Real estate agent expenses in New Zealand: the complete guide

A New Zealand real estate salesperson spends the working day in the car, which makes vehicle costs the biggest claim and the easiest one to overstate. Inland Revenue gives four routes: a logbook to set the business-use share, 25% of running costs without a logbook, the kilometre rates, or tracked actual costs. Whichever you pick, you stick with it while you own the car. After the car come entertainment at 50%, the home office, marketing that you pay for yourself, and the GST and provisional tax a self-employed salesperson manages alone. This guide walks through the whole ledger with a verdict before the detail. Every figure is sourced to Inland Revenue in the Sources section, retrieved 10 October 2026.

What this guide covers: the four vehicle methods, logbooks, kilometre rates, entertainment, marketing, the home office, equipment, GST and provisional tax, and records.

The salesperson’s ledger at a glance

The rest of this guide walks through each row, and every section opens with its verdict.

Where ExpenseFlow fits

A salesperson’s purchase ledger is fuel receipts, servicing and tyre invoices, parking, personal marketing, portal upgrades, signage and client coffees. ExpenseFlow captures each document (email forward, upload or phone), reads the line items and GST, codes each line with a written reason, and routes anything uncertain to a person before it posts. Its vehicle check comes from the rules on this page: a line that reads as fuel, petrol, servicing, tyres, car insurance, roadside assistance, a car wash or parking is flagged to claim only the business-use share, using a logbook, the 25%-of-running-costs shortcut or the kilometre rate. After approval the bill syncs to Xero with the source document attached, or to QuickBooks Online as a coded bill.

What it does not do: it never keeps the logbook, never applies the Tier 1 and Tier 2 split and never files a GST or income tax return.

The ExpenseFlow for real estate agents page covers these checks across all five countries.

The car: four methods

You can keep a logbook to work out business use, claim up to 25% of running costs without a logbook, use the kilometre rates, or track actual costs with records of private and work-related costs, the reasons for business travel and journey distances ^[1] . Without a logbook the claim is capped at 25% of running costs, and you may be asked to back up the percentage ^[1] . Petrol, diesel, hybrid and electric vehicles can use any method, but you must stick with one for as long as you own the vehicle ^[1] . Depreciation on the business share is claimed alongside actual costs ^[1] .

Logbooks and kilometre rates

A logbook runs for at least 90 consecutive days and records the start and end odometer readings and the date, distance and reason for every business journey ^[2] . The result can be used for up to 3 years if the business-use proportion doesn’t change by more than 20%, and then you keep a new one ^[2] .

For 2025-2026 the Tier 1 rates are $1.20 a km for petrol, $1.30 for diesel, 90 cents for petrol hybrids and $1.22 for electric vehicles ^[3] . Tier 1 covers ownership and running costs for the business share of the first 14,000 km the vehicle travels in the year, private kilometres included; above 14,000 km, Tier 2 covers running costs only at 37, 38, 24 and 23 cents ^[3] .

Entertainment and open homes

Entertainment that isn’t completely business related is 50% deductible and not subject to FBT, including social events and gifts of food and drink; public promotions are 100% deductible ^[4] . You claim the full GST when you pay and make an annual Box 9 adjustment of 15% of the non-deductible GST-exclusive amount ^[5] . Whether open-home refreshments count as a public promotion depends on the facts, so record what was served and who it was for.

Marketing, the home office and equipment

With an area set aside and used mainly for business, the square metre rate of $57.30 for 2025-2026 covers utility-type costs, and mortgage interest, rates and rent are claimed by floor area ^[6] . Assets under the $1,000 low-value threshold are deducted immediately, using the price less GST if you’re registered ^[7] . Separately, a new (or new-to-New Zealand) depreciable asset first available on or after 22 May 2025 qualifies for Investment Boost: 20% of its cost is deducted upfront and the remaining 80% is depreciated ^[10] . The home office guide and vehicle guide cover the detail.

GST, provisional tax and records

You must register for GST once turnover reaches $60,000 in the last or next 12 months ^[8] . Provisional tax applies when residual income tax is more than $5,000 ^[9] . The GST guide, record-keeping guide and year-end checklist cover the rest.

Common mistakes

• Claiming all fuel and servicing with no logbook ^[1] .
• Switching vehicle methods while you still own the car ^[1] .
• Using a logbook older than 3 years, or after business use moved by more than 20% ^[2] .
• Applying the Tier 1 rate past 14,000 km of total travel ^[3] .
• Claiming client lunches at 100% ^[4] .
• Missing the annual GST adjustment on 50% entertainment ^[5] .