New Zealand Architectural Designer, Draftsperson & Engineering Consultant Tax Guide: IRD IR3, 15% GST, Council Disbursements & Stage Invoicing (2026–27)

Short answer: Under 2026–27 architectural designer tax NZ rules, self-employed New Zealand architectural designers (LBP Design), freelance CAD/BIM draftspeople, structural/geotech consultants, and quantity surveyors report concept-to-consent stage fees on IRD Form IR3 and IR10 (BIC M692100). Once turnover exceeds $60,000 NZD, you must charge 15% GST on design fees and marked-up subconsultants while separating pure Council Building Consent (BC) fee disbursements, write off hardware under $1,000 NZD immediately, and claim $1.17/km Tier 1 site-visit mileage.

⚡ Instant 2026–27 NZ Architectural Designer, Draftsperson & Consultant 15% GST Stage Invoice + IR3 Tax Calculator ($NZD · 100% Free Unlimited iPhone App): Every $1,000 NZD in unlogged Archicad/Revit/AutoCAD licences, LBP Design & ADNZ/NZIA renewals, Professional Indemnity insurance, laser measurers, or $1.17/km site-measure mileage costs a Kiwi architectural designer or consultant $300 to $390 NZD in avoidable IRD income tax, ACC levies, and unclaimed 15% GST input credits. Built for anyone who invoices (LBP architectural designers, freelance CAD/Revit draftspeople, structural/civil engineers, quantity surveyors, interior designers, and planning consultants): calculate your 15% GST and provisional tax reserve or generate a multi-stage design invoice in the interactive NZ 15% GST & NZD Invoice Calculator below (or click 🔗 Embed / CSV Template), email mert@usekeelapp.com for Free .keel Data Setup (or open the Free Invoice & Tax Generator), explore the NZ & Australia Sole Traders Edition, Consultant & Freelancer Edition, or Quotes & Estimates Edition, or Download Keel Free on the App Store ($0/mo Forever · 100% Free Unlimited on iPhone · Zero Bank Login) (au-nz-tradies — keep using the web tool anytime, or issue 15% GST stage invoices and log site visits offline on iPhone).

Across Auckland, Christchurch, Wellington, Tauranga, and Queenstown, thousands of independent Licensed Building Practitioners (LBP Design 1, 2 & 3), architectural designers, freelance CAD/Revit draftspeople, structural and geotechnical engineers, and quantity surveyors (QS) run sole-trader practices.

Architectural and engineering practices in New Zealand deal with a billing structure that frequently trips up general accounting templates: 4-stage project billing (Concept → Developed Design → Building Consent Documentation → RFIs & Contract Observation), Council Building Consent (BC) and Resource Consent (RC) application fees, LINZ title/LIM searches, and sub-consultant coordination markups (10%–15% on structural/geotech reports). Here is the official 2026–27 Inland Revenue (IRD) tax and 15% GST guide.

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How does 15% GST apply to Council Building Consent fees, LINZ searches, and sub-consultant markups in New Zealand?

Once your gross turnover exceeds (or is expected to exceed) $60,000 NZD in any 12-month period, you must register for 15% New Zealand GST under the Goods and Services Tax Act 1985.

When you lodge a Building Consent (BC) via Simpli or Auckland Council / Christchurch City Council on a client’s behalf, or coordinate a structural engineer’s PS1 producer statement, how you re-bill those outlays changes your GST calculation:

Project Outlay / Line Item	IRD Classification (GST Act 1985 s 8 & s 60)	How to Invoice the Client	How It Reports on Your IRD GST Return (GST101A)
1. Architectural Design, CAD Drafting & Observation Stages (Concept, Developed, BC Set, RFIs)	Core taxable professional service	Charge +15% GST on every stage invoice (if on the Payments Basis, you only pay the 15% GST to IRD in the period the client pays your invoice)	Include in Box 5 (Total sales and income)
2. Council Building Consent (BC) / Resource Consent (RC) Fee Paid Directly by Client (or by You Strictly as Client’s Agent at Exact Cost)	Pure Agency Disbursement: The Building Consent application is legally in the property owner’s name, and you either forward the council’s invoice to the client to pay directly or pay it strictly as their agent and pass it through at exact GST-inclusive cost without markup	Itemize on a separate line at the bottom of your invoice: Disbursement Paid as Agent: Auckland Council Building Consent Deposit (Council Tax Invoice Attached in Owner's Name) = $4,250.00 (No additional GST)	Excluded from your Box 5 sales and Box 11 purchases (the homeowner/developer claims the GST if they are GST-registered)
3. Structural Engineer (PS1), Geotech Report, orTopo Survey Contracted in Your Name + 10%–15% Coordination Markup	Principal Supply / On-Charged Cost: You engaged the engineer or surveyor in your practice’s name and re-billed it with a 10% management fee	Charge +15% GST on the entire ex-GST re-billed amount plus your 10% markup (e.g., $2,000 ex-GST engineer fee + $200 coordination fee = $2,200.00 + $330.00 GST = $2,530.00 NZD)	Claim the engineer’s $300 GST in Box 11 (GST on purchases) and report the full $2,530 ($330 GST) in Box 5

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Which IRD IR3 and IR10 tax deductions apply to NZ architectural designers, draftspeople, and engineers in 2026–27?

