The government is rolling out something called Investment Boost to encourage businesses to invest in new assets.
From 22 May 2025, businesses can claim 20% of the cost of new assets as an expense, then claim depreciation as usual on the remaining 80%.
Here is the gist of it:
- When you buy eligible assets, you can write off 20% of the cost straight away – just like an immediate expense.
- The other 80% gets depreciated as usual over time.
- The asset must be new, or second- hand if it’s imported and hasn’t been used in New Zealand before.
- If you sell the asset later, and the sale price exceeds the book value you will have to pay back depreciation including the investment boost claimed on that asset, to the extent that sale price exceeds book value. On sale the investment boost is treated the same as depreciation claimed.
- It doesn’t apply to residential buildings – this is strictly for business-related assets.
What assets qualify?
The boost applies to a wide range of business investments, including:
- machinery, equipment, and work vehicles
- new commercial and industrial buildings
- buildings under construction as of 23 May 2025, as long as they haven’t been used or made available for use yet
- farm improvements (like irrigation systems), horticultural plantings, aquaculture upgrades, and forestry improvements
- technology and tech-related gear.
