# Can I claim Equipment and Technology (New Zealand) as a business expense in New Zealand?

**Yes, fully claimable.** 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.

Typical amount: NZD 980 laptop (under threshold): immediate NZD 980 deduction. NZD 2,500 laptop: Year 1 depreciation at 40% DV = NZD 1,000. NZD 400 office chairs (each under NZD 1,000): each qualifies for immediate write-off if purchased separately.

## 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
- New equipment acquired from 22 May 2025: 20% Investment Boost in the first year, then depreciation on the remaining 80%

## 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. Keep invoices that show the date of purchase and whether the item is new, because Investment Boost applies to new assets and the date of first use sets the year of the claim.

**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. Since 22 May 2025 a business can claim Investment Boost, which is 20% of the cost of most new depreciable assets as an immediate expense, with depreciation claimed on the remaining 80%. There is no limit on the value of new investment that qualifies. It applies to machinery, equipment and work vehicles, and to new commercial and industrial buildings that otherwise allow no depreciation, but not to dwellings. Non-residential buildings have a depreciation rate of 0 percent.

Source: https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/types-of-business-expenses/depreciation

## Related expenses

- [Home Office Expenses (New Zealand)](https://accounts-os.com/nz/expenses/home-office-nz)
- [Advertising and Marketing (New Zealand)](https://accounts-os.com/nz/expenses/advertising-nz)