On 22 May 2025, the Minister of Finance, Hon Nicola Willis, delivered Budget 2025. While there’s plenty we could say about the budget, we’ve zeroed in on one standout insight we think you, our clients, can benefit from most in the immediate furture.
What’s new: The Investment Boost
The Budget introduces the Investment Boost, a tax incentive designed to encourage businesses to invest in productive assets. In practical terms, this could mean upgrading your workplace technology, investing in better tools for your team, or if you’re a landlord, enhancing your site offering to attract quality tenants.
The surprise announcement of the Investment Boost, allowing businesses to immediately deduct 20% of a new asset’s value from that year’s taxable income (on top of normal depreciation), could have positive outcomes for the property and construction sectors too. Importantly for building owners, this incentive applies in three key scenarios:
- When someone constructs a new commercial or industrial building for use in their own business.
- When a company purchases a new commercial or industrial building.
- When capital improvements, such as significant strengthening works and seismic are made to an existing building.
The key advantage
Here’s the real highlight: the Investment Boost represents a $6.4 billion package over four years, creating a potentially significant cashflow advantage. It applies to technology, new industrial and commercial buildings, machinery, tools, equipment and other capital assets (excluding land, residential buildings, assets used overseas and existing buildings). This means if you’re already planning to upgrade or expand, you’ll see a notable reduction in your tax bill in the year of purchase.
What this means for you
For our clients, this represents a real opportunity. Whether you’re rethinking your workplace technology offering, refreshing your operational tools, or planning a site upgrade to future-proof your property, this 20% boost can help bring those plans forward while easing the initial financial impact.
For building owners, owner occupiers and the private sector, it maybe a chance to bring forward your planned capital works programme/investment in either redevelopment or seismic strengthening or similar initiatives, that are supported by this immediate tax relief.
If you’re curious about how this incentive could align with your current or future projects, our team is here to help you assess the best approach.
