Investment Boost 2025 Cheat Sheet

More tax savings. Better cashflow.

Faster return on your gear.

Why This Matters to You

Thinking about investing in a new equipment for your business? The Government’s new Investment Boost makes now a smarter time than ever.

From 22 May 2025, you can claim an extra 20% tax deduction on eligible new gear—on top of normal depreciation.

This means lower tax, better cashflow, and more capital to reinvest. If you’re upgrading your fleet or adding capacity, this could put thousands back in your pocket in the year you buy.

How Does It Work?

Here's the mechanics:

  • You buy a qualifying new asset after 22 May 2025
  • You can claim:
    • 20% of the asset’s value as a one-off deduction, plus
    • Normal depreciation on the remaining 80%
  • This is done in your tax return for the year you purchase it
  • There’s no need to register or apply—your accountant will include it in your return

For example, if you buy $200,000 worth of machinery, you can deduct $40,000 right away – giving you significant tax savings upfront (see case study below).

What Gear Qualifies?

  • New machinery, attachments, work vehicles, tools
  • Imported second-hand gear (as long as never used in New Zealand)
  • New commercial buildings
  • Land improvements (e.g. fencing, yards)
  • Capital improvements on eligible assets

What Doesn’t Qualify?

  • Used equipment purchased in New Zealand
  • Equipment purchased prior to 22 May 2025
  • Land (but improvements like fencing may qualify)
  • Patents or other fixed-life intangible assets

When Does It Apply?

  • Only for qualifying assets purchased on or after 22 May 2025
  • Asset must be available for use in that same financial year

Case Study: New Engine Package

Contractor buys a new $100,000 excavator package on 1 July 2025:

 

Before Investment Boost

With Investment Boost

Total Expenditure (excl. GST)

$100,000

$100,000

Upfront Investment Boost

–

$20,000 (20% of asset value)

Depreciation (13% DV)

$9,750 (13% of 100,000 for 9 months)

$7,800 (13% of remaining $80,000 for 9 months)

Total Year 1 Deduction

$9,750

$27,800

Tax Saving (28%)

$2,730

$7,784

Extra Tax Saving

–

$5,054 in Year 1

 

By using Investment Boost, the contractor keeps $5,054 more in their business in the first year - while still claiming normal depreciation in future years.

Common Questions

What if my business makes a loss this year?

No problem. The deduction increases your tax loss, which you can carry forward and use in future profitable years. So it’s still valuable—just later.

Do I need to apply or register?

No, just give the asset info to your accountant—they’ll handle it in your tax return.

Does it apply to financed or leased assets?

Yes—as long as the asset is purchased and used by your business. Leasing may not qualify—talk to your advisor.

Can I use this on hire equipment I’m buying?

Yes, if it’s being added to your own fleet (not just stock for resale).

Any cap or limit?

Nope. There’s no maximum claim amount and you can claim on multiple eligible assets.

Helpful Tips

  • Timing matters – make sure you purchase and have the machine ready to use in the same financial year to claim
  • Talk to your accountant early – especially if you're financing or structuring a large deal
  • Keep solid records – invoices, proof of use, and any import documentation (if buying overseas)

 

Want to find out more? Get in touch with our team today!

 

Disclaimer

This information is intended as a general industry overview only and does not constitute financial or tax advice.

Please consult with your accountant or financial advisor to determine how this applies to your specific situation.