Author: Support

As part of Budget 2025, the Minister for Finance, Nicola Willis, introduced Investment Boost– a new way for Kiwi businesses to reduce the cost of investing in new assets and equipment.

Investment Boost is expected to lift NZ GDP by 1% and wages by 1.5% over the next twenty years, with half these gains in the next five years.

Let’s look at the benefits of the scheme and how it could help your small business.

What does Investment Boost offer?

Investment Boost is a new tax deduction that’s available to all Kiwi businesses, whatever the size of your business or your business type.

From 22 May 2025, you can claim 20% of the cost of new assets as an expense, then claim depreciation as usual on the remaining 80%.

What can you claim?

To claim Investment Boost, the asset you purchase must be:

• New or new to New Zealand
• Available for the business to use on or after 22 May 2025, and
• Depreciable for tax purposes.

You can also claim for:

• new commercial and industrial buildings
• improvements to depreciable property (but not residential buildings)
• primary sector land improvements
• assets arising from petroleum development expenditure and mineral mining development
• expenditure incurred on or after 22 May 2025 (except rights, permits or privileges)

What can you NOT claim?

There are some limitations on which assets you claim for under the Investment Boost scheme.

You cannot claim for:

• second-hand assets that are sourced from New Zealand
• residential rental buildings
• most fixed-life intangible assets (such as patents)

How can you make a claim?

You can claim the Investment Boost in your income tax return for the financial year in which you purchase a new eligible asset.

For instance, if you buy a new asset on May 23, 2025, include the Investment Boost amounts in your 2026 income tax return (which covers the financial year ending March 31, 2026).

How to maximise this tax incentive

So, that’s the lowdown on how the Investment Boost scheme works. But how can you use this tax incentive to make a tangible difference for your small business?

Here are five ideas to get you started.

1. Invest in technology and AI to boost your productivity:

Use the 20% tax deduction to buy new machinery, software (including AI tools) and equipment. This direct cashflow benefit makes modernising your operations more affordable and, with new, cutting-edge equipment and tech, you can give yourself a real competitive edge.

2. Increase wages and attract new talent:

By investing in new assets that boost productivity, your business can generate more revenue and improve profitability. This financial uplift helps you offer competitive wages and benefits, making your business a more attractive employer in the currently tight labour market.

3. Upgrade and future-proof your business:

In an unstable economic climate, the Investment Boost encourages proactive investment. By replacing aging equipment, upgrading commercial buildings, or investing in new infrastructure you’re better prepared to weather the economic ups and downs that lie ahead.

4. Investment in sustainable assets to assist with climate change threats:

Use the tax savings from the Investment Boost to invest in environmentally friendly assets. This could include purchasing electric vehicles for your fleet, installing energy-efficient machinery, or investing in renewable energy solutions for your premises.

5. Reinvest in growth and new revenue streams:

The lower tax bill from the Investment Boost frees up more capital. Reinvest these savings into areas that fuel growth. This could include expanding your product lines, entering new markets, increasing marketing efforts, or providing advanced training for your team.

Talk to us about making the most of Investment Boost

If you’re looking to invest in new assets and equipment, Investment Boost has come along at exactly the right time. Come and talk to the team about maximising this tax incentive.

We’re trading in uncertain times, where changes to the global economy can happen overnight.

This creates a real challenge for your small business, making it difficult to plan ahead and understand the short to medium-term future of your financial strategy.

But by monitoring and analysing your business data, it is possible to get back in control of your financial management, and to reduce some of the financial uncertainty.

Good business decisions are based on solid and reliable information. That’s why it’s so important to track and monitor your business performance.

Using the metrics and data from your business dashboard, you can follow your progress against budgets and financial strategies – and see when fast, evasive action is needed.

Here are five ways performance monitoring can ease your uncertainty

1. Real-time sales and revenue dashboards:

Set up Sales Dashboards to monitor sales figures, revenue streams and customer acquisition costs.

