understand the valuation, record-keeping and timing requirements that apply.
Green Party - changes to personal, company and wealth taxation
The Green Party's 2026 tax policy proposes a broader reshaping of the tax system. For individuals, it includes a $10,000 tax-free threshold and a new higher tax rate for income above $160,000.
For companies, the Greens propose a 33% company tax rate for the largest 0.7% of corporations while retaining the 28% rate for small and medium enterprises.
The Greens also propose:
a 2.5% tax on net assets above $10 million, with the family home exempt;
a Capital Acquisitions Tax on certain assets and gifts received worth more than $1 million, with exemptions including family homes and family farms;
a 0.06% levy on the liabilities of the four largest banks;
measures aimed at taxing profits sent offshore by large technology companies; and
reversing changes to landlord interest deductibility and the bright-line test.
For many smaller trading companies, the proposed company tax rate may remain unchanged, but personal tax, wealth, succession, and property-related changes could still be relevant to business owners, depending on how assets are held and their longer-term plans.
ACT - lower taxes and reduced business regulation
ACT continues to advocate for a flatter, simpler tax system and a lower regulatory burden on businesses. Its current economic policy proposes a two-rate income tax system with a top rate of 28%, aligning the top personal, trust and company tax rates.
ACT also continues to advocate reducing Government spending and removing regulations it considers barriers to investment, job creation and productivity. It has highlighted the 2026 FBT and FIF changes as examples of tax simplification that reduce compliance for businesses and investors.
For business owners, ACT's policy direction is therefore focused less on targeted concessions for particular categories of business and more on lower and more aligned tax rates, reduced regulation and lower compliance costs.
New Zealand First - KiwiSaver changes with significant employer implications
New Zealand First proposes compulsory KiwiSaver enrolment for the wider workforce and progressively increasing both employee and employer contribution rates to 8% initially and eventually 10%. It has also announced compulsory KiwiSaver enrolment at birth for New Zealand citizens with an initial Crown contribution.
For employers, the proposed contribution increases could have a substantial effect on employment costs, remuneration negotiations, payroll calculations, staffing decisions and future employment budgets.
Businesses with larger workforces or tight labour margins would need to carefully consider the impact if such a policy were part of a future Government programme.
National and New Zealand First - KiwiSaver proposals compared
Both National and New Zealand First are proposing materially higher compulsory KiwiSaver settings, although the scale of the proposed employer contribution differs.
National | New Zealand First | |
Compulsory participation | All workers from 1 July 2028 under the 2026 proposal. | Compulsory KiwiSaver enrolment for the wider workforce. |
Employer and employee contributions | Progressively to 6% each by 1 April 2032. | Progressively to 8% each initially and eventually 10% each. |
Potential employer impact | Material increase in employment cost over time. | Potentially substantially larger increase in employment cost. |
Timing and implementation details could change through the election and any subsequent coalition negotiations.
What should business owners be thinking about?
Rather than deciding whether a policy is simply "good" or "bad", it may be more useful to consider how the different proposals interact with your own business plans.
Are you planning significant capital investment? The difference between Investment Boost and a higher immediate asset write-off could matter.
Do you regularly purchase equipment costing less than $10,000? Labour's proposed asset threshold may be particularly relevant.
Are you approaching the GST registration threshold? A higher threshold could affect compliance, pricing and whether voluntary registration remains worthwhile.
Do large customers regularly take a long time to pay you? Proposed payment-time rules could affect working capital and cash flow.
Are you planning to employ or train more people? KiwiSaver, apprenticeship support, and broader employment policies should be part of your budgeting.
Do you own your business premises or investment property? Changes to property taxation may affect long-term planning.
Are you thinking about selling, restructuring or stepping away from the business? Tax settings can become particularly important when considering succession and exit plans.
What does your future cash flow look like? Many incentives change the timing of tax deductions rather than the total deduction ultimately available, so timing matters.
Don't make a voting decision based on one business policy
It can be tempting to look at a proposal that reduces your tax, increases a deduction or lowers your compliance costs and conclude that it determines which party is best for you. We would caution against doing that.
Business and tax policies are only one part of a much larger policy package. Tax reductions and incentives have a cost, while new taxes may be intended to fund other priorities. Government spending, infrastructure, health, education, energy, housing, employment law and the wider economy can all affect businesses too.
Each political party is offering voters a package of policies rather than a single tax measure. Understanding how their business policies could affect you is useful, but the voting decision itself is personal and should take into account the overall balance of policies, priorities, trade-offs and values that matter to you.
Looking ahead
This article reflects selected policy announcements available as at 17 August 2026. The campaign is still developing, and parties may release further policies or change existing proposals.
The election result is also only part of the picture. If no party governs alone, coalition or support negotiations can affect which campaign policies make it into the final programme for Government and the form in which they are ultimately implemented.
Businesses should continue to apply the tax rules currently in force and avoid making significant commercial decisions solely on the basis of an election proposal.
What the election does provide is an opportunity to think ahead. If you are considering a major asset purchase, employing additional staff, purchasing or selling property, restructuring your business or preparing for an eventual exit, understanding the possible direction of policy can help identify where forward planning may be worthwhile.
Disclaimer The information in this article is general in nature and does not constitute personalised tax, financial, political or voting advice. Business Studio does not endorse any political party. Political policies may change, and proposed measures may not ultimately become law in the form described above. Please speak with Business Studio before making business or tax decisions based on any of the matters discussed in this article. |
Policy sources reviewed
Official party materials reviewed for this update, current as at 31 August 2026:
National (Investment Boost; KiwiSaver; trade policy; commercial building and planning reform; Budget 2026 tax changes; Open Banking; capital-market reform); Labour (Small Business Action Plan; Capital Gains Tax; Apprenticeship Boost); Green Party (A tax system for all of us); ACT (Economy & Cost of Living); and New Zealand First (KiwiSaver Generation and wider workforce policy).
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