Websites get a boost from the 20% Tax Deduction. A content coup!

Tractors, trucks, and tunnel sprayers aren't the only winners in the NZ Budget's Investment Boost Tax Deduction. It's also good news for content managers, copywriters, and corporates. Find out how what it covers and how to use this 20% saving to boost your web, content or AI journey.

Time to come out of your shell?

Let's do a Teams

From May 2025, New Zealand businesses can now claim an immediate 20% tax deduction on eligible new technology and digital assets, including eligible websites, content management systems (CMS), and content tools.

This is already prompting many companies to revisit their digital priorities. A MYOB survey of more than 500 businesses found that nearly half (45%) plan to make an asset purchase in the next six months. Of these, 28% will invest in office technology, and 22% in digital devices.

Big business is also getting in on the act. According to Datacom’s 2025 Business Outlook Survey 68% of New Zealand Senior Business leaders said they plan to invest more in technology next year. Top priorities include AI (46%), automation (41%), and data optimisation (40%).

May 2025 MYOB Survey of 541 business owners

This is backed up by what we are hearing on the ground.

In our Content Trends for 25 update, we predicted CapEX investments such as web builds would be slow burns this year. However, since May 22 Budget Day, we've already been given a heads-up that one web content project will be fast-tracked.

BUT, it's a lolly scramble with a limited time offer. At a cost of a cool $1.7 billion a year, a change in government will almost certainly result in the removal of this policy.

What’s covered?

This started out as a phone call to our accountant about our business, Big On Writing. The more we dug, the more ways we could see it working for our own investment plans, so it's worth a read.

Basically, the incentive applies to new technology and digital assets, so if you purchase, install, and begin using it after May 21, 2025, it’s likely eligible. Kids ask your accountant first, but it should cover:

  • Website Development and Redesign. Website builds, redesigns, integrated forms, calculators or content hubs, and IA and template systems.
  • Content Management Systems (CMS) and Digital Publishing Platforms. CMS licences or subscriptions (if capitalised), implementation, training and onboarding systems, workflows for publishing, editing and approvals, integrated analytics and performance tracking tools. If you’re moving to enterprise-grade platforms like Contentful, Sitecore, or Adobe AEM, this spend is likely claimable.
  • Collaboration Tools for Copywriters and Content Teams. If they’re part of the capitalised asset, the Boost covers supporting services, such as content strategy, UX copywriting, and tone of voice development. Tools that may qualify are those that support internal collaboration across marketing, editorial and comms teams, including project management platforms (e.g. Asana, ClickUp, Jira (if capitalised), cloud-based co-authoring tools, digital asset management (DAM) systems, workflow or version control systems.
  • Content Hubs. Eligible if they are developed as part of a wider digital platform and capitalised. That includes content hubs with custom architecture (IA, taxonomy, search), Integrated CMS platforms, performance analytics and internal publishing workflows.
Content hubs, if capitalised, are eligible.
  • Cybersecurity, Hosting, and Writing Software. Core infrastructure and business-critical software also counts, including dedicated hosting platforms for your website or CMS, firewall and cybersecurity solutions and server infrastructure. Tools must be new and depreciable, not simply renewed SaaS subscriptions.
  • Hardware for Your Content or Marketing Teams. Yes, the basics still count—if they’re new, business-related, and used from May 21, 2025 onward.These include laptops and desktops for content production, external monitors and peripherals, specialist equipment for content creation (e.g. video, photography, sound), and testing devices used for mob or development.

That 20% deduction is on top of normal depreciation, which still applies to the remaining 80%. For any business investing in long-term digital capability, it's a useful incentive with an immediate cash flow impact.

What's not covered?

The devil is in the details. Like all new policies, there are grey areas, but broadly speaking, here are the no-goes.

  • Used or second-hand tech. Refurbished laptops, monitors, or servers purchased from a reseller don’t qualify.
  • Assets bought before 21 May 2025. Anything purchased or installed before this date, even if paid for later, is excluded.
  • Non-depreciable digital assets. Domain names, custom code libraries, and brand design files are typically not depreciable under New Zealand Inland Revenue (IRD) rules.
  • Standalone services. Unless tied to the delivery of a capital asset (like a new CMS or website), strategy workshops, copywriting, SEO audits, or UX consulting, aren’t eligible.
  • Maintenance or patch upgrades. Updates to your current CMS or security tools won’t count unless they’re part of a full platform rebuild.
  • Short-term licenses or leased platforms. Short-term or non-exclusive software licenses are excluded unless capitalised and used as long-term digital infrastructure.

