Budget 2025: What the New 20% Tax Deduction Means for you

If you’re a business owner considering a new work car, ute, or looking to expand your fleet, New Zealand’s 2025 Budget has introduced a timely incentive to support your investment.

From 22 May 2025, businesses can now claim an immediate 20% tax deduction on eligible new assets, including new business-use cars. It’s all part of the Government’s new “Investment Boost” scheme aimed at encouraging growth and productivity.

Here’s what it means for you.

Understanding the Investment Boost

The Investment Boost gives eligible businesses the ability to deduct 20% of the purchase price of a new asset, like a work vehicle, upfront, in the same year it’s bought. That’s on top of your regular depreciation over time.

For many businesses, this means improved cash flow, less tax to pay in year one, and a smarter way to upgrade.

Which Vehicles Are Eligible?

To qualify, the car must:

• Be brand new (never registered or used)

• Be used primarily for business purposes

• Be purchased on or after 22 May 2025

Whether you’re buying a reliable work ute, upgrading your company car, or adding a few more units to your fleet, this tax break applies.

Smart Timing for Work Utes, Business Cars, and Fleets

Now’s the perfect time to invest in a new workhorse - and there are plenty of great options available.

The rugged RAM 1500 is built for serious jobs, offering strength, comfort, and towing power. For businesses on the move or working in rural sectors, it’s a natural choice.

Looking ahead, the BYD Shark is an innovative plug-in hybrid ute that blends electric driving with everyday flexibility, ideal for businesses looking for lower running costs without compromising capability.

And if a compact electric SUV fits the bill, the BYD Atto 3 is already proving popular among New Zealand businesses for city use, client visits, and mobile teams.

Whether you're after one dependable business car or a full fleet solution, there’s never been a better time to act.

Benefits for Your Business

• 20% tax deduction upfront

• Lower taxable income in the year of purchase

• Better cash flow for other investments

• A chance to upgrade to a newer, more efficient model

At Euromarque, we support businesses of all sizes with practical, reliable solutions. Whether you need a tough RAM ute, a clean and efficient BYD SUV, or guidance on setting up your fleet, our team is ready to help. We’ll work with you to find the right car for your business goals - no pressure, no jargon.

⚠️ Please note: This article offers general guidance only. For personalised advice, we recommend speaking with your accountant to make sure you’re getting the most out of any available tax benefits for your business.