What the Government’s Doing to Boost Business in 2025

As NZ emerges from the economic doldrums,  It’s timely to review recent government business initiatives to stimulate the economy and their likely impact. 

Investment Boost – 20% Upfront Tax Deduction

From 22 May 2025, businesses can immediately claim an extra 20% tax deduction on the cost of new capital assets like equipment, vehicles, and technology. This is on top of standard depreciation rules for the remaining 80%. The goal? Improve cashflow, encourage investment, and give firms the confidence to grow.

Invest New Zealand – Attracting Foreign Capital

A new agency called Invest New Zealand has been set up to fast-track and simplify foreign investment. It acts as a one-stop-shop to help overseas investors set up in key sectors like infrastructure, energy, manufacturing, and tech. At the same time, new investor visas are making it easier for skilled people and capital to enter the country.

Digital Nomad & Remote Worker Visas

Visitors can now live and work remotely in New Zealand for up to nine months, with the first 90 days tax-free. The policy aims to attract digital nomads and off-season tourism spending, especially in regional areas.

Fast-Track Approvals for Major Projects

New legislation allows large infrastructure, housing, aquaculture, and renewable energy projects to skip lengthy approval processes. This is designed to speed up economic development and reduce red tape for developers.

Simplifying Regulation

A new Regulatory Standards Bill is working its way through Parliament. Its purpose is to cut back on unnecessary rules and make compliance easier for businesses. It introduces a more disciplined approach to how new regulations are introduced and assessed.

Science and Innovation Boost

A major new research institute focused on bioeconomy sectors like agriculture, aquaculture, and biotech has been launched. The aim is to supercharge innovation and commercial R&D across New Zealand’s productive sectors.

National AI Strategy

The government has launched a national AI strategy to help businesses adopt artificial intelligence safely and effectively. It includes guidance, support tools, and plans for upskilling the workforce.

Why It Matters

• More Cashflow – The tax deduction gives businesses an immediate incentive to invest now.

• Global Investment – New Zealand is actively courting offshore capital to fund local growth.

• Faster Projects – Speeding up approvals helps get major developments underway quicker.

• Less Red Tape – New rules aim to make running a business less of a compliance headache.

• Future Focused – Investments in science and AI position New Zealand for long-term growth.

In Short: The 2025 economic plan is all about stimulating business through investment incentives, streamlined approvals, global capital, and innovation. It’s bold, business-friendly, and built to get things moving.