Running a business in New Zealand comes with many day-to-day costs, from software subscriptions to vehicle mileage and client meetings over coffee. The good news? Many of these expenses are tax-deductible, helping reduce your taxable income and improve cash flow.

Whether you're a sole trader, small company, rental property owner, contractor, or iwi/fisheries business, understanding what you can claim is essential for keeping your records clean and avoiding surprises from IRD.

This guide breaks down the most common business expenses in NZ, explained in simple language so you can feel confident about what to include at tax time.

1. Operating Expenses (General Day-to-Day Costs)

These keep your business running smoothly. Common examples include:

• Office supplies and stationery
• Printing, postage, and courier fees
• Bank and merchant fees
• Software subscriptions such as Xero, Canva, or CRM tools
• Cleaning, small repairs, and general maintenance

These items are fully deductible as long as they’re used for business purposes.

2. Business Premises & Home Office Costs

If you rent a workspace or work from home, you can usually claim a portion of your costs.

Rent or workspace claims may include:

• Office rent or shared office fees
• Power, water, and internet
• Business phone plans
• Home office expenses (a percentage of your household bills based on floor area used for business)

Even if you’re a sole trader working from your kitchen table, you may be entitled to a legitimate home office deduction.

3. Vehicle & Travel Expenses

If you use a vehicle for work, some or all of the costs may be deductible.

Claimable costs include:

• Fuel
• Repairs and servicing
• Registration and WOF
• Tyres
• Parking and tolls
• Mileage (if not claiming actual costs)

For travel, you can claim:

• Airfares
• Accommodation
• Meals during overnight business travel
• Taxis, Uber, public transport

Just make sure the travel is genuinely for business, not private.

4. Professional Fees & Services

Most service-based expenses are deductible, including:

• Accounting and bookkeeping
• Legal fees
• Advisory or consulting services
• Professional development, training, seminars, and courses

These are necessary to keep your business compliant and growing.

5. Marketing & Advertising

Building your brand is an essential part of business success. Deductible costs include:

• Facebook, Instagram, and Google Ads
• Website hosting and domain fees
• Graphic design, branding, and photography
• Printing business cards, flyers, brochures
• Email marketing tools (e.g., MailerLite, Mailchimp)

Marketing costs are normally 100% deductible.

6. Employees, Contractors & Payroll Costs

If you employ staff or regularly hire subcontractors, you may claim:

• Wages and salaries
• Employer KiwiSaver contributions
• ACC levies
• Staff training, meals during meetings, and uniforms
• Contractor payments

If you pay someone to work in or for your business, those costs are typically deductible.

7. Technology, Tools & Equipment

These are crucial for most modern businesses. Claimable items include:

• Laptops, computers, tablets
• Mobile phones and accessories
• Machinery and tools
• Office furniture and fittings

Larger purchases are usually depreciated over time unless they fall below the current low-value asset threshold.

8. Insurance

Business insurance is fully deductible, such as:

• Professional indemnity
• Public liability insurance
• Business vehicle insurance
• Asset and contents insurance
• Cybersecurity insurance

Insurance protects your business, so IRD allows deductions for eligible policies.

9. Interest & Finance Costs

If your business uses loans or credit facilities, you can usually claim:

• Loan interest
• Overdraft interest
• Hire purchase interest
• Credit card interest (business portion only)

The principal repayment is not deductible — only the interest.

10. Industry-Specific Expenses

This varies depending on your sector. For example:

For fisheries/iwi quota owners:

• ACE purchases
• Quota leasing costs
• Monitoring and compliance fees
• Broker fees

For rental property owners:

• Property management fees
• Repairs and maintenance
• Rates and insurance
• Accountant fees

For service businesses:

• Membership fees
• Licensing
• Professional subscriptions

If an expense is necessary for earning income, it is likely deductible.

Final Thoughts: Keep It Simple — Keep It Clean

Staying compliant with IRD doesn’t have to be stressful. Keep invoices, receipts, and mileage records organised throughout the year. When in doubt, remember this simple test:

👉 Is the expense necessary and directly connected to earning business income? If yes — it’s likely deductible.

And if you’re unsure, I’m here to help.

By Brenda Cacho-Bevin - Accountant & Director of CB Accounting & Taxation

Need clarity on what you can claim?

Get personalised advice. Contact Brenda Cacho-Bevin.

CB Accounting & Taxation specialises in:

✔ Small businesses ✔ Sole traders ✔ Rental property owners ✔ Iwi fisheries/ACE/quota owners

📩 brenda@cbaccounting.co.nz 🌐 www.cbaccounting.co.nz