Finance Minister Nicola Willis urges Labour to keep New Zealand’s 20% investment tax boost, citing evidence it increases business spending and investment.

Finance Minister Nicola Willis is urging the Labour Party to commit to preserving New Zealand’s Investment Boost policy, which allows businesses to deduct 20% of new asset costs from taxable income, citing evidence that 40% of firms planning investments say the policy has increased their spending, with 11% reporting a significant rise. She argues policy stability is critical for long-term business confidence and economic growth, warning that uncertainty undermines investment. Labour’s Barbara Edmonds acknowledged the policy’s benefits but declined to commit to its retention, questioning how its impact is measured and calling for more data. Inland Revenue data shows the policy is already shifting investment behavior, with over half of firms altering project timing, scale, or type, including accelerating automation and renewable energy upgrades. The government maintains that consistent tax incentives are essential for boosting productivity and sustainable growth.