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Planning to expand your fleet with a new Avant loader or upgrade those older attachments? The Government's Investment Boost 2025 just made your decision a lot easier on the wallet.
From 22 May 2025, businesses can claim an immediate 20% tax deduction on eligible new equipment purchases, then continue with standard depreciation on the remaining 80%. For arborists, beekeepers, nurseries, landscapers, builders, and farmers eyeing new gear, this accelerated depreciation translates to serious cash flow improvements in year one.
Let's break down what this means for your bottom line and why now might be the perfect time to invest in that Avant loader package you've been considering.
The Numbers That Matter
The Investment Boost 2025 could save your business thousands of dollars on new Avant equipment. Take this scenario: you purchase a new Avant 700 series loader with a selection of attachments for $120,000. Under the new rules, you can claim $24,000 straight away, then continue depreciating the remaining $96,000 as usual.
For a business in the 28% tax bracket, that immediate $24,000 deduction saves you over $6,700 in tax in year one alone. While you'll depreciate less in future years (since you're depreciating the remaining $96,000 rather than the full $120,000), the upfront cash flow benefit is substantial. That's roughly equivalent to covering your fuel and maintenance costs for months, or putting a decent deposit on your next piece of kit.
What Equipment Qualifies?
The good news for Avant customers is that virtually all our loaders and attachments qualify. This includes:
- New Avant loaders across all series.
- All new loader attachments.
- Any capital improvements to existing eligible assets.
What doesn't qualify? Used equipment already operating in New Zealand, anything purchased before 22 May 2025, or stock you're buying purely for resale.
Running the Numbers with a Practical Example
Let's expand on that earlier scenario: you run an arborist business in the BOP and you've been eyeing an Avant 700 series loader with a selection of attachments, including a Root Grapple, pallet forks, and an XL Mulch bucket. The total package comes to $120,000 excluding GST.
Without Investment Boost (old rules):
- Purchase price: $120,000
- Year 1 depreciation (13% for 9 months): $11,700
- Tax saving (28%): $3,276
With Investment Boost 2025:
- Purchase price: $120,000
- Immediate 20% deduction: $24,000
- Year 1 depreciation (13% on remaining $96,000 for 9 months): $9,360
- Total year 1 deduction: $33,360
- Tax saving (28%): $9,341
- Extra cash flow benefit: $6,065 in year one
That extra $6,000 upfront could cover insurance, servicing, or even start building towards the next attachment. The key advantage is timing: instead of spreading those tax benefits over several years through depreciation, you get a significant portion immediately when cash flow matters most.
Why Avant Loaders Make Smart Investment Sense
Apart from the tax advantages, there are convincing operational reasons to consider upgrading now. Our customers consistently report that Avant loaders pay for themselves through improved efficiency and reduced labour costs.
Take the versatility factor: one Avant loader with the right attachments can replace multiple pieces of equipment. Instead of running a mini-excavator, skid steer, and compact tractor for different jobs, many operators find they can handle 80% of their work with a single Avant and appropriate attachments.
The reliability aspect matters too. Downtime costs money, and Avant's track record for durability means fewer service calls and more billable hours. We've been supporting Kiwi operators since 2004, and our nationwide service network ensures you're never stuck waiting for parts or expertise.
Timing Your Purchase Strategically
To maximise the Investment Boost benefit, timing matters. Your new equipment must be purchased and available for use within the same financial year to claim the deduction.
For most businesses, this means:
- Purchase and delivery completed by 31 March 2026.
- Equipment commissioned and ready for work before year-end.
- All paperwork finalised for your accountant.
Given current supply chains and the customisation options available with Avant packages, we recommend starting conversations now rather than leaving it until the March rush.
Making Your Move
The Investment Boost 2025 won't last forever, and neither will current equipment availability. If you've been on the fence about upgrading or expanding your fleet, the combination of accelerated tax benefits and operational improvements makes a strong case for action.
Our team can help you configure the right Avant loader and attachment package for your specific applications, whether that's landscaping, farming, construction, or specialist work like beekeeping or nursery operations.
Want to crunch the numbers for your specific situation? Contact us to discuss your needs and get a detailed quote.
Disclaimer: This information is general in nature and doesn't constitute tax advice. Always consult your accountant or tax advisor about your specific circumstances and eligibility for Investment Boost deductions.