Taking advantage of the new building depreciation deduction claims

02

Apr

As part of the New Zealand Government’s $12.1 billion emergency COVID-19 stimulus package, the Government has reintroduced building depreciation deduction claims for property owners with commercial and industrial properties. The deduction claims will be at a level of 2% a year starting in April 2020.

This business relief measure will provide property owners with a substantial boost to their operating balance sheets and with its permanency, will also aid with ongoing seismic strengthening costs.

With the new changes from New Zealand’s stimulus package, negative economic impacts for commercial property and business owners will be softened and with a collective cost saved of $2.6 billion across all New Zealand businesses, business owners can certainly put their saved money into other avenues.

Here are a few things you can consider doing now that you’ve got some more money on hand:

  • Establish cash reserves
  • Invest further into your business and your employees in a sustainable manner
  • Maximise capital expenditures
  • Consider buying or collaborating with other businesses in the industry
  • Set up retirement accounts

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