Following the surprise announcement of an Investment Boost tax incentive in the Government’s 2025 Budget last month, new data from MYOB reveals the potential impact and uplift the policy could have for local small and mid-sized enterprises (SMEs).
Just under half (48%) of the 500+ business owners and decision-makers polled, say they might change their plans around investing in new assets for their business because of the new policy, while just over one-in-10 (12%) believe the Investment Boost changes their plans ‘considerably’ and 7% are unsure. In comparison, 28% say their spending plans haven’t changed and 5% say their planned spending is ineligible.
As for how soon this spending will manifest and start flowing through the economy, sooner rather than later appears to be the trend, with most looking to capitalise on the incentive before the end of the year. Nearly half (45%) of local SME operators polled plan to make their first asset purchase leveraging the new Investment Boost within the next six months - including one-in-five who are planning to do so in the next three months.
MYOB Chief Customer Officer, Dean Chadwick, says that the survey findings reiterate the strong appetite for such business support, given the sluggish pace of economic recovery.
“From conversations with our customers, partners and through our drumbeat of insights, we know that businesses that invest in assets that drive innovation, are gaining an edge on their peers, are more resilient in the face of change, and are more likely to achieve their growth ambitions,” explains Dean.
“The Investment Boost delivers timely support to New Zealand’s SMEs as they weigh up current economic challenges with the opportunity to invest in growing their business, and it will go some way to shoring up and accelerating their own performance.
“While many SMEs are preparing to purchase the assets they believe will boost their productivity - and benefit their people - before the end of the year, this latest survey also shows that spending by local businesses on eligible new assets will continue into 2026.”
Investment budgets and Boost purchases
When it comes to how much SME owners estimate they’ll spend on new assets for their business within this current financial year, the median spend of those surveyed sits at $37,700. For one-in-10 businesses surveyed, their budgets stretch a bit higher with estimated spend between $80,000 to $100,000, while 12% estimate they’ll spend between $100,000 to $200,000.
Boding well for Fieldays this week, the agriculture sector has one of the highest median spends ($56,670), along with manufacturing ($53,300), behind the finance and insurance sector ($60,000 median).
Topping the list of new assets SMEs plan to purchase leveraging the Investment Boost is passenger vehicles - including cars, vans, and utes (31%), followed by new office technology (28%), digital devices (22%), furniture (18%) and tools of their trade (15%). Just over one-in-10 plan to invest in smaller scale machinery or equipment.
“While it’s evident that New Zealand’s SMEs know where they want to direct their investment to help accelerate and grow their businesses, both the spend and potential returns still need to be considered against their broader performance, their forecasts, and their outgoings – particularly as their costs continue to increase,” explains Dean.
“Local SMEs are serious about setting themselves up for success as they jump on this opportunity and they know getting the right advice is a critical component. Encouragingly, our insights show that 17% have already had discussions with their accountant, bookkeeper or a financial advisor on the purchase of new assets since the announcement, with a further 53% intending to consult with a trusted financial advisor in the next six months.”
Expected gains
Asked about how they believe their new asset purchase/s would most help improve their productivity, most (35%) business owners expect to see increased outputs/production, 31% believe they’ll save time on key tasks, 23% expect to reduce manual tasks through automation, and the same proportion expect employee engagement and wellbeing will improve (23%).
“For the remainder of 2025, the top three goals New Zealand’s SME operators have in their sights include increasing revenue, scaling up their operations, and winning over a wider customer base,” says Dean.
“They also recognise that hitting those targets means doing things differently and it’s clear that they’re ready to adopt new tools and assets that will deliver them the particular returns they need to sustainably grow, thanks to some extra help from the new incentive.”
ENDS
For more information, please contact:
Rosie Miller
NZ PR Specialist
E: rosie.miller@myob.com
About the research
MYOB’s survey of SMEs (with fieldwork conducted by Dynata) comprises a nationally representative sample of 541 owners and decision-makers in small to mid-sized businesses in New Zealand. The survey was conducted between 29 May – 5 June 2025. Respondents were sampled randomly from the Dynata online panel and screened to ensure they met the qualifying criteria. Quotas were maintained on industry sector, business size/FTEs and region to ensure a reliable and diverse cross section of SME opinions were obtained.