This makes it easier to spot dips or surges in demand, giving you time to adjust your marketing strategies, inventory levels or pricing. When the market changes, you’ve got the data in front of you to help you respond and remain agile.

2. Track KPIs for operational efficiency:

Key performance indicator (KPI) dashboards help you monitor crucial operational metrics like production costs, delivery times and resource utilisation.

By monitoring and analysing these KPIs, you can look for the inefficiencies that are most affected by economic instability. When metrics show poor performance, you can take swift action to deal with rising operational costs, or poor utilisation of your resources and workforce.

3. Monitor customer behaviour and trends:

Tracking your customer data helps you spot patterns in customers’ purchasing patterns, website engagement and social media interactions.

When you have data that demonstrates clear customer preferences and trends, you have the evidence needed to change strategy. The business can adapt its offerings and marketing efforts to remain relevant and competitive, even while dealing with erratic economic conditions.

4. Review financial forecasts regularly:

Create detailed financial forecasts, including cashflow projections, revenue forecasts and profit and loss forecasts. Use your software tools to compare your actual performance data against these forecasts, so you can see the variances and where action is needed.

This helps you anticipate potential financial challenges and economic instability, with enough time to react and refine your future tactics and strategy.

5. Analyse profitability by product and service:

Use your software’s performance metrics and tracking to understand which products, services and customer segments are most profitable – and also which are proving to be most resilient during the current economic uncertainty and upheaval.

When you know which products and segments are the most stable, you can adjust your sales and marketing strategy to focus on these specific targets. You can also pivot away from more vulnerable offerings or customer groups, helping you generate more stable revenues.

Making your financial future clearer and easier to navigate

Today’s forecasting tools and KPI dashboards give you all the data and metrics you need to stay one step ahead of the current economic uncertainty and market instability.

Come and talk to us about setting up the most useful dashboards and metrics for your business – and find out how we can guide you through these uncertain times.

On Thursday 22 May, the Minister of Finance, The Honourable Nicola Willis, delivered Budget 2025. Opening her speech, the Minister said:

“This is a responsible budget to secure New Zealand’s future. It supports the economic recovery now underway. It also takes a longer-term view with initiatives to boost future investment savings and growth.”

Growing GDP and a Brighter Outlook for the Economy

The economic outlook from the Budget was cautious but optimistic, with the Government keen to push New Zealand out of recession and to reiterate that brighter times lie ahead.

Real GDP growth is expected to accelerate to 2.9 percent, leading to more jobs, higher incomes and opportunities for businesses and families to get ahead.

Capital investment was high on the Government’s agenda, with government initiatives focused on health, education, law and order, and the strengthening of New Zealand’s defence forces.

The Impact for Small Businesses

Let’s take a look at the Budget 2025 announcements that will have a direct impact on your small business, and how these initiatives may help to drive your growth and investment.

New ‘Investment Boost’ Initiative to Drive Growth

Investment Boost is a brand new scheme that encourages businesses to invest in machinery, tools, equipment, vehicles and technology. The aim is to drive productivity, make companies more competitive and give employers the additional funds needed to improve workers’ wages.

You’ll be able to deduct 20% of the cost of a new asset, on top of depreciation, leading to a lower tax bill in the year of purchase and a boost to your operating cash flow.

The scheme is available now for all Kiwi businesses, regardless of size. The 20% deduction applies to new assets purchased in New Zealand or imported, and includes commercial buildings (excluding land, residential buildings and used assets).

An Increase to the KiwiSaver Contribution Rate

The default rate of employee and employer contributions for KiwiSaver will rise from 3% of salary and wages to 4%, in two steps. From 1 April 2026, the rate will rise to 3.5% and, from 1 April 2028, it will increase to 4%. The increases are being phased in over a three-year period to help workers and employers plan ahead.

Employees will be able to temporarily opt down to the current 3% rate, if they choose. You’ll still be able to match that rate, as their employer. You may wish to do that, for example, if you feel you’re unable, for a time, to afford an increased contribution.