On your IRD Form IR3 and IR10 financial summary, architectural design and drafting practices use Business Industry Classification (BIC) Code M692100 (Architectural Services) or M692300 (Engineering Design and Consulting Services). Every $1,000 NZD of allowable business expenses saves $300 to $390 NZD in income tax and ACC earners’ levies:

Expense Category	IR10 / IR3 Category	2026–27 IRD Rule & Audit Boundary (Income Tax Act 2007 s DA 1 & s EE 38)	Tax + ACC Saved per $1,000 NZD (30%–39% Bracket)
Archicad, Revit, AutoCAD, SketchUp, Bluebeam, Masterspec & BRANZ Subscriptions	Other Expenses (Software & Technical Subscriptions)	100% deductible (ex-GST): Archicad Solo/Teamwork, Autodesk Revit/AutoCAD, SketchUp, Enscape, Masterspec, BRANZ standards, NZS 3604 handbooks, and cloud storage	$300 – $390 NZD (plus 15% GST input credit)
LBP Design Licence Renewal, ADNZ / NZIA / Engineering NZ Dues & PI Insurance	Insurance & Professional Registration Fees	100% deductible: MBIE Licensed Building Practitioner (LBP Design) annual renewal, ADNZ/NZIA membership, CPD courses, and Professional Indemnity (PI) & Public Liability insurance	$300 – $390 NZD
Leica Laser Measurer, iPad, Calibrated Monitor & Office Gear (<= $1,000 NZD ex-GST)	Low-Value Assets (ITA 2007 s EE 38)	Under s EE 38, any separate asset costing $1,000 NZD or less (ex-GST if GST-registered) can be written off 100% immediately in the year of purchase! High-spec CAD workstations and Mac Studios costing over $1,000 are depreciated at 50% Diminishing Value (DV) or 40% Straight Line (SL)	$300 – $390 NZD
A1/A3 Plan Plotting, LINZ Title/Cadastral Searches & Scale Models	Materials / Project Supplies	100% deductible: commercial plan printing/plotting, Landonline/LINZ title and survey plan fees, and presentation supplies	$300 – $390 NZD
Freelance CAD/BIM Contract Drafters & Specialist Sub-Consultants	Subcontractor Payments ( Box / IR348)	100% deductible. Note: if you pay an individual contract draftsperson under a schedular activity (WT), check whether Withholding Tax applies unless they hold a valid IRD exemption certificate or operate as a company	Full pass-through deduction
Site Measures, Council Meetings & On-Site Observation ($1.17/km IRD Tier 1)	Motor Vehicle Expenses	Use a 90-day IRD vehicle logbook (valid for 3 years) to claim IRD Tier 1 Kilometre Rates ($1.17/km petrol/diesel, $1.08/km EV, $0.86/km hybrid for the first 14,000 total annual km); then $0.37/km petrol ($0.35 diesel, $0.23 hybrid, $0.20 EV) on Tier 2 km	$1,170 deduction per 1,000 Tier 1 km ($351–$456 tax saved)
Dedicated Home Drafting Studio (Square-Metre Method)	Home Office Expenses	Deduct the floor-area percentage (e.g., 14 m² studio / 140 m² house = 10%) of rent or mortgage interest, council rates, house insurance, and power, plus 50% of home fibre broadband and mobile phone plans	$1,800 – $4,800+ NZD/yr

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How should you structure a 4-Stage NZ Architectural Design & Building Consent Invoice (Taxable Supply Information)?

Under Goods and Services Tax Act 1985 s 19E, invoices over $200 NZD must provide complete Taxable Supply Information (TSI) including your 8- or 9-digit IRD/GST number. Structuring your NZ design quote and stage invoices across four clear milestones prevents unpaid variations during council processing:

1. Stage 1 — Site Measure, Planning Check & Concept Design (20%–25% Deposit Upon Engagement): Covers on-site laser measure, district plan daylight/recession-plane check, and 3D concept floorplans.
2. Stage 2 — Developed Design & Sub-Consultant Brief (25%–30% Due Upon Concept Sign-Off): Covers preliminary NZS 3604 framing/bracing layouts, window schedules, and briefing the structural/geotech engineer or QS.
3. Stage 3 — Building Consent (BC) Documentation & LBP Certificate of Design Work (35%–40% Due Prior to Simpli BC Lodgement): State clearly on your quote and invoice: Stage 3 invoice is payable prior to releasing the signed LBP Form 2A Memorandum (Certificate of Design Work) and lodging the Building Consent set on the Simpli portal.
4. Stage 4 — Council RFI Responses & Construction Observation (Hourly at $145–$185/hr + GST + Disbursements): Because council Requests for Further Information (RFIs) vary unpredictably in complexity, always exclude council RFI processing from your fixed Stage 3 fee and bill RFI hours transparently on Stage 4!

