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Serious about business: how the Government’s Investment Boost could benefit you
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.
Updated
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 KGM customers
Say your business buys a new KGM for $40,000 including GST ($34,782.61 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 GST-exclusive price) from your taxable income in the same year, on top of regular depreciation. This can lead to significant tax savings upfront.
Here’s a simple example for a KGM at $59,990 including GST. In this example, the Investment Boost saves about $2,045 more tax in year one.
| With Investment Boost | Without | |
|---|---|---|
| KGM purchase price (cash flow on purchase) | 59,990.00 | 59,990.00 |
| GST claimed back (cash flow next month) | 7,824.78 | 7,824.78 |
| Net cost | 52,165.22 | 52,165.22 |
| 20% Investment Boost (no cash flow) | 10,433.04 | — |
| Net book value at start | 41,732.17 | 52,165.22 |
| Normal depreciation | 12,519.65 | 15,649.57 |
| Tax saved at 28% company tax rate | 6,426.75 | 4,381.88 |
| Extra tax saved in year one | 2,044.88 | — |
This is a simplified example. Actual tax outcomes may vary. Always consult your accountant.
Important notes
- This is not a rebate or discount from KGM 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 Investment Boost factsheet.
Why consider KGM?
KGM is reimagining what everyday driving can be. With South Korean innovation, bold design and real capability in every vehicle, KGM delivers confidence and comfort whether you’re navigating city streets or taking the unbeaten path.
With over 70 years of engineering experience under the SsangYong name and a clear focus on the future, KGM offers a line-up made for modern Kiwi drivers. Rugged when it counts. Refined when it matters.
Discover the future of driving with KGM. Find your nearest authorised KGM dealership, or ask them about finance.
This information is general guidance only and is not 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, talk to your accountant or tax adviser.