❓ NZ Tradie FAQ

You must register for GST when your turnover exceeds $60,000 in any rolling 12-month period — not the financial year. You can also register voluntarily before you reach that threshold (useful if you want to claim GST back on tools and materials from day one). Once registered, add 15% GST to all invoices and file GST returns with IRD. Full guide: Should I Register for GST?

Provisional tax is pre-payment of your expected income tax for the current year. It kicks in if your residual income tax (what you owed after other deductions) from the previous year exceeded $5,000. Standard payment dates: 28 August, 15 January, 7 May. The trap: you don't pay it in year one, but year two can bring a double-hit (last year's tax bill + this year's first instalment). Set aside 25–30% of every payment from day one. Full provisional tax guide →

Common deductible expenses include:

• Tools and equipment (under $1,000 — claim in full; over $1,000 — depreciate)
• Vehicle expenses (logbook required for mixed-use vehicles)
• Fuel, oil, and maintenance for work vehicles
• Work clothing (safety boots, hi-vis, branded workwear)
• Phone and internet (business-use portion)
• Licences, registrations, and professional memberships
• ACC levies, insurance premiums, and accounting fees
• Home office costs (if you genuinely use it for business admin)

Full list: NZ Tradie Tax Deductions Guide →

If you're GST-registered, add 15% to your pre-GST subtotal. Example: $1,000 work + $150 GST = $1,150 total (incl. GST). Your tax invoice must show your GST number, the GST amount, and the total including GST. Use our GST Calculator and free Tax Invoice Template.

Most tradies start as sole traders and it works well at lower incomes. The company tax rate (28%) becomes attractive when you're earning enough that your personal rate exceeds it — roughly $90,000+ in net self-employment profit. A company also provides limited liability protection. The tradeoff: more compliance, accounting costs, and you still pay personal income tax on money you draw as salary. Full analysis: Sole Trader vs Company Guide →

Three levies:

1. Work levy — based on your trade (e.g., roofers ~4.38%, electricians ~1.02%). Covers work-related injuries.
2. Earner levy — 1.33% of liable income (capped at $139,384 for 2025/26). Covers non-work injuries.
3. Working Safer levy — 0.08%. Funds WorkSafe NZ.

ACC only covers accidents — not illness. IRD calculates and bills you after your tax return. Use our ACC Levy Calculator to estimate before the bill arrives.

It's not legally required, but it's essential. Most principal contractors and commercial clients require at least $1M–$2M public liability cover before you can start work on site. Without it, you could be personally liable for third-party property damage or injury. Costs $400–$1,200/year. Full public liability guide →

No. ACC only covers injuries caused by accidents. Illness, gradual-onset conditions (back problems from years of heavy work), mental health issues, and conditions like cancer are not covered by ACC. If you can't work due to illness, you get nothing — unless you have income protection insurance. Why ACC isn't enough →

Verbal contracts are legally valid in NZ, but they're almost impossible to enforce when disputes arise. For any job above a few hundred dollars, you should have written agreement on scope, price, payment terms, and what happens with variations. The Construction Contracts Act 2002 applies automatically to all construction contracts — knowing it protects you. Tradie contracts guide → | Free quote template →

Step through these in order:

1. Friendly reminder with a payment link
2. Formal demand letter (free to write, holds legal weight)
3. File a Disputes Register listing (public, $38, deters non-payers)
4. Disputes Tribunal — free, handles up to $30,000, binding decisions
5. CCA adjudication — fast-track for construction payment disputes

Full process: How to Chase an Unpaid Invoice →

A variation order is a written record of any change to the original contract scope, price, or timeline. Without it, you have no proof the client agreed to extra work or cost. Verbal agreements to "just do a bit more" regularly turn into unpaid disputes. Issue a variation order for every change — even small ones. Download our free Variation Order template.

Retention is a percentage (typically 5–10%) withheld from each payment as security that you'll fix defects. It's released in two tranches: first at practical completion, second at the end of the defects liability period (usually 6–12 months later). Under the CCA 2002, retention money must be held in trust by the party holding it. See our Glossary entry →

An LBP (Licensed Building Practitioner) licence is required to carry out or supervise Restricted Building Work (RBW) — structural work, weathertightness, foundations, external cladding, and design on houses and small buildings. Doing RBW without an LBP licence is an offence under the Building Act 2004. Check the register at lbp.govt.nz.

Most structural work, new buildings, additions, plumbing, drainage, and deck/pool work requires consent. Some minor work is exempt (painting, like-for-like replacements, small sheds under 10m²). The key rule: even exempt work must still comply with the Building Code. When in doubt, check with the local council (BCA). Full guide: Do You Need Building Consent? →

A SWMS (Safe Work Method Statement) is a written document identifying hazardous tasks, the risks, and how you'll control them. Required for high-risk construction work under HSWA. Principal contractors often require SWMS from all subcontractors before work starts. Download our free SWMS template.

Your rate must cover: take-home pay + income tax + ACC + vehicle + tools + insurance + public holidays + slow periods. Many tradies undercharge by only thinking about take-home. Use our Hourly Rate Calculator to build a rate that accounts for all costs and targets your actual income goal.

Fixed price suits well-defined jobs (new builds, bathroom renovation with clear scope). It protects the client but you carry the risk of cost overruns. Time and materials suits less-defined jobs (repairs, maintenance, investigation work). Hybrid approaches work well: quote materials as a provisional sum or PC sum, and labour as time and materials. Always have a variation clause regardless. Job pricing guide →