Just a reminder that any NZ-new assets you purchase for your business are now eligible for an extra 20% depreciation deduction in the first year.
Key Points to Note:
- The asset must be available for use for the first time on or after 22 May 2025
- The asset must be NEW to NZ – not previously used in New Zealand for any purpose, other than as trading stock
- NEW investment assets include:
- second-hand assets purchased from overseas eg. imported used vehicles & machinery, being used for the first time in NZ
- all depreciable property except residential buildings and Fixed Life Intangible Property (FLIP)
- improvements to depreciable property (not to residential buildings and FLIP)
- primary sector land improvements
- most development expenditure
- new-build commercial and industrial buildings that would otherwise have a depreciation rate of 0%
- listed horticultural plants
- Assets used partly for business could be eligible, but the deduction will need to be apportioned between business & private use
As always, we are here to help, so if you have any questions please do not hesitate to contact us on 07 885 1022.