Every dollar of legitimate tax deduction you miss is a dollar of tax you don't need to pay. Yet year after year, thousands of New Zealand small businesses leave significant money on the table by failing to claim deductions they're fully entitled to. This guide covers the top 10 tax deductions available to NZ small businesses in the 2024–25 tax year — and how to maximise each one.

1. Home Office Expenses

If you use part of your home exclusively or primarily for business purposes, you can claim a proportion of your home costs — including mortgage interest or rent, rates, insurance, power and internet. The proportion is calculated based on the percentage of your home's floor area used for business. With so many NZ business owners working from home post-COVID, this deduction is more accessible than ever — but it must be calculated correctly to survive IRD scrutiny.

2. Vehicle Expenses

Business use of your vehicle is deductible — but only the business portion. You have two main options: the logbook method (keeping a three-month logbook to establish your business-use percentage, then applying it to actual costs) or the kilometre rate method (claiming a set rate per kilometre for business travel). The kilometre rate for 2024–25 has been updated by IRD — check the current rate and calculate which method gives you the best deduction for your situation.

3. Equipment and Asset Depreciation

Business equipment, computers, furniture and machinery all depreciate over time — and that depreciation is deductible. NZ's low-value asset threshold means assets costing less than $1,000 (excluding GST) can be immediately deducted in the year of purchase rather than depreciated over multiple years. This is a particularly powerful deduction for businesses investing in new equipment.

4. Business Loan Interest

Interest paid on loans used for business purposes — overdrafts, term loans, hire purchase for equipment — is fully deductible as a business expense. Keep clear records separating personal and business loan interest to ensure this deduction is defensible.

5. Marketing and Advertising

Your website costs, social media advertising, Google Ads, print advertising, signage, business cards and any other legitimate marketing expenditure is fully deductible. Don't forget to include subscription costs for marketing tools and platforms you use for your business.

6. Professional Development and Training

Courses, workshops, conferences, trade publications and professional memberships that maintain or improve skills relevant to your current business are deductible. Note that training for a new career or business direction is generally not deductible — the connection to your current business activity must be clear.

7. Insurance Premiums

Business insurance premiums — public liability, professional indemnity, business interruption, key person insurance — are deductible. Life insurance and income protection are generally not deductible at the business level unless specifically structured that way.

8. Accounting and Professional Fees

Fees paid to your accountant, tax agent, lawyer and other professionals for business matters are fully deductible. This includes the cost of tax preparation itself — making the cost of using NZ Tax Hub's services a deductible business expense.

9. Staff Costs and Wages

Wages, salaries, KiwiSaver employer contributions and any legitimate staff-related costs are fully deductible. If your spouse, partner or family members work in the business, their wages can also be deductible — provided they are reasonable for the work performed and properly documented.

10. Repairs and Maintenance

Routine repairs and maintenance to business assets and premises are deductible. However, be careful to distinguish between repairs (deductible) and improvements (capital, subject to depreciation). Repainting a room is a repair — adding an extension is a capital improvement.

The key to maximising your deductions is good record-keeping throughout the year. Talk to our team at NZ Tax Hub about setting up a system that captures every legitimate deduction — and ensure you're not leaving money on the table at tax time.

Moving to New Zealand is exciting — a new country, new opportunities, and a fresh start. But one thing that catches many new arrivals off guard is New Zealand's tax system. Unlike many countries, NZ has unique rules around tax residency, overseas income and the transition period for new migrants that can be financially significant if not understood and managed correctly.

Step 1: Get Your IRD Number

The first thing every new arrival to New Zealand should do is apply for an IRD (Inland Revenue Department) number. Without an IRD number, your employer must deduct tax at the top "no-declaration" rate of 45%, and you won't be able to claim Working for Families tax credits, open a bank account, or manage your KiwiSaver correctly. Apply via the IRD website using your passport — the process takes 8–10 working days but you can use your bank to fast-track it.

Step 2: Understand Your Tax Residency Status

New Zealand uses a residency-based tax system. You become a NZ tax resident when you have a permanent place of abode in NZ, OR when you have been in NZ for more than 183 days in any 12-month period. Once you're a NZ tax resident, you're generally taxable on your worldwide income — but there's a very important exception for new arrivals.

The Transitional Resident Exemption — Worth Thousands

New migrants who become NZ tax residents may qualify for the transitional resident exemption — a 4-year window during which most types of foreign income (interest, dividends, rent from overseas property) are exempt from NZ tax. This exemption is automatic for most new migrants, but it requires you to have been a non-resident for the 10 years prior to becoming a NZ tax resident. The financial value of this exemption can be substantial — particularly for new arrivals with significant offshore investments.

What Income Must You Declare?

As a NZ tax resident, you must declare all NZ-sourced income — your salary, wages, rental income from NZ property, business income, and interest from NZ bank accounts. Overseas income is generally exempt during the transitional resident period, but once that 4-year window closes, all worldwide income becomes taxable in NZ.

