As part of Budget 2025, the Government has announced changes that may affect your business.

Investment Boost – 20% deduction for new business assets

Investment Boost is a scheme that allows businesses to claim 20% deductions for the costs of new assets. Assets need to be previously unused in New Zealand (either brand new or new to

New Zealand).

Eligible assets include all depreciable property. They also include several assets that are allowed depreciation-like deductions and improvements to depreciable property. Common examples include new commercial and industrial buildings, machinery, equipment and work vehicles. Residential buildings and fixed-life intangible property (such as a copyright, trademark or rights to use land) are not eligible for Investment Boost.

Businesses will be able to claim deductions for new assets acquired on or after 22 May 2025 in their income tax returns for the relevant income year.