Suffice to say, make your accountant your best friend in this journey to make sure you are eligible.

Let's do a Teams

Example 1: Tech startup fast-tracks its web rebuild.

Sector: Technology | Investment: $400,000

Optix Systems is a New Zealand-based tech firm offering software solutions to enterprise clients. To support its international expansion and improve its client onboarding experience, Optix decides to overhaul its website and digital front end.

The company invests $400,000 in a full-scale digital redevelopment. This includes:

  • A fully rebuilt, responsive corporate website
  • Customised front-end UI to reflect Optix’s product suite
  • New CMS implementation and configuration
  • Content writing and UX copy by specialist tech copywriters
  • SEO and analytics integration
  • Global page speed optimisation
  • Technical documentation hosted and searchable via the CMS
  • Hosting, security upgrades and performance monitoring tools

Under the Investment Boost, Optix Systems can immediately deduct $80,000, 20% of the total investment, from that year’s tax return.

They can then depreciate the remaining 80% ($320,000) as if that figure were the full cost of the asset, maximising tax efficiency while modernising their brand and user experience.

What does this mean for content and teams?

The first step in fast-tracking your plans is a website audit.

Whether you’re a content manager in a large organisation or a copywriter in New Zealand running your own show, the message is the same: this is the year to get your digital systems in order.

It's still not a gimme; overhauling a website is a big investment. But you can eat the elephant one toe at a time.

The first step is conducting a Content Audit and Strategy (sometimes called a digital website audit), which is an absolute must to inform a business case and ensure the accurate cost of any planned build.

Remember, it's not uncommon for our clients to spread the cost of a web build over two to three budget years.

For example, we had one client who created the full UX sitemap and wireframe templates in Year One, with all the content written in Year Two. The project then sat for a year until the new financial year to do the actual build.

One final question: Is AI covered?

The  $1.9 billion allocated to the Investment Boost will help propel NZ business forward.

With the government already launching programmes such as the AI Activator, GovGPT it's clear there is an active push to support safe and strategic AI adoption.

Surprisingly, New Zealand is far from being left behind in this area. In fact, 32% of ANZ organisations are putting more than a quarter of their tech budget for the next 12 months toward generative AI (versus 25% globally).

Again, this is backed up by what we see across all our clients in Australia and New Zealand.

Here's how you can boost your AI ambitions:

  • Capitalised AI software (e.g., machine learning platforms, automated content systems)
  • AI modules integrated into new digital infrastructure (e.g., AI-powered features in a new CMS)
  • On-premise AI hardware (e.g., servers, GPUs, local AI systems
  • Capitalised, multi-year software licenses and subscriptions (if treated as long-term assets)

Tech start-ups in biotech, agri-tech, fintech, clean energy, and climate tech sectors are also getting a big boost. Not to mention our thriving aerodynamics industry.

Bottom line? Act fast

A website or a content hub can get off the ground pretty quickly, giving you a 20% deduction this financial year, and you can also go back for another bite of the cherry next year with a further 20% provided it's connected to the original web build.

For businesses that have struggled through the recession, it's a welcome shot in the arm. Now all we need is the Reserve Bank to keep dropping the OCR rate!

For more on the Investment Boost check out the IRD overview here.

Example 2: Finance services provider skips straight to a high-end content management system.

Sector: Finance | Investment: $1,000,000

Harper & Stone is a hypothetical national financial services provider offering investment, insurance and advisory products across New Zealand. With strict compliance, frequent product updates, and multiple communication channels, the team has outgrown its existing publishing systems.

To centralise content, reduce risk and improve customer experience,  H&S invests $1 million in a next-generation content management system. Their investment includes:

  • Licensing an enterprise-grade CMS with full security and compliance support
  • Partner-led implementation and data integration
  • Workflow automation for legal approvals and content scheduling
  • Custom roles and permission structures for risk management
  • Dynamic personalisation and localisation tools
  • AI-powered writing and grammar checking platform
  • Training for internal marketing, comms, and digital teams
  • Migration and auditing of all legacy content, including disclosures and product sheets

Thanks to the Investment Boost, Harper & Stone can claim $200,000 (20%) immediately as a tax deduction in the year of investment.

The remaining $800,000 is depreciated as if it were the full value of the asset, optimising the long-term tax treatment while enabling faster and more compliant content delivery.

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