New Zealand’s 2025 'Growth Budget' signals a strong governmental pivot toward boosting business productivity and investment. The centerpiece of this strategy is the Investment Boost tax incentive, designed to encourage firms of all sizes to acquire new productive assets.
Under the Investment Boost, businesses can immediately deduct 20 per cent of the cost of a new eligible asset, such as machinery, tools, commercial buildings, and technology, on top of normal depreciation. This is a significant cash flow advantage that reduces your taxable income in the year of purchase.
To access this benefit, the investment must involve new assets (not assets previously used in New Zealand) and be purchased from Budget Day onwards. Businesses must ensure they correctly classify the assets and apply the deduction correctly in their annual tax filings. The goal is to stimulate immediate investment and accelerate long-term economic expansion.
This is a powerful opportunity to upgrade and grow your business with a clear financial benefit. To ensure you maximise this tax incentive and structure your asset purchases correctly, expert guidance is essential. Better Business and tax can assist businesses in navigating the Investment Boost and accessing this critical financial relief.
