David Hooper - Accounting Contributor
02 June 2025, 9:00 PM
The Government has introduced the Investment Boost initiative as part of Budget 2025.
This new policy allows businesses to claim an immediate 20% tax deduction on the cost of eligible new assets.
To qualify, assets must be new to New Zealand—either brand new or previously unused within the country.
Eligible assets include assets such as commercial and industrial buildings, plant and machinery, equipment, and work vehicles.
This does not apply to residential buildings and fixed-life intangible property (e.g. copyrights, trademarks, or land-use rights).
This incentive applies to qualifying assets purchased on or after 22 May 2025, with deductions claimable in your income tax return for that income year.
E.g. Buy a $80,000 vehicle on 31 March and claim an expense of $16,000 in that year plus normal depreciation.
You may want to plan ahead as I expect a lot of purchases timed for March 2026 which could lead to stock shortages.
The deduction reduces the cost price for calculating depreciation.
For example:
If your business acquires a qualifying asset for $100,000:
This results in a front-loaded tax benefit, reducing taxable income earlier and improving after-tax cash flow.
KiwiSaver Changes – Contribution Rates and Eligibility Updates
Several key changes to KiwiSaver will affect both employers and employees:
Contribution Rates Increasing:
Expanded Eligibility:
Full Budget 2025 details are available at: budget.govt.nz
Government Contributions Adjusted:
At David Hooper Chartered Accountants, we help local businesses make smart financial decisions—from asset planning to managing KiwiSaver obligations.
Get in touch today at [email protected] or call 09 421 1635.