At Wingates, we believe in creating places that truly matter—workspaces that inspire, connect, and empower people. As the end of the financial year approaches, many businesses in New Zealand are looking for ways to optimise their tax position. While a well-designed workplace enhances productivity, employee satisfaction, and brand image, it also offers significant financial benefits to the occupier. If you’re considering a workplace transformation this coming year, it’s essential to understand the potential tax advantages that can come with it.

Depreciation Deductions

A commercial fit-out is considered a capital expenditure, and many of its elements can be depreciated over time. The Inland Revenue Department (IRD) allows businesses to claim depreciation on assets that are not structural such as[MK1] :

• Furniture and Fixtures

  – desks, chairs, and partitions.

• Lighting and Electrical Upgrades

  – energy-efficient solutions that improve workplace functionality.

• HVAC Systems

  – air conditioning and ventilation improvements.

• Flooring and Wall Finishes

  – carpets, tiles, and decorative wall panels.

By spreading the cost over multiple years, businesses can reduce their taxable income and improve cash flow right from the point that the fitout is ready to be used.

Immediate Asset Write-Offs

New Zealand’s tax laws may allow immediate deductions for certain lower-value assets under the low-value asset threshold – currently set at $1,000 (GST exclusive). If individual items within your fitout (that are not purchased as part of a larger asset or group of similar assets) fall under this threshold, they can be written off in full in the year of purchase, providing an instant tax benefit. Ensuring you receive an itemised invoice or cost of work will help your accountant ensure they recognise the specific items of fit-out and their respective value and allocate the correct depreciation rate.

Claiming Fitout Costs as Leasehold Improvements

For New Zealand businesses leasing their premises, fit out costs may qualify as leasehold improvements, which can be depreciated in accordance with IRD’s depreciation rates or possibly amortised over the lease period or written off if the lease ends. This ensures that businesses are not left with stranded costs when moving locations.

Energy-Efficient Incentives

Investing in energy-efficient fitouts, such as LED lighting, smart HVAC systems, and eco-friendly materials, may qualify businesses for government grants or tax incentives aimed at sustainability improvements. These can reduce both initial costs and long-term operational expenses.

Improved Return on Investment (ROI)

A high-quality fit out not only attracts and retains talent but can also drive long-term cost efficiencies. By reducing absenteeism, boosting productivity, and enhancing client perceptions, a well-executed fit out delivers financial returns beyond just tax benefits.

Why Work with Wingates?

Partnering with an Award winning Architect & Workplace Interior Design firm like Wingates ensures that your fitout is not only aesthetically and functionally superior but also strategically planned to maximise financial advantages. Our team understands how to balance design innovation with smart asset planning to help businesses make the most of their investment. Additionally, we also offer a service to select the furniture and schedule. Your business will procure the furniture at the commercial rates that we pass on. We can also manage this process giving both transparency of cost and the best value solution for your budget.

If you're planning a fit out in 2025, now is the time to act. Speak to your accountant and a design expert to ensure you leverage every possible financial advantage available.

Ready to transform your workspace and optimise your tax position? Get in touch with the Wingates team now

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