Why Now Is the Smart Time to Invest in Dairy Effluent Equipment – and Get a Tax Boost

What Is the Investment Boost?

From the 22nd of May 2025, businesses that invest in new productive assets—like farm equipment, machinery, and infrastructure—can claim a 20% bonus tax deduction in the year they buy the asset. This is on top of the usual depreciation claim.

In simple terms, you get more back from the taxman when you invest in new gear.

Why It Matters for Dairy Farmers

Dairy farms rely heavily on equipment and infrastructure. Whether it’s effluent management, feed systems, or machinery, these are the kinds of assets that qualify for the Investment Boost.

And here’s where it gets interesting…

Most New Zealand dairy farms have a 31st May financial year-end. That means if you purchase new eligible equipment before the end of this month (May 2025), you could:

• Claim the 20% tax deduction this financial year
• Improve cash flow faster
• Make the most of an incentive designed to reward smart reinvestment in your business

Why Nevada Equipment Qualifies

Nevada’s dairy effluent systems—like our slurry tankers, pond stirrers, pumps, and spreaders—are exactly the type of productive assets this incentive is meant to encourage. These are long-life, high-impact tools that improve productivity, environmental outcomes, and long-term farm value.

Inland Revenue has excluded things like land and second-hand assets—but new capital equipment, like Nevada’s gear, ticks the right boxes.

Example: How Much Could You Save?*

Let’s say ( for example) you invest $115,000 in a new Nevada slurry tanker.

• Normally, you’d claim depreciation each year.
• With the Investment Boost, you also claim 20% upfront—an extra $23,000 deduction this year.
• At a 28% tax rate, that’s a $6,440 reduction in tax in the first year alone—on top of your regular depreciation deductions.

That’s money back in your pocket straight away, while your farm benefits from better, more efficient effluent management for years to come.

Don’t Miss the Timing

If you’re already considering an upgrade—or want to take a smart step ahead of the busy season—now is the time to act. Buy in May, and you bring forward the benefit by a whole year.

Talk to your accountant and give us a call. We’ll help you find the right solution—and make sure you’re positioned to take full advantage of this tax-smart opportunity.

Want to check out the facts for yourself?

Here are the official sources:

• Investment Boost Factsheet – NZ Budget 2025 (PDF)
• Government Announcement – Beehive.govt.nz
• Inland Revenue – NZ Tax Policy

*This example is provided for illustrative purposes only. Tax outcomes could vary depending on your circumstances. Please consult your accountant or tax advisor for personalised advice.