Can I Claim Equipment and Technology (New Zealand) as a Business Expense in New Zealand?
Assets costing NZD 1,000 (GST-exclusive) or less are immediately expensed in the year of purchase. Assets over NZD 1,000 are capitalised and depreciated at IRD-prescribed rates using either the diminishing value or straight-line method.
What Inland Revenue (IRD / Te Tari Taake) says
Low-value asset threshold: NZD 1,000 (GST-exclusive for GST-registered businesses). Assets above this threshold must be depreciated using IRD rates from IR265. Computers and peripherals depreciate at 40% diminishing value (DV) or 26% straight-line (SL). Office furniture at 12% DV or 8.5% SL.
When you can claim
- Laptops, computers, and peripherals costing NZD 1,000 or less — immediate full deduction in year of purchase
- Office equipment such as printers, phones, or cameras costing NZD 1,000 or less — immediate full deduction
- Assets over NZD 1,000 — deductible over their useful life via IRD depreciation rates (e.g. 40% DV for computers)
- SaaS and cloud software subscriptions — revenue deductible in full each year regardless of amount
When you cannot claim
- Assets used partly for private purposes — only the business-use proportion can be depreciated
- Land (no depreciation) and buildings (0% depreciation rate under NZ rules)
Good to know
Pro tip: Buy equipment items separately rather than as a bundle where each individual item is under NZD 1,000 — this maximises immediate write-offs. A set of chairs purchased together may need to be capitalised as a single asset.
Important: If equipment is later sold for more than its tax book value, the depreciation recovered is assessable (taxable) income in the year of sale.
Stop guessing what you can claim in New Zealand
AccountsOS automatically categorises expenses with Inland Revenue (IRD / Te Tari Taake)-aware rules and tells you exactly what is claimable.
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