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/26 May 2025/inHelp & Advice

What does the Investment Boost mean for car buyers?

The Investment Boost represents a significant shift in how New Zealand supports business investment. Delivered during the government’s 2025 Growth Budget, and applicable from 22nd May 2025, this tax initiative allows businesses to claim an immediate 20% tax deduction on new eligible assets in addition to standard depreciation.

With vehicle purchasing in mind, this new tax benefit offers the ability to improve cash flow, making purchasing vehicles more attractive and financially viable for businesses of all sizes. “There’s no cap on the value of eligible investments. All businesses, regardless of size, can benefit,” announced Finance Minister Nicola Willis in a recent release. It delivers a 20% tax deduction, creating compelling financial incentives that align individual business needs with broader economic recovery goals.

Professional financial guidance

At this point, we’d like to let you know that we’re not financial advisors and advise you to seek professional advice. Your financial advisor can help you navigate the complexities of the Investment Boost scheme and ensure you’re maximising every available benefit. Be sure to engage with your financial advisor early in the process, and when the time is right, the Miles Group will be here to meet your requirements with dedicated fleet specialists throughout our organisation. Our team can assist with a single business purchase through to entire fleet management.

How the 20% Investment Boost initiative benefits vehicle purchasers

For business owners considering new vehicle purchases, this incentive creates immediate value. The 20% deduction applies only to the portion of the vehicle used for business purposes, but for vehicles used primarily in business operations, this represents substantial savings.

The timing couldn’t be better. In today’s challenging economic environment this measure provides meaningful financial relief exactly when businesses need it most – at the point of acquisition.

Qualifying for the Investment Boost

Your new vehicle purchase will qualify for the Investment Boost if it meets these criteria:

Essential requirements to qualify for the Investment Boost: 

  • Purchased on or after 22 May 2025
  • Brand new vehicles
  • Used for business purposes
  • Purchased by a New Zealand registered business

What doesn’t qualify for the Investment Boost:

  • Leased vehicles
  • Passenger vehicles used primarily for personal purposes
  • Second-hand vehicles

Making the most of 20% tax deduction

The Investment Boost offers businesses the ability to maximise their vehicle investment returns. By combining immediate tax relief with the operational benefits of new, reliable vehicles, businesses can improve both their financial position and operational efficiency.

This initiative is perfect for those businesses that have been delaying vehicle purchases due to cost concerns or uncertain economic conditions. The 20% deduction effectively reduces the upfront investment strain while providing access to new vehicle service plans and warranty benefits, the latest safety features, fuel efficiency improvements, and reliability that comes with new vehicles – possibly an additional incentive for businesses to take a leap forward in electrifying their fleet with the latest electric or hybrid vehicles on offer.

The next steps

We strongly recommend consulting with your financial advisor to understand how the Investment Boost applies to your business circumstances. For complete details on the Investment Boost scheme, be sure to review the government’s Investment Boost Factsheet or the IRD’s Information Sheet.

If you’re ready to explore vehicles that qualify for this incentive, visit our vehicle brand selection or get in touch today.

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