A warning to small and medium sized businesses to start planning now for new Government taxes and initiatives.

The Auckland Chamber of Commerce says raising the minimum wage and the introduction of a regional fuel tax will have an impact.

Chief executive Michael Barnett said the instinctive response is that prices will have to increase.

But he said some of the businesses have options like looking at technology to improve productivity.

"Some of them may be less inclined to be able to do that but either way they are going to have to go through that process and they are better to start that early than leave it to the last minute," he said.

The reaction to the minimum wage increase has been divisive.

Economist Eric Crampton told Mike Hosking this week that the planned increase to $20 by 2021 will cost jobs.

"That would be about 15,000 fewer jobs than we would otherwise have and a net cost to the government of about $125 million," he said.

Others have been more optimistic.

Christchurch Central City Business Association Chair Brendan Chase said businesses there would be able to cope.

"I like to think that the businesses are sustainable anyway and are not just hanging on by the skin of their teeth," he said.