Why Investment Boost 2025 is a Game Changer for Kiwi Mowing Contractors

5th June 2025

If you have been thinking about upgrading to a new Scag, Canycom, Raymo, Mean Green or Green Climber mower, Budget 2025 has certainly sweetened the deal.

The Government’s new Investment Boost legislation lets businesses deduct an extra 20 per cent of a new asset’s cost in the year they buy it – on top of normal depreciation. The rules apply to eligible assets purchased from 22 May 2025 onward.

How the Incentive Works (in plain English)

Purchase a brand new, depreciable asset after 22 May 2025.
Claim 20 % immediately in this year’s tax return, plus keep claiming normal depreciation on the remaining 80 %.
No application forms are needed – you simply give the figures to your accountant.

Example: Buy a $150,000 Green Climber package in July 2025. You can expense $30,000 straight away, then depreciate the remaining $120,000 as usual.

What Qualifies?

New mowers, implements and attachments (e.g. Scag zero turns, Raymo remote control mowers, Mean Green electric mowers, Canycom 4WD mowers, Green Climber slope mowers and more).
Second hand gear only if it is first time use in New Zealand (i.e imported second hand).

Not eligible: used equipment already working in NZ, assets bought before 22 May 2025, or stock held for resale.

A Real World Case Study:

Let’s say you’re a contractor purchasing a Green Climber remote control mower, with attachments, for $150,000 +GST on or after 22 May 2025.

Thanks to the new Investment Boost, here’s how it plays out in your first year:

Purchase Price (excl. GST): $150,000
Instant Investment Boost Deduction (20%): $30,000
Depreciation (at 13% D.V) - $11,700 (13% of remaining $120,000 for 9 months)
Total Year 1 Deduction: $41,700
Tax Saving (at 28% company rate): $11,676
Extra Tax Saving vs old rules: $4,095 in year 1!

That’s a good amount saved in tax in your first year alone – plus continued depreciation in future years.

Why Act Now?

Improve cash flow: the upfront deduction frees working capital for fuel, blades and payroll.
Stay competitive: Get the latest, most efficient gear – especially relevant for council tenders and commercial contracts.
Beat the 31 March balance date rush: your mower must be ready for use in the same financial year to claim the boost.

Next Steps

Choose your upgrade: talk to our team about the best mower for your terrain and contracts.
Confirm timing & eligibility with your accountant – especially if you’re financing the purchase.
Secure delivery before financial year end to lock in the deduction.

Read more about this on the government website here: https://www.treasury.govt.nz/publications/budgets/budget-2025

Need help crunching the numbers? Call us today for more information.

Disclaimer: This article is general in nature and is not tax advice. Always seek professional guidance for your specific circumstances.