Name: Parkland Products
Price range: $$

The Investment Boost is a permanent tax incentive that came into effect on 22 May 2025. It enables New Zealand businesses to immediately deduct 20 percent of the cost of any eligible new asset in the tax year they acquire (or finish constructing) it, with the remaining 80 percent depreciated normally over its useful life. For the turf and golf-course industry, this means accelerated tax relief on machinery, infrastructure, and improvements that keep courses and business up-to-date, helping clubs, contractors, and suppliers reinvest savings into enhanced groundskeeping or service offerings.

By front-loading a portion of your tax deductions, the Investment Boost makes it easier to justify large new purchases saving you money now and helping you keep pace with evolving technology.

Why “Buying New” Pays Off

Safer work: Latest machines have better safety features, so there’s less risk on the job.
Higher efficiency: Newer equipment often works faster and uses less fuel or electricity.
Access to modern features: Think GPS-guided mowers, electric drives or smart irrigation controllers
Lower repair bills: Brand-new assets need fewer fixes and have fewer worn-out parts.
Fresh warranties: When you buy from a supplier (like Parkland Products), you get a new warranty period.
Trade-in or disposal offsets: Swap in old gear to make purchasing easier.

Who and What Qualifies

You must be a registered, taxable business (sole traders count, too).
Capital improvements are included: Workshops, clubhouses and other older infrastructure upgrades.
New buildings qualify: Pump houses, storage sheds, yards and more
Non-Residential Building enhancements : Anything from kitchen refits to lounge upgrades.
Construction projects like irrigation upgrades: Replacing pipes, pumps or control systems.
No limit on total claims: You can claim Investment Boost on every eligible purchase in the year.

Find the full article here: https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/types-of-business-expenses/new-assets—investment-boost

“I see tremendous potential for the grounds and turf industry to grow. Upgrading equipment now, we become more efficient, safer and better positioned to innovate, all while enjoying up-front tax relief. Invest now, modernize your operations, and watch both your business and our industry flourish.”

Richard Todd

CEO, Parkland Products Ltd

Detailed Examples & Potential Benefits

We’ve provided examples to illustrate how businesses can leverage Investment Boost to maximize savings and efficiency. From small lawn‐mowing operations to larger turf‐management contractors, these examples highlight the real‐world impact of upgrading equipment.

Parkland has a range of machinery, utility vehicles, golf carts, irrigation and golf course accessories (poles, flags, ball washers).

Estimated reading time: 7 minutes

For small contractors and lawn-mowing operations, being able to write off more of your machinery’s cost as an expense allows you to plan better for your investments. When taking into consideration IRD’s suggested depreciation rate and lifetime, you can claim more expenses in your first year than ever before, reducing your taxable income and saving you extra cash.

Example: Steve runs “Steve’s Lawn Care” as a sole-trader. His aging ride-on mower frequently breaks down, causing costly downtime and lost jobs. To capitalise on Investment Boost, he:

He sells his old mower for $3,000 (ex GST). (This disposal value is recorded separately and does not reduce the $20,000 base used for depreciation calculations.)
Buys a new ride-on mower from Parkland for $20,000 (ex GST).
Immediate 20 percent deduction: $20,000 × 0.20 = $4,000 claimed on his 2026 tax return.
He then writes off the remaining balance over five years at 40 % per year with the first year having a $10,400 tax deduction (the IRD rate for contractor-use lawnmowers)

In Year 1, Steve’s total tax deduction is $10,400, just over 50 percent of the $20,000 (ex GST). purchase price.

Year	Immediate Deduction	DV Depreciation of 40% (Most Common)	Total Tax Deduction	Net Book Value End of Year
1	$4,000	$6,400.00	$10,400.00	$9,600.00
2	–	$3,840.00	$3,840.00	$5,760.00
3	–	$2,304.00	$2,304.00	$3,456.00
4	–	$1,382.40	$1,382.40	$2,073.60
5	–	$829.44	$829.44	$1,244.16
6 ( End of Life of Asset)	–	$0	$0	$0

By Year 6, the $16 000 is fully written off (Value = $0).

For Golf Courses, the Investment Boost includes upgrades to machinery, key infrastructure, building improvements and land improvements. When combined in a turnkey project, the installation and costs associated which help to bring the asset to usability are included in this Investment Boost claim.

Example: Fairway Golf Club is looking to undergo a full system and experience upgrade. They look to upgrade their irrigation system to Lynx, including the software and sprinkler system. In order to begin, they must also remove their existing system.

Fairway Golf Club signs a quote from Parkland including the removal of existing infrastructure and installation of the new system. This upgrade costs $1,000,000.
Parkland and contractors carry out their work over the period of one year.
Once the project is finished, Fairway Golf Club is able to apply the Investment Boost to the entire project upon completion.

In Year 1, Fairway Golf is able to claim 8% per year under diminishing value depreciation after taking 20% off as the immediate deduction.

