The World Bank Group’s Doing Business report for 2013 is out, and New Zealand is again ranked at number 3.
I’ve highlighted on our report, below, the areas where we are clearly behind. However even in the areas where we do well, such as opening a business, we can do a lot better. It’s not just the government that needs to improve either – try opening a bank account for a new business – a process that seems to have become worse, not better.
This year introduces a new measure, connecting a 3 phase electrical circuit to a new warehouse, and New Zealand ranks an appalling 45th. That’s an indictment on several players no doubt, and I hope this is sorted quickly.
Another area to improve is paying taxes, which is measured as a combination of the number of business taxes to pay, the administrative burden to pay them and the rate. Let’s not touch the rate just to climb global ranks, but the administrative burden can certainly fall for businesses, especially employers. Private enterprise has a place here as well, with Xero and bank integration with IRD (potentially) making things a lot easier.
Overall our Doing Business ranking continues to be a great story that reflects some of the strengths about living in New Zealand. Long may we continue to improve.
I see now that we were stung by the ACC component of tax. I wonder whether the accident management and costs were included for other countries – I doubt it. The time burden, set the same as GST, seems high to me, but I’m not sure what the burden is like for all.
I’d also wonder what tools that are used – with Xero and online filing and payment the burden drops a lot.