Investment Boost: What Business Owners Need to Know  

Since the release of Budget 2025, we’ve been getting a lot of calls from business owners asking about the new Investment Boost. So we’ve collated some info based on the frequently asked questions. 

If you’re thinking of upgrading equipment or investing in your premises, here’s what you need to know. 

What is the Investment Boost?

It’s a new tax incentive giving businesses a 20% upfront deduction on new asset purchases. Think of it as a cashflow-friendly head start when investing in your business.

What assets are eligible?

Brand new assets purchased in NZ

• A brand new laptop from an NZ owned company such as PB Tech
• A new forklift from a local machinery dealer
• Brand new café fit out equipment from a commercial kitchen supplier
• A new company vehicle bought straight off the dealership floor

Second-hand assets imported from overseas (as long as they haven’t been used in NZ before).

• A second-hand CNC machine imported from Germany
• A refurbished espresso machine purchased from Australia
• Pre-loved office furniture shipped in from the UK

Key tip: You must be the first to use it in NZ for it to qualify.

Commercial buildings

• A new warehouse built for your logistics business
• A commercial office building purchased and ready for business use
• A retail premises constructed for your expanding shop

Remember: Residential buildings (e.g. rentals or holiday homes) don’t qualify.

When does this new Investment Boost come into play?

Only for assets purchased or ready for use from Budget Day 2025 onwards (22nd May 2025). So, timing matters – don’t assume older purchases will qualify.

How does the tax deduction work?

• You get a 20% upfront deduction in year one
• The remaining 80% is depreciated as usual
• If you later sell the asset for more than the value on the books, you may have to pay tax on this 20% plus any depreciation claimed

What if the asset is used for both business and personal use?

If you’re buying an asset that’s used for both business and private purposes, like a vehicle, you can only claim the 20% investment boost on the business portion.

For example:

• You buy a vehicle for $60,000
• It’s used 70% for business, 30% privately
• You can only claim the 20% boost on $42,000 (the business portion)
• That means your investment boost deduction would be $8,400 (20% of $42,000).

Important: You must keep good records, such as a logbook for vehicles, showing how the asset is used.

What does this mean for you?

If you’re planning a big spend like machinery, tech upgrades, or even a new building, this boost could help you reinvest faster. But there are conditions, so it’s best to get advice before jumping in.