Article
Business Insight | Why tenants doing a new fitout need to know about Investment Boost
A New Zealand tax change introduced in 2025 and retained in this year’s Budget can meaningfully reduce the cost to tenants of an office fit-out. However, many occupiers planning a move may not realise it applies to them and may miss out on significant financial benefits as a result.
August 3, 2026
Media Contact
Dan Scott
Marketing and Pitch Director, New Zealand
Since May 22 2025, the government’s Investment Boost initiative has allowed tenants to claim 20 per cent of fitout capital expenditure upfront as a business expense.
The remaining 80 per cent of the cost of fitout items can then be depreciated as usual over time.
Investment Boost covers new, depreciable fitout-related assets, which include all aspects of hard and soft fitouts that tenants may be required to pay for, outside landlord contributions.
This encompasses plant and equipment right down to joinery, furniture and decor items—any capital expenditure on new fitout items that tenants are responsible for under the terms of their lease. There is no cap on how much a tenant can claim.
A new fitout is usually one of the biggest expenses of an office move. Partitions, joinery, lighting, air conditioning, floor coverings, desks, IT equipment, kitchen appliances, chairs—right down to cushions—can all be part of tenant fitout costs.
If these items are new and qualify under the scheme, claiming 20 per cent of the cost upfront as an expense is a great boost to cash flow in the first year and lowers the effective cost of a fitout project.
Phil Overend, Director of CBRE Consulting Services, said that because Investment Boost brings deductions forward rather than increasing them overall, the real value is in the timing.
“The 20 per cent deduction which can be claimed upfront means more cash is retained in the year of the move, when budgets are usually stretched. This is a significant benefit that can meaningfully reduce the impact of an office fitout project on a business’ bottom line.”
While many occupiers are opting for turn-key leases or securing partial fitout contributions from landlords for new premises, where they are paying for and own some of the fitout themselves, there is likely to be an opportunity to claim. Assets need to be available for use on or after 22 May 2025 to qualify.
Campbell Pritchard, CBRE’s National Director of Office Leasing, said Investment Boost is particularly useful for tenants signing new leases.
“If they’re funding part or all of their own fitout, the ability to claim 20 per cent upfront can make a real difference to cash flow in year one. While many occupiers are negotiating turn-key fitouts or landlord contributions as part of new leases, they are still typically funding and owning some elements themselves. Those components can often qualify under the scheme, creating a real opportunity to reduce the overall cost of a move.”
CBRE’s consultancy team can work alongside occupiers navigating the costs of a new fitout, identifying which items are likely to qualify and structuring the project so benefits are maximised, said Overend.
“Our specialised quantity surveyors are well versed in identifying every single depreciable asset associated with a fitout. Our team includes tax experts and professionals with big four accounting firm experience and we’re well-equipped to help investors navigate the complexities of optimising depreciation opportunities. This is especially important at a time when managing the significant costs of fitout is vital in protecting tenants’ financial positions.”
The remaining 80 per cent of the cost of fitout items can then be depreciated as usual over time.
Investment Boost covers new, depreciable fitout-related assets, which include all aspects of hard and soft fitouts that tenants may be required to pay for, outside landlord contributions.
This encompasses plant and equipment right down to joinery, furniture and decor items—any capital expenditure on new fitout items that tenants are responsible for under the terms of their lease. There is no cap on how much a tenant can claim.
A new fitout is usually one of the biggest expenses of an office move. Partitions, joinery, lighting, air conditioning, floor coverings, desks, IT equipment, kitchen appliances, chairs—right down to cushions—can all be part of tenant fitout costs.
If these items are new and qualify under the scheme, claiming 20 per cent of the cost upfront as an expense is a great boost to cash flow in the first year and lowers the effective cost of a fitout project.
Phil Overend, Director of CBRE Consulting Services, said that because Investment Boost brings deductions forward rather than increasing them overall, the real value is in the timing.
“The 20 per cent deduction which can be claimed upfront means more cash is retained in the year of the move, when budgets are usually stretched. This is a significant benefit that can meaningfully reduce the impact of an office fitout project on a business’ bottom line.”
While many occupiers are opting for turn-key leases or securing partial fitout contributions from landlords for new premises, where they are paying for and own some of the fitout themselves, there is likely to be an opportunity to claim. Assets need to be available for use on or after 22 May 2025 to qualify.
Campbell Pritchard, CBRE’s National Director of Office Leasing, said Investment Boost is particularly useful for tenants signing new leases.
“If they’re funding part or all of their own fitout, the ability to claim 20 per cent upfront can make a real difference to cash flow in year one. While many occupiers are negotiating turn-key fitouts or landlord contributions as part of new leases, they are still typically funding and owning some elements themselves. Those components can often qualify under the scheme, creating a real opportunity to reduce the overall cost of a move.”
CBRE’s consultancy team can work alongside occupiers navigating the costs of a new fitout, identifying which items are likely to qualify and structuring the project so benefits are maximised, said Overend.
“Our specialised quantity surveyors are well versed in identifying every single depreciable asset associated with a fitout. Our team includes tax experts and professionals with big four accounting firm experience and we’re well-equipped to help investors navigate the complexities of optimising depreciation opportunities. This is especially important at a time when managing the significant costs of fitout is vital in protecting tenants’ financial positions.”