Mortgage Broker

Tax guide for New Zealand self-employed mortgage brokers and advisers

Allowable Expenses

• FSCL/NZFSG membership — Financial Services Complaints scheme and industry fees
• Professional indemnity insurance — Required insurance for mortgage advisers
• Software & CRM — Mortgage management software, client CRM, comparison tools
• Client entertainment & networking — 50% deductible client meals and networking events
• Vehicle expenses — Travel to client meetings — km rate or logbook

Tax Tips

• Trail commission income is taxable in the year it is received
• Upfront commissions are taxable income in the year of receipt
• Professional development for mortgage advice is fully deductible

Frequently Asked Questions

How is mortgage broker commission taxed in NZ?

Commission income (both upfront and trail) is included in your gross income as a sole trader and taxed at your marginal income tax rate. Include all commissions received in the relevant tax year on your IR3.