From 1 April 2026, the Government will extend employer matching to 16 and 17-year-olds, which could have a significant impact if you employ a large number of younger employees.

Capital Investment in NZ Infrastructure

The Government announced significant capital investment in the country’s infrastructure, with $1 billion for hospitals and other health facilities, over $700 million for new schools and $2.7 billion (includes $1.6 billion from Budget 2026) for the New Zealand Defence Force to boost capability.

Over $460 million was also committed by the Government to upgrade New Zealand’s rail network to keep people and freight moving.

For businesses and contractors, this large investment in infrastructure projects could lead to profitable contracts, ongoing work and a boost to revenues.

Support for Foreign Investment

The Government has set aside $65 million to encourage foreign investment in New Zealand infrastructure by increasing the amount of tax-deductible debt.

Science and Innovation Reforms

Funding support was announced for the transformation of Crown research institutes, establishment of a gene technology regulator, and the creation of Invest New Zealand as a one-stop shop for foreign direct investment.

Funding for the Elevate New Zealand (NZ) Venture Fund

The Government announced additional funding for the Elevate NZ Venture Fund. This fund encourages venture capitalists to invest in the Kiwi technology start-up sector.

Elevate is a government-funded programme, investing into venture capital funds and aimed at filling the Series A and B capital gap for high-growth Kiwi technology companies.

Increased Funding for Inland Revenue Compliance

An additional $35 million per year was announced for compliance activities by the Inland Revenue. This is expected to generate $280 million in extra tax revenue, indicating a focus on tax enforcement that businesses should be aware of.

Talk to Us About Budget 2025

You can view an overview of Budget 2025 here.

If you’re concerned about the increases to KiwiSaver employer contributions, or keen to use the new Investment Boost 20% deduction for new asset purchases, do come and talk to us.

We’ll be glad to answer your Budget 2025 questions and advise on any new schemes.

Get ready for the minimum wage increases now so that you are paying your employees the correct rate next month.

Wage Rates Are Going Up

From 1 April 2025:

• The adult minimum wage will go up from $23.15 to $23.50 per hour.

• The starting-out and training minimum wage will go up from $18.52 to $18.80 per hour.

• All rates are before tax and any lawful deductions, for example, PAYE tax, student loan repayment, and child support.

What to Do Now

Take this opportunity to review your business processes, employment records, and systems.

• Check that your payroll system is ready and updated for the 1 April changes, whether you have a manual or computer-based system.

• Recalculate and update your budgets and cash flow as the increase may have an impact, including on items such as ACC levies, KiwiSaver contributions, and holiday pay.

• Review the pay rates for skilled employees from 1 April.

• Consider reviewing your pricing strategy.

Tools to Help You

The free cash flow forecast tool can help you plan for the minimum wage change.

➡ Cash Flow Forecaster (external link)

The free employment agreement builder can help you make sure future agreements have the correct minimum wage details.

➡ Employment Agreement Builder (external link)

Podcasts are often on our list of things to do, but for many business owners, there are often not enough hours in the day. The recent challenges and changes in business mean it’s the perfect time to make the opportunity to think about where you want your business to head in the future.

Here’s 9 podcasts to provide inspiration for your next business planning session, and are great to listen to when exercising. Find them on the author’s website, Spotify or iTunes.

1. TED Talks – super popular and there are thousands to choose from. Top picks include Simon Sinek and Brene Brown.
2. Lewis Howes School of Greatness – Downloaded over 4 million times a month, hear interviews with world-class game changers in entrepreneurship, health, athletics, mindset, and relationships.
3. The Bite-Size BizRoom – 15-minute podcasts with business advice you can easily action to grow your business.
4. The Mike Dillard Podcast – Captivating interviews with inspiring leaders to help you fulfill your potential.
5. The Happiness Lab – Surprising and inspiring stories based on the latest scientific research that will change the way you think about happiness.
6. Building a Storybrand – Donald Miller has helped thousands of businesses grow by getting them to clarify their marketing messages.
7. How I Built This – Guy Raz dives into the stories behind some of the world’s best-known companies. Hear about innovators, entrepreneurs and idealists — and the movements they built.
8. The Mindset Mentor – 10-20 minute podcasts designed to give small business owners a motivational boost.
9. Entrepreneurs on Fire – John Lee Dumas is the founder and host of this award winning podcast. With over 100 million listens and more than 3000 episodes it delivers high energy inspiration and valuable insights.

