A Game-Changer for Business Investment: What Budget 2025 Means for Commercial Builds.
If you're considering a new commercial or industrial building, there’s never been a better time to move ahead.
From 22 May 2025, the Government's new Investment Boost scheme allows businesses to immediately deduct 20% of the cost of a new asset, including commercial buildings, in the year it’s completed and in use. That’s on top of standard depreciation rules.
WHAT DOES THAT MEAN FOR YOU?
Let’s say you build a new warehouse or manufacturing facility worth $5,000,000. With Investment Boost, you could deduct $1,000,000 from your profit this tax year - reducing your tax bill significantly. For many businesses, that’s a real cashflow injection at the time you need it most.
Why it matters
- Immediate tax relief: Reduce your profit (and tax bill) by 20% of the build cost in year one.
- No cap on spend: Applies whether your new facility costs $100k or $10 million.
- Applies to new buildings: If your new building is in use from 22 May 2025 onwards, you're eligible — even if construction started before this date.
- Available to all businesses: No size limits. No industry caps.
WhAT TYPES OF BUILDINGS QUALIFY?
- Commercial and industrial buildings
- Additions or improvements to existing eligible buildings
- New assets that haven't been used in New Zealand before
WhAT DOESN'T QUALIFY?
- Residential dwellings
- Land purchases
- Assets already used in NZ
WhAT'S THE CATCH?
There really isn’t one - but timing matters. The deduction applies only once the building is completed and in use. So, if you’re still in design or pre-consent stages, now’s the time to accelerate.
HOW ATTIKA CAN HELP
We know every dollar counts when you’re growing your business. Our team makes the process clear, compliant, and cost-efficient, from design to handover. And now, with Investment Boost in play, the numbers on your new facility might stack up even sooner than you expected.
Let’s talk about how this incentive could improve your project’s ROI.
Call us on 0800 428 800
Further reading
- Official Beehive Announcement: https://www.beehive.govt.nz/release/investment-boost-tax-incentive-lift-growth
- IRD Technical Factsheet: https://taxpolicy.ird.govt.nz
* Disclaimer:
This article is for general information only and does not constitute financial or tax advice. Attika takes no liability for any decisions made based on this information. We strongly recommend you seek personalised advice from a qualified accountant or tax professional to understand how the Investment Boost incentive applies to your specific situation.
