Claim 20% Deductions on New Business Assets with Investment Boost
Investment Boost allows businesses to claim 20% deductions for the costs of new (or new to New Zealand) business assets that they bought - or finished constructing - on or after 22 May 2025.
Businesses can claim Investment Boost in their income tax return for the year they buy a new business asset.
Record the Investment Boost amount the same as depreciation and include it in your Financial statements summary - IR10, or financial accounts.
For example, if you buy a new asset for $10,000 on 23 May 2025, include the Investment Boost amount of $2,000 (20%) as depreciation in Box 52 on your Financial statements summary - IR10.
New assets - Investment Boost
Investment Boost is a new tax deduction for all businesses. From 22 May 2025, businesses can claim 20% of the cost of new assets as an expense, then claim depreciation as usual on the remaining 80%.
What you can claim for
Businesses can claim 20% deductions for the costs of new (or new to New Zealand) business assets that they bought - or finished constructing - on or after 22 May 2025.
To claim Investment Boost, the asset 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)
- mixed-use assets.
There is no limit to the value of new investments you can claim Investment Boost for.
What you cannot claim for
You cannot claim Investment Boost for:
- second-hand assets that are sourced from New Zealand
- residential rental buildings
- most fixed-life intangible assets (such as patents).
How to claim
You can claim Investment Boost in your income tax return for the year you buy a new asset.
The Investment Boost amount should be recorded the same as depreciation and included in your Financial statements summary - IR10, or financial accounts.
For example, if you buy a new asset for $10,000 on 23 May 2025, include the Investment Boost amount of $2,000 (20%) as depreciation in Box 52 on your Financial statements summary - IR10.
If the asset is sold
If a business sells the new asset for more than its adjusted tax value (its cost minus the deductions and depreciation), they must declare the gain as taxable income on their tax return. This does not apply to primary sector land improvements.
Visit the IRD website for examples of how your business can claim the Investment Boost or contact Alliott NZ Chartered Accountants in Newmarket Auckland on 09 520 9200.
