Smart Tax Tips to Save You Money

By getting ahead of your tax obligations and understanding the deductions available to your industry, you can reduce surprises, free up cash flow and make smarter business decisions all year round. From digital tools and home office costs, to memberships and equipment, along with the newly introduced Investment Boost deductions, there are a number of ways to legally reduce your taxable income, if you know what to look for. Here’s how to make sure you’re not leaving money on the table.

Key Deductions You Should Know About

Home Office Costs

If you work from home, you can claim a portion of power, rent or mortgage interest, internet, insurance and even cleaning costs.

Software & Digital Tools

Claim subscriptions for essential tools like Microsoft 365, Xero, Zoom, Adobe, CRMs, job management software or POS systems.

Memberships & Professional Development

Fees for industry organisations or any work-related courses, certifications or conferences are deductible.

Client Entertainment & Gifts

Some client-related meals and thank-you gifts may be 50% deductible. Keep notes on who you met and why.

Office Equipment & Furniture

Desks, workbenches, laptops, tools, furniture and tech gear are deductible, either immediately (under $1,000) or depreciated over time.

Extra Deductions You Might Not Be Aware Of

New “Investment Boost” deduction

From 22 May 2025, the Government’s new Investment Boost lets your business claim 20% of a new asset’s cost upfront. The rest is depreciated over time, as usual.

That means if you buy a $5,000 piece of equipment or business assets, you could claim $1,000 this tax year, plus standard depreciation on the rest.

Applies to new or new-to-NZ depreciable assets
Helps ease cash flow and encourage business investment
Your SBA accountant can identify what qualifies and make sure it’s claimed correctly.

Find more information from the IRD here.

Bad debts

Unpaid invoices can be written off, your accountant can claim these once they’ve been formally written off in your records.

Interest on business loans & credit lines

Interest on debt used for business purposes is deductible. Your accountant will ensure the interest (not the principal) is claimed correctly. 

Wages paid to family

If you employ family members and pay them fair-market wages, these are claimable.  Your accountant can ensure your structure and payroll support remain compliant.

How Your SBA Accountant Can Help

Re-estimate Provisional Tax

If your income is tracking differently from what you forecasted, it could impact your provisional tax. That means you could end up overpaying or underpaying tax during the year and end up with a surprise at year end.

The good news? If things change, let SBA know and they can re-estimate your provisional tax to better match your updated income. That helps you stay on track and avoid unnecessary payments or penalties.

Track shareholder drawings

If your business operates as a company, your SBA accountant will make sure your drawings are correctly recorded through your shareholder current account, helping you stay compliant and avoid issues later.

Buy before balance date

Thinking about buying a new laptop, machinery or gear? If it makes sense for your business, your accountant can advise whether purchasing before 31 March could help reduce this year’s taxable income.

Depreciate assets

Your SBA accountant will check that items like computers, equipment, vehicles and signage are being depreciated at the correct rates, so you’re claiming what you’re entitled to without over- or under-reporting.

Plan Ahead

Plan for seasonal lulls

If your business slows down over certain periods, SBA can help manage cash flow and tax planning around that.

Invoice regularly

Staying on top of invoicing helps reduce debtor days and supports more accurate tax estimates.

Split expenses

Keep personal and business spending clearly separated, using dedicated bank accounts and business-only cards where needed, so your records stay clean and claimable.

Talk to Your Local SBA about:

• Whether your business structure is still right for your growth (sole trader vs company vs trust).

• Maximising your home office, workshop or workspace deductions.

• Whether Fringe Benefit Tax (FBT) applies if you provide staff perks or use company vehicles.

Smart tax planning isn’t about doing anything tricky, it’s about understanding what’s available to you and taking action at the right time. It’s often the small, consistent steps, like tracking expenses, claiming the right deductions and staying ahead of cash flow, that lead to the biggest savings.