Business advice really can be a gamechanger. Whether you’re a new startup owner, or the CEO of an established business, it’s always helpful to have access to tips, resources and content that helps to guide the next chapter in your business story.

The new GoBusiness site from the New Zealand government aims to bring all the advice you might need together in one place. It’s your hub for all things small business related.

GoBusiness: your one-stop resource for business tips

The new GoBusiness site brings together all the different areas you might need to keep your finance, marketing, sales and security on track.

Let’s take a look at the key areas you can visit:

Finance, tax and your business – tips on getting your head around financial management, paying the right taxes and managing your bills and cashflow.

Marketing your business online – advice on the different marketing channels, how to connect with customers and getting the best results from your promotional campaigns.

Hiring and managing staff – explanations of when to hire your first employees, getting used to employment law and building a great place for your team to work.

Training your people – tips on providing on-the-job training, upskilling of your existing staff and getting the best performance from all your employees.

Export for growth – advice on how to go international with your sales, with tips on the logistics, tax law and marketing needed to be a global business.

Data for business – breakdowns of statistics relating to the New Zealand business economy, so you can benchmark where your company sits.

Managing your cashflow – tips for tracking your cash inflow and outflow, and how good cashflow management and forecasting helps your financial health.

Getting the business support you need – an overview of the different areas of advice you can make use of, both as a new business, or an established company.

Talk to us about how to overcome the business issue

Having a hub for all your general business resource needs is a great starting point for any business owner. But if you need more detailed, one-to-one advice, we’re always here to help.

You can talk to our team about managing your finances, keeping your cashflow healthy, or getting the right strategy in place for hiring and starting your export journey.

Are We Reaching the Peak of AI Hype? A Look Ahead to 2025

You can tell we’ve hit a hype saturation point when it’s hard to hear the words “artificial intelligence” (AI) without also hearing the audible groan that follows. After two years of hype around generative AI, there are clear signals that we’re entering the low that follows the high – when the gap between expectation and reality becomes evident.

This cycle isn’t new. History is full of seemingly false starts, where new technology burns bright and fizzles quickly. However, sometimes these apparent failures lay the groundwork for transformative advancements, even if it takes five to ten years to see their full impact.

With that long-term view in mind, here are some key signals to watch in 2025 as we consider the future of technology for small businesses, advisors, and communities worldwide.

Agentic AI: From Insights to Action

Generative AI might be nearing its saturation point, but “agentic AI” – AI that can take action – hasn’t had its moment yet.

Imagine digital assistants functioning like autonomous employees, performing tasks and assisting customers without human intervention. Self-driving cars like Waymo offer a glimpse into this concept, making decisions in real time. Similarly, businesses might soon see AI autonomously handling fraud detection, customer queries, or inventory management.

As this field evolves, balancing the promise of agentic AI with ethical and legal considerations will be pivotal. The potential is immense, but so is the responsibility to implement it thoughtfully.

Ambient Computing: The Next Frontier

The rise of wearables and smart devices is paving the way for ambient computing – technology that seamlessly integrates into our environment.

From smart glasses like Meta’s Ray-Ban collaboration to smart rings and watches, devices are becoming more intuitive and context-aware. Imagine shop owners interacting with products through smart glasses or virtual avatars providing real-time sales insights.

As battery and display technologies improve, it’s only a matter of time before everyday objects incorporate AI and AR features, transforming how businesses operate.

Crypto and Blockchain: Quiet Progress

Despite skepticism, blockchain technology continues to develop and show promise. Central banks are experimenting with digital currencies (CBDCs), like China’s Digital Yuan and The Bahamas’ Sand Dollar, to improve cross-border payments.

