3.0% OCR - and heading lower. Is this the moment your business says YES instead of ' not yet'?

August 22, 2025

3.0% OCR – and heading lower. Is this the moment your business says YES instead of ‘not yet’?


Yesterday’s Reserve Bank announcement wasn’t just another rate cut. Dropping the OCR to 3.0%, with Reserve Bank now signalling a reforecast OCR track towards ~2.5%. This marks a decisive shift in the effort to reignite growth across New Zealand.


Here’s what matters:


- A split vote at the RBNZ, with two members pushing for a deeper 0.5% cut – urgency is building.

- The once “neutral” OCR of 3% has been redefined lower. That’s a reflection of how persistent the post-Covid economic drag has been.

- 40% of Kiwi households will refix mortgages in the next 6 months. Lower rates mean more disposable income – and more confidence – flowing into the economy.


For mid-market business owners, this is a moment of opportunity. Affordability and confidence are the twin engines of investment – and both just got a boost. If your business has strong cashflow and a clear strategy, the next 12 months could be the time to act: whether that’s growth investment, expansion, or capitalising on opportunities others hesitate on.


A reminder worth repeating: politicians don’t save economies – business owners do. Policymakers build the platform, but it’s businesses that drive recovery.


With financing conditions improving and recent Investment Boost scheme announced by government adding fuel, the platform is being built.


The real question is: who will be bold enough to use it?

Event recap: Economic insights with ANZ Chief Economist, Sharon Zollner

By Andrew Hawkes • July 21, 2025
Last week we were delighted to host at our offices our second event featuring Sharon Zollner, Chief Economist at ANZ, who presented on the challenges and opportunities shaping the economic outlook for 2025 and the coming year. With her trademark clarity and engaging style, Sharon shared her expert analysis on key trends in forecasting and economic performance—offering valuable context to navigating an increasingly complex environment. From inflation and interest rates to global market dynamics, her insights were both timely and highly relevant. Attendees from our client base and network responded enthusiastically, highlighting the value of Sharon’s ability to make complex topics accessible and actionable. We’d like to thank everyone who joined us, and especially Sharon for her time and expertise. Events like this are part of our commitment to providing meaningful opportunities for discussion among our clients and networks. If you'd like a copy of Sharon's presentation, please email rachel@anthempartners.co.nz

A night with SCAPE Public Art

By Andrew Hawkes • July 20, 2025
At Anthem Partners, we’re proud to support initiatives that reflect the heart of our local community. Recently, we had the privilege of supporting SCAPE Public Art’s latest exhibition alongside some of our valued clients — a celebration of creativity, connection, and collective purpose. The evening raised funds for the reinstatement of “Sky Lens”, a beloved piece by Cantabrian artist Neil Dawson. Originally a feature in Cashel Mall, Sky Lens was removed after the devastating 2011 Christchurch earthquake. Thank you to SCAPE Public Art for their leadership in driving this campaign, and to our clients who joined us on the night.

Unlocking Growth: New 20% Tax Deduction for Business Assets

By Andrew Hawkes • June 12, 2025
Great news for New Zealand businesses: the Government’s 2025 Budget introduces a one-off 20% tax deduction for new qualifying business assets. This initiative, known as the “Investment Boost,” is designed to stimulate capital investment, enhance productivity, and support economic growth. What Is the Investment Boost? Effective from 22 May 2025, businesses can claim an immediate 20% tax deduction on the cost of new depreciable assets that are first available for use in New Zealand. This deduction is in addition to standard depreciation allowances. For example, if you purchase new machinery for $100,000, you can immediately deduct $20,000 from your taxable income, plus the usual depreciation based on the remaining $80,000. Who Qualifies? The Investment Boost applies to: New depreciable assets used in your business for the first time in New Zealand. Imported second-hand assets that have not been used in New Zealand before. Capital improvements to existing non-residential buildings, such as earthquake strengthening. Certain land improvements and other depreciable property. Assets that do not qualify include: Residential buildings. Intangible assets (e.g., intellectual property). Assets already eligible for immediate deductions under other provisions. Notably, new non-residential buildings will also qualify, even though they have a 0% depreciation rate for tax purposes. Why It Matters The Investment Boost is expected to: Increase New Zealand’s GDP by 1% over the next 20 years, with half of that impact occurring in the first five years. Raise wages by 1.5% over the same period. Encourage businesses to invest in new capital, leading to enhanced productivity and competitiveness.  This measure is part of a broader strategy to support economic growth without resorting to broad-based tax cuts. The Government estimates the fiscal cost to be $1.67 billion per year. Important Considerations Clawback Provisions: If you sell a qualifying asset for more than its adjusted tax value, you may need to repay some or all of the deduction. Timing: The asset must be first available for use on or after 22 May 2025 to qualify. Depreciation Adjustments: The base for future depreciation deductions will be reduced by the amount of the 20% deduction. Next Steps Review Your Capital Plans: Consider whether upcoming asset purchases or capital improvements can benefit from the Investment Boost. Consult Anthem team: Ensure that your business is correctly accounting for the new deduction and adjusting depreciation schedules accordingly. Stay Informed: Keep an eye on official guidance from Inland Revenue and consult with the Anthem team to maximise the benefits of this initiative. This is a unique opportunity to reduce your tax liability while investing in the growth and efficiency of your business. If you need assistance in understanding how the Investment Boost applies to your specific situation, feel free to reach out.