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Potential Tax Benefits When Installing Culverts

Large Diameter EUROFLO® culvert crossing.

Potential Tax Benefits When Installing Culverts

Make Your EOFY Spend Count: Potential Tax Benefits for Farmers Installing Culverts

As the end of the financial year approaches, many farmers are looking for smart, practical ways to invest back into their land – and reduce their tax bill in the process.

If you’re planning infrastructure upgrades, culverts might just be the asset your farm (and accountant) will thank you for.

Durable, long-lasting, and essential for effective water and land management, culverts like EUROFLO® don’t just support your day-to-day operations – they could also deliver valuable tax benefits.

Depending on how they’re used and their cost, culverts may be expensed immediately rather than being registered as a depreciating asset. That means potential instant tax deductions at EOFY.

Large Diameter EUROFLO® culverts like this one being installed, might just be the under-the-radar asset your farm (and accountant) will thank you for.

We’ve put together a quick whitepaper explaining when culverts can be expensed under New Zealand tax rules:

Potential Tax Benefits When Installing Culverts

Following the rains and recent damage to farms across New Zealand, farmers should be aware that there may be helpful tax deductions available to them when installing culverts on their farms as part of repairing land damage or even for certain land improvement activities.

Type of expenditure
Deduction available

The repair of flood or erosion
damage to land

In full in year of expenditure
Income Tax Act 2007, Sec DO 1

Drainage of swamps or
low-lying lands

Usually non-deductible, but
farms are allowed a unique
tax concession spread over a
number of years.
Income Tax Act 2007,
Schedule 20

Construction of stream
diversion channels, or other
improvements for the
purpose of conserving,
conveying water for use on
the land, or for preventing or
combating soil erosion.

As above

All culverts installed as part
of a business activity

Depreciation can be claimed
at the applicable rates

Spending by landowners
affected by North Island
flooding events

Variety of tax provisions
available – consult your tax
agent

Prepared by Rob Oosthuizen CA, Financial Controller, P&F Global, May 2025

NOTE: The above is not provided as professional tax advice. We recommend you consult a tax agent when considering any of the above to ensure you are receiving the maximum tax concessions available to you in your industry and circumstances.

Next Steps…

Talk to one of our Territory Managers – they’re here to help you choose the right culvert for your land and ensure it meets both your practical and financial goals:

email: sales@pandfglobal.com

freephone: 0800 99 77 33

Or head into your favourite local farming merchant and ask for EUROFLO® by name:

✅ Practical investment
✅ Tax smart
✅ Built for New Zealand conditions

Let’s make your EOFY spend count!