Nicola Willis says her key investment policy won’t work without Labour backing it
Thursday, 12 February 2026
Finance Minister Nicola Willis says the centrepiece policy of her 2025 Budget will only work properly if Labour backs it.
Willis was talking at the New Zealand Economic Forum about her Investment Boost policy, estimated to cost around $1.6 billion a year.
The policy allows businesses to write off 20% of the cost of new investment from their corporate taxes.
Willis said the policy was seeing some success but political uncertainty made it hard for long-term investors to commit.
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“Among firms that invested in new assets and were aware of Investment Boost, 40% say it increased their investment spending over the past year, including 11%reporting a significant increase directly because of the policy,” Willis said.
But she laid down a challenge to Labour’s finance spokeswoman, Barbara Edmonds, to back it herself.
'Firms do not invest in long-lived capital, plant, machinery, buildings, if they think the tax rules may change at an election,' Willis said.
'So my question today to Mr Hipkins and his colleague Barbara Edmonds is pretty straightforward: Will they commit to retaining investment boost as a permanent fixture of our tax settings to unlock growth, or will it be sacrificed to fund higher spending?'
Speaking following the speech, Willis said she had heard this concern directly from her officials who were talking to investors.
“People seeking to do large developments that will take several years - for example, building a significant new housing development, building a significant new factory - they know they can't claim the investment boost until those projects are completed. And their concern is if we embark on those projects on the basis that we're going to get this investment boost tax credit, and then a Labour government comes in and removes that tax credit we left very much out of pocket.”
She said National’s current low polling was not the issue here as investments would cover several electoral cycles.
She pointed out that Labour had been broadly positive about the policy when it was announced but had not directly backed it ahead of the election.
Responding later in the day, Edmonds saids said she needed more data on how well the scheme was working and had been asking Willis for that.
She said it was cynical for Willis to release survey data that morning ahead of the challenge.
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