Staples Rodway Pre-Budget 2018

Business confidence survey 2018 insights

Prior to the release of the 2018 Budget, we asked New Zealand business leaders their opinions. Here are the results of almost 500 responses.

Question 1

How is the government performing when it comes to managing the broader New Zealand economy?

Pre Budget 2018 survey managing economy v2

Very well / well Poorly / very poorly Not sure
32.43% 47.91% 19.67%

Question 2

Thinking specifically about this year's upcoming budget, do you think it will have a positive or negative impact on:

Pre Budget 2018 survey expected effects v2

  Very positive Positive Neither positive or negative Negative Very negative Not sure
You personally 1.88% 7.95% 30.33 47.49% 9.83% 2.51%
Your business 1.50% 10.30% 26.61% 45.06% 10.30% 6.22%
The NZ economy 2.10% 13.24% 16.18% 51.89% 13.45% 3.15%

Question 3

Do you expect this year's budget to be better or worse than last years budget for:

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  Much better A little better About the same A little worse A lot worse Not sure
You personally 2.52% 6.71% 20.96% 40.88% 27.46% 1.47%
Your business 2.15% 8.58% 22.75% 36.70% 25.32% 4.51%
The NZ economy 3.18% 10.38% 13.35% 38.35% 32.42% 2.33%

Question 4

How important is it for the government to balance the budget?

Pre Budget 2018 survey balance budget scales v2

Very important Somewhat important Not so important Not at all important Not sure
48.12% 40.38% 9.62% 1.67% 0.21%

Question 5

If you had to choose one thing that government could do in the upcoming 2018 budget to facilitate an environment where your business could succeed and grow, what would that be?

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Question 6

Here are some things that other businesses have said government could do to create a better environment for business growth. Rank the following issues in order of how much of a difference they’d make to your business.

Pre Budget 2018 survey affect business auckland

Rank 1 2 3 4 5 6 7 8
Simplify the tax system and cut red tape for business 30.54% 14.23% 12.97% 11.30% 9.83% 9.41% 6.28% 5.44%
Reduce company tax rates 13.18% 19.04% 12.76% 10.04% 10.25% 9.83% 14.85% 10.04%
Reduce personal tax rates 15.90% 14.64% 15.90% 7.74% 10.04% 13.60% 10.67% 11.51%
Invest in research and development systems 5.44% 12.97% 14.64% 19.04% 19.46% 13.60% 8.58% 6.28%
Invest in infrastructure (i.e. rail, ports, roads etc) 19.87% 15.90% 16.53% 16.11% 14.02% 8.58% 5.02% 3.97%
Encourage the immigration of highly skilled workers 4.18% 7.95% 10.25% 11.30% 13.39% 17.99% 19.46% 15.48%
Invest in science, technology, and math education 6.69% 10.25% 12.13% 14.85% 11.30% 15.27% 20.92% 8.58%
Reduce barriers to international investment 4.18% 5.02% 4.81% 9.62% 11.72% 11.72% 14.23% 38.70%

Question 7

Some people have advocated for greater foreign investment and trade, while others think that there is already too much foreign influence in New Zealand business. One way governments try to balance the level of foreign investment with support for local business is through tax law. Which of the following statements do you think is a better description of New Zealand's tax laws for international companies?

Pre Budget 2018 survey tax law v2

International tax laws are too restrictive; instead, the government should do more to encourage foreign investment in New Zealand International tax laws should be stricter as international companies are disproportionately advantaged compared to New Zealand’s businesses
31.97% 68.03%

Question 8

We’d also like to ask specifically about superannuation. What is your level of support for the following statements?

Pre Budget 2018 survey superannuation v2

  Strongly agree Somewhat agree Somewhat disagree Strongly disagree Not sure
Superannuation should be means tested 7.17% 21.73% 21.31% 48.31% 1.48%
The age for superannuation should increase 21.99% 37.21% 15.64% 23.68% 1.48%
KiwiSaver contributions should be compulsory 49.05% 30.95% 9.26% 9.05% 1.68%

Question 9

What do you expect the following economic indicators to do over the next year?

Pre Budget 2018 survey property v2
Pre Budget 2018 survey property auckland v2
Pre Budget 2018 survey sme v2

  Increase a lot (5) Increase a little (4) Stay about the same (3) Decrease a little (2) Decrease a lot (1) Not sure Sentiment (3-neutral)
NZ economic growth forecasts 1.69% 16.46% 25.74% 41.56% 13.29% 1.27% 2.48
Consumer confidence 1.27% 12.29% 23.31% 45.55% 17.16% 0.42% 2.34
Business confidence 1.69% 9.09% 14.38% 46.51% 27.48% 0.85% 2.08
International investments 1.05% 8.02% 28.48% 34.60% 24.47% 3.38% 2.16
Exports 2.33% 27.48% 44.82% 18.82% 4.65% 1.90% 2.98
Dairy prices 1.48% 22.57% 49.58% 19.20% 2.32% 4.85% 2.87
Job security 0.85% 14.80% 38.48% 34.25% 10.99% 0.63% 2.58
House prices 5.91% 29.75% 34.39% 24.89% 4.01% 1.05% 3.05

Key Findings

Finding NZ AU
Managing the economy well or very well 32% 55%
Budget will have a negative impact on you 57% 26%
Budget will have a negative impact on your business 55% 19%
Budget will have a negative impact on the economy 65% 18%
Economic growth decrease 55% 6%

Pre Budget 2018 survey Australia economy v2Pre Budget 2018 survey australia impact v2

The sample

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