Budget 2025 Announcements

As part of Budget 2025, the Government has announced changes that may affect your business.

Investment Boost – 20% Deduction for New Business Assets
The Government has passed legislation introducing the Investment Boost.
Investment Boost is a scheme that allows businesses to claim 20% deductions for the cost of new assets. Assets must be previously unused in New Zealand (either brand new or new to New Zealand).
Eligible assets include all depreciable property. This includes several assets that are allowed depreciation-like deductions and improvements to depreciable property. Common examples include:
• New commercial and industrial buildings
• Machinery
• Equipment
• Work vehicles
🏠 Residential buildings and fixed-life intangible property (such as copyrights, trademarks, or rights to use land) are not eligible for Investment Boost.
Key Date:
Businesses can claim deductions for new assets acquired on or after 22 May 2025 in their income tax returns for the relevant income year.

Changes to KiwiSaver Contribution Rates and Minimum Age
• From 1 April 2026: The default employer and employee KiwiSaver contribution rates will rise from 3% to 3.5% of salary and wages.
• From 1 April 2028, they will rise again to 4%. Employees can temporarily opt out of the increased rate and stay at 3% from 1 April 2026, applying from 1 February 2026.
• From 1 July 2025: People aged 16 and 17 will qualify for government KiwiSaver contributions.
• From 1 April 2026: Employers will be required to start making employer KiwiSaver contributions for employees aged 16 and 17, provided they choose to enrol (or are already enrolled) in KiwiSaver.