Electrician

Tax guide for New Zealand self-employed electricians and electrical contractors

Allowable Expenses

• Tools & equipment — Test equipment, hand tools, safety gear, power tools
• Vehicle expenses — Work van or ute — km rate or logbook, vehicle maintenance
• Licensing fees — Electrical Workers Registration Board (EWRB) licence
• Materials (non-billable) — Consumables used on jobs not charged to clients
• Safety gear — PPE, safety boots, high-vis clothing, safety equipment

Tax Tips

• EWRB licence renewal is a deductible professional fee
• A work vehicle used exclusively for work is 100% deductible — keep clear records
• Safety clothing required for work is deductible (unlike regular clothing)
• Tool insurance and equipment protection premiums are fully deductible business expenses

Frequently Asked Questions

Can NZ electricians claim their work vehicle?

If your vehicle is used exclusively for work travel (excluding home-to-work commutes for a fixed workplace), you can claim actual costs or use the km rate. If there is also personal use, use the logbook method to establish business proportion.

Are EWRB licence fees deductible for NZ electricians?

Yes. Annual EWRB (Electrical Workers Registration Board) practising licence fees are a fully deductible professional expense for self-employed electricians.

Can I claim electrical tools under NZ$1,000 immediately?

Yes. Tools, testing equipment, and safety gear costing under NZ$1,000 (GST exclusive) can be expensed in full immediately. Items over NZ$1,000 must be depreciated over their useful life using IRD depreciation rates.

Do NZ electricians need to register for GST?

If your annual contracting revenue exceeds NZ$60,000, GST registration is mandatory. You then add 15% GST to your invoices and can claim back GST on materials, tools, and business costs.