How good would it be if we could reduce the cost of your new build?
If you’re thinking about building a new commercial or industrial space then here’s a reason to pull the trigger: the New Zealand Government’s new Investment Boost could save you thousands.
With a 20% tax deduction on the cost of eligible buildings, your overall build cost could be reduced by around 5.6%. That’s not a typo. That’s real, in-your-pocket savings.
Here’s the math
Let’s say you are building a steel shed with us here at ProSteel to manufacture a new product right here in New Zealand.
Your shed costs $250,000 (ex GST)
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20% of that = $50,000 tax deduction in the tax year the building is completed and available for use.
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At a 28% company tax rate, that’s a $14,000 in tax savings at a trust tax rate of 39% that’s a $19,500 saving.
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Which equals 5.6% or 7.8% shaved off your total project cost
That’s funds you can funnel straight back into your business.
So what’s the deal?
In short: if you build a new commercial or industrial building that’s first used after 22 May 2025, you can immediately deduct 20% of the building’s cost from your taxable income.
This isn’t some delayed or drip-fed deduction, it’s an upfront deduction that could significantly improve your cash flow in Year 1.
In addition to the Investment boost deduction, if the asset is depreciable, you can also claim depreciation on the net reduced cost, meaning you’ll receive a further tax deduction!
Are you eligible?
If you are a business owner, farmer, or tradie looking to build something new and use it for business then yes, you likely are.
But planning ahead is key. Here’s what you need to know:
- The building must be commercial or industrial (it doesn’t apply to residential builds).
- You must be using it in your business, not reselling it.
- You can claim only the business-use portion (no deductions for private areas).
Why Now’s a Smart Time to Build
Pair this tax boost with easing interest rates, and businesses are in a strong position to invest in infrastructure with confidence. That’s where we come in.
At ProSteel, we design and build high-quality steel sheds and commercial buildings across New Zealand. Everything from workshops and storage to full-scale industrial builds. We work alongside you (and your accountant) to help you make the most of every dollar.
Let’s Make It Happen
If you’ve been thinking about building, now’s the time to get a plan in motion. We’ll help you design smart, build efficiently, and take advantage of every saving available.
Heads up: This blog is for general info only and doesn’t replace professional tax advice. Talk to your accountant to see how the Investment Boost applies to your unique situation.
More info here: IRD: Asset Investment Boost
