Smart Money: How to Kit Out Your Office

(and Get the Taxman to Chip In)

Starting a new business or upgrading your workspace? You probably know you need desks and office chairs, but you might not know that how you buy them can change your tax bill.

In New Zealand, the government actually helps you pay for your business gear—if you know the rules. Here is the simple guide to getting the best tax bang for your buck in 2025.

1. The "Under $1,150" Rule: Instant Satisfaction

This is the golden rule for saving money right now.

If you buy a piece of office furniture for $1,150 or less (including GST), you can "write it off" immediately.

What does that mean?

Imagine you make $10,000 profit this year. You pay tax on that $10,000. But if you buy a decent office chair for $900, the IRD lets you treat that $900 as an instant expense. Now, you only pay tax on $9,100. You keep more cash in your pocket today.

The Trap:

If that same chair costs $1,151, you can’t claim the whole cost at once. You have to claim it little by little over many years (this is called depreciation).

The Strategy:

Look for quality gear that sits just under that $1,150 (incl. GST) price tag. It’s better for your cash flow.

2. New for 2025: The "Investment Boost"

If you are reading this after May 22, 2025, there is a massive new perk called the Investment Boost.

Usually, when you buy expensive "new" assets (like a big meeting table or a custom reception desk), you have to claim the cost back slowly over years. But the government wants businesses to spend money, so they introduced a bonus.

How it works:

If you buy a new business asset (it can't be second-hand), you can claim 20% of the cost immediately as a tax deduction in the first year. You then claim the normal depreciation on the rest of the value.

This basically means you get a much bigger tax break in year one than you used to. It’s a great reason to buy new rather than used.

3. Moveable vs. Stuck (Why "Fitout" Wins)

Here is a weird quirk of NZ tax law: Buildings don't help your tax bill, but "Fitouts" do.

As of 2025, if you spend money on the "building" (like adding permanent structural walls), the depreciation rate is 0%. You get zero tax claim on that cost.

However, if you spend money on "commercial fitout," you can claim it.

The Hack:

Instead of building a permanent plasterboard wall to make a meeting room (which gets you $0 tax back), use moveable glass partitions or acoustic screens.

Permanent Wall: 0% tax claim.
Moveable Partition: Tax claimable (usually around 10-13% per year).

The same applies to carpet. If you glue down carpet, it’s often considered part of the building. But if you use carpet tiles or loose rugs, they are often treated as "chattels" (furniture), which means you can claim the cost back much faster.

4. Avoid Invoicing Items as a Single Set

Remember the $1,150 rule? The IRD has a rule to stop you from cheating it. It’s called the "Set of Assets" rule.

If you purchase two items that are each under $1,150 on a single invoice—for example, a planter cupboard and an executive chair with a combined total of $1,700—the IRD may treat this as one asset valued at $1,700. As a result, the cost must be depreciated over the asset’s useful life rather than claimed immediately.

The Fix:

Ask us to itemize your invoice.

1 Planter Cupboard: $800 (incl. GST)
1 Executive Chair: $900 (incl. GST)

Because the two items were invoiced separately and each costs less than $1,150, you may be able to claim the full $1,700 immediately for the cupboard and chair.

Summary Checklist for Young Bosses:

Aim Low: Individual items under $1,150 (incl. GST) are instant tax write-offs.
Buy New: Post-May 2025, new gear gets you a 20% bonus deduction.
Keep it Loose: Moveable partitions and furniture are better for tax than building fixed walls.
Detail Matters: Itemise your invoices so individual items aren’t unintentionally treated as one higher-value asset.