How the New Investment Boost Supports Business Asset Purchases
The New Zealand Government’s new Investment Boost—introduced on 22 May 2025—offers a valuable incentive for businesses to invest in new productive assets such as machinery, tools, vehicles, and commercial buildings. If your business is planning capital investment, this tax initiative can reduce your taxable income and improve cashflow at tax time.
What is Investment Boost?
Investment Boost allows businesses to deduct 20% of the value of a new qualifying asset in the same financial year the asset is purchased—in addition to normal depreciation on the remaining 80% value. This applies to most new depreciable assets, including imported second-hand equipment and new commercial buildings.
Why it matters
While the benefit is realised when your tax return is filed, it can significantly reduce your tax bill for that year. This means more cash stays in your business at a critical time, helping you reinvest and grow.
The benefits to your business include:
- Accelerated tax deduction – Claim 20% of the asset’s value upfront in your year-end return.
- Improved cashflow at tax time – Lower tax liability means more retained earnings.
- Wide eligibility – Includes new machinery, new commercial buildings, overseas purchases.
- Unlimited claims – No cap on how many eligible assets you can include.
A practical example
A manufacturer purchasing a $200,000 machine can deduct $40,000 using Investment Boost, plus standard depreciation on the remaining value. This leads to over $10,000 in tax savings when the return is filed—capital that can be reinvested for future growth.
Whether you’re upgrading equipment or investing in new premises, we can help you access the right funding solution. Talk to a CrediFlex broker today to take advantage of this opportunity and position your business for growth.
While every care has been taken to supply accurate information, errors and omissions may occur. The information in this blog provides general information and is not intended to be financial advice. You should consult a professional financial adviser before making any financial decision. You are solely responsible for any loss suffered from relying on information in this blog. This blog is for the use of persons in New Zealand only. Copyright in this blog is owned by Crediflex.
