NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
    • Cooking the Books
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / New Zealand

Investment Boost: Farmers benefit from new tax break on equipment

RNZ
26 May, 2025 10:37 PM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Farmers can now deduct 20% of new equipment costs from taxable income. Photo / Harry Nash

Farmers can now deduct 20% of new equipment costs from taxable income. Photo / Harry Nash

By Monique Steele of RNZ

Those in the agriculture sector who can afford to buy new farm equipment are feeling buoyed by the Government’s new tax incentive on new farm machinery.

Farmers, growers, processors and other business owners could now deduct 20% off the purchase of new farm equipment, tools or machinery from their taxable income.

Named the “Investment Boost”, it was announced in the Government’s 2025 Budget last week.

Prime Minister Christopher Luxon said in Parliament, the boost was about lifting productivity and helping businesses grow.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

“I’ll keep it real simple because investment boost means cheaper tractors,” he said.

“It means cheaper utes. It means cheaper plant and equipment for manufacturers and wine makers and tourism operators, and start-ups.

“It means fostering the investment New Zealand businesses need to lift productivity, to increase wages, to boost exports, and to get even more competitive on the global stage.”

Advertisement
Advertise with NZME.

On Saturday, the Prime Minister said on social media that farmers and tradies were telling him they were buying new equipment over the weekend because of the boost.

Tractors and Farm Machinery Association data showed 2800 tractors were sold in New Zealand through 2024, down 18% on the year prior.

But association president Jaiden Drought said recent field days events like the South Island Agricultural Field Days in Kirwee showed rural confidence had improved following a few tough years, but sales in recent months had slowed.

“[2025] started off with a bit of a hiss and a roar, and everyone thought that the shackles had been taken off after a tough 12 to 18 months.

“But we’ve seen a little bit of a flat spot just in the last couple of months, probably more so around the lingering effects of the drought.”

Drought said machinery was a significant capital purchase for farmers, and prices generally have risen by about 30% in five years.

“Commodity prices are high, but they haven’t really seen that flow through to their bank accounts just yet due to higher feed costs to either get cattle through the drought or keep them in milk.

“So certainly the second half of the year, all things considered, looks a lot stronger.”

Drought said the boost could be “the carrot” that will hopefully lead to more tractor purchases.

Southland sheep and beef farmer Ben Dooley of Wyndham said he spent $25,000 on equipment right before the announcement was made, though he said that was small potatoes compared to the cost of a new tractor.

Advertisement
Advertise with NZME.

“I’m really happy that it’s there, I’m also really frustrated about it, because - nothing big - but I’ve had a few purchases this season,” he said.

“All second-hand stuff, sprayer, fert spreader, farm ute, they were all bought before the date, so I don’t get that on them, but we’ll still get to depreciate them over time.”

Dooley said the boost was a “great initiative”, particularly for those farmers who had “put off” the big ticket items like tractors.

“We know machinery dealers and your general wholesale retailers in the rural space, particularly, are having a bit of a hard time at the moment because farmers haven’t been spending.

“All of a sudden, sheep farmers and dairy farmers have had quite a reasonable season compared to what has been in the past, and there are some people that are wanting to purchase stuff, but at the same time, there’s a lot of us that didn’t pay a lot of or no tax last year because of either reduced income or in a lot of our situations, massive losses.”

The Government announcement said an investment boost was expected to lift GDP by 1% and wages by 1.5% over the next 20 years.

Advertisement
Advertise with NZME.

- RNZ

Save

    Share this article

Latest from New Zealand

New Zealand

Powerball jackpot rolls over to $10m, seven players share First Division prize

28 May 08:30 AM
New Zealand

'Right behind the bus': Person hospitalised after Auckland bus accident

28 May 08:21 AM
New Zealand|crime

Forgetful pizza store robber leaves police scanner - with his DNA all over it - at the scene

28 May 08:00 AM

Gold demand soars amid global turmoil

sponsored
Advertisement
Advertise with NZME.

Latest from New Zealand

Powerball jackpot rolls over to $10m, seven players share First Division prize

Powerball jackpot rolls over to $10m, seven players share First Division prize

28 May 08:30 AM

Check the numbers from tonight's draw to see if you are a winner.

'Right behind the bus': Person hospitalised after Auckland bus accident

'Right behind the bus': Person hospitalised after Auckland bus accident

28 May 08:21 AM
Forgetful pizza store robber leaves police scanner - with his DNA all over it - at the scene

Forgetful pizza store robber leaves police scanner - with his DNA all over it - at the scene

28 May 08:00 AM
'Anything could be going on': Concerns over relaxed barber rules

'Anything could be going on': Concerns over relaxed barber rules

28 May 07:53 AM
Explore the hidden gems of NSW
sponsored

Explore the hidden gems of NSW

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP