NZ Assets: $1,000 Low-Value Rule and Investment Boost
17 October 2026 · Guide · Not tax advice
Educational information only. Not tax, legal or financial advice. We are not Inland Revenue (IRD) or ACC and are not affiliated with them. Check ird.govt.nz, or ask a qualified tax agent. Sources read October 17, 2026. Anything marked expected should be re-checked. Examples use made-up numbers. This page contains no affiliate links.
Short answer: The IRD says you must claim depreciation on assets kept in your business for longer than a year, but you can claim an immediate deduction for low value assets: the threshold is $1,000 from 17 March 2021 (it was $500 before 17 March 2020 and $5,000 between 17 March 2020 and 16 March 2021). Under Investment Boost, from 22 May 2025 you can claim 20% of the cost of new assets as an expense and claim depreciation as usual on the remaining 80%. You don't need to notify the IRD; it goes in your return.
Investment Boost: what qualifies (IRD, read in full 17 October 2026)
- The asset must be new or new to New Zealand (even if used overseas), first available for the business to use on or after 22 May 2025, and depreciable for tax purposes. There is no limit on the value you can claim for.
- Also claimable: new commercial and industrial buildings, improvements to depreciable property (not residential buildings), primary sector land improvements, and mixed-use assets.
- Not claimable: second-hand assets sourced from New Zealand, residential rental buildings, and most fixed-life intangible assets such as patents. Minimal, insignificant use (the IRD's example is one demonstration of a lawnmower held for sale) doesn't stop an asset being "new".
- "Available for use" generally means physically and legally able to be used, even if you hadn't started using it.
- On an IR10, put the Investment Boost amount in boxes 28 and 52 and the total value of the asset(s) in Box 60. IRD's example: a $10,000 asset bought 23 May 2025 gives $2,000 in the tax depreciation box and $10,000 in Box 60.
- You must keep evidence of purchase and of when the asset was first available for use in New Zealand (invoices, proof of payment, ownership, import documents and so on).
- If you claim it you must depreciate the asset; you can't elect it to be non-depreciable. You can ask to claim it for a past year if the IRD reassesses that year.
GST and depreciation
If you're GST-registered, depreciation is claimed on the price less GST. If you're not registered, it's claimed on the total price including GST.
Pooling
Low value assets can be grouped and depreciated as a pool; once in a pool they can't be removed. Pooled assets use the diminishing value method, use the lowest rate of any asset in the pool and can't be buildings.
Methods
Two methods: diminishing value (high rate early, reducing) and straight line (same rate each year). The total over the asset's life is the same; you can use different methods for different assets and change at the end of a year using the adjusted tax value.
Buildings and non-depreciable assets
From the 2025 income year the rate for non-residential buildings returned to 0%. Land, trading stock, franchise fees and intangibles like goodwill don't depreciate.
Made-up example
You buy a $900 monitor and a $3,000 laptop on the same day from different suppliers: the monitor is under the threshold (immediate deduction); the laptop is depreciated, and under Investment Boost you could claim 20% ($600) first if it is new (or new to New Zealand) and first available for use on or after 22 May 2025, then depreciate the remaining $2,400.
Related
Home office · Vehicle expenses
FAQ
Does a computer used at home count? The IRD home office page allows depreciation on capital items like computers, unless you use the square metre option.
Where do I find rates? The IRD points to its rate finder and the IR265 booklet.
What we could not verify
- Investment Boost details beyond the IRD claim page (the IRD IR10 guide and policy information sheet were seen only as search excerpts), including how it interacts with the low-value rule for an asset under $1,000.
- Whether the threshold is "less than" or "equal to or less than" $1,000 (the IRD table says "reset to $1,000"; the legislation wording was seen only in a search excerpt).
- Depreciation rates for specific assets (IR265 not read).
- Whether any change applies for the 2027 income year.
Sources (official)
- IRD, Claiming depreciation — official page (read in full October 17, 2026; page shows no review date)
- IRD, Home office expenses — official page (read in full October 17, 2026)
- IRD, New assets - Investment Boost and What you can claim with Investment Boost — official page (both read in full October 17, 2026; no review date shown)