As part of May 2025 Budget, the Minister for Finance, Nicola Willis, introduced Investment Boost, a new way for Kiwi businesses to reduce the cost of investing in new assets and equipment.
What does Investment Boost offer?
Investment Boost is a new tax deduction that’s available to all Kiwi businesses, whatever the size of your business or your business type.
From 22 May 2025, you can claim 20% of the cost of new assets as an expense, then claim depreciation as usual on the remaining 80%.
What can you claim?
To claim Investment Boost, the asset you purchase must be:
- New or new to New Zealand
- Available for the business to use on or after 22 May 2025, and
- Depreciable for tax purposes.
You can also claim for:
- new commercial and industrial buildings
- improvements to depreciable property (but not residential buildings)
- primary sector land improvements
- assets arising from petroleum development expenditure and mineral mining development
- expenditure incurred on or after 22 May 2025 (except rights, permits or privileges)
You cannot claim for:
- second-hand assets that are sourced from New Zealand
- residential rental buildings
- most fixed-life intangible assets (such as patents)
If you’re looking to invest in new assets and equipment, Investment Boost has come along at exactly the right time. Phone your manager and talk about maximising this tax incentive.
