Unlock Business Growth with the New Investment Boost Tax Incentive

Claim a 20% Instant Deduction on Eligible Assets Starting Now

The 2025 Budget has introduced a major win for New Zealand businesses looking to invest in growth. The new Investment Boost tax incentive allows you to instantly deduct 20% of the cost of eligible new assets from your taxable income in the year of purchase — on top of the standard depreciation you can claim over time.

This move is designed to improve cash flow, reduce tax liability, and help you reinvest in your business sooner.

What Is the Investment Boost?

The Investment Boost is a partial expensing scheme that came into effect for capital assets first used (or available for use) on or after 22 May 2025.

Here’s how it works:

• Deduct 20% of the asset’s cost immediately in your current tax year.

• Depreciate the remaining 80% over the asset’s useful life under normal depreciation rules.

This structure eases the upfront financial pressure when investing in major business assets.

What Assets Are Eligible?

To qualify, assets must be either:

• Brand new, or

• New to New Zealand

Examples of eligible investments include:

• Machinery, plant, and equipment

• Commercial or industrial buildings

• Farm infrastructure like irrigation systems and fencing

• Forestry or aquaculture improvements

• Vehicles, IT equipment, and office technology

• Enhancements to existing depreciable (non-residential) property

Even partially completed assets under construction before 22 May 2025 may qualify — as long as they haven’t yet been used.

Why It Matters for Your Business

This incentive gives you the flexibility to reinvest in your business faster. Key benefits include:

• Lower taxable income in the year of purchase

• Improved cash flow and liquidity

• Easier justification for upgrading essential tools, equipment, or systems

It’s a smart way to future-proof your operations while taking advantage of government support.

Let’s Make It Work for You

At Whiting Financial Services Ltd, we’re here to ensure you make the most of this opportunity.

We can help you:

• Identify which of your planned purchases qualify

• Review and optimise your capital investment strategy

• Ensure full compliance with tax requirements

• Align purchases with your long-term financial goals

Ready to Take Advantage?

Whether you’re thinking about upgrading your fleet, improving your farm setup, or fitting out a new office space — now is the time to act.

Let’s chat about how the Investment Boost can work for your business.

Don't wait until the end of the financial year — plan smart and invest confidently today.