What is the NZ low-value asset threshold for immediate write-off?

New Zealand has a low-value asset threshold that allows you to immediately deduct the full cost of qualifying business assets in the year of purchase, rather than depreciating them over their useful life. From 17 March 2021, the threshold is NZ$1,000 (excluding GST if you are GST-registered). This means: - Assets costing NZ$1,000 or less: immediately deductible in full in the year purchased - Assets costing more than NZ$1,000: must be depreciated over their useful life using IR's depreciation rates For example, a laptop costing NZ$1,500 cannot be immediately written off — it must be depreciated. A printer costing NZ$800 can be written off immediately. The low-value asset rule only applies to tangible assets. Intangible assets (such as software licences) may have their own rules. Note: If you are not GST-registered, the NZ$1,000 threshold applies to the GST-inclusive cost.

• Threshold: NZ$1,000 (excluding GST for GST-registered businesses)
• Below NZ$1,000: immediately deductible in full
• Over NZ$1,000: depreciate over asset's useful life
• Applies to tangible assets used in your business
• Different from software licences — separate rules may apply