Budget 2025 Security Tax Deduction – 20% for Upgrades

The Budget 2025 security tax deduction — also called the Investment Boost — is a major win for New Zealand businesses. From 22 May 2025, companies can claim an immediate 20% tax deduction on many new depreciable assets. That includes common shopfront and site security upgrades such as roller shutters, expanding grilles, bollards, anti-jump screens, and perimeter fencing. In other words, protecting your premises with Xpanda physical security could not only reduce crime risk but also deliver a tax saving in the same year.

Every business has unique circumstances. Always confirm with your accountant how the Budget 2025 security tax deduction applies to you.

Quick Menu

• Why Security Upgrades Make Sense Now
• How the Budget 2025 Security Tax Deduction Works
• Xpanda Products That May Qualify
• Xpanda Products That May Not Qualify
• Worked Example: Potential Savings
• What Doesn’t Qualify
• Paperwork & Claim Process (from IRD)
• Where to Read the Rules
• Next Steps With Xpanda
• FAQ: Budget 2025 Security Tax Deduction
• Important Note & Disclaimer

Why Security Upgrades Make Sense Now

Ram-raids, break-ins, and smash-and-grabs continue to cost New Zealand businesses millions every year. Often it’s not just the stock loss — it’s repairs, downtime, insurance excess, and staff safety concerns.

The new Budget 2025 security tax deduction makes this the ideal year to act. Instead of writing off security as a “necessary evil,” you can now treat it as a depreciable investment with an immediate tax benefit.

Related reading: NZ Property Crime Monthly Update

How the Budget 2025 Security Tax Deduction Works

• Deduct 20% of the new asset’s value in the year you purchase it.
• Still claim normal depreciation on the remaining 80%.
• Applies to new depreciable business assets (and imported second-hand assets).
• Began 22 May 2025 and has no cap on how many assets you can claim.

Government Fact Sheet (Budget 2025)

Xpanda Products That May Qualify

Most Xpanda installations fall under Inland Revenue’s depreciable fit-out or site works categories. Examples from IRD’s depreciation tables include:

• Roller shutters & grilles → Listed under “Doors (roller and similar)” and “Grills (roller and similar).”
• Expanding trellis grilles (Saftidor style) → Treated similarly to roller grilles as fit-out.
• Window bars & polycarbonate anti-jump screens → Generally fit-out if not structural.
• Fences & perimeter barriers → Explicitly depreciable under “Fences.”
• Bollards & ram-raid beams → Usually treated as site works/barriers, depreciable when separately recorded.

IRD Depreciation Rate Finder

Xpanda Products That May Not Qualify

Some items fall into grey areas where IRD treats them as part of the building rather than separate fit-out:

• Steel security doors (hinged) → Often considered part of the building structure (commercial buildings are depreciated at 0%). These may still qualify if part of a new commercial building project, because new buildings themselves are eligible for the 20% Boost.

IRD – Fit-out vs Building Guidance

Worked Example: Potential Savings

Here’s how the Budget 2025 security tax deduction could apply to a small retailer upgrading security:

• Roller grille or Trellis door: $7,500
• Bollards: $5,000
• Window Bars: $2,500

Total investment = $15,000

• 20% Investment Boost deduction = $3,000
• Normal depreciation applies to the remaining $12,000.

At the company tax rate of 28%, the Boost alone saves $840 in the first year — before counting the depreciation deductions that continue in future years.

What Doesn’t Qualify

According to the Government fact sheet, the Budget 2025 security tax deduction does not cover:

• Second-hand assets purchased inside NZ.
• Residential buildings/dwellings.
• Land (though fencing and site improvements can qualify).
• Assets under $1,000 (already fully expensed under existing rules).

Budget 2025 Fact Sheet

Paperwork & Claim Process (from IRD)

To claim depreciation (and therefore the Budget 2025 security tax deduction), Inland Revenue guidance says businesses should:

• Record each asset as a separate fixed asset in the register (e.g. “Fit-out – Roller shutter,” “Site Works – Bollards”).
• Include installation costs as part of the capitalised asset value.
• Use the date the asset is available for use as the start date for depreciation and the Boost claim.

IRD Fit-Out vs Building Guidance

Where to Read the Rules

• Government Fact Sheet (Budget 2025)
• IRD Depreciation Rate Finder
• IRD – Building Fit-Out vs Building Guidance

Next Steps With Xpanda

Security isn’t just about peace of mind anymore. With the Budget 2025 security tax deduction, your business can make a strategic investment that protects staff, stock, and premises while delivering a tax saving in the same year.

Talk to Xpanda today about securing your site and making the most of the Investment Boost.

FAQ: Budget 2025 Security Tax Deduction

Important Note & Disclaimer

This article is based on publicly available Government and IRD information. It is intended as general information only and cannot be taken as tax advice.

Every business has unique circumstances. Always confirm with your accountant how the Budget 2025 security tax deduction applies to your situation.

E&OE (Errors & Omissions Excepted).