The National Government announced in its Budget on 22 May 2025, the creation of Investment Boost, a new scheme to help New Zealand businesses to accelerate depreciation on the purchase of new assets thereby supporting productivity and economic growth.
Investment Boost allows for an initial 20% claim on the cost of new assets purchased each year, with depreciation then claimed as normal. This will apply to most assets that are depreciable for tax purposes, such as machinery, office equipment and work vehicles. In addition, Investment Boost will apply to the purchase of new commercial and industrial buildings. Capital improvements are also eligible for the Investment Boost deduction.
Assets that are not covered include:
- Assets that have previously been used in New Zealand
- Land
- Trading stock
- Residential buildings
There is no requirement to claim the Investment Boost. You can opt to just continue to depreciate assets based on the standard depreciation rules.
Assets need to be used or available for use for the first time, on or after 22 May 2025 to be eligible for the claim.
New and second hand assets that have been imported from overseas may be eligible for Investment Boost if they have not been used before in New Zealand.
As more details become available, we will update you on how this may apply to your business.