Quick answer
Investment Boost lets New Zealand businesses claim 20% of the cost of new assets as an immediate deduction, then depreciate the remaining 80% as usual, for assets acquired from 22 May 2025. Inland Revenue says it doesn't apply to second-hand assets sourced from New Zealand, but assets new to New Zealand can qualify. That can favour new or imported equipment — so long as delivery is quick enough for the business.
Key points
- Investment Boost: 20% of the cost of new assets deducted upfront, from 22 May 2025.
- Second-hand assets sourced in New Zealand don't qualify; new-to-NZ assets can.
- The deduction reduces tax, not the purchase price — cash still leaves first.
- Downtime and delivery times can outweigh the tax benefit.
- Search the PPSR before buying any second-hand asset.
When a business needs a machine, a vehicle or a fit-out, the decision used to be fairly simple: new costs more, used costs less, and you pick based on budget and urgency. Investment Boost has added a tax dimension that can change the answer. This guide explains how it works, how it affects new versus used versus imported equipment, and how to fund the purchase quickly whichever way you go.
This is general information, not tax advice — confirm the treatment of any purchase with your accountant.
What is Investment Boost?
In Inland Revenue’s terms, a business that buys a qualifying new asset on or after 22 May 2025 can expense one-fifth of its cost (20%) straight away, with ordinary depreciation applying to the other four-fifths.
In practice, the deduction brings forward a chunk of tax relief into the year you buy the asset. It doesn’t change the purchase price, but it can improve your cash position at tax time.
Which assets qualify — and which don’t?
According to Inland Revenue, assets qualify if they’re new or new to New Zealand and acquired or built on or after 22 May 2025. IRD says an asset counts as “new” if it has only ever been held by the seller for the purpose of selling it, or has only had minimal use, such as testing before sale.
On IRD’s list of things that can qualify are new commercial or industrial buildings, improvements to depreciable property that isn’t a residential building, land improvements in the primary sector, and assets with mixed business and private use.
On the excluded side, IRD names residential rental buildings, most intangible assets with a fixed life (patents are the classic example) and — most relevant to equipment buyers — any second-hand asset bought from within New Zealand.
The key line for equipment buyers is the first exclusion. A used machine bought from a New Zealand seller doesn’t qualify; IRD’s guidance indicates that a used machine imported from overseas — new to New Zealand — can.
How does this change the new vs used decision?
| New (NZ dealer) | Used, NZ-sourced | Used, imported (new to NZ) | |
|---|---|---|---|
| Investment Boost | Can qualify | Doesn’t qualify | Can qualify |
| Purchase price | Highest | Lowest | Middle, plus freight and import costs |
| Availability | Depends on dealer stock | Often immediate | Slowest — shipping and compliance |
| Warranty | Usually | Rarely | Rarely |
| PPSR check needed | No | Yes | Check seller’s position overseas too |
So the trade-off becomes: is the tax benefit of new (or imported) worth the higher price and possibly longer wait, compared with a cheaper used machine available tomorrow?
How do I weigh the tax benefit against downtime?
Put rough numbers on both sides:
- Price difference between new and used.
- Estimated tax benefit of the Investment Boost deduction on the new asset — your accountant can estimate this based on your tax position.
- Cost of waiting — lost revenue for each extra week before the asset is working.
- Running costs — new equipment may be more reliable and efficient.
An illustrative example: a Waikato earthmoving contractor needs a 14-tonne excavator. A new one costs $245,000 with six weeks’ delivery; a three-year-old local machine costs $170,000 and is available now. The 20% deduction on the new machine brings forward a tax benefit, but the business has contracts worth $9,000 a week waiting. Six weeks of lost work outweighs the tax advantage, so it buys the used machine now — and plans to buy new, with Investment Boost, for its next expansion when there’s no urgent deadline. (Illustrative only.)
The point: the tax benefit is real, but speed has value too.
If you’ve already chosen the machine, apply in about 60 seconds with the supplier’s invoice — funding can often go straight to the seller within a day.
What about GST on equipment?
