Upgrade Your Fleet and Benefit from the 2025 Investment Boost

10 June, 2025

Looking to invest in new vehicles for your business? Now’s the time.

As part of the 2025 New Zealand Government Budget, a new Investment Boost initiative has been introduced — and it’s excellent news for Kiwi businesses looking to grow.

What Is the Investment Boost?*

From 22 May 2025, eligible New Zealand-registered businesses can claim an additional 20% tax deduction on new assets — including new vehicles. The remaining 80% of the asset cost continues to be depreciated at the standard rate, so the Investment Boost sits on top of your usual depreciation, not instead of it.

This extra deduction is designed to encourage productivity and investment in the tools that keep New Zealand moving. For industries like agriculture, construction, logistics, and trades, where vehicles are essential, this can mean real savings on your next purchase.

Applying the Investment Boost is optional, and there are no size or value thresholds. It’s available to businesses of all sizes, on eligible assets of any cost.

What Does That Actually Look Like in Dollars?

Here’s a simple example using a $60,000 ute purchased for business use:

Investment Boost deduction (20% of $60,000): $12,000 claimed upfront in year one
Standard depreciation: continues on the remaining $48,000 in subsequent years
Net effect: a significant chunk of your tax benefit is moved into year one, improving cash flow when it matters most

Under the old rules, you’d start depreciating the full $60,000 from scratch with no upfront boost. The Investment Boost moves a significant chunk of your tax benefit into year one, which improves cash flow. Your accountant can work out the exact figures based on your vehicle type and depreciation method.

Why Invest in New Vehicles Now?

By investing in your fleet today, you’ll not only benefit from improved safety, efficiency, and reliability, but you’ll also reduce your tax bill in the next financial year. It’s a win-win for your bottom line and your business operations.

At Ingham, we supply a wide range of fleet vehicles at dealerships across the North Island — all known for their advanced technology, fuel economy, and safety features.

Fleet Solutions for Every Business

No matter the size or sector of your business, we can tailor a fleet solution to suit your needs. With flexible ownership and leasing options, competitive servicing, and the support of local Ingham dealerships , we’re here to help drive your business forward.

From compact hybrids to hardworking utes and vans, our expert team will guide you through the best options for performance, value, and eligibility under the Investment Boost scheme.

How It Works*

When you purchase a new vehicle for business use under this scheme, here’s what you may be eligible to claim:

1. An extra 20% tax deduction in the current financial year

2. This is in addition to the standard depreciation deduction

3. The asset’s value is treated as being reduced by 20%, giving you a greater upfront tax benefit

For example, if your business’s tax year ends in May or June (as is common in the farming sector), buying a vehicle now could directly lower your taxable income before the year closes.

Eligibility

To qualify for the Investment Boost deduction, your vehicle purchase must meet the following criteria:

* The vehicle must be brand new (not used or second-hand within New Zealand)

* Purchased on or after 22 May 2025

* Used primarily for business purposes

* Bought by a New Zealand-registered business

One useful note: a vehicle previously used as a demonstrator at a dealership may still qualify, as it has not been used or available for use by a prior owner in New Zealand. Speak to your accountant to confirm eligibility in your specific situation.

What doesn’t qualify: second-hand vehicles purchased within New Zealand, vehicles used primarily for personal purposes, and trading stock.

A note on selling your vehicle later: if you sell a vehicle for more than its tax book value, the Investment Boost deduction may be partially clawed back. Again, your accountant can walk you through the implications before you buy.

* Information on this page is for reference only. You should seek independent advice from your account or lawyer. For more information visit https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/types-of-business-expenses/new-assets—investment-boost