Key takeaways

Budget 2025’s Investment Boost has been well received by SME businesses who regularly make plant, equipment and tech investments.

Investment Boost will allow small business owners to immediately deduct 20% of the cost of new machinery, tools and tech from their taxable income.

It seems like the most popular feature of the Budget 2025 for small businesses around the country yesterday was the Investment Boost which will allow tradies, farmers and small business owners to immediately deduct 20% of the cost of machinery, tools, equipment and tech from their taxable income.

The Government said it would encourage investment in assets that increase productivity and help lift wages.

Spare a thought for Tim Deane, owner of wool sock company Norsewear, who bought two Lonati knitting machines from Italy for a total of $140,000 at the end of last year.

If he were to buy those two machines now, the ability to expense 20% of this equipment would save him $28,000 in the first year plus 13% depreciation, he says.

Tim says he feels empowered to make future purchases. His business recently won the bid to supply Te Ope Kātua o Aotearoa New Zealand Defence Force recruits with its durable Norsewear socks.

It shouldn’t be seen as though business owners are just getting a handout, he says.

“We are being encouraged to grow the productive economy, to create more jobs and more tax revenue and it will generate more products we can export.”

Not revolutionary but it will help

Brad Jacobs, director of The Coffee Club and chair of the Parnell Business Association also endorsed the Investment Boost.

“It is good news for our The Coffee Club franchisees. It will encourage people to invest in their businesses and this goes back into the economy and circles around. It’s not revolutionary but it’s going to help.”

Brad Jacobs director The Coffee Club (1).jpg

Brad also welcomed the Budget’s announcement increasing police funding.

“As chair of the Parnell Business Association, the announcement on putting over half a billion on crime over the next four years is good news,” he says.

“They have been making good progress on policing crime but there are still legitimate safety concerns in the Auckland city fringe like Parnell and we’re still struggling with it,” says Brad.

Tech startups who did well in Budget 2025

Todd Hammington, CEO and founder of Chameleon Creator, a cloud platform helping companies modernise e-learning and training for their employees, was happy with the Government’s Budget messaging.

“What we took from this Budget is that the Government wants companies to invest in their people, and that’s exactly what our tool helps them do. Chameleon makes it easy for businesses to upskill their teams internally, especially at a time when organisations are being asked to do more with less,” says Todd.

It was good to see the Government highlight the importance of capability building, he says.

“With large amounts of investment going into public sector areas like tertiary education, healthcare, and social services, those sectors will need better tools to onboard and grow their teams,” says Todd.

“That creates a trickle-down effect, and tools like Chameleon are well placed to support that growth,” he adds.

The wine industry is looking for improved consumer confidence

What the Hawke’s Bay wine industry would like to see as a result of Budget 2025 is an improved sense of consumer confidence, says Brent Linn, CEO of Hawke’s Bay Wine, which represents wineries in the Hawke’s Bay region.

It’s not about the industry’s reaction to the Budget that’s important but that of Mr and Mrs NZ, he says.

“What’s their confidence like as a consequence of the Budget? With reduced interest rates, through fiscal policy, all the signals are that Mr and Mrs NZ will be back in buyer mode,” says Brent.

For the full article in Stuff read here.

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SMEs around the country welcome Budget 2025's Investment Boost