In our recent discussion with Josh Taylor, co-founder of Taxi and Tax Traders, we explored the tax troubles facing Kiwi businesses and how bridging the knowledge gap could unlock billions for the New Zealand economy. From provisional tax confusion to cash flow challenges, Josh shared how better tools and education can make a huge difference for business owners.
The Scale of New Zealand’s Tax Troubles
Josh explained that around $18 billion of provisional tax sits unused in the system-money taken out of businesses but not actively working for them. For small businesses, this creates significant cash flow pressure. If even a portion of that capital could be redirected back into companies, it could generate a $10 billion boost to the economy each year, equating to more than 12% of GDP.
With around 200,000 small businesses across the country, that kind of injection would not only help businesses survive tough periods but also support hiring, investment, and overall economic growth.
Bridging the Knowledge Gap for Kiwi Businesses
At the heart of these tax troubles is a lack of understanding about how provisional tax and tax pooling work. Many Kiwi business owners find themselves paying too much tax upfront or being penalised for paying too little.
Tax pooling helps solve this by connecting businesses that have overpaid with those that need more time, reducing costs and smoothing cash flow.
Josh highlighted that education is just as important as the service itself. His team works with thousands of accountants and business owners, helping them understand tax as an asset that can be used more effectively. For many, realising that tax payments can provide security for funding facilities is a game changer, giving businesses the breathing room to grow and reinvest.
Unlocking Opportunities Through Innovation
Taxi and Tax Traders began as a kitchen-table start-up, fuelled by personal sacrifice and the belief that New Zealand’s tax system could be made more efficient.
Today, with billions under management, the company continues to focus on creating innovative ways to support businesses, from new digital tools for accountants to funding facilities that make tax more flexible.
By reframing tax as a usable asset, rather than just a cost, Josh and his team are not only helping Kiwi businesses manage their obligations but also giving them the tools to thrive in a challenging economy.
Key Takeaways
Around $18 billion of provisional tax is locked up in the system, creating unnecessary cash flow stress for businesses.
Unlocking this money could deliver a $10 billion annual boost to the New Zealand economy (12% of GDP).
Tax pooling allows businesses to manage over- and under-payments more effectively, reducing penalties and costs.
Education is key—both business owners and accountants need to understand tax as an asset.
Innovative solutions like Taxi and Tax Traders show how financial tools can bridge the knowledge gap and support growth.
Next Steps:
At Lighthouse Financial, our accounting team helps Kiwis make sense of their tax obligations and avoid costly mistakes. From managing provisional tax to structuring smarter strategies, we work with you to turn tax from a burden into an opportunity for long-term success.
Learn more about Tax Traders here.
If you’d like to learn more, check out these other episodes below.
For a no obligation discussion to see how we can help you on the path to wealth, please contact us.
Disclaimer:
The information in this article is general information only, is provided free of charge and does not constitute professional advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.