If you’re GST-registered, you’ll generally pay GST at 15% on the purchase and may be able to claim it in your next GST return. That’s a cash flow point: the GST leaves your account on purchase day and comes back weeks later. Make sure your funding covers the GST-inclusive price unless you have the cash to cover it in the meantime. Private sales from non-registered sellers usually don’t include GST.
How do I fund equipment quickly?
| Option | Speed | Best for |
|---|---|---|
| Unsecured business loan | Same day possible for smaller amounts | Used gear, private sales, smaller purchases |
| Cash flow loan | Often within 24 hours | Assets that pay back within months |
| Property-secured loan | $20k–$250k possible same day; larger within 24–48 hours | Larger purchases, several assets, longer terms |
| Dealer or asset finance | Varies | New equipment from dealers |
Many asset financiers prefer new equipment from dealers. If you’re buying used, at auction, privately or importing, a general business loan can be faster and more flexible. See equipment and vehicle funding for more.
What checks should I do before buying?
- PPSR search for any used asset. The Companies Office describes the PPSR as a register where you can check whether there’s any debt or obligation attached to goods such as pre-owned vehicles, equipment or machinery.
- Ownership — confirm the seller has the right to sell.
- Condition — hours, service history, inspection.
- For imports — freight, insurance, compliance and certification costs, and realistic delivery time.
- Tax treatment — confirm with your accountant whether the asset is “new” for Investment Boost before relying on it.
When does timing around balance date matter?
Because Investment Boost is claimed in the year of acquisition, buying just before or just after your balance date (31 March for most businesses) changes which year the deduction falls in. That can matter for provisional tax planning. Our 2026–27 tax calendar shows the key dates; your accountant can tell you whether the timing makes a difference for you.
How do I plan a purchase that isn’t urgent?
If the equipment isn’t needed right away, you have time to make Investment Boost work for you:
- Talk to your accountant about which year the deduction would fall in and what it’s worth to you.
- Get quotes for new, used local and imported options, including freight, compliance and installation.
- Ask about delivery times in writing.
- Arrange funding in advance, so you can commit the moment the right asset is available.
- Book installation and training so the asset starts earning as soon as it arrives.
Planned purchases are also easier to fund. A lender can see the quote, the purpose and the expected return, and you can choose a structure without the pressure of downtime.
What about vehicles?
Work vehicles follow the same logic as other equipment, with a few extra checks: a PPSR search for any used vehicle, a current warrant or certificate of fitness, registration, and road user charges for diesel vehicles. Inland Revenue’s Investment Boost guidance refers to mixed-use assets as a qualifying category, so vehicles used partly privately may be treated differently — your accountant will know how it applies to your situation.
Does Investment Boost apply to buildings and fit-outs?
Inland Revenue lists new commercial and industrial buildings, and improvements to depreciable property other than residential buildings, among the categories that can qualify. That means some business fit-outs and building improvements may be eligible, while residential rental buildings are excluded. Because the rules around what counts as a separate asset or an improvement can be technical, ask your accountant before you rely on the deduction for a fit-out or building project.
Fund the right asset at the right speed
Whether you go new for the tax benefit or used for the speed, fast funding means you’re not choosing based on what you can afford today. See what your business qualifies for — about a minute online. There’s no credit check when you enquire, your details go to one specialist rather than to a group of lenders, and a real person will help you structure the purchase. Give us the price, the supplier and whether it’s new, used or imported, so we can line up the quickest route to getting it working.
Frequently asked questions
What is Investment Boost?
A tax measure that lets businesses claim 20% of the cost of new assets as an expense in the year they're acquired, then claim depreciation as usual on the remaining 80%, for assets acquired from 22 May 2025.
Does a used machine imported from overseas qualify?
Inland Revenue says new-to-New Zealand assets can qualify, even if previously used overseas, while second-hand assets sourced from New Zealand don't. Confirm your situation with your accountant.
Can I claim Investment Boost on a residential rental?
No. Inland Revenue lists residential rental buildings among the exclusions.
Does Investment Boost reduce what I pay the supplier?
No. It's a tax deduction, so the benefit comes through your income tax. You still need to fund the full purchase price upfront.
Can I fund a new asset quickly?
Yes. Unsecured or property-secured business loans can pay the supplier directly, often within 24 hours of applying, once the invoice and documents are ready.