Investment Boost: How to maximise the benefits of this new scheme
As part of Budget 2025, the Minister for Finance, Nicola Willis, introduced Investment Boost– a new way for Kiwi businesses to reduce the cost of investing in new assets and equipment.
Let’s look at the benefits of the scheme and how it could help your small business.
What does Investment Boost offer?
Investment Boost is a new tax deduction that’s available to all Kiwi businesses, whatever the size of your business or your business type.
From 22 May 2025, you can claim 20% of the cost of new assets as an expense, then claim depreciation as usual on the remaining 80%.
What can you claim?
To claim Investment Boost, the asset you purchase must be:
- New or new to New Zealand
- Available for the business to use on or after 22 May 2025, and
- Depreciable for tax purposes.
You can also claim for:
- new commercial and industrial buildings
- improvements to depreciable property (but not residential buildings)
- primary sector land improvements
- assets arising from petroleum development expenditure and mineral mining development
- expenditure incurred on or after 22 May 2025 (except rights, permits or privileges)
What can you NOT claim?
There are some limitations on which assets you claim for under the Investment Boost scheme.
You cannot claim for:
- second-hand assets that are sourced from New Zealand
- residential rental buildings
- most fixed-life intangible assets (such as patents)
How can you make a claim?
You can claim the Investment Boost in your income tax return for the financial year in which you purchase a new eligible asset.
For instance, if you buy a new asset on May 23, 2025, include the Investment Boost amounts in your 2026 income tax return (which covers the financial year ending March 31, 2026).