Otago Chamber of Commerce chief executive John Christie said Mr Key's package "properly spotlighted the issues at hand" facing businesses and reflected "the Government's commitment and acknowledgement" to a sector which employs the most people in the country.
"The tax changes are practical and, I'm sure, will be welcomed by the business community. No-one will complain about less tax, or less often," Mr Christie said of reductions and cuts to the number of filing dates.
He said although the tax changes would be the obvious focus for many businesses to consider, he complimented the Government on having the New Zealand Export Credit Office temporarily extend the timeframe of its trade credit insurance, a matter with which the chamber is involved and which is often overlooked.
Trade credit insurance, which uses a guarantee to banks that an exporter will be paid according to contract, has been extended from covering contracts with terms of more than 360 days to up to two and a-half years.
The credit crunch has seen some Otago exporters suffer losses in recent months, when traditional letters of credit guaranteeing payment have been broken while goods were in transit.
The goods subsequently had to be sold elsewhere, at a loss.
Mr Christie said some of the business service seminars and mentoring already provided by the chamber would have expanded programmes soon in support of yesterday's announcements.
Otago Southland Employers Association chief executive Duncan Simpson described the package as positive and was impressed it would be enacted quickly, on April 1.
"Let's accept this as a good start and see where it all goes next," Mr Simpson said.
He highlighted that southern compliance costs per employee annually were about $930, covering tax, employment issues and the Resource Management Act, while in the north they were about $728.
"Compliance costs are more of a burden in the south and any form of saving will be welcomed," Mr Simpson said.
Mr Key said the temporary reduction of the amount of provisional tax paid - the formula of 105% of last year's tax, will reduce to 100% on April 1 - would provide an estimated boost to cashflows of $245 million.
Mr Simpson saw the provisional tax change as one of three important changes for business, the others being lifting the GST threshold to $60,000 and widening the Disputes Tribunal jurisdiction to save on costs going to district courts.
Mr Key said the relief package would give businesses breathing space during two challenging years ahead.