KiwiSaver — Should You Join?

KiwiSaver is New Zealand's workplace retirement savings scheme. If you're employed, you'll be automatically enrolled unless you opt out. As an employee, you contribute 3%, 4%, 6%, 8% or 10% of your gross salary, and your employer contributes an additional 3%. The NZ government also contributes up to $521 per year if you're a NZ resident. For most migrants intending to stay in NZ long-term, KiwiSaver is an excellent savings vehicle — but if you're on a working holiday or short-term visa, you may prefer to opt out.

Filing Your First NZ Tax Return

In NZ, most salaried employees don't need to file a tax return if their income is entirely from employment and their employer has deducted the correct PAYE. However, if you have any self-employment income, rental income, overseas income, or income from multiple employers, you will need to file an individual tax return (IR3) by 7 July following the end of the tax year (31 March).

Common Mistakes New Migrants Make

• Failing to apply for an IRD number promptly and paying top-rate PAYE unnecessarily
• Not claiming the transitional resident exemption when entitled to it
• Declaring overseas income when still within the transitional period
• Forgetting to declare NZ rental income from a property rented out back home
• Missing the KiwiSaver employer contribution by opting out too quickly

Navigating NZ tax as a new arrival is genuinely complex — and the rules vary significantly based on your visa type, country of origin, income sources and specific timeline. The team at NZ Tax Hub has helped hundreds of migrants get their NZ tax setup right from day one.

The gig economy is booming in New Zealand — and hundreds of thousands of Kiwis now earn income through platforms like Uber, DiDi, Ola, Uber Eats, DoorDash, Menulog, Delivereasy and grocery delivery services like Countdown and Woolworths. What many don't realise is that this income comes with specific, non-negotiable tax obligations — and the IRD is paying close attention.

Rideshare Drivers: The GST Rule That Surprises Everyone

Here is the most important thing every Uber or rideshare driver in New Zealand needs to know: you must register for GST from your very first dollar of rideshare income. This is different from virtually every other type of business in NZ, where GST registration is only required once your annual turnover exceeds $60,000.

The reason is that the IRD classifies rideshare driving as a "passenger service" — and passenger services are subject to mandatory GST registration regardless of income level. This means even if you only drive Uber part-time and earn $5,000 a year, you are legally required to register for GST, file quarterly GST returns, and charge 15% GST on every fare (which Uber handles automatically for you — but you must still account for it).

What Can Rideshare Drivers Claim as Deductions?

The good news is that Uber and rideshare drivers can claim a wide range of business expenses against their taxable income. The key is keeping good records throughout the year. Claimable deductions include:

• Vehicle running costs — fuel, oil, tyres, WOF, registration (business portion only)
• Vehicle depreciation (based on your business-use percentage)
• Car wash and cleaning costs
• Phone costs used for the Uber app (business portion)
• Dash camera and accessories
• Road tolls paid during rideshare trips
• Accountant and tax agent fees (like NZ Tax Hub!)

To claim vehicle expenses, you'll need either a three-month logbook to establish your business-use percentage, or you can use the IRD's kilometre rate method. A logbook is often more beneficial for high-volume drivers.

Food & Grocery Delivery Riders — What Are Your Obligations?

If you deliver for Uber Eats, DoorDash, Delivereasy, Menulog or grocery platforms like Countdown or Woolworths, you are considered a self-employed contractor for NZ tax purposes. This means:

• You must declare all delivery income on your annual IR3 tax return
• No tax is withheld by the platform — you are responsible for setting aside tax yourself
• You must register for GST if your total self-employment income (from all sources) exceeds $60,000 annually
• You pay ACC levies as a self-employed person
• If you also have an employer, your combined income may push you into a higher tax bracket

Deductions for Delivery Riders

Delivery riders — whether on a bicycle, scooter or car — can claim a range of work-related deductions:

• Bicycle maintenance, repairs and parts (business portion)
• Scooter fuel, maintenance and registration
• Delivery bag/thermal bag costs
• Helmet and safety gear
• Phone holder and phone costs (business portion)
• Waterproof clothing and reflective gear

How Much Tax Will I Pay?

Your gig economy income is taxed at your marginal income tax rate. New Zealand's 2024–25 income tax rates are: 10.5% up to $14,000; 17.5% from $14,001–$48,000; 30% from $48,001–$70,000; 33% from $70,001–$180,000; and 39% above $180,000. If you have a main job and delivery income on top, your delivery income is likely taxed at your highest marginal rate — which makes claiming every possible deduction even more important.

A Word of Warning: IRD Is Watching Gig Economy Income

The IRD has specific data-sharing arrangements with major gig platforms operating in New Zealand. They receive income data directly from Uber, Uber Eats and other platforms — so failing to declare this income is not only risky, it's likely to be detected. The penalties for non-disclosure can be significant. Filing correctly and on time is always the smartest approach.