CPA Australia urges more rate cuts and digital support to revive NZ small business growth

While economists debate whether the Reserve Bank should cut the Official Cash Rate by 25 or 50 basis points on Wednesday, one of the world’s largest accounting bodies, CPA Australia, says maximising the impact of any rate cuts requires complementary structural reforms to boost small business performance.

“CPA Australia supports further OCR reductions to ease immediate financial pressure on New Zealand’s small businesses ahead of the critical summer trading period,” said Rick Jones, CPA Australia’s Regional Head. 

“At the same time, our members working daily with small businesses report persistent structural challenges. Interest-rate cuts alone won’t revive growth – policy support beyond monetary settings is needed.”

Accountants report that optimism in recent confidence surveys hasn’t yet translated consistently into stronger trading across all sectors. This confidence-activity gap reinforces the case for continued monetary policy support, while highlighting the need for complementary reforms.

Beyond rate relief, CPA Australia is calling on the government to address New Zealand’s persistent technology-adoption challenge. 

Analysis from CPA Australia’s 2024–2025 Asia-Pacific Small Business Survey shows New Zealand businesses rank among the lowest performers regionally in online revenue generation, and only 22 per cent reported profitability gains from technology investment, which was the weakest in the region.

“Rate cuts will help businesses manage costs, while complementary policy can unlock productivity improvements,” Mr Jones said. 

“Budget 2025’s Investment Boost has help to address capital-equipment needs, and targeted support for digital capabilities would help small businesses adopt the e-commerce systems, cloud services and business software that drive day-to-day profitability, complementing the Investment Boost’s focus on physical assets.”

While Wednesday’s OCR decision can provide short-term relief, it is the critical opportunity to address long-term competitiveness through targeted digital support. 

“To help New Zealand’s small businesses reach their full potential, we must support them to innovate, adopt technologies and build resilience. Lower interest rates ease immediate pressure, but digital-capability investment will secure long-term competitiveness,” Mr Jones said.