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IRD New 20% Deduction Law Change
Date: 02-12-2025
New Asset Deduction (from 22 May 2025)
Businesses can deduct 20% of qualifying new assets immediately, with the remaining 80% depreciated normally. Eligible items include new machinery, equipment, vehicles, commercial/industrial buildings, and imported assets. Exclusions: land, residential dwellings, trading stock, and previously used NZ assets.
This summary reflects our understanding of the recent rule changes. It’s intended as general guidance only, and we recommend checking the details with your own accounting professional to make sure they’re right for your situation.