EOFY + Investment (Tax) Boost

Written By Kim Manunui

Introduced in 2025 and designed to stimulate capital spending and support economic growth in the form of accelerated depreciation, the Gov’t Investment Boost scheme allows a further 20% depreciation on the purchase price of new qualifying assets in the financial year of acquisition, on top of standard depreciations that normally apply.

That means purchases made before the End Of Financial Year of 31 March 2026 can bring forward significant tax savings, reducing this year’s taxable income and freeing up cash for reinvestment. That immediate deduction can translate to firms being more comfortable committing to new assets now rather than later.

To qualify, assets must be new (or new to NZ), depreciable for tax purposes and purchased on or after 22nd May 2025.

Eligible assets include new business vehicles, plant, equipment and machinery, technology, new commercial and industrial buildings, improvements to existing business assets, primary sector land improvements and mixed use business assets. Previously used overseas, new to NZ assets are also eligible as are NZ new assets having had minor use such as demonstrator vehicles and equipment and floor stock held for sale.

Exclusions include second hand assets already used in NZ, residential rental properties and intangible assets such as patents.

The aim of Investment Boost is to improve business cashflow, lower the after-tax cost of investment and make previously marginal projects more attractive. By accelerating tax deductions into the current year, the Government expects firms to upgrade machinery, equipment, vehicles and even commercial buildings sooner rather than later — boosting productivity and supporting broader economic activity. This applies to assets purchased outright or under finance.

As always your source of truth for tax matters is your accountant or tax professional who we recommend consulting before engaging in capital expenditure.

Click here to take you to the IRD website section for Investment Boost.

For more on the above click on the link below .

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Kim Manunui

Hi, I’m Kim and I work with a great team to help individuals, as well as small and not so small businesses get their message, product and services to the world using digital media and creating wonderful websites that don’t cost the earth.

I was born in Canada, and grew up around Vancouver and the mountains of British Columbia. My love of pristine environments led me to New Zealand and eventually to the mountains, lakes and rivers of the central North Island which is home. My family’s heritage is here, and it’s from here that Korio traverses the planet.

The digital world is never static and neither are we.

And I say ‘we’ because I work with an awesome group of talented people who I gather together as required to complete a project.  Whatever your business, not-for-profit or individual needs are we gather the best team to get the job done.

Collaboratively we are creative, share sustainable values and work hard for great outcomes because that’s the buzz of satisfaction that drives us.

If you have an audience and market to reach, we can make that happen. Creative design, words that work and smart behind the scenes stuff that cuts through the online noise. We’ll design your website and then build it. We’ll manage the content as well as all your hosting needs. We can handle your online advertising so you get noticed,
and we’ll manage your social media presence so you get the clicks, likes and engagement to grow your business. All within the budget you set, because none of this needs to cost the earth.  And the job doesn’t stop when your website goes live. We are your virtual business partner.

https://www.korio.co.nz
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