If you’re a Kiwi business keen to invest in new equipment but find cash flow holds you back, the Government’s Investment Boost could be a game-changer, and Taxi is here to guide you in making the most of it.

What is Investment Boost?

Investment Boost lets businesses deduct 20 per cent of the value of eligible new assets in the year of purchase, on top of your standard depreciation deduction. It applies to most new machinery, tools, equipment and commercial buildings bought on or after 22 May 2025.

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Why Investment Boost matters

Investment Boost lets you deduct 20 per cent of the asset’s value in the year you buy it. That reduces your taxable profit straight away and lowers your tax bill in that financial year. The Treasury expects this policy to lift New Zealand GDP by 1 per cent and wages by 1.5 per cent over the next 20 years (with half those gains in the first five years). That means Kiwi businesses can keep more of their earnings sooner and reinvest in growth.

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How it works

Say you run a mid-sized cosmetics manufacturer in Auckland and you’re buying an automated filling and packaging machine for $500,000. Under the Government’s Investment Boost, you can claim an immediate deduction of 20% – $100,000 – in the year you make the purchase. At the 28% corporate tax rate, that cuts your tax bill by $28,000 in that first year. The remaining $400,000 is depreciated over time as usual. That upfront deduction supports your business’ cash flow and lets you invest that money back into your company.

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How Taxi makes it work for you

We know the stress of juggling tax timing and day-to-day expenses — we’ve been there ourselves, because we’re business owners too. Taxi offers tailored funding that pairs perfectly with the Investment Boost. Here’s a simple plan without the jargon:

1. Sign up and pay your next provisional tax payment through Taxi
2. Access the funds you need to cover upfront costs
3. Claim your 20 per cent Investment Boost deduction in your next tax return
4. Reinvest the extra cash flow into your next project

This lets you reinvest tax savings straight back into growth, rather than waiting years for standard depreciation to accumulate.

Don’t let cash constraints stall your next big idea. Combine the Government’s Investment Boost with our flexible funding and you’ll be well placed to secure, expand and thrive.