Taxation (Budget Measures) Bill (No 2)
This bill makes several tax changes announced in Budget 2025. Businesses can immediately claim a tax deduction for 20% of the cost of new equipment or assets they buy. KiwiSaver contributions will rise gradually — from 3% to 3.5% in 2026, then 4% in 2028 — for both workers and employers, though workers can apply to stay at 3% temporarily. The government's KiwiSaver top-up payment is being cut in half and removed for high earners. Families getting Working for Families tax credits will see a slightly higher income threshold before payments reduce.
What this affects
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Businesses buying new equipment or assets can immediately deduct 20% of the cost from their taxable income, meaning a lower tax bill in the year of purchase.
Investment Boost will achieve this by allowing businesses to immediately deduct 20% of the cost of qualifying assets, increasing their tax deductions in the year they acquire the asset.
qualifying assets cannot have previously been used in New Zealand
a person is allowed a deduction equal to the amount calculated by the following formula: 0.2 × (expenditure − contribution)
Progress through Parliament
Have your say
Submissions open once a bill reaches the select committee stage and the committee calls for them. In the meantime, you can write to your local MP about it.
Bill text sourced from legislation.govt.nz (Parliamentary Counsel Office). Arapono’s summary and breakdown are drafted with AI grounded in that official text and reviewed by an Arapono editor for accuracy and neutrality before publishing. Arapono is non-partisan and takes no position on this bill.