Wellington, New Zealand - The New Zealand government has announced new tax incentives aimed at boosting business investment and stimulating economic growth. The initiative allows firms to deduct 20% of the value of new assets, including machinery and buildings, in the year of purchase.
Finance Minister Nicola Willis unveiled the plan in her annual budget announcement on Thursday. The government hopes the measure will increase productivity across various sectors.
However, companies will also face increased costs due to changes in the KiwiSaver worker pension savings plan. The long-term impact of these combined measures remains to be seen.