Why was the Investment Boost made?

The Investment Boost is a new way for NZ businesses to reduce the cost of investing in new assets and equipment, aiming to drive productivity, investment, and economic growth.

It is forecast to lift NZ GDP by 1% and wages by 1.5% over the next twenty years, with half these gains in the next five years.

How does the Investment Boost work?

From May 22 2025, businesses can claim an upfront 20% deduction on the cost of new assets, the remaining 80% then follows rules standard depreciation as usual.

You can claim both Investment Boost and a standard depreciation deduction in the year you purchase the asset, accelerating the depreciation of your assets by taking a larger deduction in the year of purchase.

What assets can I claim?

The asset you purchase must be: 

• New (or new to New Zealand if second-hand) 
• Depreciable for tax purposes 
• Available for your business to use on, or after 22 May 2025

Some examples are machinery, office equipment and technology, work vehicles, and new commercial or industrial buildings. 

There is no limit on the number of assets you can claim the Investment Boost for!

What assets can’t I claim?

The asset you purchase can’t be: 

• Assets that are fully expensed under other rules (e.g. valued below $1000)
• Second-hand assets sourced from New Zealand
• Residential buildings (including rentals)
• Land
• Most fixed-life intangible assets (such as patents)

How do I get started?

Investment Boost deductions are claimed in your income tax return for the financial year that you purchased your asset. E.g. any eligible asset bought in the month of July 2025 would be included in your 2026 income tax return, which covers the financial year ending March 31, 2026.

If you’re looking to purchase any new assets and equipment, talk to us about making the most of Investment Boost!