Year	Immediate Deduction	DV Depreciation of 8% (Most Common)	Total Tax Deduction	Net Book Value End of Year
1	$200,000	$64,000.00	$264,000.00	$736,000.00
2	–	$58,880.00	$58,880.00	$677,120.00
3	–	$54,169.60	$54,169.60	$622,950.40
4	–	$49,836.03	$49,836.03	$573,114.37
5	–	$45,849.15	$45,849.15	$527,265.22
6	–	$42,181.22	$42,181.22	$485,084.00
7	–	$38,806.72	$38,806.72	$446,277.28
8	–	$35,702.18	$35,702.18	$410,575.10
9	–	$32,846.01	$32,846.01	$377,729.09
10	–	$30,218.33	$30,218.33	$347,510.76
11	–	$27,800.86	$27,800.86	$319,709.90
12	–	$25,576.79	$25,576.79	$294,133.11
13	–	$23,530.65	$23,530.65	$270,602.46
14	–	$21,648.20	$21,648.20	$248,954.26
15	–	$19,916.34	$19,916.34	$229,037.92
16	–	$18,323.03	$18,323.03	$210,714.89
17	–	$16,857.19	$16,857.19	$193,857.70
18	–	$15,508.62	$15,508.62	$178,349.08
19	–	$14,267.93	$14,267.93	$164,081.16
20	–	$13,126.49	$13,126.49	$150,954.66
21	–	$12,076.37	$12,076.37	$138,878.29
22	–	$11,110.26	$11,110.26	$127,768.03
23	–	$10,221.44	$10,221.44	$117,546.58
24	–	$9,403.73	$9,403.73	$108,142.86
25	–	$8,651.43	$8,651.43	$99,491.43

By Year 26, the $1,000,000 is fully written off (Value = $0).

Trenchers and other machinery are often required to help set up your pipes. With the new Investment Boost, you’ll be able to claim more on your expenses to reduce your taxable income.

Example: Joe’s Landscaping is looking to upgrade their trenchers. To capitalise on Investment Boost, he:

Buys a new TORO Trencher from Parkland for $30,000 (ex GST).
Immediate 20 percent deduction: $30,000 × 0.20 = $6,000 claimed on his 2026 tax return.
He then writes off the remaining balance over 15.5 years at 13 % per year with the first year having a $9,120.00 tax deduction (the IRD rate for uncategorised agricultural / landscaping machinery)

In Year 1, Joe’s total tax deduction is $9,120.00, nearly 1/3 of the price.

Year	Immediate Deduction	DV Depreciation of 13% (Most Common)	Total Tax Deduction	Net Book Value End of Year
1	$6,000	$3,120.00	$9,120.00	$20,880.00
2	–	$2,714.40	$2,714.40	$18,165.60
3	–	$2,361.53	$2,361.53	$15,804.07
4	–	$2,054.53	$2,054.53	$13,749.54
5	–	$1,787.44	$1,787.44	$11,962.10
6	–	$1,555.07	$1,555.07	$10,407.03
7		$1,352.91	$1,352.91	$9,054.12
8		$1,177.03	$1,177.03	$7,877.08
9		$1,024.02	$1,024.02	$6,853.06
10		$890.90	$890.90	$5,962.16
11		$775.08	$775.08	$5,187.08
12		$674.32	$674.32	$4,512.76
13		$586.66	$586.66	$3,926.10
14		$510.39	$510.39	$3,415.71
15		$444.04	$444.04	$2,971.67
16		$386.32	$386.32	$2,585.35

By the end of Year 16, the $30,000 is fully written off (Value = $0).

Machinery such as aerators and coring attachments are also eligible for the Investment Boost. This includes purchasing new attachments for existing machinery.

Example: Jamie is looking to purchase a new attachment for his Ventrac used on Fairway Golf Course. He eyes the aerator attachment. In order to gain the Investment Boost, he:

Buys a new Ventrac aerator attachment from Parkland for $30,000 (ex GST).
Immediate 20 percent deduction: $30,000 × 0.20 = $6,000 claimed on his 2026 tax return.
He then writes off the remaining balance over 12.5 years at 16 % per year with the first year having a $9,840.00 tax deduction (the IRD rate for Post Hole Borers (PTO Type))

In Year 1, Steve’s total tax deduction is $9,840.00, almost 1/3 of the purchase price.

Year	Immediate Deduction	DV Depreciation of 16% (Most Common)	Total Tax Deduction	Net Book Value End of Year
1	$6,000	$3,840.00	$9,840.00	$20,160.00
2	–	$3,225.60	$3,225.60	$16,934.40
3	–	$2,709.50	$2,709.50	$14,224.90
4	–	$2,275.98	$2,275.98	$11,948.91
5	–	$1,911.83	$1,911.83	$10,037.09
6	–	$1,605.93	$1,605.93	$8,431.15
7		$1,348.98	$1,348.98	$7,082.17
8		$1,133.15	$1,133.15	$5,949.02
9		$951.84	$951.84	$4,997.18
10		$799.55	$799.55	$4,197.63
11		$671.62	$671.62	$3,526.01
12		$564.16	$564.16	$2,961.85
13		$473.90	$473.90	$2,487.95

By Year 14, the $30,000 is fully written off (Value = $0).

How to Check Depreciation Values

To make the most of Investment Boost, you need the right depreciation schedule for the remaining 80 percent of each asset. IRD sets these rates based on:

Asset category (e.g., turf mowers, irrigation pumps, clubhouse buildings)
Useful life (how many years the asset is expected to last)
Depreciation method (diminishing value or straight line—the percentages differ)

Your accountant can tell you which method to use. To look up rates and calculate, go to:

IRD depreciation calculator
https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/types-of-business-expenses/depreciation/claiming-depreciation/work-out-your-assets-rate-and-depreciation-value

*Disclaimer: This blog post is intended as general information only. Always consult with your accountant or tax advisor to confirm eligibility and ensure compliance with current IRD rules.