In a bid to drive economic productivity and growth, the National Government has introduced the investment boost initiative. At a micro level, this tax incentive provides businesses with additional funds in the form of tax savings, hopefully resulting in companies becoming more competitive. Under this new scheme, from 22 May 2025, businesses are able to claim 20% of the cost of a new asset on top of claiming depreciation. Commentary suggests this should result in a lower tax bill in the year the money is spent as well as a boost to operating cash flows. Whether these benefits transpire in reality is dependent however on a host of factors.
Specifically, all businesses irrespective of size, can claim the investment boost when they purchase new assets or those new to New Zealand. Assets included in the initiative are:
Business owners need to be aware the investment initiative cannot be claimed for certain assets such as second-hand assets, residential rental buildings, fixed-life intangible assets (eg: patents).
At Greenlion we’ve been thinking of ways you could maximise the use of this tax incentive in your business. We note these below.
All Lion Advisors enjoy assisting clients grow their businesses. So if you think the investment boost initiative could assist your operations or you want to discuss how to take advantage of it, contact Greenlion. We’ll happily help you apply this initiative to gain competitive advantages and improve your bottom line.
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