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?
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. (See business scenarios below).
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%).
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 $1.7 billion a year, a change in government will almost certainly result in the removal of this policy.
This started out as a phone call to our accountant about our business, Big On Writing. The more we dug, the more ways we could see it working for our own investment plans, so it's worth a read.
Basically, the incentive applies to new technology and digital assets, so if you purchase, install, and begin using it after May 21, 2025, it’s likely eligible. Kids ask your accountant first, but it should cover:
The 20% deduction is in addition to normal depreciation, which still applies to the remaining 80%. For any business investing in long-term digital capability, it's a useful incentive with an immediate cash flow impact. A 20$ tax deduction by the way amounts to around a 5% overall saving.
The devil is in the details. Like all new policies, there are grey areas, but broadly speaking, here are the no-goes.
Suffice to say, make your accountant your best friend in this journey to make sure you are eligible.
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:
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.
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.
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:
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.
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:
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.
