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.”