There’s been a lot of buzz lately around the Government’s new Investment Boost tax deduction - and for good reason. From 22 May 2025, businesses can now deduct 20% of the cost of new assets (including buildings) straight away, with the remaining 80% still eligible for standard depreciation.
For rural businesses considering new infrastructure like implement storage, barns or workshops, this could make a big difference to how your next build stacks up financially.
What does it actually mean?
Let’s say you’re planning to build a new commercial barn worth $500,000. With the Investment Boost, you could deduct $100,000 from this year’s profit - that’s a solid tax saving and a timely boost to your cash flow.
Investment boost at a glance:
Immediate tax relief - 20% of your build cost can be deducted in year one.
No limit on project value - Whether it’s $150k or $5 million, it’s eligible for the investment boost deduction.
Applies to new buildings and improvements to existing facilities - As long as your new facility is in use on or after 22 May 2025 even if construction started earlier.
Available to businesses of all sizes.
What types of rural construction projects could qualify?
New hay, implement or machinery sheds
Barns, stables and arenas for commercial operations
Covered yards and handling facilities for breeders, vets and trainers
Workshops and storage buildings
Primary sector land improvements, such as site works and infrastructure for operations like fencing, yards and farm roads.
We recommend checking in with your accountant for advice specific to your business.
If you're ready to start planning, we’re here to help you design and build something that will elevate your operations.
