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If you're a business owner in New Zealand, a new tax incentive announced in the 2025 Budget may make upgrading your vehicle a smarter financial decision than ever before.
What Is the Investment Boost?
The Investment Boost is a government initiative aimed at supporting small and medium enterprises (SMEs). From 22 May 2025, businesses purchasing new assets, such as vehicles, can claim an additional 20% deduction of the asset's value in the first year, on top of normal depreciation.
This applies to new, eligible depreciable assets purchased and used between 22 May 2025 and 31 March 2027. The goal is to encourage businesses to invest in new equipment, technology, and infrastructure, vehicles included.
What This Means for LDV Customers
Let's say your business purchases a new LDV van for $40,000 (excluding GST). Under standard depreciation rules, you'd claim a portion of that value over time. With the Investment Boost, you could immediately deduct an additional $6,956.52 (20% of the purchase price) from your taxable income in the same year, in addition to regular depreciation. This can lead to significant tax savings upfront.
Here's a simple example:
|
NEW ($) |
|
OLD ($) |
TAX SAVINGS YEAR 1 |
LDV |
40,000.00 |
CASHFLOW ON PURCHASE |
40,000.00 |
|
CLAIM BACK GST |
5,217.39 |
CASHFLOW NEXT MONTH |
5,217.39 |
|
NET COST |
34,782.61 |
|
34,782.61 |
|
20% DEPRECIATION BOOST |
6956.52 |
ZERO CASHFLOW |
|
|
NBV AT START |
27,826.09 |
|
34,782.61 |
|
NORMAL DEPRECIATION |
8,347.83 |
|
10,434.78 |
|
COY TAX RATE 28% |
4,285.22 |
|
2,921.74 |
1,363.48 |
Note: This is a simplified example. Actual tax outcomes may vary. Always consult your accountant.
Important Notes
- This is not a rebate or discount from LDV New Zealand or our dealerships.
- It applies to new vehicles only (not second-hand).
- It's available to businesses that pay tax in New Zealand and acquire qualifying assets within the eligible timeframe.
- The incentive runs until 31 March 2027, but applying early could maximise the benefit in this financial year.
For more information, see the official Government factsheet here.
Why Consider LDV NZ?
LDV is ready to power Kiwi businesses with the ultimate work companions. With the largest commercial vehicle range in the country from hard-working utes to cargo vans and fully electric options we’re helping Kiwis work harder every day.
Whether you’re running a small business, managing a fleet, or transitioning to electric vehicles, LDV provides the safety, space, and value you need to keep things moving. Every vehicle comes with a comprehensive 7-year warranty (up to 200,000km for Internal Combustion Engine vehicles and 160,000km for electric vehicles), along with 7 years of roadside assistance and 7 years of WOF checks, so you can concentrate on your work without worrying about downtime.
Get in touch with your Authorised LDV Dealership
This information is provided for general guidance only and does not constitute professional advice. Please verify all information before relying on it, as government incentives and schemes may change. We accept no responsibility for any loss arising from reliance on this content. For advice specific to your circumstances, please consult a qualified professional.



