Ford Ranger upgrade

One business owner decided to upgrade their Ford Ranger. By using the Investment Boost scheme, they were able to reduce the upfront tax impact and structure a finance solution that aligned with their cashflow.

Let’s take a look below at how the Investment Boost worked in this case:

The upfront 20% tax deduction made this upgrade far more affordable, turning what had been a deferred decision into a confident investment.

Considerations

While the scheme provides immediate tax relief, there are some key considerations:

• If an asset is sold or written off above its adjusted tax value, the excess may be taxable.
• Businesses holding assets short-term should carefully assess the tax and cashflow implications of an early sale or disposal.

What we’re seeing – and how your Finance New Zealand adviser can help

The Investment Boost is prompting many businesses to take action on upgrades they had previously put off, especially those with a strong forward workload and solid cashflow.

While the impact has been incremental rather than transformational, it’s proving to be a valuable lever for making confident investment decisions.

Your Finance New Zealand adviser can help you:

• Provide finance finance options from multiple lenders to complement the tax benefit
• Model the cash impact and repayment options
• Weigh up any risks around future asset disposal

What else does the investment boost cover?

✅ What you can claim

• 20% tax deduction on the cost of new (or new-to-NZ) business assets purchased or completed on/after 22 May 2025

Assets must be:

• New or new to New Zealand
• Available for use from 22 May 2025 onward
• Depreciable for tax purposes

Includes:

• New commercial & industrial buildings
• Improvements to depreciable property (excludes residential buildings)
• Primary sector land improvements
• Assets from petroleum/mineral development expenditure (excluding rights/permits)
• Mixed-use assets
• No cap on total claimable investment value
  

❌ What You Cannot Claim

• Second-hand assets sourced in New Zealand
• Residential rental buildings
• Most fixed-life intangible assets (e.g., patents)
  

Nexia New Zealand provides excellent asset-specific examples of what does and doesn’t qualify for the investment boost HERE.

For full details, see the IRD guide: View HERE

Different rules apply to non-depreciable assets. Please note Finance New Zealand is not a tax adviser. All information shared is for general purposes only. Be sure to check with your accountant or tax adviser to see how the investment boost relates to your situation.