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How do ACC levies and Schedular Tax (WT) work for NZ architectural designers and contract draftspeople?

As a self-employed architectural designer or engineering consultant (BIC M692100 / M692300), ACC invoices you annually under CoverPlus based on your net liable earnings on your IR3 return (or you can elect ACC CoverPlus Extra to lock in an agreed weekly compensation amount). Both your ACC Earners’ Levy / Work Levy invoice and any Income Protection insurance with an agreed taxable benefit are deductible against your business income.

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Worked example: 2026–27 IRD IR3 & 15% GST calculation for a Christchurch LBP Architectural Designer earning $118,000 NZD

Suppose a GST-registered Christchurch architectural designer (LBP Design 2) bills $118,000 NZD ex-GST ($135,700 incl. $17,700 GST) in 2026–27:

• Gross Pre-GST Design Income: $118,000 NZD
• Documented Business Expenses ($28,400 NZD ex-GST + $3,810 in Box 11 GST credits):
  • Archicad Solo, Bluebeam, Masterspec, BRANZ & Adobe (ex-GST): $5,420
  • Professional Indemnity (PI) Insurance, LBP Design renewal & ADNZ membership: $3,890
  • Freelance contract Revit draftsperson (overflow BC detailing): $8,500
  • Low-value assets (<= $1,000 laser meter, iPad, A3 printer) + 50% DV depreciation on CAD workstation: $2,640
  • IRD Kilometre Rate Claim (4,400 logged site-measure & inspection km at $1.17/km Tier 1): $5,148
  • Home drafting studio (12% of power, rates, insurance & mortgage interest + 50% fibre/mobile): $2,802
• Net Taxable Profit (IR3): $118,000 - $28,400 = $89,600 NZD
• 2026–27 NZ Income Tax (Updated 31 July 2024+ Brackets):
  • $0 – $15,600 at 10.5% = $1,638.00
  • $15,601 – $53,500 at 17.5% = $6,632.50
  • $53,501 – $78,100 at 30.0% = $7,380.00
  • $78,101 – $89,600 ($11,500) at 33.0% = $3,795.00
  • Total Income Tax: $19,445.50 NZD
• Total Tax + GST Saved: Claiming $3,810 in Box 11 GST credits plus $28,400 in IR3 deductions saves $13,182 NZD in combined income tax, ACC levies, and GST!

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Frequently asked questions

When must a New Zealand architectural designer or freelance draftsperson register for 15% GST? Under the Goods and Services Tax Act 1985 (s 51), you must register for 15% GST once your total taxable turnover exceeds $60,000 NZD in the last 12 months or is expected to exceed $60,000 NZD in the next 12 months. If you register on the Payments Basis (available up to $2 million turnover), you only account for 15% GST in the period the client pays your stage invoice, protecting you when a developer pays 30 days after issue.

Do I charge 15% GST when passing on a Council Building Consent fee to my client? If the Building Consent application on the Simpli portal is in the property owner’s name and you pay the council’s deposit or final fee strictly as the owner’s agent and pass it through at exact GST-inclusive cost with zero markup, it is an agency disbursement — you do not add an extra 15% GST on top, and you attach the council’s Taxable Supply Information for the owner’s records. However, if you add a 10% handling markup or re-bill a sub-consultant who invoiced your practice directly, the entire re-billed line carries 15% GST.

Can an architectural designer or engineer write off a CAD computer and software in one year? Annual or monthly software subscriptions (such as Archicad, Revit, AutoCAD, SketchUp, and Masterspec) are 100% deductible as operating expenses in the year paid. Under ITA 2007 s EE 38, hardware items costing $1,000 NZD or less (ex-GST) can also be written off 100% immediately as low-value assets. A desktop CAD workstation or laptop costing over $1,000 NZD ex-GST must be depreciated over its economic life at IRD’s computer depreciation rate (50% Diminishing Value or 40% Straight Line).

Is Professional Indemnity (PI) insurance and LBP licence renewal 100% tax-deductible? Yes. Your annual MBIE Licensed Building Practitioner (LBP Design) licence fee, ADNZ / NZIA / Engineering NZ membership subscriptions, compulsory CPD training, and Professional Indemnity (PI) and Public Liability insurance premiums are 100% deductible business expenses on your IR3 return (and you can claim the 15% GST component on your GST return if registered).

When does a self-employed NZ designer or consultant fall into IRD Provisional Tax? If your Residual Income Tax (RIT) at the end of the tax year exceeds $5,000 NZD, you must pay Provisional Tax in three instalments during the following tax year (28 August, 15 January, and 7 May under the standard 31 March balance date). Setting aside 25%–30% of every paid stage invoice (plus the 15% GST component in a separate tax sub-account) ensures you never face IRD use-of-money interest (UOMI).

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Last verified November 6, 2026 against Inland Revenue (IRD) IR3/IR10 Sole Trader Guidance, Goods and Services Tax Act 1985 s 8, s 19E & s 60, and Income Tax Act 2007 s DA 1 & s EE 38.