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The Investment Boost is a new tax deduction for New Zealand businesses effective from 22 May 2025. If you buy new assets for your business, you can claim a bigger tax deduction in the year you buy them. This helps reduce your tax bill sooner.
How does the Investment Boost work?
When you buy a new asset, you can:
• Deduct 20% of the asset’s cost in the year of purchase, plus
• Claim normal depreciation on the remaining 80% of the cost
You get both the boost and the standard depreciation. You’re essentially front-loading part of the asset's depreciation, giving your tax position a helpful nudge in year one.
What can I claim it on?
Most new business assets that are normally depreciated, like:
• Machinery
• Equipment
• Work vehicles
• New commercial or industrial buildings (even if they aren’t usually depreciated)
What can’t I claim it on?
You can’t claim Investment Boost on:
• Second-hand assets that have already been used in NZ
• Land
• Stock for resale (trading stock)
• Homes or residential buildings
• Intangible assets like patents
• Assets already fully claimed under other tax rules
Can I use it for overseas purchases?
Yes – as long as the asset is new to New Zealand (never used here before).
What if I only use the asset part-time in my business?
You can only claim Investment Boost on the business-use portion of the asset.
Can I claim it for new commercial buildings?
Yes – if they’re used for business (like offices, warehouses, or shops).
No – if they’re homes or residential rentals.
Some exceptions apply for things like hotels, hospitals, and rest homes.
What about improvements or upgrades?
Yes, big improvements (like strengthening a building) can qualify if the original asset qualifies too.
What if my construction started before 22 May 2025?
You might still qualify if:
• The asset is first used (or ready to use) on or after 22 May 2025
• It meets the other eligibility rules
Is there a limit to how much I can claim?
No – there’s no cap on the number or value of assets.
What happens when I sell the asset later?
Just like with depreciation, you may need to pay back some of the tax deduction if you sell the asset for more than its reduced tax value.
Are any other items eligible?
Yes – including some special types of business spending like:
• Improvements to farmland, forestry, and aquaculture
• Planting certain crops
• Petroleum and mining development
For more information go to: www.taxpolicy.ird.govt.nz or if you’d like to chat through how this applies to your business, give our team a call on 09 430 4888
