New Tax Incentive Makes It Easier for Kiwi Farmers to Invest in New Equipment
3 June 2025
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By Aimee Johnston
In the 2025 Budget, the New Zealand Government announced a new tax incentive called "Investment Boost" – a big win for farmers looking to upgrade their equipment. This new policy is designed to make investing in farm gear more affordable, helping farmers improve productivity and efficiency on the land.
What Is Investment Boost?
Investment Boost is a tax incentive aimed at encouraging New Zealand businesses – including farms – to invest in new tools, machines, and technology. Under this scheme, farmers can deduct an extra 20% of the value of new equipment from their taxable income in the year it’s bought, on top of the normal depreciation.
This incentive starts from 22 May 2025 and applies to new assets like tractors, handling gear, yard systems, and other productivity-boosting equipment.
As Prime Minister Christopher Luxon explained in Parliament:
“I’ll keep it really simple — Investment Boost means cheaper tractors, cheaper utes, and cheaper equipment for farmers, manufacturers, and tourism operators. It’s about helping businesses grow and become more competitive.”
Reduce your taxable income with a Steel Yard System
In New Zealand, a Te Pari Steel Cattle Yard is 100% deductible in the year of purchase, reducing your taxable income and saving you tax!
For more details, read the IRD Tax advice.
Note: We strongly recommend that you get professional accounting or tax advice in regards to this information.
What these Tax Incentives Mean for NZ Farmers
Other countries like Australia and the UK have seen rapid uptake of new agri-tech thanks to government support, with tools like automated handling systems, EID tags, and farm data platforms becoming more common. These technologies are helping boost productivity, animal welfare, and overall farm performance.
With global competition growing, it’s important that New Zealand farmers stay ahead by having access to the latest tools and equipment. Investment Boost helps lower the cost of upgrading gear, making it easier for farmers to modernise their operations and stay competitive.
Te Pari’s View
At Te Pari, we see this as a great step forward for Kiwi agriculture. This policy supports farmers in adopting cutting-edge tools like auto drafting and weighing equipment, which can save time, reduce labour needs, and improve accuracy. It also encourages investment in long-term infrastructure, like cattle yard systems and integrated animal management tools, which boost efficiency and improve animal care.
New Zealand farmers are known for being innovative, and this policy gives them more opportunity to invest in smart solutions that can help them meet the challenges of today — including labour shortages, environmental rules, and increasing demand for traceability and sustainability.
By reducing the upfront cost of investment, the Government is helping ensure New Zealand farmers remain productive, profitable, and globally competitive for years to come.
At Te Pari, we look forward to helping farmers across the country take advantage of the new incentive to build safer, smarter, and more efficient farms.
This information is intended to provide general business information to the public. We recommend you seek professional advice as appropriate.