If you’re a business owner thinking about investing in new equipment or property, there’s a new tax incentive that you should know about. From 22 May 2025, the government introduced an Investment Boost to encourage businesses to grow and upgrade.
What Is the Investment Boost?
The Investment Boost is a tax deduction for certain new or imported second-hand assets that have never been used in New Zealand before. If you buy qualifying assets, you can:
- Immediately write off 20% of the cost.
- Then depreciate the remaining 80% using standard depreciation rules.
This gives you a faster tax break up front, helping reduce your taxable income.
What Kind of Assets Qualify?
Here’s a quick list of assets that do qualify:
- Machinery, equipment, and work vehicles
- New commercial and industrial buildings
- Buildings under construction as of 23 May 2025, that have never been used
- Farmland improvements
- Planting of approved horticultural crops
- Aquaculture and forestry land improvements
- Technology investments
Important Notes
- If you sell the asset later for more than its depreciated value, the 20% write-off will be clawed back as part of depreciation recovery.
- The boost doesn’t apply to residential buildings.
This is a great opportunity for businesses to invest in growth and upgrade technology, while getting a helpful tax benefit. If you’re planning to make big purchases, talk to us to see how this boost could work for you.