Stablecoins and blockchain-based solutions are also emerging for non-financial use cases, such as decentralized digital identity and verifiable ownership of digital assets. These advancements could provide small businesses with tools for securely managing intellectual property or combating counterfeit goods.

Looking Beyond the Short Term

Roy Amara, a futurist, once said, “We overestimate the impact of technology in the short term and underestimate its long-term consequences.”

As we move into 2025, it’s essential to approach technological advancements with patience and perspective. While some innovations might not dominate headlines this year, they could define the decade ahead.

Stay tuned for a dynamic period of growth, adaptation, and transformation.

What trends are you most excited about in 2025? Share your thoughts in the comments below!

With many businesses expecting a lower profit this financial year, the more prepared you can be for the unexpected, the better. Managing expenses is a good idea at any stage in your business and you can also consider increasing your prices to improve your margins.

Smart ways to get your costs under control

Cashflow has been a big issue for thousands of businesses this year, and when the money’s not rolling in, it can help to rethink your costs. To do it effectively involves more than just keeping an eye on outgoings. It’s about looking at all the moving parts of your business to see if your systems (or lack of) are costing you unnecessarily. Here’s how:

• Muck in – Do a cost control audit to work out where your big cost centres are, and look at your systems for managing them.
• Be aware – Don’t just slash your expenses without considering impacts. Also track costs and look out for opportunities to trim fat or take a different approach to get the same result.
• Unite your team – Bring everyone together to monitor and analyse inputs and expenses. Reviewing and developing your systems? Get your team’s feedback.
• Look to your peers – How do your costs compare to others? If a business of a similar size and production system to you is performing well, but spending less, explore what they’re doing differently.
• Seek advice – Got a good idea of where the issues are, or feeling totally confused? Talk to your advisors about your next steps.

How can I put my prices up without losing customers?

If you need to change your pricing to make ends meet, be honest and up-front with your customers at all communication points.

• Make it clear on your website and social media that prices have changed and why.
• Send an email to let all your clients and suppliers know about the changes.
• Meeting people face-to-face? Make sure they’re aware of the price hikes before they’re invoiced, no one likes a nasty surprise and many countries and regions have fair trading and/or consumer protection acts.
• Provide the best customer experience you can by updating staff on any changes and advising them on how to communicate these with customers.
• Worried you’ll lose fans? Consider staggering price increases of individual products over time.

Get in touch if you’d like us to help with an analysis of your margins and expenses.

Do you have direct debits and online payments set up for your business? Making it easy for your customers to pay you is vital to business success. Getting direct debits and alternative payment methods linked to your business is so easy these days there’s no excuse not to give your customers multiple ways of making payment.

Many service-based businesses choose direct debit arrangements with their clients to avoid late payment. If you’re often chasing overdue payments, consider implementing direct debit arrangements to reduce your administration time.

If you’re already using online accounting software, check the add-on solutions and choose one that integrates with your accounts. This means the payment platform information feeds directly into your accounting software to be easily matched to customer transactions.

Make it Easy

You probably already have bank transfer information set up, but adding several other methods such as PayPal, debit cards, and credit cards allows customers to choose the method most convenient for them. Many customers appreciate the automation and simplicity of direct debits. Make sure your payment terms and conditions are clear on your website and invoices and don’t forget to include all your chosen payment methods for customers!

Worried About Costly Fees?

You have the option to choose whether you will absorb the cost of the payment gateway processing fees or whether you will add the cost to your invoice and charge clients extra. Your accounting software will then allocate the funds accordingly to invoice payment and fees received.

Better Transaction Recording

When you integrate direct debits and online payment methods with your accounting system, you dramatically reduce errors in recording customer payments – which means less time spent on your accounts!

Not Sure Where to Start?

If you’d like to make it easier for customers to pay you, talk to us about which solutions are best for your business. We can discuss which platforms have the best and most secure integrations with the accounting software you use. We’ll help streamline your payment systems.