Great news for Kiwi businesses! From 22 May 2025, you can take advantage of the new Investment Boost tax deduction when purchasing eligible business assets.
💼 Investment Boost: A New Tax Deduction for NZ Businesses:
Are you planning to invest in new equipment or assets for your business? You might be eligible for the Investment Boost, a new tax deduction introduced by the New Zealand Government to support business investment and productivity.
🚀 What is the Investment Boost?
The Investment Boost is a special 20% upfront tax deduction for businesses that purchase new capital assets — such as machinery, vehicles, equipment, and even new commercial or industrial buildings.
This allows you to accelerate your depreciation deductions, reducing your taxable income in the year of purchase.
🔍 How Does It Work?
In the year you purchase an eligible new asset, you can claim:
- ✅20% of the asset’s cost as an upfront deduction
plus - ✅ Standard depreciation on the remaining 80% of the cost
This means a double benefit in the first year.
✅ What Assets Qualify?
You can claim Investment Boost on:
- New machinery or equipment
- New work vehicles
- New commercial or industrial buildings (even if normally non-depreciable)
- New capital improvements to depreciable property
- New imported assets (if never used in NZ before)
Even horticultural, forestry, aquaculture, and petroleum/mining improvements may qualify under specific rules.
🚫 What’s Not Eligible?
You can’t claim Investment Boost on:
- Second-hand assets previously used in NZ
- Land or trading stock
- Residential buildings (except hotels, rest homes, hospitals)
- Fully expensed low-value assets
- Patents and other fixed-life intangibles.
🤝 Need Help?
Navigating depreciation, tax deductions, and investment rules can be complex — but that’s what we’re here for.
📞Call or WhatsApp METTAX on +64 22 542 8101
📍 Or Email: info@mettax.co.nz
