How to manage the NZ Investment Boost in MYOB Greentree

The 2025 New Zealand Budget has delivered a timely incentive for businesses looking to invest in new assets—offering a 20% lump sum depreciation in the first year under the new Investment Boost policy. This tax change is designed to stimulate business growth by supporting cashflow and encouraging investment in tools, technology, and equipment.

If you are using MYOB Greentree, it's important to handle this depreciation correctly to stay compliant and accurately represent the value of your assets. Please seek the advice from your Accountant to ensure adherence of your company policies and processes and to determine if there will be any Deferred Tax implications.

MYOB are reviewing whether there are programming changes to be made. In the meantime, here is a breakdown of the Investment Boost and how to manage it in MYOB Greentree using the existing Fixed Asset functionality.

Fixed Asset Investment Boost - Tax Depreciation Calculation demonstration, in effect from 22^nd of May 2025. Should you wish to spread the Investment Boost over the first year of depreciation or claim in the first month of purchase, please see the below guidelines.

In this example:

• Financial year is April to March
• Depreciation rate is set at 10.5%
• Depreciation Method is diminishing
• Asset purchased at $200,000 and in use as of 23^rd May 2025 and meets criteria of a new investment asset
• As FA is in use 23^rd May, Depreciation will start calculating from 31^st May 2025 to end of financial year 31 March 2026 (11 months)

Guide to incorporating the Investment Boost in MYOB Greentree

We are providing two methods on incorporate the Investment Boost to the Fixed Asset Depreciation Rate percentage:

1. Incorporating the Invest Boost over the remaining financial year

• $200,000 less 20% Investment Boost, leaves $160,000 of value to Depreciate
• 10.5% of $160,000 will mean $16,800 is the annual depreciation total.
• $16,800 over 12 months is $1,400 per month
• $1,400 multiplied by the remaining months (11) is a total of $15,400 that will be depreciated.

To incorporate both the standard depreciation and the $40,000 Investment Boost in Greentree via Depreciation:

• Add $15,400 + $40,000 = $55,400. This will be the total depreciation for the first financial year.
• Divide $55,400 over the remaining months (11), which is $5,036.36 per month
• $5,036.36 multiplied by 12 months = $60,434.36
• Divide that into the original Asset Purchase to get the depreciation rate
  $60,434.36 / $200,000 = 30.22% Effective rate for the first financial year, the following financial year, users can set the rate to the standard rate 10.5% (even if the posting period is closed, if the next financial year is available)
  

2. To utilise the Investment Boost into the first month of purchase and incorporate into the depreciation rate, users will be required to create two depreciation rates in the first year of purchase.

• $200,000 less 20% Investment Boost, leaves $160,000 of value to Depreciate
• 10.5% of $160,000 will mean $16,800 is the annual depreciation total.
• $16,800 over 12 months is $1,400 per month
• $1,400 + $40,000 Investment Boost = $41,400
• $41,400 multiplied by 12 months = $496,800
• $496,800 divided by Asset Purchase $200,000 = 248.40%. Set this as your first month’s depreciation rate.
• To find the calculated depreciation rate for the remaining financial year (11 months) 10.5% of $160,000 will mean $16,800 is the annual depreciation total.
• Divide the $16,800 into the Asset Cost of $200,000 = 8.40%
• The following financial year, users can set the rate to the standard rate 10.5% (even if the posting period is closed, if the next financial year is available).

Separate assets option

If you would prefer to have the depreciation as the ‘correct’ rate another option is to set up two assets with the same code but separate sub-codes. One asset would be for the 20% Investment Boost amount and a depreciation rate of 100% as a Yearly calculation rather than Periodic and the second asset with the remaining cost after deducting the Investment Boost amount and the actual depreciation rate from purchase date. When disposing of the assets, you will need to remember to dispose of both assets and check the total of the disposal transactions.

Download the Investment Boost Depreciation Calculation Tool

Successfully managing the new Investment Boost depreciation in MYOB Greentree requires careful planning, technical accuracy, and a commitment to compliance. By taking an informed approach, whether you choose to adjust the depreciation rate across the financial year, apply the boost upfront, or separate assets for reporting—you can maximise the benefits of the 2025 NZ Budget incentive while ensuring your fixed asset register remains robust and audit-ready.

If you’d like support implementing this in MYOB Greentree or reviewing your fixed asset processes, the Verde team is here to help. Get in touch for a one-on-one walkthrough or assistance with configuration.