# Investment Boost Cost Debate

> Labour and National clash over Investment Boost's true fiscal cost.
- Title: Investment Boost Cost Debate · RNZ | Shortify
- Summary: Labour and National clash over Investment Boost's true fiscal cost. Labour claims $7.7b savings from canceling Investment Boost, but National's Finance…
- Keywords: labour, national, investment boost, fiscal cost, tax deduction, finance minister, politics, news, Investment, Boost, Cost, Debate
- Source: RNZ — https://rnz.co.nz/news/politics_election-2026/1792519/who-is-right-about-investment-boost-we-re-still-not-sure
- Author: RNZ | Te Reo Irirangi o Aotearoa
- Published: 2026-10-08T00:17:42+00:00
- Read time: 1 min
- Topics: labour, national, investment boost, fiscal cost, tax deduction, finance minister, politics, news
## Investment Boost Savings Claim
Labour says cancelling Investment Boost saves $7.7 billion by allowing businesses to claim immediate 20 percent tax deductions on new assets.
## National's Fiscal Cost Figure
National's Finance Minister Nicola Willis states Investment Boost costs only $5.5 billion over the forecast period, leaving a $2.2 billion gap.
## Expert Analysis on Timing
Dentons partner Bruce Bernacchi explains Investment Boost accelerates tax deductions but reduces future depreciation, making the $5.5 billion net cost intuitive.
## Simplicity Economist's View
Simplicity chief economist Shamubeel Eaqub says the repeal's timing and claw-back effects matter more than the net cost for accurate fiscal assessment.
## Tax Expert Confusion
An unnamed tax expert states Investment Boost has no permanent fiscal impact, only a timing shift in depreciation, making the cost debate unclear.
## Key takeaway

Labour claims $7.7b savings from canceling Investment Boost, but National's Finance Minister says the cost is only $5.5b, leaving a $2.2b gap.