Tax basics in New Zealand

Your income is taxable

Money you earn from hosting experiences is income. In New Zealand, all income must be declared to Inland Revenue (IRD), regardless of how you earn it or how much it is.

This applies whether you're hosting a few times a year or running multiple experiences a week. There's no minimum threshold below which hosting income is tax-free.

Getting set up with IRD

If you don't already have one, you need an IRD number before you can file a tax return. You can apply at ird.govt.nz. If you already have an IRD number (most New Zealand residents do), you'll use the same one for your business income.

Register for a myIR account at ird.govt.nz/myir - this is where you'll file returns, check your obligations, and manage your tax online.

If your hosting is your main source of income, or if you're earning significant amounts alongside other income, consider registering as a self-employed person with IRD. Your accountant or a Citizens Advice Bureau can help you understand what applies to you.

Income tax

New Zealand uses a progressive income tax system. You pay tax at different rates on different portions of your income:

• Up to $14,000 - 10.5%
• $14,001 to $48,000 - 17.5%
• $48,001 to $70,000 - 30%
• $70,001 to $180,000 - 33%
• Over $180,000 - 39%

Your hosting income is added to any other income you earn (salary, wages, rental income, etc.) when calculating which tax rates apply.

Provisional tax

If you expect to owe more than $5,000 in income tax in a year, you'll need to pay provisional tax - essentially paying your tax bill in instalments throughout the year rather than all at once at the end.

IRD will write to you when you become liable for provisional tax. Don't ignore these notices.

GST

GST (Goods and Services Tax) is charged at 15% on most goods and services in New Zealand.

When do you need to register? If your total turnover from all sources exceeds $60,000 in any 12-month period, you must register for GST. This is across all your income, not just hosting.

What does registration mean? If you're registered for GST, you add 15% to the price you charge guests and pay that 15% to IRD. You can also claim back the GST on your business expenses.

Optional registration. You can register for GST voluntarily even below the $60,000 threshold. This lets you claim GST back on purchases, but also means you must charge it and file returns.

Expenses you can claim

You can deduct legitimate business expenses from your taxable income. Common claimable expenses for Good Finds hosts include:

• Materials and supplies used in your experience
• Public liability insurance premiums
• Portion of vehicle costs (if you use your vehicle for the experience)
• Equipment purchased for the experience
• Fees paid to photographers or assistants
• Home office costs (if you do significant admin from home - subject to rules)
• Professional fees (accountant, legal advice)
• Platform fees (Good Finds's commission is a business expense)

Keep your records

IRD can audit your returns for up to four years (longer in some cases). Keep records of:

• All income received
• All expenses claimed, with receipts or invoices
• Bank statements showing business transactions

Seven years is a safe rule of thumb for how long to keep records.

Get an accountant

For most self-employed people, the cost of a good accountant more than pays for itself. They'll help you claim everything you're entitled to, avoid mistakes that attract IRD attention, and stay on top of provisional tax.

Many accountants offer a free initial consultation. It's worth the conversation before your first year of hosting income.