Courier Driver
Tax guide for New Zealand self-employed courier drivers and delivery contractors
Allowable Expenses
- Vehicle running costs — Fuel, tyres, oil, WOF, registration, maintenance
- Vehicle depreciation — Depreciation on delivery vehicle — business proportion
- Mobile phone — Business proportion of phone for delivery app and navigation
- Protective clothing — High-vis, wet weather gear required for work
- Insurance — Vehicle insurance, public liability insurance
Tax Tips
- Track all kilometres driven for deliveries — logbook method is ideal for couriers
- Data plans for delivery apps are a deductible business expense
- Vehicle tyres, a major cost for high-km couriers, are 100% deductible if exclusively for work
- Keep daily fuel receipts — fuel is your single largest variable cost and is 100% deductible for business driving
Frequently Asked Questions
How do NZ courier drivers claim vehicle expenses?
The logbook method is recommended for courier drivers due to high business use. Maintain a logbook for 3 months to establish your business use percentage, then apply that to actual vehicle costs throughout the year.
Can NZ courier drivers deduct vehicle tyres as a business expense?
Yes. Tyres are a significant cost for high-kilometre couriers and are fully deductible as part of vehicle running costs in proportion to business use. Keep receipts from tyre shops.
Are courier driver phone costs deductible?
Yes. The business proportion of your mobile phone bill used for navigation, delivery apps, and client communication is deductible. If the phone is used 80% for work, claim 80% of the monthly plan cost.
Do NZ courier drivers need to register for GST?
If your annual courier income exceeds NZ$60,000, GST registration is mandatory. You then charge 15% GST on your delivery fees and can claim back GST on vehicle running costs, fuel, and other business inputs.