Our Take on the Investment Boost Initiative: Opportunities for 2025 and Beyond
The 2025 Budget introduced a number of measures aimed at stimulating economic growth and supporting New Zealand businesses. Among them, the Investment Boost initiative stands out as a strategic opportunity for companies looking to expand, modernise, and improve productivity.
At Rodgers & Co, we’ve reviewed the details and assessed what this could mean for our clients—both now and in the years ahead.
What Is the Investment Boost Initiative?
The Investment Boost is designed to encourage businesses to invest in capital assets, technology, and productivity improvements by offering targeted tax incentives. While the finer points may vary depending on sector and asset type, the underlying goal is clear:
- Accelerate investment in productivity-enhancing equipment, systems, and training
- Encourage innovation through adoption of modern technologies
- Support long-term growth by reducing current year tax pressure on businesses
In essence, it’s a Government-backed nudge to move from “someday” investment plans to “today” action.
Why It Matters in 2025
With the economic environment still adjusting to global headwinds and domestic cost pressures, New Zealand businesses are weighing investment decisions carefully. The Investment Boost initiative can tip the scales by:
- Reducing your tax burden – the Investment Boost gives a reduction in your tax payable and can help reduce current year tax payments.
- Strengthening Competitive Advantage – Businesses that modernise now will be better placed to outperform competitors still relying on outdated systems.
- Encouraging Long-Term Planning – Incentives make it easier to justify investments in assets with multi-year payoffs, such as automation, software integration, and renewable energy solutions.
Opportunities for Different Sectors
We see particular opportunities for:
- Manufacturing & Production – Upgrading plant and machinery to improve efficiency and reduce waste.
- Professional Services – Investing in AI and data analytics platforms to streamline workflows and enhance client service.
- Agriculture & Primary Industries – Modernising equipment to meet sustainability targets and improve yields.
- Construction & Trades – Implementing new project management systems and advanced tools to increase productivity.
Our Recommendations for Business Owners
If you’re considering taking advantage of the Investment Boost initiative, here are our top recommendations:
- Run the Numbers – Factor in both the tax incentive and the potential efficiency gains to understand the true ROI.
- Prioritise Strategic Investments – Focus on assets and technology that will still be relevant in 5–10 years.
- Align with Sustainability Goals – If your sector faces environmental regulations, invest in solutions that help you stay ahead of compliance requirements.
- Seek Professional Advice Early – Tax rules are complex, and maximising your benefit often comes down to timing and structuring.
- If you sell the items purchased make sure you consult a tax advisor before hand as there maybe tax consequences to the sale.
How Rodgers & Co Can Help
Our accounting and advisory team can guide you through the full lifecycle of taking advantage of the Investment Boost:
- Assessing eligibility and investment priorities
- Modelling financial outcomes
- Structuring purchases for maximum tax efficiency
- Integrating your investment into long-term business strategy
We see 2025 as a pivotal year for businesses ready to take a forward-looking approach. With the right planning, the Investment Boost initiative could be a catalyst for both short-term gains and sustained growth well into the future.
Ready to explore your options?
Let’s talk about how the Investment Boost could work for your business. Contact Rodgers & Co today to arrange a consultation.
FAQs About the Investment Boost 2025 Initiative
What is the Investment Boost 2025 initiative?
The Investment Boost 2025 is a Government tax incentive designed to encourage New Zealand businesses to invest in productivity-enhancing assets, technology, and training.
Who can benefit from the Investment Boost?
Most New Zealand businesses investing in qualifying capital assets, equipment, or systems may be eligible. The exact eligibility criteria depend on the asset type and sector.
Is the Investment Boost available for technology upgrades?
Yes, investments in productivity-enhancing technology such as software, automation, and data systems may qualify, provided they meet the scheme’s criteria.
What does the Investment Boost apply to?
Eligible Assets (You can claim Investment Boost on):
- New or new‑to‑New Zealand business assets purchased, or finished constructing, on or after 22 May 2025, provided they’re depreciable for tax purposes.
- New commercial and industrial buildings.
- Improvements to depreciable property, but not residential buildings.
- Primary-sector land improvements, such as fencing or similar works.
- Assets arising from petroleum‑development expenditure, and mineral mining development expenditure, incurred on or after 22 May 2025 (excluding rights, permits, privileges).
- Mixed-use assets, but only to the extent they are used for business (the business-use portion).
What the Investment Boost Does Not Apply To
These asset types are excluded:
- Second-hand assets that were previously used within New Zealand.
- Residential rental buildings, or simply residential buildings.
- Most fixed‑life intangible assets—for example, patents.
Practical Takeaway
If you’re buying or building something for business use in New Zealand that is new or new-to-NZ, depreciable, and not residential or a fixed-life intangible, you’re generally good to go. That includes upgrades to existing business property and specific sector investments like in mining, forestry, or land improvements.
