This Content Is Only For Subscribers
The Restaurant Association is welcoming the Government’s Investment Boost tax incentive, announced as part of Budget 2025.
“We have been pushing for changes around tax deductibility for investment in assets — particularly for small businesses — so today’s announcement is a positive step,” says Restaurant Association CEO Marisa Bidois.
“So many of our businesses in the hospitality industry are small and micro enterprises, many of whom just need a bit of support to enable them to invest in and grow their business.”\
“Investing in something as simple as a new oven, or technology to automate your systems and increase productivity is a game changer for a small business.”
“Being able to write off 20 pe rcent of the cost of such an asset — on top of normal depreciation — is an excellent step toward supporting our businesses to grow, however the challenge that remains for many in our industry is securing the cash required to make these investments.”
The Restaurant Association is also pleased to see that the Minister for Tourism and Hospitality will be responsible for $190 million of revenue from the International Visitor Conservation and Tourism Levy in the 2025/26 financial year.
“We supported an increase to the levy, knowing that increased levy revenue would increase the amount that could be invested in growing tourism – which is crucial to supporting our industry” says Marisa.
“With just over $130 million allocated for the promotion of New Zealand to key markets as a visitor and business destination in the coming year, we’re keen to ensure that a portion of this is allocated to promoting our national and regional food stories.”
“We know that food and beverage tourism is becoming increasingly popular, and we want to ensure New Zealand makes the most of this opportunity.”
The Restaurant Association says members have raised questions about the Government’s changes to Kiwisaver.
“So many young people enter the hospitality industry as their first job, we have no doubt that the majority of 16 and 17 year olds who are in work are employed in service industries like ours,” says Marisa.
“While the Government cuts how much it contributes to Kiwisaver, our businesses will be filling that gap by paying a larger contribution — and to more people.”
The Restaurant Association will be working through the details of these changes, and other initiatives announced in the Budget, to ensure the hospitality industry is able to continue on a path to recovery.
