In the 2025 Budget, the Government introduced the Investment Boost, a new optional tax incentive aimed at encouraging business investment in productive assets.
Effective from 22 May 2025, businesses can claim 20 % of the cost of eligible new (or new-to-NZ) assets — such as machinery, equipment, commercial buildings, work vehicles, tools, and software — in the year they are first available for use, in addition to the usual depreciation on the remaining 80%.
For example, for a $100K asset with a 10% depreciation rate:
Deduction Year 1: $20K (boost) + $8K (10 % of remaining $80K) = $28K, compared to $10K without the boost.
How to claim the investment boost in Solo
To apply the investment boost, select New when creating or editing an asset.
If an asset has a purchase date after 22 May 2025, and New is selected, the 20% boost will automatically be included in Solo's calculations for the asset.
Used is selected by default and the boost will not be applied.
If you added an eligible assets to Solo before the New/Used option became available, you can simply edit the asset and select New to apply the boost.