Investment Boost
Economic growth lifts living standards, creates higher-paying jobs, and helps fund the public services Kiwis rely on. That’s why we’re going for growth with Budget 2025 – The Growth Budget.
The centrepiece of Budget 2025 is Investment Boost – a tax incentive for businesses to invest in productive assets like machinery, tools and equipment. With Investment Boost, businesses can deduct 20 per cent of a new asset’s value from that year’s taxable income, on top of normal depreciation. Because the cashflow from investments improves, more investment opportunities become financially viable and therefore more take place.
Business investment raises the productivity of workers, lifts incomes and drives long-term economic growth. By increasing the stock of capital in New Zealand, Investment Boost is expected to lift GDP by 1 per cent and wages by 1.5 per cent over the next twenty years, with half these gains in the next five years.
Investment Boost makes New Zealand a more attractive place to invest. It gives businesses facing global uncertainty a reason to keep investing in themselves and in the future of New Zealand.
Other Budget 2025 initiatives to drive economic growth include:
Attracting foreign investment through Invest New Zealand.
Changes to international tax rules to encourage investment in infrastructure.
Making it easier for Kiwi startups to compete for talent by changing how employee share schemes are taxed.
Growing tourism by investing international visitor fees into tourism and conservation upgrades in popular areas.
Accelerating science, innovation and technology reforms.
Supporting growth in the screen industry by renewing screen production rebates.
Supporting the replacement of the Resource Management Act to unlock investment and growth across the country.