National Road Carriers Association (NRC) welcomes the Government's introduction of the 'Investment Boost' tax incentive in Budget 2025, recognising it as a significant step towards enhancing productivity and stimulating growth within New Zealand's freight and transport sectors. 

The 'Investment Boost' allows businesses to immediately deduct 20% of the cost of new assets - such as machinery, equipment, vehicles, and commercial buildings - from their taxable income in the year of purchase, in addition to standard depreciation deductions. The initiative is projected to increase New Zealand's GDP by 1%, wages by 1.5%, and capital stock by 1.6% over the next two decades, with approximately half of these gains expected within the first five years.  

“For the freight and transport industry, this incentive provides a timely opportunity to invest in modernising fleets, upgrading logistics infrastructure, and adopting advanced technologies,” says NRC GM Policy & Advocacy James Smith.

“Such investments are crucial for improving operational efficiency, reducing environmental impact, and meeting the evolving demands of supply chains. 

“NRC acknowledges the Government's commitment to fostering a business environment conducive to investment and growth. We encourage our members and industry stakeholders to leverage this incentive to enhance their operational capabilities and contribute to New Zealand's economic resilience.”