As part of the 2025 Budget, the New Zealand Government has introduced a new tax incentive called the Investment Boost. In short, businesses can now claim a 20% upfront tax deduction on eligible new equipment, including forklifts.

Here’s what the change means, how it works, and why it matters if you’re thinking about upgrading your machinery.

What is the Investment Boost?

Launched on 22 May 2025, the Investment Boost is designed to encourage Kiwi businesses to invest in productive, income-generating assets. The government is offering a 20% immediate tax deduction on qualifying capital investments—giving you faster tax relief on money spent.

The rest (the remaining 80%) is depreciated over time using normal rules, but that 20% write-off in year one could make a serious difference to your bottom line.

And yes, forklifts absolutely qualify.

How Does It Work for Forklifts?

Let’s say you purchase a new electric forklift for $60,000 (excluding GST):

• You can deduct $12,000 immediately in the same financial year (20%)
• The remaining $48,000 is depreciated at normal rates over time
• If this creates a tax loss, that loss can be carried forward into future years

Whether you’re buying a single unit or replacing your whole fleet, this could amount to tens of thousands in tax savings, depending on how much you invest.

What Kind of Assets Qualify?

To be eligible, assets must be:

• Brand new (or “new to New Zealand” in some cases)
• Used for income-generating activity (e.g. logistics, manufacturing, construction, warehousing)
• Owned by a NZ business—this includes companies, sole traders, partnerships, and trusts

So, if you’re buying a new forklift, scissor lift, or other material handling equipment for your operations—this incentive is for you.

Used forklifts aren’t eligible unless they’re imported and new to the NZ market. So if you’re buying, buy new to benefit.

Why This Matters for Businesses Like Yours

At Stellar Machinery, we know forklifts aren’t just a purchase—they’re an investment in productivity, safety, and growth. With this new tax break, upgrading outdated equipment or scaling your fleet is now more financially strategic than ever.

Whether you’re a warehouse operator in Auckland, a construction firm in Christchurch, or an exporter in Fiji, this policy gives you a rare window to improve operations and reduce your tax bill at the same time.

Don’t Wait Too Long

While the government hasn’t placed a firm expiry date on the Investment Boost just yet, the smart move is to act while it’s fresh. Waiting could mean missing out, especially if you’re already planning capex spend this financial year.

Need Help Choosing the Right Forklift?

We’ve been helping New Zealand businesses find the right forklift solutions for over 40 years. Whether you’re after electric models for tight warehouse spaces, LPG for mixed use, or rough terrain forklifts for outdoor work, our team can help you select the best machine—and make sure you get the tax benefit you deserve.

Get in touch with Stellar Machinery today to discuss your options, check availability, and take advantage of the Investment Boost while it’s here.

Because smart forklift choices should also come with smart tax savings.