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20% Tax Deduction for Investors: New Zealand Property | Business Insights

New Investment Boost - Accelerated Depreciation

August 26, 2025 5 Minute Read

20-percent-tax-deduction-for-investors-new-zealand-property

The New Zealand government’s budget in May 2025 introduced a welcome cash flow boost to the property sector. For capital expenditure on new assets, property owners can benefit from a 20% upfront tax deduction in addition to normal depreciation allowances. 

Importantly, the Investment Boost is available for expenditure on buildings, including seismic strengthening, which were previously non-depreciable. The boost also applies to building fit-out, plant & equipment and other improvements to property including new build developments, upgrades and refurbishments etc. Property owners can deduct 20% of the cost of each asset type in the year that they are acquired (or become available for use).

By increasing the near-term cash flow, the up-front boost may make marginal developments feasible, with the remaining 80% being depreciable under standard rules. The indicative cash flow boost is shown below:
20-percent-tax-deduction-for-investors-new-zealand-property-table

How can CBRE Consulting Services assist?

Our team of specialist Quantity Surveyors can provide a detailed breakdown of all building, fit-out and plant & equipment expenditure, including professional fees and consent costs, to ensure correct allocation and to maximise the cash flow boost. Our Quantity Surveyor team operates nationally and can provide an up-front estimate, to assist clients in testing project feasibility.

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